Agora Inc. (API) Q2 2026 Earnings Call: Revenue Growth and Voice AI Momentum
Source Tradingkey
Key Takeaways
- Q2 2026 revenue increased 18% year over year to $40.4 million, exceeding the high end of the company’s guidance range and marking a third consecutive quarter of accelerating growth.
- GAAP net income rose 50.3% to $2.2 million, or a 5.4% net margin. This was Agora’s seventh consecutive quarter of GAAP net profitability.
- Dollar-based net retention improved to 104% from 94% a year earlier, supported by real-time engagement demand and growing conversational AI adoption.
- Gross margin declined to 63.7% from 66.8% year over year as conversational AI usage expanded while remaining subscale. It improved slightly from 63.4% in Q1 due to technical optimization.
- Management expects Q3 2026 revenue of $41 million to $42 million, representing year-over-year growth of 15.8% to 18.6%.
- Agora continues to target conversational AI at 5% of revenue on a Q4 or exit-rate basis by year-end, while aiming to achieve quarterly GAAP operating profitability by the end of 2026.
Core Financial Data
| Metric | Q2 2026 | Change / Commentary |
|---|---|---|
| Revenue | $40.4 million | Up 18% year over year |
| Dollar-based net retention | 104% | Up from 94% in Q2 2025 |
| Gross profit | $25.7 million | Up 12.5% year over year |
| Gross margin | 63.7% | 66.8% in Q2 2025; 63.4% in Q1 2026 |
| R&D expenses | $15.4 million | Up 10.2%; 38.1% of revenue |
| Sales and marketing expenses | $6.4 million | Down 1.5%; 15.9% of revenue |
| General and administrative expenses | $5.5 million | Down 9.5%; 13.5% of revenue |
| GAAP operating loss | $1.0 million | Improved from a $3.1 million loss a year earlier |
| GAAP net income | $2.2 million | Up 50.3%; 5.4% net margin |
| Operating cash flow | Negative $2.1 million | Negative $0.4 million in Q2 2025 |
| Cash, deposits and bank-issued financial products | $361.7 million | Balance declined mainly due to annual bonuses and share repurchases |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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