Opera Limited Delivers Strong Growth and Big Buyback

Opera Limited ((OPRA)) has held its Q4 earnings call. Read on for the main highlights of the call.

Opera Limited’s latest earnings call struck an upbeat tone, underscoring a blend of rapid growth, solid margins, and aggressive shareholder returns. Management highlighted double‑digit top‑line expansion, expanding monetization channels, and strong cash generation, while acknowledging rising costs and a more measured 2026 growth outlook that still appears comfortably positive.

Q4 Revenue Beat Underscores Strong Finish to the Year

Opera reported Q4 revenue of $177 million, up 22% year over year and about 8% above the midpoint of guidance. The figure exceeded the high end of the company’s range by more than $12 million, signaling both strong demand and conservative prior expectations.

Full-Year Growth Accelerates to Nearly 30%

For full‑year 2025, revenue reached $615 million, representing 28% growth and an acceleration from 21% in 2024. Management framed the year as proof that Opera can compound at scale, as newer revenue streams begin to complement its core browser business.

EBITDA Margins Stay Firm Despite Expansion Investments

Adjusted EBITDA came in at $42 million in Q4, a 23.6% margin, while full‑year adjusted EBITDA reached $143 million at a 23.2% margin. Profitability landed roughly 7% above midpoint guidance, showing Opera can invest for growth while preserving attractive earnings power.

Cash Generation Converts Earnings Into Firepower

Operating cash flow was $40 million in Q4, equal to 96% of adjusted EBITDA, and $118 million for the full year, or 83% conversion. Free cash flow reached $35 million in Q4 and $98 million for the year, giving Opera ample flexibility to fund growth and return capital.

Advertising and E‑commerce Drive Revenue Upside

Advertising revenue delivered a standout quarter, rising 25% year over year with an unprecedented $19 million sequential jump versus Q3. Scaled e‑commerce partnerships were a key driver, and the average spend among the top 50 advertisers surged 56% in 2025, pointing to deepening relationships.

Query Monetization Broadens the Revenue Base

User intent query revenue grew 16% year over year, while non‑search query revenue climbed more than 200%. Though still modest at just over $5 million in Q4, up from $3 million in Q3, this high‑growth bucket highlights Opera’s push to monetize traffic beyond traditional search.

Growing Audience and Higher ARPU Support Long-Term Scale

Total monthly active users ended the year at 284 million, including 60 million in Western markets that tend to monetize better. ARPU increased 26% to $2.49 in Q4, and Opera GX reached 34 million MAUs with 5% sequential growth, remaining the company’s highest‑ARPU product.

Ad Platform Scale Extends Opera’s Reach

Opera Ads now processes roughly 12 million ad queries per second, more than double the level a year ago. The company worked with over 300 advertisers in 2025, and when including OEM white‑label partnerships, total advertising reach exceeds 0.5 billion monthly active users.

AI-Powered Product Innovation Targets Differentiation

Opera emphasized product innovation, launching Opera Air and the subscription‑based Opera Neon while rolling out Opera One R3 with the upgraded Opera AI engine. The company says the agentic engine is about 20% faster and is being deployed across browsers as both a user differentiator and future monetization lever.

MiniPay Wallet Gains Scale and New Use Cases

MiniPay continued to gain traction, reaching more than 13 million activated wallets, up from 10 million in Q3. Cumulative transactions climbed from 290 million to 390 million, while expanded support for USDT, Tether Gold, and a rolling out card program aim to deepen engagement and utility.

Buyback and Dividend Signal Confidence in Cash Flows

Capital allocation took center stage as Opera announced a $300 million share buyback authorization, representing over a quarter of its market cap. Combined with a recurring dividend, the move highlights management’s conviction in sustained cash generation and a belief the stock remains undervalued.

Rule of 40 Performance Shows Balanced Growth and Profit

Opera remained a Rule of 40 business for the fifth consecutive year, combining strong revenue growth with solid profitability. Management argued this balance reflects disciplined investment as the company scales newer products while protecting its mid‑20% EBITDA margin profile.

Higher Revenue Comes With Rising Cost of Sales

Cost of revenue rose in line with Opera’s revenue outperformance, reaching 37.4% of total revenue in Q4. The company expects this figure to move to about 38% in 2026, implying roughly a 2‑point gross margin headwind as off‑platform ad inventory and distribution scale.

Compensation and OpEx Drift Higher but Are Offset by Growth

Q4 cash compensation was roughly $1 million higher than planned due to higher bonus provisions and a weaker U.S. dollar, contributing to total costs landing $11 million above midpoint guidance. Management noted the impact was more than offset by $14 million of revenue upside in the quarter.

Neon Browser Shows Promise but Monetization Is Nascent

Opera Neon, the subscription‑based agentic browser, was only broadly rolled out in mid‑December, and demand for such browsers remains early‑stage. As a result, Neon’s subscriber base and revenue contribution are still small, leaving meaningful upside if adoption broadens.

Non-Search Query Revenue Still Needs to Prove Scale

While non‑search query revenue soared more than 200% year over year, management stressed that the category remains small in absolute dollars. With around $5 million in Q4 revenue, investors will watch whether this high‑growth line can achieve meaningful, sustainable scale.

Competitive Landscape and Market Perception Create a Gap

Management called out rising competition in Europe and from well‑funded new entrants, underscoring the need for continued innovation and marketing. They also suggested that public market valuation does not yet reflect Opera’s operational progress, hinting at a disconnect between fundamentals and sentiment.

Operating Expenses to Rise as Opera Invests for Growth

Guidance points to a higher OpEx base in 2026, with cash‑based compensation set to grow in the low‑teens percent, marketing by about 10%, and other operating expenses by roughly 15%. Even with this expansion, Opera expects to maintain healthy margins, suggesting efficiency gains elsewhere.

2026 Growth Guide Moderates After a Breakout 2025

Opera guided 2026 revenue to $720–735 million, implying 17–20% growth, slower than 2025’s 28% pace. Management framed the outlook as appropriately cautious early in the year, balancing macro uncertainty and competitive dynamics with confidence in the company’s underlying momentum.

OPay Stake Remains a Strategic Wildcard

OPay continues to perform well, but management gave no concrete timetable for a potential IPO that could unlock value. The company has added seasoned public‑market executives at OPay, yet the timing and structure of any monetization remain open questions for investors.

Forward Guidance Highlights Steady Growth and Stable Margins

For Q1 2026, Opera expects revenue of $169–172 million, up 18–21% year over year, with adjusted EBITDA of $38–40 million and a roughly 23% margin. Full‑year 2026 guidance calls for $720–735 million in revenue and $167–172 million in adjusted EBITDA, with cost of revenue around 38% and cash conversion similar to 2025, underpinning the new $300 million buyback.

Opera’s earnings call painted a picture of a company balancing high growth with disciplined profitability and shareholder‑friendly capital returns. While rising costs, competitive pressures, and a slower 2026 growth guide add complexity, the combination of strong ad momentum, expanding AI‑driven products, and robust cash generation keeps the long‑term story firmly on offense.