Revenue growth is steady but decelerating from prior quarters, and gross margin erosion from conversational AI mix is a watch item. The Q2 guidance midpoint of $39.5M implies ~15% YoY growth, in line with Q1's pace. Monitor the Q2 earnings call for updates on conversational AI margin trajectory and cash flow normalization.
Price Chart
Executive Summary
Agora reported Q1 2026 revenue of $37.7M (+13.5% YoY) and net income of $1.1M, marking its sixth consecutive GAAP-profitable quarter. Guidance for Q2 2026 revenue of $39.0M-$40.0M (+13.7%-16.6% YoY) signals continued moderate growth, but gross margin contracted 460bps to 63.4% due to product mix shift toward sub-scale conversational AI products, and operating cash flow fell sharply to $5.7M from $17.6M a year ago.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $37.7M, +13.5% YoY from $33.3M
- Net income $1.1M vs $0.4M YoY; sixth consecutive GAAP-profitable quarter
- Gross margin 63.4%, down 460bps from 68.0% YoY due to conversational AI product mix
- Operating loss improved to -$1.6M from -$3.7M YoY
- Operating cash flow $5.7M vs $17.6M YoY (includes $4.6M vs $17.8M interest received)
- Active Customers 3,946, +3.8% YoY; Dollar-Based Net Retention Rate 99% vs 95% YoY
- Q2 2026 revenue guidance $39.0M-$40.0M, representing 13.7%-16.6% YoY growth
- Repurchased ~$13.1M in shares during Q1; $43.8M remaining under $200M buyback program
Financial Impact
Revenue growth of 13.5% YoY with GAAP profitability maintained, but gross margin compression and lower operating cash flow temper the positive narrative
Risk Factors
- Gross margin compression from conversational AI products may persist as they scale
- Operating cash flow decline of 68% YoY raises questions about cash generation quality
- Dollar-Based Net Retention Rate at 99% suggests limited expansion from existing customers
- China exposure (Shengwang) introduces geopolitical and regulatory risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3301560 |
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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