Five consecutive quarters of profit breakthrough! Agora(API.US)Q4 revenue exceeds the upper guidance limit, with conversational AI becoming a new growth engine

Agora (API.US), a leading global provider of real-time interactive technology services, announced its unaudited financial results for Q4 2025 and the full year on March 3 (Tuesday). The financial report shows that Agora achieved $38.2 million in total revenue in Q4 2025, representing a 10.7% year-over-year increase and surpassing the previous guidance range of $37 million to $38 million; net profit for Q4 was $4.9 million, with earnings per share of $0.05.

A more significant milestone is that the company achieved sustained profitability under GAAP standards this quarter, marking five consecutive profitable quarters and successfully completing its first full profitable fiscal year since 2018. This turnaround has completely reversed years of losses, demonstrating resilient growth to the capital markets.

In terms of profitability and cost control, Agora has shown high operational efficiency. Despite impacts from product portfolio changes, gross margin slightly declined to 65.1% in Q4. However, the company optimized its global team structure and reduced stock-based compensation expenses, lowering quarterly operating expenses to $26.1 million, an 8.3% year-over-year decrease.

Both R&D and administrative expenses decreased, reflecting significant gains in workforce efficiency and credit risk management. As of December 31, 2025, Agora held $374.9 million in cash, cash equivalents, and bank deposits, providing solid financial backing for its long-term investments in artificial intelligence.

A key highlight of this year’s financial report is the shift in business growth momentum, especially the commercialization of conversational AI technology, which has become a core growth engine. The conversational AI engine launched by Agora in early 2025 has shown explosive growth over the past year, with usage doubling quarter-over-quarter.

Meanwhile, the company’s technology performance in extreme concurrent scenarios has been validated by the market. During major international events like the Super Bowl, supporting hundreds of thousands of viewers with sub-second low-latency interactions further solidified Agora’s leadership position in the global real-time audio and video (RTE) market. The overseas business, particularly in live shopping and social sectors, continues to expand steadily, contributing to robust incremental revenue.

Looking ahead to 2026, Agora’s management remains optimistic and has provided revenue guidance of $36 million to $37 million for Q1. CEO Zhao Bin emphasized in the earnings call that the company will continue to focus on cutting-edge fields such as conversational AI and embodied intelligence (Physical AI), aiming to empower more intelligent hardware and application scenarios through real-time audio and video technology. Currently, Agora has extended its existing share repurchase plan until February 2027, continuing to return value to investors through capital measures.