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Agora, Inc.

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Business Summary

Agora, Inc. operates in the rapidly evolving Real-Time Engagement Platform-as-a-Service (RTE-PaaS) market, providing developers with APIs to embed real-time conversational AI, video, voice, chat, and interactive streaming into their applications . The company functions as a holding company with two independent divisions: Agora, headquartered in Santa Clara, California, serving global markets outside the United States and China, and Shengwang, headquartered in Shanghai, China, focusing on the China market . The RTE-PaaS market is characterized by rapid technological changes, evolving industry standards, and customer needs, particularly with the emergence of conversational AI .

The company's core business model is developer-centric and employs a freemium model, offering 10,000 free minutes of real-time engagement per month per account to encourage adoption and innovation . Once usage exceeds the free minutes, developers are charged based on their consumption . The primary customer segments span a wide range of industries, including social and entertainment, education, live shopping, IoT, enterprise collaboration, financial services, and healthcare . The company generates substantially all of its revenue from usage-based fees from customers utilizing video, voice, and other products .

Agora, Inc.'s RTE-PaaS platform is built on its proprietary SDK and Software-Defined Real-Time Network (SD-RTN) . The SDK provides software modules for embedding real-time engagement capabilities like video and audio capturing, rendering, processing, encoding, decoding, and transmission into applications . The SD-RTN is a virtual network overlay on the public internet, operating on over 200 data centers worldwide, designed to optimize routing and traffic to minimize latency and packet loss for high-quality real-time engagement .

The company offers a suite of core products and extensions. Core products include Video calling, supporting up to 4K resolution with features like adaptive compression and resolution enhancement ; Voice calling, offering features such as noise suppression and acoustic echo cancellation ; Live streaming, enabling interactive and broadcast streaming for millions of users ; Chat, providing instant messaging with rich-media support and message translation ; Signaling, for reliable, low-latency delivery of signals and commands to millions of recipients ; Conversational AI engine, launched in March 2025, empowering developers to build natural voice AI agents using various large language models (LLMs) and speech-to-text (STT)/text-to-speech (TTS) solutions ; and Conversational AI device kit, a hardware solution for embedding conversational AI into smart devices . Extensions include Media services for importing/exporting media content and recording ; Interactive whiteboard for online collaboration ; Analytics for tracking video/voice quality and usage ; Real-time speech-to-text for cloud-based audio-to-text transcription ; and Real-time translation for breaking down language barriers across multiple languages .

For the fiscal year ended December 31, 2025, Agora, Inc. reported total revenues of US$141.057 million . The cost of revenues was US$47.393 million , resulting in a gross profit of US$93.664 million and a gross margin of 66.4% . Operating expenses totaled US$104.481 million , leading to a loss from operations of US$9.410 million . The company achieved a net income of US$9.528 million in 2025, a significant improvement from net losses in prior years. Cash and cash equivalents stood at US$75.446 million as of December 31, 2025. The company's working capital was US$203.315 million at year-end 2025. Total debt is not explicitly stated as a single figure, but long-term borrowings for the headquarters project were US$46.469 million as of December 31, 2024.

Comparing 2025 to 2024, total revenues increased by 5.9% from US$133.256 million to US$141.057 million . This growth was driven by a 16.1% increase in Agora's revenues, reaching US$74.866 million , primarily due to business expansion and usage growth in sectors like live shopping . Shengwang's revenues decreased by 3.7% to US$66.191 million , mainly due to a US$6.6 million (RMB 47.4 million) decrease from the end-of-sale of certain products, partially offset by growth in social and entertainment and IoT sectors . Gross margin improved from 64.1% in 2024 to 66.4% in 2025, largely due to the cessation of a low-margin product . Operating expenses decreased significantly, with research and development expenses falling by 31.0% to US$55.459 million , sales and marketing expenses decreasing by 3.2% to US$26.352 million , and general and administrative expenses declining by 30.8% to US$22.670 million . These reductions were primarily due to global workforce optimization, including a US$13.8 million decrease in share-based compensation for R&D and a US$4.7 million decrease in allowance for current expected credit loss for G&A . Net income improved from a loss of US$42.727 million in 2024 to a profit of US$9.528 million in 2025.

During 2025, a significant operational development was the launch of the conversational AI engine in March 2025, which enables developers to build voice AI agents for customer service, online learning, tutoring, and smart devices . The company also introduced a conversational AI evaluation & orchestration tool to help developers select and optimize STT, LLM, and TTS modules . In January 2025, the company terminated its Variable Interest Entity (VIE) structure in China, transitioning to conduct its business through PRC subsidiaries like Shanghai Shengwang . The board of directors also authorized the extension of a share repurchase program for another 12 months in February 2025, under which US$143.1 million of ADSs had been repurchased as of December 31, 2025, and US$156.2 million as of March 31, 2026.

Business Outlook

The company anticipates continued investment in its engineering capabilities and marketing activities to maintain its competitive position and brand perception within the developer community for real-time engagement technology providers . This strategy is expected to drive further revenue growth, though it may result in sustained high levels of investment . A key focus for growth is acquiring new customers, which involves maintaining and expanding grassroots developer outreach and targeted sales efforts to larger organizations through conferences, events, and other marketing initiatives . These efforts will require significant upfront investments before revenue growth is realized .

Another significant growth area is expanding usage among existing customers. The company believes there are substantial opportunities for growth within its current customer base, as many customers initially adopt products through self-managed deployments and then expand usage over time . To facilitate this, the company plans to maintain engineering-level customer support and continuously introduce new products, features, and innovative use cases tailored to customer needs . The success of this strategy is tied to the success of its customers and their applications, given the usage-based revenue model .

The company is dedicated to empowering customers through technology, with market leadership relying on its research and development and technological capabilities . It plans to continue investing resources to enhance its platform's capabilities and release product updates to meet evolving customer demands . This includes expanding its research and development team, recruiting and retaining industry-leading developers, particularly for conversational AI products and solutions, and enhancing the quality of experience for core video and audio engagement products . While these investments are expected to increase research and development expenses in absolute dollars for the foreseeable future, they are projected to decline as a percentage of total revenues over the longer term as the business scales .

A component of the company's growth strategy involves further expansion of its operations and customer base worldwide . While the majority of revenue in 2023, 2024, and 2025 was generated from customers primarily in the PRC and United States, the company expects to expand its international go-to-market and collaboration efforts with ecosystem partners in other global markets . This global expansion is anticipated to add complexity and costs but is expected to create use case revenue synergies by leveraging regional experiences and use case cost synergies by avoiding re-investment in already developed use cases .

Regarding capital allocation, the company's capital expenditures were US$33.6 million in 2025, primarily for construction in progress for the headquarters project, servers, network equipment, and other hardware . The company intends to continue making capital expenditures to support expected business growth . In February 2022, the board authorized a share repurchase program of up to US$200 million over 12 months, which has been extended annually, with US$156.2 million of ADSs repurchased as of March 31, 2026. The company believes its existing cash and cash equivalents will be sufficient to meet anticipated cash needs for at least the next 12 months .

The company acknowledges that its liquidity assumptions may prove incorrect, potentially exhausting financial resources sooner than expected, and it may need to raise additional funds through equity, equity-linked, or debt financing . Future capital requirements and fund adequacy depend on various factors, including those outlined in the risk factors .

Risk Factors

The company faces several material risks, including operating in a rapidly evolving RTE-PaaS market, particularly with the emergence of conversational AI, which could render existing technologies obsolete if the company fails to adapt . Its operating results and growth prospects are highly dependent on acquiring and retaining customers and increasing product usage, with a significant portion of revenues derived from a limited number of customers (23.7% from top ten customers in 2025) . The market is competitive, with pure-play providers, cloud communication platforms, and public cloud providers, some of whom have greater financial resources and brand recognition . Failure to achieve sufficient market acceptance for its products, despite substantial R&D investments (US$55.5 million in 2025) , could harm financial results . The company's limited operating history and history of operating and net losses (loss from operations of US$9.4 million in 2025, net income of US$9.5 million in 2025) make future prospects difficult to evaluate. Operational results may fluctuate due to factors like end-user adoption, product mix changes, and fixed costs . Insufficient transmission bandwidth and co-location space could lead to service disruptions and revenue loss . Global operations expose the company to various uncertainties, costs, and risks, including currency exchange rate fluctuations, longer payment cycles, tariffs, and regulatory limitations . The company's use of open-source software could lead to litigation or impose unanticipated conditions on product commercialization . Changes in internet-related laws and regulations, particularly in China regarding privacy, cybersecurity, and data protection, could diminish demand for products or increase compliance costs, with potential fines up to RMB10.0 million . The company is also subject to U.S. export controls and economic sanctions, which could impair its international competitiveness . Furthermore, the company believes it was likely a Passive Foreign Investment Company (PFIC) for 2025, and there is a significant risk it will remain a PFIC, leading to adverse U.S. federal income tax consequences for U.S. investors .

Management Priorities

Management emphasizes a developer-centric business model and a commitment to innovation, particularly in the rapidly evolving RTE-PaaS market and with the emergence of conversational AI. They highlight the launch of their conversational AI engine in March 2025 as a key development, empowering developers to build natural voice AI agents for various use cases, and believe they are well-positioned to capture significant market opportunities in this area . Strategic priorities include maintaining technology, product, and market leadership, attracting new developers and converting them into paying customers, and expanding usage among existing customers by continuously introducing new products and features . Management also plans to continue investing significantly in research and development, as evidenced by US$55.5 million in R&D expenses in 2025, and expanding global operations, while aiming for R&D and sales and marketing expenses to decline as a percentage of revenue over the longer term as the business scales . The company's board of directors authorized the extension of a share repurchase program for up to US$200 million in February 2025, with US$156.2 million of ADSs repurchased as of March 31, 2026, indicating a commitment to returning capital to shareholders.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 3, Key Information — Our Holding Company Structure and Historical VIE Structure
  2. [2] Item 3, Key Information — Our Holding Company Structure and Historical VIE Structure
  3. [3] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — We operate in a rapidly evolving market. If we cannot adapt and respond effectively to the evolving demands of this market, our revenues may decline, or fail to grow, and we may incur operating losses.
  4. [4] Item 4, Information on the Company — B. Business Overview — Our business employs a freemium model, offering 10,000 free minutes of real-time engagement per month per account, to encourage adoption and innovation by developers and proliferation of real-time engagement use cases.
  5. [5] Item 4, Information on the Company — B. Business Overview — Our business employs a freemium model, offering 10,000 free minutes of real-time engagement per month per account, to encourage adoption and innovation by developers and proliferation of real-time engagement use cases.
  6. [6] Item 4, Information on the Company — B. Business Overview — These applications power more than 200 use cases in a wide range of industries, including social and entertainment, education, live shopping, IoT, enterprise collaboration, financial services and healthcare.
  7. [7] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Components of Our Results of Operations — Revenue
  8. [8] Item 4, Information on the Company — B. Business Overview — Our RTE-PaaS Platform
  9. [9] Item 4, Information on the Company — B. Business Overview — Our RTE-PaaS Platform
  10. [10] Item 4, Information on the Company — B. Business Overview — Our RTE-PaaS Platform
  11. [11] Item 4, Information on the Company — B. Business Overview — Our Products — Core Products — Video calling
  12. [12] Item 4, Information on the Company — B. Business Overview — Our Products — Core Products — Voice calling
  13. [13] Item 4, Information on the Company — B. Business Overview — Our Products — Core Products — Live streaming
  14. [14] Item 4, Information on the Company — B. Business Overview — Our Products — Core Products — Chat
  15. [15] Item 4, Information on the Company — B. Business Overview — Our Products — Core Products — Signaling
  16. [16] Item 4, Information on the Company — B. Business Overview — Our Products — Core Products — Conversational AI engine
  17. [17] Item 4, Information on the Company — B. Business Overview — Our Products — Core Products — Conversational AI device kit
  18. [18] Item 4, Information on the Company — B. Business Overview — Our Products — Extensions — Media services
  19. [19] Item 4, Information on the Company — B. Business Overview — Our Products — Extensions — Interactive whiteboard
  20. [20] Item 4, Information on the Company — B. Business Overview — Our Products — Extensions — Analytics
  21. [21] Item 4, Information on the Company — B. Business Overview — Our Products — Extensions — Real-time speech-to-text
  22. [22] Item 4, Information on the Company — B. Business Overview — Our Products — Extensions — Real-time translation
  23. [23] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Total revenues
  24. [24] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Cost of revenues
  25. [25] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Gross profit
  26. [26] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Gross margin
  27. [27] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Total operating expenses
  28. [28] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Loss from operations
  29. [29] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Net (loss) income
  30. [30] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — As of December 31, 2025 — Cash and cash equivalents
  31. [31] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — As of December 31, 2025 — Working capital
  32. [32] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — For the year ended December 31, 2024 — Long term borrowings for the headquarters project
  33. [33] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2024 — Total revenues
  34. [34] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Total revenues
  35. [35] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — Revenue — Revenues of Agora
  36. [36] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — Revenue
  37. [37] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — Revenue — Revenues of Shengwang
  38. [38] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — Revenue
  39. [39] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2024 — Gross margin
  40. [40] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Gross margin
  41. [41] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — Gross Cost of Revenues and Gross Margin
  42. [42] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — Research and Development Expenses
  43. [43] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — Sales and Marketing Expenses
  44. [44] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — General and Administrative Expenses
  45. [45] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — Research and Development Expenses
  46. [46] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Comparison of Years Ended December 31, 2024 and 2025 — General and Administrative Expenses
  47. [47] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2024 — Net (loss) income
  48. [48] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Net (loss) income
  49. [49] Item 4, Information on the Company — B. Business Overview — Conversational AI Engine
  50. [50] Item 4, Information on the Company — B. Business Overview — Conversational AI Evaluation & Orchestration Tool
  51. [51] Item 3, Key Information — Our Holding Company Structure and Historical VIE Structure
  52. [52] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — As of December 31, 2025, we had repurchased US$143.1 million of ADSs
  53. [53] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — As of December 31, 2025 and March 31, 2026, we had repurchased US$143.1 million of ADSs and US$156.2 million of ADSs, respectively
  54. [54] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Product and Market Leadership
  55. [55] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Product and Market Leadership
  56. [56] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Acquiring New Customers
  57. [57] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Acquiring New Customers
  58. [58] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Expanding Usage of Existing Customers
  59. [59] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Expanding Usage of Existing Customers
  60. [60] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Expanding Usage of Existing Customers
  61. [61] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Innovation and Enhancement of Our Platform
  62. [62] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Innovation and Enhancement of Our Platform
  63. [63] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — Innovation and Enhancement of Our Platform
  64. [64] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Components of Our Results of Operations — Research and Development
  65. [65] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — International Growth
  66. [66] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — International Growth
  67. [67] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance — International Growth
  68. [68] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — Material Cash Requirements
  69. [69] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — Material Cash Requirements
  70. [70] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — Material Cash Requirements
  71. [71] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — Share Repurchase
  72. [72] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — As of December 31, 2025 and March 31, 2026, we had repurchased US$143.1 million of ADSs and US$156.2 million of ADSs, respectively
  73. [73] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — We believe that our existing cash and cash equivalents will be sufficient to meet our anticipated cash needs for at least the next 12 months.
  74. [74] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — However, our liquidity assumptions may prove to be incorrect, and we could exhaust our available financial resources sooner than we currently expect. We may seek to raise additional funds at any time through equity, equity-linked or debt financing arrangements.
  75. [75] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — Our future capital requirements and the adequacy of available funds will depend on many factors, including those described in “Item 3. Key Information—D. Risk Factors.”
  76. [76] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — We operate in a rapidly evolving market. If we cannot adapt and respond effectively to the evolving demands of this market, our revenues may decline, or fail to grow, and we may incur operating losses.
  77. [77] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — We receive a portion of our revenues from a limited number of customers, and the loss of, or a significant reduction in usage by, one or more of our major customers would result in lower revenues and could harm our business.
  78. [78] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — The market in which we participate is competitive, and if we do not compete effectively, our business, operating results and financial condition could be harmed.
  79. [79] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Research and development expenses
  80. [80] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — If our products do not achieve sufficient market acceptance, our financial results and competitive position will suffer.
  81. [81] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — Our limited operating history and our history of operating and net losses make it difficult to evaluate our current business and prospects and may increase the risks associated with your investment.
  82. [82] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — Our operating results may fluctuate from time to time.
  83. [83] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — We may have insufficient transmission bandwidth and co-location space, which could result in disruptions to our product and loss of revenues.
  84. [84] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — We are subject to a variety of uncertainties, costs and risks associated with our business operation in global markets outside the United States and China.
  85. [85] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — Our use of open-source software could negatively affect our ability to sell our products and subject us to possible litigation.
  86. [86] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — Our business is subject to a variety of laws and regulations in the jurisdictions where we operate, including those regarding privacy, cybersecurity and data protection, and our customers may be subject to regulations related to the handling and transfer of certain types of sensitive and confidential information. Any failure of our platform to comply with or enable our customers to comply with applicable laws and regulations could harm our business, operating results and financial condition.
  87. [87] Item 3, Key Information — D. Risk Factors — Risks Related to Our Business and Industry — We may be subject to governmental export controls and economic sanctions regulations that could impair our ability to compete in the international market due to licensing requirements and could subject us to liability if we are not in compliance with applicable laws.
  88. [88] Item 3, Key Information — D. Risk Factors — Risks Related to the ADSs — We believe we likely were a passive foreign investment company, or PFIC, for 2025, and there is a significant risk that we will be a PFIC for the current taxable year, and possibly future taxable years, in which case U.S. investors owning the ADSs or Class A ordinary shares will generally be subject to adverse U.S. federal income tax consequences.
  89. [89] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Overview
  90. [90] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Factors Affecting Our Performance
  91. [91] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Results of Operations — Year ended December 31, 2025 — Research and development expenses
  92. [92] Item 5, Operating and Financial Review and Prospects — A. Operating Results — Components of Our Results of Operations — Research and Development
  93. [93] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — Share Repurchase
  94. [94] Item 5, Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — As of December 31, 2025 and March 31, 2026, we had repurchased US$143.1 million of ADSs and US$156.2 million of ADSs, respectively

Analysis on 5/22/2026