Revenue growth showed a modest recovery to 13.8% in 2026Q1, yet the maintenance of a 63.4% gross margin remains under pressure from commoditization in the real-time communication sector.
| Sales/Revenue | 145.65M | 141.06M | 133.26M | 141.54M | 160.67M | 167.98M | 133.56M | 64.43M | 43.66M |
| Revenue Growth % | 9.09% | 5.85% | -5.85% | -11.91% | -4.35% | 25.77% | 107.31% | 47.58% | - |
| Cost of Goods Sold | 50.62M | 47.39M | 47.81M | 52.06M | 61.25M | 63.98M | 47.2M | 20.42M | 12.63M |
| COGS % of Revenue | - | 33.6% | 35.88% | 36.78% | 38.12% | 38.08% | 35.34% | 31.69% | 28.94% |
| Gross Profit | 95.03M | 93.66M | 85.45M | 89.47M | 99.42M | 104.01M | 86.36M | 44.01M | 31.02M |
| Gross Margin % | 65.25% | 66.4% | 64.12% | 63.22% | 61.88% | 61.92% | 64.66% | 68.31% | 71.06% |
| Gross Profit Growth % | - | 9.62% | -4.5% | -10.01% | -4.41% | 20.43% | 96.23% | 41.87% | - |
| Operating Expenses | 103.2M | 103.07M | 138.76M | 144.87M | 203.25M | 184.7M | 91.56M | 50.1M | 30.76M |
| OpEx % of Revenue | - | 73.07% | 104.13% | 102.35% | 126.5% | 109.95% | 68.55% | 77.76% | 70.46% |
| Selling, General & Admin | 48.54M | 49.02M | 59.99M | 68.93M | 92.44M | 76.6M | 43.73M | 26.59M | 17.36M |
| SG&A % of Revenue | - | 34.75% | 45.02% | 48.7% | 57.53% | 45.6% | 32.74% | 41.26% | 39.76% |
| Research & Development | 41.44M | 55.46M | 80.34M | 77.67M | 114.5M | 110.67M | 49.49M | 23.62M | 14.43M |
| R&D % of Revenue | - | 39.32% | 60.29% | 54.87% | 71.27% | 65.88% | 37.06% | 36.67% | 33.04% |
| Other Operating Expenses | -253K | -1.41M | -1.58M | -1.73M | -3.7M | -2.57M | -1.67M | -107.85K | -1.03M |
| Operating Income | -8.17M | -9.41M | -53.31M | -55.4M | -103.82M | -80.69M | -5.19M | -6.09M | 262.57K |
| Operating Margin % | -5.61% | -6.67% | -40.01% | -39.14% | -64.62% | -48.04% | -3.89% | -9.45% | 0.6% |
| Operating Income Growth % | - | 82.35% | 3.76% | 46.64% | -28.66% | -1454.48% | 14.75% | -2419.01% | - |
| EBITDA | -946.36K | -1.41M | -43.19M | -40.82M | -87.94M | -66.75M | -731K | -4.22M | 1.18M |
| EBITDA Margin % | -0.65% | -1% | -32.41% | -28.84% | -54.73% | -39.74% | -0.55% | -6.55% | 2.71% |
| EBITDA Growth % | 97.29% | 96.73% | -5.82% | 53.59% | -31.73% | -9032.01% | 82.68% | -456.25% | - |
| D&A (Non-Cash Add-back) | 7.22M | 8M | 10.12M | 14.58M | 15.88M | 13.94M | 4.46M | 1.87M | 922.35K |
| EBIT | 6.77M | 9.92M | -38.74M | -86.75M | -119.96M | -71.84M | -5.19M | -6.09M | 262.57K |
| Net Interest Income | 14.81M | 15.02M | 16.69M | 18.82M | 9.64M | 8.35M | 2.7M | 626K | 239.18K |
| Interest Income | 14.86M | 15.05M | 16.94M | 18.84M | 9.64M | 8.35M | 2.7M | 625.97K | 239.18K |
| Interest Expense | 46.04K | 36K | 253K | 20K | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 18.81M | 19.26M | 10.84M | -31.4M | -15.89M | 9.18M | 2.64M | 713K | 218.63K |
| Pretax Income | 10.64M | 9.85M | -42.47M | -86.8M | -119.72M | -71.52M | -2.55M | -5.38M | 481.19K |
| Pretax Margin % | 7.31% | 6.98% | -31.87% | -61.32% | -74.51% | -42.57% | -1.91% | -8.34% | 1.1% |
| Income Tax | 411.38K | 323K | 258K | 422K | 663K | 840K | 562K | 801.34K | 105.08K |
| Effective Tax Rate % | 3.86% | 3.28% | -0.61% | -0.49% | -0.55% | -1.17% | -22.02% | -14.91% | 21.84% |
| Net Income | 10.26M | 9.55M | -42.73M | -87.22M | -120.62M | -72.69M | -3.11M | -6.18M | 376.12K |
| Net Margin % | 7.04% | 6.77% | -32.06% | -61.62% | -75.08% | -43.27% | -2.33% | -9.59% | 0.86% |
| Net Income Growth % | 131.22% | 122.36% | 51.01% | 27.69% | -65.95% | -2234.14% | 49.59% | -1742.43% | - |
| Net Income (Continuing) | 10.23M | 9.53M | -42.73M | -87.22M | -120.38M | -72.36M | -3.12M | -6.18M | 376.12K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.11 | 0.10 | -0.46 | -0.88 | -1.08 | -0.64 | -0.03 | -0.06 | 0.00 |
| EPS Growth % | 129.86% | 121.04% | 47.73% | 18.52% | -68.75% | -2033.33% | 50.66% | - | - |
| EPS (Basic) | - | 0.10 | -0.44 | -0.88 | -1.08 | -0.64 | -0.03 | -0.06 | 0.00 |
| Diluted Shares Outstanding | 94.59M | 98.86M | 93.28M | 99.6M | 111.61M | 110.22M | 103.75M | 101.85M | 101.85M |
| Basic Shares Outstanding | 86.9M | 91.97M | 93.28M | 99.6M | 111.61M | 110.22M | 103.75M | 101.85M | 101.85M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Geopolitical and Regulatory Exposure
According to the latest quarterly filings, Agora achieved a 13.8% year-over-year revenue increase in 2026Q1, signaling a potential stabilization after several periods of contraction, though investors should monitor whether this growth is sustainable or merely a reflection of easier year-over-year comparisons in the volatile Chinese market.
The recent uptick in revenue suggests that the company may be finding a floor in its core usage-based segments. However, the lack of consistent, high-single-digit growth over the preceding two years warrants caution regarding the platform's ability to capture new enterprise demand in a competitive landscape.
As reported in financial statements, Agora maintained a gross margin of 63.4% in 2026Q1, which, while resilient, remains susceptible to pricing pressure from hyperscale cloud providers who are increasingly commoditizing the real-time communication infrastructure space that the company relies upon for its primary revenue stream.
The structural gross margin profile appears to be holding steady, yet it remains significantly lower than pure-play software peers due to the inherent bandwidth and co-location costs of the SD-RTN. This suggests that the company lacks the pricing power to fully insulate itself from the infrastructure-heavy nature of its business model.
Based on the company's reported figures, operating expenses have been significantly curtailed, with R&D costs dropping to zero in 2026Q1, a development that suggests management is prioritizing short-term profitability over the long-term technical innovation that historically defined the company's competitive moat in the RTC sector.
The shift toward operating income near break-even levels appears to be driven more by aggressive cost-cutting than by organic operating leverage. Investors should investigate whether this reduction in R&D spending will impair the company's ability to maintain its technical performance edge against well-capitalized competitors.
As indicated by recent income statements, the transition to positive net income in early 2026 appears heavily influenced by the cessation of stock-based compensation expenses, which previously acted as a significant drag on earnings and obscured the underlying cash-generating capability of the core business operations.
The sudden improvement in net income warrants skepticism, as it coincides with a notable reduction in non-cash compensation charges rather than a fundamental expansion in operating margins. This suggests that the reported profitability may not be as durable as the headline figures might initially imply to casual observers.
Based on an analysis of the income statement, the primary risk to the current narrative is the potential for margin compression if the company is forced to reinvest in R&D to remain competitive, as the current path to profitability appears reliant on unsustainable reductions in essential operating expenditures.
Short-sellers would likely focus on the fact that the company's recent profitability is achieved through extreme expense discipline that may not be repeatable. If competitive pressures necessitate a return to higher R&D spending, the company's fragile path to GAAP profitability could be quickly reversed.
Quick answers to the most common questions about buying API stock.
For fiscal year 2025, Agora, Inc. (API) reported total revenue of $141.1M. This represents a 223.1% increase compared to $43.7M in 2018.
Agora, Inc. (API) is profitable, generating $9.6M in net income for the fiscal year ending 2025 with a net profit margin of 6.8%.
Agora, Inc. (API) reported an operating income of $-9.4M, resulting in an operating profit margin of -6.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Agora, Inc. (API) generated $93.7M in gross profit for the year, representing a gross profit margin of 66.4%. This demonstrates the company's core pricing power and production efficiency.