Agora, Inc. (API.US) Q2 Revenue Grows 0.1% YoY, Achieves Third Consecutive Quarter of GAAP Profitability

Stock News
08/19

Agora, Inc. (API.US) announced its second quarter 2025 financial results. The company generated total revenue of $34.3 million in Q2, representing a 0.1% year-over-year increase. Net income reached $1.5 million, compared to a net loss of $9.2 million in the same period last year. Basic and diluted earnings per ADS were $0.02 and $0.01, respectively, versus a loss of $0.10 per ADS in the prior year period.

The China-focused business segment generated revenue of 115.5 million RMB, down 12.4% year-over-year, while the non-China Agora business achieved revenue of $18.2 million, up 16.7% year-over-year.

In terms of customer metrics, as of June 30, 2025, the China-focused business had 1,997 active customers, representing a 1.4% year-over-year increase, while Agora's non-China business had 1,880 active customers, up 12.4% year-over-year.

Regarding cash reserves, as of June 30, 2025, the company held $377.3 million in cash, cash equivalents, bank deposits, and bank wealth management products.

Tony Zhao, Founder, Chairman and Chief Executive Officer, commented: "We are proud to have achieved our third consecutive quarter of GAAP profitability in the second quarter, with steady revenue growth and continued efficiency improvements driving further margin expansion. Since launching our conversational AI engine in March, we have collaborated with multiple clients to develop voice agents for various scenarios. Several solutions are now in practical application, including call centers and AI companion toys. Building on this momentum, we will continue to integrate vertical domain expertise and continuously enhance solution performance. We are increasingly confident that Agora's technology will bring transformative impact to multiple industries including customer service, education, and smart devices."

Looking ahead, based on currently available information, the company expects total revenue for the third quarter of 2025 to be between $34 million and $36 million, representing year-over-year growth of 7.6% to 13.9%.

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