Agora (APIN) AI Stock Analysis

Agora

(BMV:APIN)

Rating:―N/A

Action:N/A

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Positive Factors

Accelerating growth and retentionAccelerating revenue and retention above 100% indicate stronger customer expansion and improving commercial momentum. These trends can support durable growth because existing customers are increasing usage, while management’s mid-to-high-teens guidance suggests momentum may persist over the next several quarters.

Negative Factors

Negative free cash flowNegative free cash flow means the business is not yet fully self-funding after investment needs, despite reporting positive net income. Persistent cash leakage could constrain reinvestment flexibility and make the company more dependent on its existing liquidity if operating improvement stalls.

Agora (APIN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 411.43M
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): 35.4
Beta (1Y): -0.26
Revenue Growth: ―
EPS Growth: ―
Country: Mexico
Employees: 543
Sector: Technology
Sector Strength: 61
Industry: Software - Application

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 en...

Agora Earnings Call Summary

Earnings Call Date:Aug 12, 2026(Q2-2026)|% Change Since:3.53%|Next Earnings Date:Nov 23, 2026

Earnings Call SentimentPositive

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.

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 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:APIN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGAN	63Neutral	$149.35M	18.31	10.20%	―	3.06%	-72.26%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RBBN	58Neutral	$277.72M	14.09	4.51%	―	-7.78%	―
EGHT	55Neutral	$301.87M	63.33	3.34%	―	3.66%	―
KLTR	48Neutral	$221.20M	-16.18	-164.67%	―	-0.23%	33.15%

* Technology Sector Average

Performance Comparison

MX:APIN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:APIN	Agora, Inc.	88.00	29.30	49.91%
EGHT	8x8 Inc	2.09	0.23	12.37%
EGAN	eGain Corporation	5.90	-9.56	-61.84%
RBBN	Ribbon Communications	1.55	-1.81	-53.87%
KLTR	Kaltura, Inc.	1.45	-0.07	-4.61%

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.

Agora AI Stock Analysis