Agora's Q2 Revenue Climbs 18%, Marking Seventh Straight Profitable Quarter
API sits 54% above its 52-week low of $3.14.
Summary
Agora reported Q2 2026 revenue of $40.4 million, up 18% year-over-year, with net income of $2.2 million and a sharp improvement in dollar-based net retention to 104%.
Key Events · Earnings and Guidance · API
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Q2 Revenue Up 18%
Total revenues reached $40.4 million, up from $34.3 million in Q2 2025, driven by real-time engagement expansion in live shopping and financial services.
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Seventh Straight Profitable Quarter
Net income was $2.2 million, up from $1.5 million a year ago, despite a gross margin decline to 63.7% from 66.8% due to product mix.
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Net Retention Jumps to 104%
Dollar-Based Net Retention Rate improved to 104% from 94% in Q2 2025, indicating existing customers are expanding their usage.
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Q3 Guidance Raised
Company expects Q3 2026 revenue of $41–42 million, representing 15.8% to 18.6% year-over-year growth.
Analysis · API · Technology
Agora's second-quarter revenue reached $40.4 million, an 18% year-over-year increase, while net income came in at $2.2 million—the seventh consecutive quarter of GAAP profitability. Dollar-based net retention jumped to 104% from 94% a year ago, signaling that existing customers are spending more. The company also repurchased $3.7 million of stock during the quarter and guided Q3 revenue to $41–42 million, implying continued sequential growth. These results confirm the AI-driven acceleration management has been describing.
At the time of this filing, API was trading at $4.82 on NASDAQ in the Technology sector, with a market capitalization of approximately $451.7M. The 52-week trading range was $3.14 to $5.50. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.