• Agora, Inc. Reports Third Quarter 2025 Financial Results

    Источник: Nasdaq GlobeNewswire / 19 ноя 2025 17:00:00   America/New_York

    SANTA CLARA, Calif., Nov. 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

    • Total revenues for the quarter were $35.4 million, an increase of 12.0% from $31.6 million in the third quarter of 2024.
      • Agora: $18.2 million for the quarter, an increase of 15.9% from $15.7 million in the third quarter of 2024.
      • Shengwang: RMB122.4 million ($17.2 million) for the quarter, an increase of 8.4% from RMB112.9 million ($15.9 million) in the third quarter of 2024.
    • Active Customers
      • Agora: 1,968 as of September 30, 2025, an increase of 11.7% from 1,762 as of September 30, 2024.
      • Shengwang: 1,976 as of September 30, 2025, an increase of 0.4% from 1,969 as of September 30, 2024.
    • Dollar-Based Net Retention Rate
      • Agora: 108% for the trailing 12-month period ended September 30, 2025.
      • Shengwang: 90% for the trailing 12-month period ended September 30, 2025.
    • Net income for the quarter was $2.7 million, compared to net loss of $24.2 million in the third quarter of 2024.
    • Total cash, cash equivalents, bank deposits and financial products issued by banks as of September 30, 2025 was $374.3 million.
    • Net cash provided by operating activities for the quarter was $0.7 million, compared to net cash used in operating activities of $4.6 million in the third quarter of 2024.

    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.

    • Research and development expenses were $13.8 million in the third quarter of 2025, a decrease of 52.8% from $29.3 million in the same period last year, primarily due to a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from $10.8 million in the third quarter of 2024 to $0.7 million in the third quarter of 2025.
    • Sales and marketing expenses were $6.5 million in the third quarter of 2025, a decrease of 5.6% from $6.9 million in the same period last year, primarily due to a decrease in personnel costs as the Company optimized its global workforce.
    • General and administrative expenses were $5.0 million in the third quarter of 2025, a decrease of 48.4% from $9.7 million in the same period last year, primarily due to a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from $2.6 million in the third quarter of 2024 to $0.3 million in the third quarter of 2025.

    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

        
    Agora, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited, in US$ thousands)
        
     As of As of
     September 30, December 31,
     2025
    		 2024
    Assets   
    Current assets:   
    Cash and cash equivalents79,781  27,083 
    Short-term bank deposits40,500  168,327 
    Short-term financial products issued by banks45,000  71,464 
    Short-term investments4,632  2,787 
    Restricted cash200  3,745 
    Accounts receivable, net24,857  30,952 
    Prepayments and other current assets14,803  22,593 
    Contract assets122  1,099 
    Held-for-sale assets831  - 
    Total current assets210,726  328,050 
    Property and equipment, net3,921  4,680 
    Construction in progress in relation to the headquarters project72,745  44,486 
    Operating lease right-of-use assets2,574  3,866 
    Intangible assets222  611 
    Long-term bank deposits189,001  35,500 
    Long-term financial products issued by banks20,000  61,400 
    Long-term investments29,405  40,710 
    Land use right, net160,704  161,395 
    Other non-current assets20,806  18,956 
    Total assets710,104  699,654 
    Liabilities and shareholders’ equity   
    Current liabilities:   
    Accounts payable10,611  12,965 
    Advances from customers7,695  8,738 
    Taxes payable1,182  2,210 
    Current operating lease liabilities1,836  1,749 
    Payables for construction costs13,283  12,834 
    Accrued expenses and other current liabilities13,978  19,839 
    Total current liabilities48,585  58,335 
    Long-term payable5  1 
    Long-term operating lease liabilities723  1,922 
    Deferred tax liabilities31  92 
    Long-term borrowings in relation to the headquarters project73,703  46,469 
    Advance in relation to the headquarters project20,409  20,174 
    Total liabilities143,456  126,993 
    Shareholders’ equity:   
    Class A ordinary shares39  39 
    Class B ordinary shares8  8 
    Additional paid-in-capital1,145,259  1,144,238 
    Treasury shares, at cost(85,673)  (72,739) 
    Accumulated other comprehensive loss(10,967)  (12,257) 
    Accumulated deficit(482,018)  (486,628) 
    Total shareholders’ equity566,648  572,661 
    Total liabilities and shareholders’ equity710,104  699,654 
          


    Agora, Inc.
    Condensed Consolidated Statements of Comprehensive Income
    (Unaudited, in US$ thousands, except share and per ADS amounts)
        
     Three Month Ended Nine Month Ended
     September 30, September 30,
     2025  2024  2025  2024 
    Real-time engagement service revenues34,783  30,356  101,172  95,716 
    Real-time engagement on-premise solution and other revenues591  1,217  1,730  3,087 
    Total revenues35,374  31,573  102,902  98,803 
    Cost of revenues12,042  10,524  34,066  36,304 
    Gross profit23,332  21,049  68,836  62,499 
    Operating expenses:      
    Research and development13,817  29,271  41,811  65,551 
    Sales and marketing6,473  6,860  19,229  19,944 
    General and administrative5,029  9,741  17,306  26,349 
    Total operating expenses25,319  45,872  78,346  111,844 
    Other operating income377  134  1,079  914 
    Loss from operations(1,610)  (24,689)  (8,431)  (48,431) 
    Exchange gain576  43  731  108 
    Interest income3,852  3,924  11,193  13,244 
    Interest expense(16)  (86)  (22)  (251) 
    Investment (loss) income(348)  839  1,138  (4,033) 
    Income (loss) before income taxes2,454  (19,969)  4,609  (39,363) 
    Income taxes(107)  -  (191)  (149) 
    Income (loss) from equity in affiliates394  (4,211)  192  (3,373) 
    Net income (loss)2,741  (24,180)  4,610  (42,885) 
    Net income (loss) attributable to ordinary shareholders2,741  (24,180)  4,610  (42,885) 
    Other comprehensive income (loss):      
    Foreign currency translation adjustments1,615  3,197  1,290  2,119 
    Total comprehensive income (loss) attributable to ordinary shareholders4,356  (20,983)  5,900  (40,766) 
           
    Net income (loss) per ADS attributable to ordinary shareholders, basic and diluted      
    Basic0.03  (0.26)  0.05  (0.46) 
    Diluted0.03  (0.26)  0.05  (0.46) 
    Weighted-average shares used in computing net income (loss) per ADS attributable to ordinary shareholders, basic and diluted      
    Basic365,742,857  371,733,050  371,041,046  372,336,342 
    Diluted395,328,829  371,733,050  407,699,601  372,336,342 
           
    Share-based compensation expenses included in:      
    Cost of revenues15  31  91  184 
    Research and development expenses744  10,776  3,081  15,886 
    Sales and marketing expenses227  241  651  838 
    General and administrative expenses288  2,599  929  4,332 
                


    Agora, Inc.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited, in US$ thousands)
        
     Three Month Ended Nine Month Ended
     September 30, September 30,
     2025  2024  2025  2024 
    Cash flows from operating activities:       
    Net income (loss)2,741  (24,180)  4,610  (42,885) 
    Adjustments to reconcile net income (loss) to net cash used in operating activities:       
    Share-based compensation expenses1,274  13,647  4,752  21,240 
    Allowance for current expected credit losses851  2,415  3,867  7,263 
    Depreciation of property and equipment477  788  1,593  2,726 
    Amortization of intangible assets130  131  389  533 
    Amortization of land use right855  856  2,552  2,572 
    Deferred tax expense(20)  (20)  (61)  (82) 
    Amortization of right-of-use asset and interest on lease liabilities527  687  1,605  2,035 
    Investment loss (income)348  (839)  (1,138)  4,033 
    (Income) loss from equity in affiliates(394)  4,211  (192)  3,373 
    Loss on disposal of property and equipment2  1  4  16 
    Changes in assets and liabilities, net of effect of acquisition:       
    Accounts receivable886  (1,627)  2,413  (9,418) 
    Contract assets-  (38)  978  (67) 
    Prepayments and other current assets(4,951)  347  10,340  (12,129) 
    Other non-current assets(905)  (472)  (4,329)  6,668 
    Accounts payable(1,255)  (2,531)  (2,065)  2,042 
    Advances from customers(468)  (41)  (1,113)  316 
    Taxes payable(48)  107  (1,039)  761 
    Operating lease liabilities(340)  (677)  (1,499)  (2,319) 
    Deferred income63  256  175  62 
    Accrued expenses and other liabilities958  2,357  (3,887)  (5,404) 
    Net cash provided by (used in) operating activities731  (4,622)  17,955  (18,664) 
    Cash flows from investing activities:       
    Purchase of property and equipment(413)  (1,333)  (1,285)  (2,297) 
    Purchase of short-term bank deposits(15,422)  -  (50,928)  (43,100) 
    Purchase of short-term financial products issued by banks(50,000)  (50,300)  (65,348)  (70,391) 
    Proceeds from maturity of short-term bank deposits20,854  37,000  199,256  111,241 
    Proceeds from maturity of short-term financial products issued by banks98,353  59,482  134,795  69,511 
    Proceeds from sales of short-term investments240  -  240  - 
    Proceeds from dividends of short-term investments110  -  110  - 
    Purchase of long-term bank deposits(11,000)  (10,500)  (174,001)  (20,500) 
    Purchase of long-term financial products issued by banks-  (32,000)  -  (41,400) 
    Purchase of long-term investments-  (562)  -  (562) 
    Purchase of construction in progress for the headquarters project(12,295)  (10,918)  (26,048)  (21,895) 
    Disposal of property and equipment3  2  34  58 
    Cash received from disposal of long-term investments-  28  -  155 
    Refundable deposit received in relation to disposal of subsidiaries-  -  4,410  - 
    Net cash provided by (used in) investing activities30,430  (9,101)  21,235  (19,180) 
    Cash flows from financing activities:       
    Proceeds from long-term borrowings12,369  11,123  26,503  22,177 
    Proceeds from exercise of employees’ share options58  175  535  550 
    Deposit received in relation to headquarters project-  -  -  19,280 
    Repurchase of Class A ordinary shares(4,746)  (3,913)  (16,850)  (9,667) 
    Net cash provided by financing activities7,681  7,385  10,188  32,340 
    Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash612  819  (225)  678 
    Net increase (decrease) in cash, cash equivalents and restricted cash39,454  (5,519)  49,153  (4,826) 
    Cash, cash equivalents and restricted cash at beginning of period *40,527  37,867  30,828  37,174 
    Cash, cash equivalents and restricted cash at end of period **79,981  32,348  79,981  32,348 
    Supplemental disclosure of cash flow information:       
    Income taxes paid102  24  175  133 
    Cash payments included in the measurement of operating lease liabilities340  677  1,499  2,319 
    Right-of-use assets obtained in exchange for operating lease obligations3  1,812  90  2,325 
    Non-cash financing and investing activities:       
    Proceeds receivable from exercise of employees’ share options35  328  35  328 
    Proceeds receivable from sales of short-term investments35  -  35  - 
    Proceeds receivable for disposal-  -  2,909  - 
    Payables for property and equipment11  33  11  33 
    Payables for construction in progress in relation to the headquarters project9,839  11,614  13,283  11,614 
    Payables for treasury shares, at cost115  24  115  24 

    * includes restricted cash balance    		200  280  3,745  280 
    ** includes restricted cash balance200  230  200  230 
                

    ___________________
    1     One ADS represents four Class A ordinary shares.


    Investor Contact:
investor@agora.io

Media Contact:
press@agora.io

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