I'm pleased to report our sixth consecutive quarter of GAAP profitability alongside another quarter of strong top-line growth. Total revenue for the first quarter of 2026 reached $37.7 million, up 13.5% year-over-year. In March, we officially launched Agent Studio, a visual no-code environment that enables developers and enterprises to rapidly build, test, and deploy voice AI agents at scale. At the same time, many enterprises still struggle to deploy voice AI in production environments.
First, an environment that allows enterprise to design, test, and deploy AI agent in minutes rather than weeks or months. This solution addresses growing enterprise demand around content, data sovereignty, and intelligent workflow automation, and has been well received in industries including finance, government, and healthcare. Since the official launch of our Conversational AI Engine product last year, usage has demonstrated remarkable momentum with over 150% sequential growth every single quarter. Instead, they are asking how to deploy it at scale with reliability, low latency, and seamless integration.
We now compare quarterly revenue from the same cohort of paying customers year-over-year to calculate DBAR. This change aligns DBAR more closely with our quarterly revenue growth rate, making it easier for investors to compare the two. Total revenue for the first quarter reached $37.7 million, representing 13.5% year-over-year growth. Those results exceeded the high end of our guidance range of $36 million-$37 million, and reflected continued expansion and usage growth of our real-time engagement services in sectors such as U.S.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | Q2 2026 | $39M-$40M (13.7%-16.6% YoY growth) |
| GAAP operating profit | H2 2026 | Goal: achieve GAAP operating profit in the second half of 2026 |
| Conversational AI revenue | End of 2026 | Target ~5% revenue/ARR contribution |
| GAAP net income | Full-year 2026 | Expected significantly higher than 2025 |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +13.5% | Accelerating RTE expansion in US live shopping, social/entertainment and financial services plus growing AI-related usage |
| GAAP net income | more than doubled to $1.1M | Revenue growth and improved operating leverage/cost discipline |
| Gross margin | 63.4% vs 68% | Product-mix shift as subscale conversational-AI products grow |
| Operating cash flow | $5.7M vs $17.6M | Much lower interest received ($4.3M versus $17.8M) |
| R&D expense | +2.9% | Continued investment in conversational-AI products |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Conversational AI productization | Device Kit shown at CES | Agent Studio no-code launch, inbound and outbound agents, and the Intelligent Meeting Engine targeting finance, government and healthcare | — |
| Ecosystem partnerships | Model integrations | Google Gemini and xAI Grok integrated, Google names Agora a recommended partner, and a strategic partnership signed with NetEase Smart Enterprise | — |
| Disclosure approach | Separate Agora and Shengwang metrics | Simplified: no longer breaks out Agora versus Shengwang revenue or customers, and DBAR methodology refined | — |
| China market consolidation | Competitive pressure abating | A private competitor bought back its VC investors to focus on profitability and a large public-cloud competitor cut RTE staff, consolidation that should aid growth | — |