Agora's accelerating revenue growth and sustained profitability signal a strong turnaround. The 104% net retention rate and expanding AI use cases suggest durable demand. Monitor Q3 guidance execution and gross margin trajectory as conversational AI scales. The active buyback provides downside support.
Price Chart
Executive Summary
Agora reported Q2 2026 revenue of $40.4M (+18% YoY) and net income of $2.2M, marking its seventh consecutive quarter of GAAP profitability. Revenue growth accelerated from the prior year, driven by real-time engagement services and conversational AI, while gross margin contracted to 63.7% from 66.8% due to product mix. The company guided Q3 revenue of $41-42M (+15.8-18.6% YoY), maintaining strong momentum.
Key Facts
- Q2 2026 revenue $40.4M, +18.0% YoY from $34.3M
- Net income $2.2M vs $1.5M YoY, seventh consecutive GAAP profitable quarter
- Dollar-Based Net Retention Rate improved to 104% from 94% YoY
- Gross margin 63.7% vs 66.8% YoY, down due to conversational AI product mix
- Operating loss narrowed to $1.0M from $3.1M YoY
- Cash and equivalents $361.7M; net cash used in operations $2.1M vs $0.4M YoY
- Q3 2026 revenue guidance $41-42M, representing 15.8-18.6% YoY growth
- Repurchased ~3.8M Class A shares for $3.7M in Q2; $159.9M total under current program
Financial Impact
Revenue growth of 18% YoY to $40.4M, net income up 50% to $2.2M, with Q3 guidance implying continued 16-19% growth
Risk Factors
- Gross margin compression from conversational AI product mix could pressure profitability
- Net cash used in operations increased to $2.1M from $0.4M YoY
- Active customer growth was only 0.4% YoY, indicating limited new customer acquisition
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 10 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (API) — Batch item 1 | 0001193125-26-350691 |
| Document: api-20260814.htm | 0001193125-26-350691 |
| Document: 0001193125-26-350691-index-headers.html | 0001193125-26-350691 |
| Document: 0001193125-26-350691-index.html | 0001193125-26-350691 |
| Document: 0001193125-26-350691.txt | 0001193125-26-350691 |
| 6-K Filing (API) — Batch item 6 | 0001193125-26-350691 |
| Document: api-20260814.htm | 0001193125-26-350691 |
| Document: 0001193125-26-350691-index-headers.html | 0001193125-26-350691 |
| Document: 0001193125-26-350691-index.html | 0001193125-26-350691 |
| Document: 0001193125-26-350691.txt | 0001193125-26-350691 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 14, 2026 10w ago | 6-K | $4.64 | awaiting T+60 | — | $4.45 (−4.09%) |
Aug 13, 2026 10w ago | Press Release | $4.64 | awaiting T+60 | — | $4.45 (−4.09%) |
Jun 11, 2026 19w ago | Institutional Cluster | $4.50 $4.24 | ▼ −5.78% | ▼ −10.17% | $4.45 (−1.11%) |
Jun 1, 2026 20w ago | 6-K | $4.75 $4.12 | ▼ −13.26% | ▼ −14.49% | $4.45 (−6.32%) |
May 28, 2026 21w ago | 6-K | $4.25 $4.36 | ▲ +2.59% | ▲ +0.85% | $4.45 (+4.71%) |
May 26, 2026 21w ago | Press Release | $4.23 $4.32 | ▲ +2.13% | ▲ +0.25% | $4.45 (+5.20%) |
May 12, 2026 23w ago | Press Release | $3.92 $4.46 | ▲ +13.78% | ▲ +9.34% | $4.45 (+13.52%) |
Apr 22, 2026 26w ago | Press Release | $3.73 $3.91 | ▲ +4.83% | ▲ +0.05% | $4.45 (+19.30%) |
Apr 15, 2026 27w ago | 20-F | $3.97 $4.22 | ▲ +6.30% | ▼ −1.84% | $4.45 (+12.09%) |
Mar 2, 2026 33w ago | Press Release | $4.56 $4.23 | ▼ −7.24% | ▼ −17.55% | $4.45 (−2.41%) |
US Market Status
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