Revenue acceleration from 5.9% to 13.5% with improved dollar-based net retention (99% vs 95%) signals the conversational AI pivot is gaining traction. The $39-40M Q2 guide implies sustained growth. The stock's market cap of $358M against $366M cash suggests the core business is valued near zero — continued profitability and growth could drive a multiple re-rating. Watch for Q2 results and any update on the remaining $43.8M buyback capacity.
Price Chart
Executive Summary
Agora reported Q1 2026 earnings with revenue of $37.7M (+13.5% YoY) and net income of $1.1M, marking its sixth consecutive quarter of GAAP profitability. Revenue growth accelerated from 5.9% in FY2025 to 13.5% in Q1, while operating loss narrowed to $1.6M from $3.7M a year ago. The company guided Q2 2026 revenue of $39-40M (13.7%-16.6% YoY growth). The combination of accelerating top-line growth, expanding profitability, and continued buyback execution makes this a clear bullish event.
Key Facts
- Q1 2026 revenue was $37.7M, up 13.5% YoY from $33.3M
- Net income was $1.1M vs $0.4M in Q1 2025, sixth consecutive quarter of GAAP profitability
- Loss from operations narrowed to $1.6M from $3.7M YoY
- Gross margin declined to 63.4% from 68.0% due to conversational AI product mix at sub-scale
- Active customers grew 3.8% YoY to 3,946; Dollar-Based Net Retention Rate improved to 99% from 95%
- Guided Q2 2026 revenue of $39.0-40.0M, representing 13.7%-16.6% YoY growth
- Total cash and equivalents were $366.1M as of March 31, 2026
- Repurchased $13.1M in shares during Q1, totaling $156.2M (78.1% of $200M program) since inception
- Operating cash flow was $5.7M, down from $17.6M YoY when interest income was much higher
Financial Impact
Revenue growth acceleration to 13.5% vs prior year 5.9% is the key signal; net income doubling to $1.1M confirms improving operating leverage
Risk Factors
- Gross margin compression from conversational AI product mix (63.4% vs 68.0%) could persist as sub-scale AI products scale
- Operating cash flow declined sharply to $5.7M from $17.6M as interest income normalized
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-242899 |
| Document: api-20260528.htm | 0001193125-26-242899 |
| Document: 0001193125-26-242899-index-headers.html | 0001193125-26-242899 |
| Document: 0001193125-26-242899-index.html | 0001193125-26-242899 |
| Document: 0001193125-26-242899.txt | 0001193125-26-242899 |
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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