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Agora
(NASDAQ:API)
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Rating:57Neutral
Price Target:
$4.50
▲(9.76% Upside)
Action:Reiterated
Date:09/22/26
The score is driven primarily by stabilizing fundamentals (profitability turnaround and strong balance sheet) but held back by weak cash generation (negative TTM free cash flow and negative TTM EBIT). The earnings call adds support via strong recent growth, improved retention, and upbeat Q3 guidance, while valuation (P/E ~34.9 with no dividend) and only mixed technical momentum keep the overall score in the upper-middle range rather than higher.
Positive Factors
Accelerating revenue and retention
Accelerating revenue and improved retention indicate stronger customer expansion and healthier usage across Agora’s platform. A net retention rate above 100% supports recurring growth from the installed base, while consecutive quarters of acceleration can improve operating leverage as demand scales.
Negative Factors
Negative free cash flow
Negative free cash flow means Agora is not yet fully self-funding after investment needs, even as reported earnings improve. Continued cash outflows can limit financial flexibility and make durable profitability dependent on better conversion of revenue and net income into operating cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue and retention
Accelerating revenue and improved retention indicate stronger customer expansion and healthier usage across Agora’s platform. A net retention rate above 100% supports recurring growth from the installed base, while consecutive quarters of acceleration can improve operating leverage as demand scales.
Read all positive factors
Agora (API) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$404.43M
Dividend YieldN/A
Average Volume (3M)181.29K
Price to Earnings (P/E)35.4
Beta (1Y)2.47
Revenue Growth13.62%
EPS GrowthN/A
CountryUS
Employees543
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.12
Shares Outstanding65,504,800
10 Day Avg. Volume153,084
30 Day Avg. Volume181,291
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)0.67
Price to Sales (P/S)2.65
P/FCF Ratio-79.97
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$6.80Price Target Upside65.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.13
Revenue Forecast (FY)$160.06M
Agora Business Overview & Revenue Model
Company Description
Agora, Inc. operates globally, with a presence in China, the U.S., and other international markets, by delivering a Real-Time Engagement Platform-as-a-Service (RTE-PaaS). Through this platform, the company furnishes software development tools that...
How the Company Makes Money
Agora primarily makes money by selling access to its real-time engagement platform on a usage-based basis, charging customers for consumption of services delivered through its APIs/SDKs and underlying network (for example, based on the volume/dura...
Agora Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call conveyed stronger-than-expected top-line growth (18% YoY), materially higher net income (up 50%), improved retention (DBNR to 104%), healthy product momentum in conversational AI, and disciplined expense management — all positive indicators. Key concerns include a year-over-year gross margin decline (≈3.1 ppt) driven by subscale AI mix, negative operating cash flow for the quarter, and a remaining GAAP operating loss of $1.0M. Conversational AI shows clear upside but remains early and targeted to be ~5% of revenue by year-end, meaning near-term margin pressure and cash investment continue. Overall, positive operational and commercial progress appears to outweigh the near-term financial headwinds.Positive Updates
Revenue Growth Above Guidance
Total revenue of $40.4M in Q2 2026, up 18% year-over-year and above the high end of guidance; third consecutive quarter of accelerating top-line growth.
Negative Updates
Year-over-Year Gross Margin Decline
Gross margin declined to 63.7% from 66.8% in the same period last year (down ~3.1 percentage points), primarily due to product-mix shift as conversational AI usage remains subscale.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth Above Guidance
Total revenue of $40.4M in Q2 2026, up 18% year-over-year and above the high end of guidance; third consecutive quarter of accelerating top-line growth.
Read all positive updates
Company Guidance
Management guided Q3 revenue of $41.0–$42.0 million (implying year‑over‑year growth of 15.8%–18.6%) and reiterated its goal to achieve quarterly GAAP operating profitability by year‑end, while targeting conversational AI to reach roughly a 5% revenue run‑rate by the end of 2026; management noted the outlook is preliminary and subject to change. That guidance is supported by Q2 results: revenue $40.4M (+18% YoY), GAAP net income $2.2M (+50.3% YoY) with a 5.4% net margin, gross profit $25.7M (+12.5% YoY) and 63.7% gross margin, GAAP operating loss of $1.0M (vs. a $3.1M loss a year ago), operating cash flow of -$2.1M, dollar‑based net retention of 104% (vs. 94% a year ago), R&D $15.4M (38.1% of revenue), S&M $6.4M (15.9%), G&A $5.5M (13.5%), cash and equivalents of $361.7M, and share repurchases of ~1M ADS for $3.7M in Q2 (44.6M ADS repurchased for $159.9M to date under a program expiring Feb 2027).Agora Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 151.87M | 141.06M | 133.26M | 141.54M | 160.67M | 167.98M |
| Gross Profit | 97.94M | 93.66M | 85.45M | 89.47M | 99.42M | 104.01M |
| EBITDA | 13.92M | 17.91M | -28.62M | -72.17M | -104.08M | -57.91M |
| Net Income | 11.00M | 9.55M | -42.73M | -87.22M | -120.62M | -72.69M |
Balance Sheet | ||||||
| Total Assets | 733.18M | 721.10M | 699.65M | 674.60M | 800.72M | 945.00M |
| Cash, Cash Equivalents and Short-Term Investments | 344.05M | 219.69M | 269.66M | 216.65M | 427.71M | 755.30M |
| Total Debt | 101.40M | 82.34M | 50.14M | 15.20M | 2.27M | 7.41M |
| Total Liabilities | 176.56M | 158.25M | 126.99M | 69.85M | 72.45M | 78.74M |
| Stockholders Equity | 556.62M | 562.85M | 572.66M | 604.75M | 728.26M | 866.26M |
Cash Flow | ||||||
| Free Cash Flow | -19.10M | -4.68M | -49.38M | -29.54M | -58.54M | -32.47M |
| Operating Cash Flow | 13.57M | 27.23M | -14.13M | -13.61M | -54.43M | -20.00M |
| Investing Cash Flow | 17.91M | 13.31M | -38.05M | 56.64M | -143.89M | -57.69M |
| Financing Cash Flow | 394.66K | 5.01M | 45.99M | -52.37M | -38.99M | 251.94M |
Agora Technical Analysis
Positive
4.10
Price Trends
4.16
Positive
4.16
Positive
4.11
Positive
Market Momentum
>-0.01
Negative
59.81
Neutral
72.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For API, the sentiment is Positive. The current price of 4.1 is below the 20-day moving average (MA) of 4.11, below the 50-day MA of 4.16, and below the 200-day MA of 4.11, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.81 is Neutral, neither overbought nor oversold. The STOCH value of 72.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for API.
Agora Risk Analysis
Agora disclosed 86 risk factors in its most recent earnings report. Agora reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Agora Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $149.93M | 21.03 | 14.58% | 0.97% | 6.55% | 11.41% | |
72 Outperform | $814.44M | -59.23 | -5.41% | ― | -1.04% | -710.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $404.43M | 35.40 | 1.96% | ― | 13.62% | ― | |
55 Neutral | $222.27M | -11.85 | -8.50% | 2.88% | -2.78% | 72.47% | |
52 Neutral | $270.09M | 60.30 | 3.34% | ― | 3.66% | ― |
* Technology Sector Average
API
Agora
4.39
0.46
11.70%
EGHT
8X8
1.99
-0.23
-10.36%
TRAK
ReposiTrak
8.22
-9.17
-52.72%
PUBM
PubMatic
17.77
9.33
110.55%
SMRT
SmartRent
1.19
-0.34
-22.22%
Agora Corporate Events
Agora Posts Strong Q2 2026 Growth as AI Engagement and Share Buybacks Gain Momentum
Aug 14, 2026
Agora, Inc. is a Santa Clara-based provider of conversational AI and real-time engagement technology, offering infrastructure that powers human-to-human and human-to-AI interactions. The company’s platform supports use cases such as live sho...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.