"We are pleased to report our fifth consecutive quarter of GAAP profitability, marking our first full year of profitability since 2018, driven by sustained double-digit revenue growth," said Tony Zhao, Founder, Chairman, and CEO of Agora, Inc. "Our platform's scalability was validated during a high-profile Super Bowl live shopping event, where we streamed full HD video to nearly 600,000 peak concurrent viewers worldwide while enabling their interactions at sub-second latency. We are also seeing rapid adoption of our Conversational AI engine; since its launch in March 2025, usage has more than doubled each quarter. We started 2026 with strong reception of our conversational AI solutions for Physical AI at CES in January, highlighted by our leading vision and motion control capabilities, and we remain focused on driving revenue growth and advancing conversational AI innovation throughout 2026."
Fourth Quarter 2025 Highlights
Total revenues for the quarter were $38.2 million, an increase of 10.7% from $34.5 million in the fourth quarter of 2024.
Agora: $19.9 million for the quarter, an increase of 14.4% from $17.4 million in the fourth quarter of 2024.
Shengwang: RMB129.2 million ($18.3 million) for the quarter, an increase of 5.7% from RMB122.2 million ($17.1 million) in the fourth quarter of 2024.
Active Customers
Agora: 2,085 as of December 31, 2025, an increase of 21.0% from 1,723 as of December 31, 2024.
Shengwang: 1,876 as of December 31, 2025, a decrease of 5.2% from 1,979 as of December 31, 2024.
Dollar-Based Net Retention Rate
Agora: 109% for the trailing 12-month period ended December 31, 2025.
Shengwang: 89% for the trailing 12-month period ended December 31, 2025.
Net income for the quarter was $4.9 million, compared to $0.2 million in the fourth quarter of 2024.
Total cash, cash equivalents, bank deposits and financial products issued by banks as of December 31, 2025 was $374.9 million.
Net cash provided by operating activities for the quarter was $9.3 million, compared to $4.5 million in the fourth quarter of 2024.
Fiscal Year 2025 Highlights
Total revenues in 2025 were $141.1 million, an increase of 5.9% from $133.3 million in 2024, which included revenue from certain end-of-sale products of $6.6 million.
Agora: $74.9 million in 2025, an increase of 16.1% from $64.5 million in 2024.
Shengwang: RMB472.7 million ($66.2 million) in 2025, a decrease of 3.5% from RMB489.6 million ($68.8 million) in 2024. Certain end-of-sale products generated revenue of nil for the year and RMB47.4 million ($6.6 million) in 2024.
Net income in 2025 was $9.5 million, compared to net loss of $42.7 million in 2024.
Net cash provided by operating activities in 2025 was $27.2 million, compared to net cash used in operating activities of $14.1 million in 2024.
Fourth Quarter 2025 Financial Results
RevenuesTotal revenues were $38.2 million in the fourth quarter of 2025, an increase of 10.7% from $34.5 million in the same period last year. Revenues of Agora were $19.9 million in the fourth quarter of 2025, an increase of 14.4% from $17.4 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 RMB129.2 million ($18.3 million) in the fourth quarter of 2025, an increase of 5.7% from RMB122.2 million ($17.1 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 RevenuesCost of revenues was $13.3 million in the fourth quarter of 2025, an increase of 15.8% from $11.5 million in the same period last year, primarily due to the increase in bandwidth usage, co-location costs and AI-related costs.
Gross Profit and Gross MarginGross profit was $24.8 million in the fourth quarter of 2025, an increase of 8.2% from $22.9 million in the same period last year. Gross margin was 65.1% in the fourth quarter of 2025, a decrease of 1.5% from 66.6% in the same period last year, mainly due to product mix change.
Operating ExpensesOperating expenses were $26.1 million in the fourth quarter of 2025, a decrease of 8.3% from $28.5 million in the same period last year.
Research and development expenses were $13.6 million in the fourth quarter of 2025, a decrease of 7.7% from $14.8 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 $1.2 million in the fourth quarter of 2024 to $0.2 million in the fourth quarter of 2025.
Sales and marketing expenses were $7.1 million in the fourth quarter of 2025, a decrease of 2.1% from $7.3 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 $5.4 million in the fourth quarter of 2025, a decrease of 16.5% from $6.4 million in the same period last year, primarily due to a decrease in allowance for current expected credit loss, mainly as a result of improved customer credit conditions and collection outcomes.
Loss from OperationsLoss from operations was $1.0 million in the fourth quarter of 2025, compared to $4.9 million in the same period last year.
Interest IncomeInterest income was $3.9 million in the fourth quarter of 2025, compared to $3.7 million in 2024, primarily due to the increase in the average balance of cash, cash equivalents and long-term bank deposits.
Net IncomeNet income was $4.9 million in the fourth quarter of 2025, compared to $0.2 million in the same period last year.
Net Income per American Depositary Share attributable to Ordinary ShareholdersBasic and diluted net income per American Depositary Share ("ADS")1 attributable to ordinary shareholders was $0.05 in the fourth quarter of 2025, compared to basic and diluted net income per ADS of $0.002 in the same period last year.
Fiscal Year 2025 Financial Results
RevenuesTotal revenues in 2025 were $141.1 million, an increase of 5.9% from $133.3 million in 2024. Revenues of Agora were $74.9 million in 2025, an increase of 16.1% from $64.5 million in 2024, primarily due to our business expansion and usage growth in sectors such as live shopping. Revenues of Shengwang were RMB472.7 million ($66.2 million) in 2025, a decrease of 3.5% from RMB489.6 million ($68.8 million) in 2024, primarily due to a decrease in revenues of RMB 47.4 million ($6.6 million) due to the end-of-sale of certain products, which was offset partially by the increase in revenues from certain sectors such as social and entertainment and Internet of Things.
Cost of RevenuesCost of revenues in 2025 was $47.4 million, a decrease of 0.9% from $47.8 million in 2024, primarily due to the end-of-sale of certain products, which was offset partially by the increase in bandwidth usage and co-location costs.
Gross Profit and Gross MarginGross profit in 2025 was $93.7 million, an increase of 9.6% from $85.4 million in 2024. Gross margin in 2025 was 66.4%, an increase of 2.3% from 64.1% in 2024 mainly due to the end-of-sale of certain low-margin product.
Operating ExpensesOperating expenses in 2025 were $104.5 million, a decrease of 25.5% from $140.3 million in 2024.
Research and development expenses in 2025 were $55.5 million, a decrease of 31.0% from $80.3 million in 2024, primarily due a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from $17.1 million in 2024 to $3.3 million in 2025.
Sales and marketing expenses in 2025 were $26.4 million, a decrease of 3.2% from $27.2 million in 2024, primarily due to a decrease in personnel costs as the Company optimized its global workforce.
General and administrative expenses in 2025 were $22.7 million, a decrease of 30.8% from $32.8 million in 2024, primarily due to a decrease in personnel costs as the Company optimized its global workforce, as well as a decrease in allowance for current expected credit loss, mainly as a result of improved customer credit conditions and collection outcomes.
Loss from OperationsLoss from operations in 2025 was $9.4 million, compared to $53.3 million in 2024.
Interest IncomeInterest income in 2025 was $15.1 million, compared to $16.9 million in 2024, primarily due to the decrease in average interest rate.
Investment Income (Loss)Investment income in 2025 was $1.5 million, compared to investment loss of $3.3 million in 2024, primarily due to the increase in fair value of an equity investment of $2.3 million in 2025, compared to a decrease of $5.0 million in 2024.
Other incomeOther income in 2025 was $1.2 million, compared to $0.8 million in 2024, primarily due to the increase of income of incentive payments from a depositary bank.
Net Income (Loss)Net income in 2025 was $9.5 million, compared to net loss of $42.7 million in 2024.
Net Income (Loss) per ADS attributable to ordinary shareholdersBasic and diluted net income per American Depositary Share ("ADS") attributable to ordinary shareholders were $0.10 in 2025, compared to basic and diluted net loss per ADS of $0.46 in 2024.
Share Repurchase Program
During the three months ended December 31, 2025, the Company repurchased approximately 12.0 million of its Class A ordinary shares (equivalent to approximately 3.0 million ADSs) for approximately US$11.1 million under its share repurchase program, representing 5.5% of its US$200 million share repurchase program.
As of December 31, 2025, the Company had repurchased approximately 162.2 million of its Class A ordinary shares (equivalent to approximately 40.5 million ADSs) for approximately US$143.1 million under its share repurchase program, representing 71.6% of its US$200 million share repurchase program.
As of December 31, 2025, the Company had 349.3 million ordinary shares (equivalent to approximately 87.3 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 board of directors has authorized an extension of the existing share repurchase program through February 28, 2027, with all other terms remaining unchanged.
Financial Outlook
Based on currently available information, the Company expects total revenues for the first quarter of 2026 to be between $36 million and $37 million, representing year-over-year growth of 8.1% to 11.1%. 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 March 2, 2026. Details for the conference call are as follows:Event title: Agora, Inc. 4Q 2025 Financial ResultsThe call will be available at https://edge.media-server.com/mmc/p/9jcg52bqInvestors 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/BI50cb6a6dcafc4d2b905d0fed1148e037Please visit the Company's investor relations website at https://investor.agora.io on March 2, 2026 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 divisions, under Agora brand and Shengwang brand.
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.ioFor more information on Shengwang, please visit: www.shengwang.cn
Agora, Inc.Consolidated Balance Sheets(Unaudited, in US$ thousands)
As of
As of
December 31,
December 31,
2025
2024
Assets
Current assets:
Cash and cash equivalents
75,446
27,083
Short-term bank deposits
84,460
168,327
Short-term financial products issued by banks
55,000
71,464
Short-term investments
4,583
2,787
Restricted cash
200
3,745
Accounts receivable, net
24,867
30,952
Prepayments and other current assets
14,590
22,593
Contract assets
123
1,099
Held-for-sale assets
831
-
Total current assets
260,100
328,050
Property and equipment, net
3,947
4,680
Construction in progress in relation to the headquarters project
84,239
44,486
Operating lease right-of-use assets
2,145
3,866
Intangible assets
96
611
Long-term bank deposits
160,001
35,500
Long-term financial products issued by banks
-
61,400
Long-term investments
29,182
40,710
Land use right, net
161,591
161,395
Other non-current assets
19,798
18,956
Total assets
721,099
699,654
Liabilities and shareholders' equity
Current liabilities:
Accounts payable
9,638
12,965
Advances from customers
7,906
8,738
Taxes payable
696
2,210
Current operating lease liabilities
1,521
1,749
Payables for construction costs
16,607
12,834
Accrued expenses and other current liabilities
20,417
19,839
Total current liabilities
56,785
58,335
Long-term payable
3
1
Long-term operating lease liabilities
399
1,922
Deferred tax liabilities
12
92
Long-term borrowings in relation to the headquarters project
80,420
46,469
Advance in relation to the headquarters project
20,632
20,174
Total liabilities
158,251
126,993
Shareholders' equity:
Class A ordinary shares
39
39
Class B ordinary shares
8
8
Additional paid-in-capital
1,145,126
1,144,238
Treasury shares, at cost
(95,238
)
(72,739
)
Accumulated other comprehensive loss
(9,987
)
(12,257
)
Accumulated deficit
(477,100
)
(486,628
)
Total shareholders' equity
