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Agora (API) investor relations material
Agora Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved third consecutive quarter of GAAP profitability in Q2 2025, with expanding margins and solid revenue growth year-over-year.
Q2 GAAP net profit reached $1.5M, a significant turnaround from a net loss last year, with net margin up to 4.3%.
Recognized as a global leader in RTE technology, with balanced revenue from the US, China, and other regions.
Conversational AI Engine launched in March is now in production with customers in call centers and AI-powered toys.
Leadership changes include CTO resignation and new board appointments.
Financial highlights
Q2 2025 total revenue was $34.3M, up 11% year-over-year, with Agora division up 16.7% and Shengwang down 12.4%.
Gross margin for Q2 2025 was 66.8%, improved from 62.0% year-over-year.
Operating expenses for Q2 2025 were $26.5M, down 18.7% year-over-year and representing 77.4% of total revenues.
Net cash used in operating activities was $0.4M, a significant improvement from negative $7.6M last year.
R&D expenses were $14M, down 23% year-over-year, representing 40.8% of total revenues.
Outlook and guidance
Q3 2025 revenue guidance is $34M–$36M, representing 7.6%–13.9% year-over-year growth.
Expect net income to grow sequentially throughout 2025 based on current momentum and visibility.
Committed to maintaining GAAP profitability for the full year 2025.
Gross margin for RTC/RTE business expected to remain stable between 66–68% in coming quarters.
Net margin expected to improve as revenues ramp up; medium to long-term operating margin target is 15–20%.
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