Why is Agora (API) accelerating revenue while buying back shares?

Sonal Goyal

28 October 2026 05:00 PM AEDT

Why is Agora (API) accelerating revenue while buying back shares?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

Second-quarter 2026 Revenue was USD 40.4 million, up 18.0 per cent, with Net Income of USD 2.2 million.
The dollar-based net retention rate was 104 per cent, compared with 94 per cent a year earlier, while active customers rose 0.4 per cent to 3,892.
Third-quarter revenue guidance is USD 41 million to USD 42 million, and the buyback programme expires at the end of February 2027.

Seventh consecutive profitable quarter

Agora, Inc. (NASDAQ:API), the real-time engagement platform company headquartered in Santa Clara, California, reported unaudited second-quarter 2026 results on 13 August 2026. Its American depositary shares each represent four Class A ordinary shares. Figures are in US dollars.

Revenue was USD 40.4 million, up 18.0 per cent from USD 34.3 million. Six-month revenue was USD 78.2 million against USD 67.5 million. Net income was USD 2.2 million against USD 1.5 million, and USD 3.3 million for the half against USD 1.9 million. Founder, chairman and chief executive Tony Zhao described the period as the seventh consecutive quarter of GAAP profitability and another quarter of accelerating growth. Six-month growth of about 16 per cent compares with 18.0 per cent in the quarter, which is consistent with that description.

Revenue mix and customers

Real-time engagement service revenue was USD 39.5 million, while on-premise solution and other revenue was USD 1.0 million. The company operates two divisions, Agora under its own Brand and Shengwang, which is headquartered in Shanghai and serves the China market. The release gives no revenue breakdown between them.

Active customers numbered 3,892, up 0.4 per cent year on year, so growth came from existing customers spending more rather than from a larger base. The dollar-based net retention rate was 104 per cent, compared with 94 per cent in the second quarter of 2025, an improvement of ten percentage points. Adjusted EBITDA is not reported in the release.

Cash and Capital returns

Total cash, cash equivalents, bank deposits and bank financial products were USD 361.7 million at 30 June 2026. Operating Cash Flow was negative USD 2.1 million in the quarter but positive USD 3.6 million for the half, so cash generation remains modest relative to the balance.

The share repurchase programme continues. In the quarter, Agora bought back about 3.8 million Class A shares, equivalent to about 1.0 million ADSs, for about USD 3.7 million. Since the programme began it has repurchased about 178.5 million Class A shares, about 44.6 million ADSs, for about USD 159.9 million. Shares outstanding have fallen to 335.1 million ordinary shares, or 83.8 million ADSs, from 449.8 million, or 112.4 million ADSs, at inception, a reduction of about 25 per cent. The programme expires at the end of February 2027. No Dividend has been declared or announced.

Guidance and what to watch

For the third quarter of 2026, management guided to revenue of USD 41 million to USD 42 million. This is a forecast, not a reported result.

Points to follow include whether growth in customer spending continues while the customer count is flat, whether net retention holds above 100 per cent, and what happens to Buybacks as the programme nears expiry.

FAQs

Q: What was Agora's revenue in the second quarter of 2026?

A: Revenue was USD 40.4 million, up 18.0 per cent from USD 34.3 million. Net income was USD 2.2 million, and the company described it as its seventh consecutive quarter of GAAP profitability.

Q: How much has Agora repurchased since its buyback began?

A: Since the programme began it has repurchased about 178.5 million Class A shares, about 44.6 million ADSs, for about USD 159.9 million. The programme expires at the end of February 2027.

Q: What is Agora's third-quarter 2026 revenue guidance?

A: Management guided to revenue of USD 41 million to USD 42 million. This is a forecast rather than a reported result.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.