Agora (API) Q1 2026 earnings summary

Executive summary

• Achieved sixth consecutive quarter of GAAP profitability with net income of $1.1 million, more than doubling year-over-year, driven by accelerating growth in conversational AI and real-time engagement technology.

• Total revenue for Q1 2026 was $37.7 million, up 13.5% year-over-year, exceeding guidance.

• Launched Agent Studio and Intelligent Meeting Engine, expanding AI and enterprise offerings and driving robust customer adoption.

• Strategic partnership with NetEase Smart Enterprise to enhance go-to-market reach and deliver integrated AI and real-time engagement solutions.

• Real-world validation from FasesBI showed AI agents matched human survey conversion rates, enabling scalable operations.

Financial highlights

• Q1 2026 revenue: $37.7 million, up 13.5% year-over-year from $33.3 million.

• Gross profit: $23.9 million, up 5.7% year-over-year; gross margin 63.4% (down from 68% last year) due to product mix.

• Net income: $1.1 million, 2.9% net income margin, more than double Q1 2025.

• Operating cash flow: $5.7 million, down from $17.6 million last year.

• Share repurchase: 12.5 million Class A shares (3.6% of outstanding) for $13.1 million in Q1; $156.2 million spent to date, 78.1% of $200 million program.

Outlook and guidance

• Q2 2026 revenue expected between $39 million and $40 million, up 13.7%-16.6% year-over-year.

• Operating income and net income projected to grow sequentially each quarter in 2026.

• GAAP operating profit targeted for the second half of 2026.