Free cash flow remains erratic, swinging to a negative $3.7 million in 2026Q1, while capital expenditures consumed 24.9% of revenue, highlighting the ongoing liquidity strain.
| Cash from Operations | 15.51M | 27.42M | -14.13M | -13.61M | -44.38M | -20M | 6.56M | 706.42K | 536.1K |
| Operating CF Margin % | - | 19.44% | -10.6% | -9.62% | -27.62% | -11.91% | 4.91% | 1.1% | 1.23% |
| Operating CF Growth % | 251.31% | 294.04% | -3.81% | 69.33% | -121.9% | -404.69% | 829.19% | 31.77% | - |
| Net Income | 10.26M | 9.55M | -42.73M | -87.22M | -120.38M | -72.36M | -3.11M | -6.18M | 376.12K |
| Depreciation & Amortization | 4.92M | 5.95M | 10.12M | 14.58M | 15.88M | 13.94M | 4.46M | 1.87M | 922.35K |
| Stock-Based Compensation | 1.53M | 0 | 22.74M | 24.61M | 32.36M | 31.48M | 11.97M | 3.41M | 2.85M |
| Deferred Taxes | -60.11K | -81.21K | 0 | -212K | -336K | 238K | -336.46M | -336.46K | -358.07K |
| Other Non-Cash Items | 9.26M | 10.38M | 17.64M | 58.69M | 25.29M | 1.4M | 336.46M | 336.46K | 9.5M |
| Working Capital Changes | -10.4M | 1.62M | -21.89M | -24.06M | 2.8M | 5.3M | -6.76M | 1.61M | -3.61M |
| Change in Receivables | 584.79K | 3.39M | -5.11M | -9.1M | -8.03M | -3.69M | -9.79M | -4.81M | -5.61M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 8.95M | 565K | 5.33M | 1.26M |
| Change in Payables | -498.25K | -3.13M | 0 | 3.25M | 5.53M | -734K | 1.75M | 1.12M | 806.51K |
| Cash from Investing | 56.93M | 13.24M | -38.05M | 56.64M | -151.06M | -57.69M | -535.05M | -3.35M | -3.77M |
| Capital Expenditures | -32.27M | -33.7M | -37.79M | -11.72M | -209.87M | -12.47M | -12.88M | -4.8M | -2.26M |
| CapEx % of Revenue | 22.16% | 23.89% | 28.36% | 8.28% | 130.62% | 7.43% | 9.64% | 7.45% | 5.18% |
| Acquisitions | 7.35M | 7.38M | 0 | 2.1M | 56K | -50.43M | 556K | -1.45M | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 34.27M | 0 | 238.44M | -5.04M | 34.16M | -50.49M | -99.01B | 1.45M | -1.51M |
| Cash from Financing | -10.14M | 5.01M | 45.99M | -52.37M | -42.15M | 251.94M | 533.64M | 0 | 65.77M |
| Debt Issued (Net) | 29.4M | 32.19M | 35.79M | 10.91M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -39.72M | -27.18M | -11.06M | -62.91M | -41.13M | 249.95M | 533.63M | 0 | 65.77M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -39.87M | -27.79M | -11.06M | -62.91M | -41.13M | 0 | 0 | 0 | -784.8K |
| Other Financing | 181K | 0 | 21.26M | -366K | -15K | 1.99M | 10K | 0 | 0 |
| Net Change in Cash | -22.03M | -123.51M | -6.35M | -8.65M | -240M | 174.53M | 5.62M | -2.91M | 61.98M |
| Free Cash Flow | -16.77M | -6.29M | -49.38M | -30.46M | -254.25M | -32.47M | -6.31M | -4.1M | -1.72M |
| FCF Margin % | -11.51% | -4.46% | -37.05% | -21.52% | -158.25% | -19.33% | -4.73% | -6.36% | -3.95% |
| FCF Growth % | 46.48% | 87.26% | -62.1% | 88.02% | -682.95% | -414.32% | -54.16% | -137.48% | - |
| FCF per Share | -0.18 | -0.06 | -0.53 | -0.31 | -2.28 | -0.29 | -0.06 | -0.04 | -0.02 |
| FCF Conversion (FCF/Net Income) | -1.63x | 2.87x | 0.33x | 0.16x | 0.37x | 0.28x | -2.11x | -0.11x | 1.43x |
| Interest Paid | 0 | 0 | 0 | 24K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 57K | 0 | 185K | 152K | 55K | 966K | 742K | 411K | 421.56K |
Capital intensity and liquidity
According to recent financial disclosures, the relationship between net income and operating cash flow has fluctuated wildly, with the OCF/NI ratio reaching 5.13 in 2026Q1, suggesting that reported earnings are currently a poor proxy for the actual cash-generating capacity of the underlying business operations.
The significant divergence between net income and operating cash flow indicates that non-cash items and working capital swings are heavily influencing the bottom line. Investors should monitor whether this volatility reflects genuine operational improvements or merely accounting adjustments that mask the underlying cash burn.
As reported in quarterly filings, Agora's free cash flow trajectory has been erratic, swinging from a positive $6.7 million in 2025Q1 to a negative $3.7 million in 2026Q1, highlighting the difficulty in achieving sustainable cash self-sufficiency within the current usage-based revenue model.
The inability to maintain consistent positive free cash flow suggests that the company's cost structure remains highly sensitive to volume fluctuations. This inconsistency warrants further investigation into whether the business can scale without requiring continuous capital injections to cover operational shortfalls.
Based on the company's reported figures, capital expenditures consumed 24.9% of revenue in 2026Q1, a high intensity level that reflects the ongoing necessity of maintaining the SD-RTN infrastructure to remain competitive against larger, better-capitalized hyperscale cloud providers in the real-time communication space.
This elevated capital intensity suggests that Agora is trapped in a cycle of constant reinvestment to prevent technical obsolescence. Such high spending levels may limit the company's ability to pivot toward more profitable, less infrastructure-heavy service offerings in the near term.
As indicated by recent cash flow statements, Agora utilized $13.3 million for share repurchases in 2026Q1, a decision that appears counterintuitive given the company's ongoing negative free cash flow and the potential need for liquidity to fund future R&D or competitive defensive measures.
The prioritization of share repurchases over cash preservation may signal management's attempt to support the stock price, yet it risks depleting the balance sheet during a period of operational uncertainty. Investors should monitor whether this capital allocation strategy is sustainable if revenue growth fails to accelerate.
Quick answers to the most common questions about buying API stock.
Agora, Inc. (API) generated $27.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Agora, Inc. (API) reported negative free cash flow of $6.3M in 2025, indicating capital requirements exceeded cash from operations.
Agora, Inc. (API) spent $33.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Agora, Inc. (API) spent $27.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.