Agora's Q3 revenue rises on higher investment in conversational AI

Overview

• Agora Q3 2025 revenue grows 12% yr/yr, achieving fourth consecutive GAAP profitability

• Net income for Q3 2025 was $2.7 mln, compared to net loss of $24.2 million last year

• Company repurchased 5.2 mln shares under its share repurchase program

Outlook

• Company expects Q4 2025 revenue between $37 mln and $38 mln

• Agora is increasing investment in conversational AI

Result Drivers

• REAL-TIME ENGAGEMENT - Strong rebound in core platform business, contributing to revenue growth

• CONVERSATIONAL AI INVESTMENT - Increased investment in conversational AI with new product launches driving early customer adoption

• OPERATING EXPENSES - Significant reduction in operating expenses due to workforce optimization

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Agora Inc is $6.20, about 46.9% above its November 18 closing price of $3.29

• The stock recently traded at 70 times the next 12-month earnings vs. a P/E of 109 three months ago

Press Release: ID:nGNXblxp43

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