Agora (NASDAQ:API – Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.01 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.18, Zacks reports. Agora had a net margin of 6.75% and a return on equity of 1.68%.
Here are the key takeaways from Agora’s conference call:
- Agora posted another strong quarter with Q1 2026 revenue of $37.7 million, up 13.5% year over year and above the high end of guidance. Management also said this was the company’s sixth consecutive quarter of GAAP profitability, with net income of $1.1 million.
- AI products are becoming a bigger focus, with Agent Studio and Conversational AI gaining traction in customer service, sales, and marketing use cases. Management said usage of the Conversational AI Engine has grown more than 150% sequentially each quarter since launch, though revenue contribution is still small.
- The company highlighted early validation from real-world deployments, including a customer survey and polling agent that matched 10% of human-agent conversion rates. It also expects call center and IoT applications to be the biggest AI revenue contributors this year.
- Guidance points to further acceleration, with Q2 2026 revenue expected between $39 million and $40 million, implying 13.7% to 16.6% year-over-year growth. Management said it expects revenue growth to be faster than Q1 even at the low end of the range.
- Management expressed confidence that operating profitability will improve, targeting GAAP operating profit in the second half of 2026 and expecting net income to rise sequentially through the year. They also noted strong cash reserves of $366.1 million and continued share repurchases under the company’s buyback program.
Agora Trading Up 3.6%
Shares of Agora stock opened at $3.77 on Wednesday. Agora has a 1 year low of $3.14 and a 1 year high of $5.15. The company has a debt-to-equity ratio of 0.14, a quick ratio of 4.58 and a current ratio of 4.58. The company has a market capitalization of $329.18 million, a P/E ratio of 41.89 and a beta of 0.73. The company’s fifty day moving average is $3.73 and its two-hundred day moving average is $3.97.
Analysts Set New Price Targets
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Institutional Trading of Agora
Several hedge funds have recently made changes to their positions in API. Marshall Wace LLP lifted its stake in shares of Agora by 213.0% in the 2nd quarter. Marshall Wace LLP now owns 460,210 shares of the company’s stock worth $1,753,000 after acquiring an additional 313,175 shares during the period. Police & Firemen s Retirement System of New Jersey acquired a new stake in shares of Agora in the 4th quarter worth $85,000. Finally, New York State Common Retirement Fund lifted its stake in shares of Agora by 78.6% in the 4th quarter. New York State Common Retirement Fund now owns 27,223 shares of the company’s stock worth $111,000 after acquiring an additional 11,980 shares during the period. Institutional investors and hedge funds own 40.40% of the company’s stock.
About Agora
Agora, Inc operates a Real-Time Engagement (RTE) platform that enables developers to embed voice, video and interactive broadcasting capabilities into mobile and web applications. By providing a suite of software development kits (SDKs) and application programming interfaces (APIs), the company delivers low-latency audio and video streaming, real-time messaging and live interactive streaming services. Its platform is designed to support high-quality interactions across various network environments, making it suitable for use cases in social media, online gaming, distance learning, telehealth and enterprise communication.
The company’s core offerings include voice and video calling SDKs, interactive broadcast SDKs for one-to-many streaming, real-time messaging services and data stream APIs for synchronized data exchange.
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