Agora, Inc. Reports Third Quarter 2025 Financial Results

SANTA CLARA, Calif., November 19, 2025 (GLOBE NEWSWIRE) – Agora, Inc. (NASDAQ: API) (the “Company”), a pioneer and leader in conversational AI and real-time engagement technology, today announced its unaudited financial results for the third quarter ended September 30, 2025.

“We’re pleased to report our fourth consecutive quarter of GAAP profitability in Q3, supported by double-digit revenue growth and expanding margins,” said Tony Zhao, Founder, Chairman, and CEO of Agora, Inc. “Our core real-time engagement platform-as-a-service business is rebounding strongly and is on track to deliver its first full-year revenue growth since the pandemic—providing a stable, profitable foundation for the company. At the same time, we’re significantly increasing our investment in conversational AI. Recent product launches—including Conversational AI Engine 2.0 and Conversational AI Studio—are designed to help developers build more natural, human-like voice agents with greater ease. Early adoption from customers worldwide is encouraging, and our pipeline of use cases and prospects continues to grow heading into next year.”

Third Quarter 2025 Highlights

Third Quarter 2025 Financial Results

Revenues

Total revenues were $35.4 million in the third quarter of 2025, an increase of 12.0% from $31.6 million in the same period last year. Revenues of Agora were $18.2 million in the third quarter of 2025, an increase of 15.9% from $15.7 million in the same period last year, primarily due to our business expansion and usage growth in sectors such as live shopping. Revenues of Shengwang were RMB122.4 million ($17.2 million) in the third quarter of 2025, an increase of 8.4% from RMB112.9 million ($15.9 million) in the same period last year, primarily due to increase in revenues from certain sectors such as social and entertainment and Internet of Things.

Cost of Revenues

Cost of revenues was $12.0 million in the third quarter of 2025, an increase of 14.4% from $10.5 million in the same period last year, primarily due to the increase in bandwidth usage and co-location costs.

Gross Profit and Gross Margin

Gross profit was $23.3 million in the third quarter of 2025, an increase of 10.8% from $21.0 million in the same period last year. Gross margin was 66.0% in the third quarter of 2025, a decrease of 0.7% from 66.7% in the same period last year, mainly due to product mix change.

Operating Expenses

Operating expenses were $25.3 million in the third quarter of 2025, a decrease of 44.8% from $45.9 million in the same period last year.

Loss from Operations

Loss from operations was $1.6 million in the third quarter of 2025, compared to $24.7 million in the same period last year.

Interest Income

Interest income was $3.9 million in the third quarter of 2025, flat compared to the same period last year.

Investment (Loss) Income

Investment loss was $0.3 million in the third quarter of 2025, compared to investment income of $0.8 million in the same period last year, primarily due to the impairment losses of $2.5 million on an investment in certain private company, which was offset partially by the increase in fair value of an equity investment of $1.9 million in the third quarter of 2025, whereas there were no material transactions in the same period last year.

Net Income (Loss)

Net income was $2.7 million in the third quarter of 2025, compared to net loss of $24.2 million in the same period last year.

Net Income (Loss) per American Depositary Share attributable to Ordinary Shareholders

Basic and diluted net income per American Depositary Share (“ADS”)1 attributable to ordinary shareholders was $0.03 in the third quarter of 2025, compared to basic and diluted net loss per ADS of $0.26 in the same period last year.

Share Repurchase Program

During the three months ended September 30, 2025, the Company repurchased approximately 5.2 million of its Class A ordinary shares (equivalent to approximately 1.3 million ADSs) for approximately US$4.8 million under its share repurchase program, representing 2.4% of its US$200 million share repurchase program.

As of September 30, 2025, the Company had repurchased approximately 150.1 million of its Class A ordinary shares (equivalent to approximately 37.5 million ADSs) for approximately US$132.1 million under its share repurchase program, representing 66.0% of its US$200 million share repurchase program.

As of September 30, 2025, the Company had 359.3 million ordinary shares (equivalent to approximately 89.8 million ADSs) outstanding, compared to 449.8 million ordinary shares (equivalent to approximately 112.5 million ADSs) outstanding as of January 31, 2022 before the share repurchase program commenced.

The current share repurchase program will expire at the end of February 2026.

Financial Outlook

Based on currently available information, the Company expects total revenues for the fourth quarter of 2025 to be between $37 million and $38 million, representing year-over-year growth of 7.2% to 10.1%. This outlook reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.

Earnings Call

The Company will host a conference call to discuss the financial results at 5 p.m. Pacific Time / 8 p.m. Eastern Time on November 19, 2025. Details for the conference call are as follows:

Event title: Agora, Inc. 3Q 2025 Financial Results

The call will be available at https://edge.media-server.com/mmc/p/md2g2hph

Investors who want to hear the call should log on at least 15 minutes prior to the broadcast. Participants may register for the call with the link below.

https://register-conf.media-server.com/register/BI18c8512affb74b59844ce871bc87edde

Please visit the Company’s investor relations website at https://investor.agora.io on November 19, 2025 to view the earnings release and accompanying slides prior to the conference call.

Operating Metrics

The Company also uses other operating metrics included in this press release and defined below to assess the performance of its business.

Active Customers

An active customer at the end of any period is defined as an organization or individual developer from which the Company generated more than $100 of revenue during the preceding 12 months, excluding customers from Easemob. Customers are counted based on unique customer account identifiers. Generally, one software application uses the same customer account identifier throughout its life cycle while one account may be used for multiple applications.

Dollar-Based Net Retention Rate

Dollar-Based Net Retention Rate is calculated for a trailing 12-month period by first identifying all customers in the prior 12-month period, and then calculating the quotient from dividing the revenue generated from such customers in the trailing 12-month period by the revenue generated from the same group of customers in the prior 12-month period. As the vast majority of revenue generated from Agora’s customers is denominated in U.S. dollars, while the vast majority of revenue generated from Shengwang’s customers is denominated in Renminbi, Dollar-Based Net Retention Rate is calculated in U.S. dollars for Agora and in Renminbi for Shengwang, which has substantially removed the impact of foreign currency translations. Shengwang excluded the revenues from certain end-of-sale products.

The Company believes Dollar-Based Net Retention Rate facilitates operating performance comparisons on a period-to-period basis.

Safe Harbor Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding the Company’s financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. Among other things, the Financial Outlook in this announcement contain forward-looking statements. These forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties. The Company’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the growth of the RTE-PaaS market; the Company’s ability to manage its growth and expand its operations; the Company’s ability to attract new developers and convert them into customers; the Company’s ability to retain existing customers and expand their usage of its platform and products; the Company’s ability to drive popularity of existing use cases and enable new use cases, including through quality enhancements and introduction of new products, features and functionalities; the Company’s fluctuating operating results; competition; the effect of broader technological and market trends on the Company’s business and prospects; general economic conditions and their impact on customer and end-user demand; and other risks and uncertainties included elsewhere in the Company’s filings with the Securities and Exchange Commission (“SEC”), including, without limitation, the final prospectus related to the IPO filed with the SEC on June 26, 2020. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

About Agora, Inc.

Agora, Inc. is the holding company of two independent businesses, Agora and Shengwang.

Headquartered in Santa Clara, California, Agora is a pioneer and global leader in conversational AI and Real-Time Engagement Platform-as-a-Service (PaaS), providing developers with simple, flexible, and powerful application programming interfaces, or APIs, to embed real-time conversational AI, video, voice, chat and interactive streaming into their applications.

Headquartered in Shanghai, China, Shengwang is a pioneer and leading conversational AI and Real-Time Engagement PaaS provider in the China market.

For more information on Agora, please visit: www.agora.io

For more information on Shengwang, please visit: www.shengwang.cn

Investor Contact:

investor@agora.io

Media Contact:

press@agora.io

Agora, Inc.

Condensed Consolidated Balance Sheets

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Agora, Inc.

Condensed Consolidated Statements of Comprehensive Income

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Agora, Inc.

Condensed Consolidated Statements of Cash Flows

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