Key Highlights

  • 40.4 million USD was the total Revenue Agora, Inc. (NASDAQ:API) reported for the second quarter of 2026, an increase of 18.0% from USD 34.3 million in the same quarter a year earlier.
  • 41 million USD to USD 42 million is the third quarter 2026 revenue guidance range issued by management, representing year-over-year growth of 15.8% to 18.6% for the quarter ending September 30.
  • 361.7 million USD was the total of cash, cash equivalents, bank deposits and bank financial products held by Agora, Inc. (NASDAQ:API) at June 30, 2026, after positive Operating Cash Flow of USD 3.6 million in the first half.
  • 63.7% was the second quarter gross margin, down from 66.8% a year earlier, while the loss from operations narrowed to USD 1.0 million from USD 3.1 million and Net Income rose to USD 2.2 million.

What Investors Expect From Agora, Inc. (NASDAQ:API) on November 16, 2026

Agora has announced that it will release its third quarter 2026 financial results after the close of U.S. markets on Monday, November 16, 2026, with a conference call at 8 p.m. ET, or 5 p.m. PT. The real-time engagement company, which operates the Agora platform globally and Shengwang in China, has a market Capitalization of roughly USD 364 million. Management guided third quarter revenue to USD 41 million to USD 42 million, which implies a calculated midpoint of USD 41.5 million, or about 2.7% above the second quarter total.

The Rationale: Last Reported Quarter and Management Outlook for Agora, Inc. (NASDAQ:API)

Second quarter revenue of USD 40.4 million comprised USD 39.5 million of real-time engagement service revenue and USD 1.0 million of on-premise solution and other revenue. Cost of revenues rose 28.9% to USD 14.7 million, which lifted Gross Profit 12.5% to USD 25.7 million. Operating expenses totaled USD 27.3 million, split among Research and Development of USD 15.4 million, sales and Marketing of USD 6.4 million and general and administrative expense of USD 5.5 million. Net income was USD 2.2 million, or USD 0.02 per diluted ADS, versus USD 1.5 million a year earlier. Active customers numbered 3,892, and the dollar-based net retention rate was 104%, against 94% a year earlier.

Valuation, Liquidity and Risks for Agora, Inc. (NASDAQ:API)

Cash and cash equivalents alone were USD 72.7 million, while the broader liquidity pool reached USD 361.7 million. Operating cash flow was negative USD 2.1 million in the second quarter. During the quarter the company repurchased about 3.8 million Class A shares, or roughly 1.0 million ADSs, for about USD 3.7 million. Cumulative repurchases under the current program total about 178.5 million Class A shares for about USD 159.9 million, and the program runs until the end of February 2027. Shares outstanding were 335.1 million ordinary shares, or 83.8 million ADSs, at an ADS ratio of four. Risks include gross Margin compression and an active customer base that grew only 0.4%.

Where Things Stand

Agora, Inc. (NASDAQ:API) heads into its November 16, 2026 report with revenue growth of 18.0% and a return to profitability on a net basis, yet with margins under pressure. Gross margin slipped to 63.7% from 66.8%, and operating expenses of USD 27.3 million still exceeded gross profit of USD 25.7 million, leaving an operating loss of USD 1.0 million. The Balance Sheet is a clear strength, with USD 361.7 million of cash and financial products and a share count of 83.8 million ADSs. Guidance of USD 41 million to USD 42 million for the third quarter sets the benchmark that management will be measured against.