Agora (NASDAQ:API) Announces Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Agora (NASDAQ:API) released its quarterly earnings data on Tuesday. The company reported $0.01 earnings per share for the quarter, topping the consensus estimate of ($0.17) by $0.18, Zacks reports. Agora had a net margin of 7.03% and a return on equity of 1.81%. The business had revenue of $37.75 million for the quarter, compared to analyst estimates of $37.01 million.

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 Stock Performance

Shares of API opened at $4.23 on Thursday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 4.58 and a current ratio of 4.58. Agora has a twelve month low of $3.14 and a twelve month high of $5.15. The firm’s 50 day moving average price is $3.74 and its two-hundred day moving average price is $3.97. The firm has a market cap of $369.36 million, a P/E ratio of 42.30 and a beta of 0.73.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. New York State Common Retirement Fund lifted its stake in Agora by 78.6% in the fourth quarter. New York State Common Retirement Fund now owns 27,223 shares of the company’s stock valued at $111,000 after buying an additional 11,980 shares in the last quarter. Police & Firemen s Retirement System of New Jersey bought a new position in Agora in the fourth quarter valued at approximately $85,000. Finally, Marshall Wace LLP lifted its stake in Agora by 213.0% in the second quarter. Marshall Wace LLP now owns 460,210 shares of the company’s stock valued at $1,753,000 after buying an additional 313,175 shares in the last quarter. Institutional investors own 40.40% of the company’s stock.

Analyst Upgrades and Downgrades

API has been the topic of several recent analyst reports. Zacks Research lowered shares of Agora from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 9th. Bank of America reissued a “buy” rating on shares of Agora in a research note on Wednesday. Finally, Wall Street Zen raised shares of Agora from a “hold” rating to a “buy” rating in a research note on Saturday, April 4th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold”.

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.