Opera Ltd (OPRA)
NASDAQ:OPRA
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Opera
(NASDAQ:OPRA)
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Rating:82Outperform
Price Target:
$20.00
▲(16.82% Upside)
Action:UpgradedDate:03/02/26
The score is driven primarily by strong financial quality (low leverage and solid cash generation) and a constructive earnings outlook supported by significant capital returns (dividend plus a large buyback). Valuation is supportive, while technicals are positive but near overbought levels, adding near-term pullback risk.
Positive Factors
Conservative balance sheet
Opera's extremely low leverage and conservative financing materially lower bankruptcy and refinancing risk, preserving strategic optionality. Over 2–6 months this balance sheet supports sustained buybacks, dividends, opportunistic M&A, and resilience if ad markets soften, underpinning durable financial flexibility.
Negative Factors
Rising cost of revenue
As off-platform ad inventory and distribution scale, cost of revenue is structurally higher, creating a durable gross margin headwind. Sustaining profitability will require higher monetization per user or cost efficiency; otherwise margin compression could persist even with revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Opera's extremely low leverage and conservative financing materially lower bankruptcy and refinancing risk, preserving strategic optionality. Over 2–6 months this balance sheet supports sustained buybacks, dividends, opportunistic M&A, and resilience if ad markets soften, underpinning durable financial flexibility.
Read all positive factors
Opera (OPRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.57B
Dividend Yield5.47%
Average Volume (3M)457.64K
Price to Earnings (P/E)11.7
Beta (1Y)1.52
Revenue Growth30.00%
EPS Growth-9.72%
CountryUS
Employees599
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.61
Shares Outstanding89,880,516
10 Day Avg. Volume558,207
30 Day Avg. Volume457,640
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)1.25
Price to Sales (P/S)2.06
P/FCF Ratio11.01
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue2.33
Enterprise Value/Gross Profit3.97
Enterprise Value/Ebitda9.88
Forecast
1Y Price Target
$27.67Price Target Upside61.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.17
Revenue Forecast (FY)$731.16M
Opera Business Overview & Revenue Model
Company Description
Opera Limited, together with its subsidiaries, provides mobile and PC web browsers. It operates in two segments, Browser and News, and Other. The company offers mobile browser products, such as Opera Mini, Opera for Android and iOS, Opera GX Mobil...
How the Company Makes Money
Opera primarily monetizes its products through advertising and search-related arrangements tied to usage of its browsers and consumer apps. A significant portion of revenue is generated from digital advertising sold within Opera’s ecosystem (for e...
Opera Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational execution: double-digit top-line growth (Q4 +22%, FY +28%), expanding monetization (advertising, query revenue, MiniPay), robust profitability (23%+ EBITDA margins), and excellent cash conversion, capped by a sizable $300M buyback. Lowlights are mostly execution/scale considerations (cost-of-revenue mix shift, rising OpEx, early-stage monetization for Neon and non-search query revenues) and a more cautious 2026 growth guide relative to 2025. Overall, the positive financial results, cash generation, product momentum, and shareholder returns materially outweigh the manageable challenges.Positive Updates
Quarterly Revenue Outperformance
Q4 revenue of $177 million, up 22% year-over-year and ~8% above the midpoint of guidance; exceeded the high end of the revenue guidance range by over $12 million.
Negative Updates
Rising Cost of Revenue
Cost of revenue scaled with revenue overperformance and represented 37.4% of total revenue in Q4; company expects cost of revenue ~38% for 2026, implying a ~2 percentage point gross margin headwind as off-platform ad inventory scales.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Outperformance
Q4 revenue of $177 million, up 22% year-over-year and ~8% above the midpoint of guidance; exceeded the high end of the revenue guidance range by over $12 million.
Read all positive updates
Company Guidance
Opera guided Q1 2026 revenue of $169–172M (up 18–21% YoY) with adjusted EBITDA of $38–40M (22.9% margin at the midpoint), and full‑year 2026 revenue of $720–735M (growth 17–20%) with adjusted EBITDA of $167–172M (23.3% margin at the midpoint). Management implicitly guides to a full‑year OpEx base pre‑adjusted EBITDA of $558M at the midpoint (Q1 ~$131.5M), expects cost of revenue to be ~38% of revenue (starting below and ticking up), cash‑based compensation to grow in the low teens percent, marketing spend to grow ~10% (evenly distributed), and other OpEx pre‑adj. EBITDA to grow ~15%; they also said 2025 cash conversion (operating cash flow ~$118M, ~83% of adj. EBITDA; free cash flow ~$98M, ~69% of adj. EBITDA) is a fair baseline for 2026. Finally, they announced a $300M share buyback authorization (over 25% of market cap) in addition to the recurring dividend.Opera Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
90
Very Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 616.73M | 480.65M | 396.83M | 331.04M | 250.99M |
| Gross Profit | 266.01M | 348.09M | 303.58M | 276.45M | 237.30M |
| EBITDA | 111.60M | 114.52M | 173.53M | 38.09M | -23.19M |
| Net Income | 108.62M | 80.77M | 153.30M | 15.04M | -43.96M |
Balance Sheet | |||||
| Total Assets | 1.14B | 1.06B | 1.01B | 964.69M | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 155.47M | 126.80M | 93.86M | 118.66M | 181.01M |
| Total Debt | 12.95M | 9.59M | 10.55M | 7.83M | 13.51M |
| Total Liabilities | 132.54M | 115.48M | 91.09M | 76.47M | 79.42M |
| Stockholders Equity | 1.01B | 940.10M | 919.85M | 888.21M | 1.01B |
Cash Flow | |||||
| Free Cash Flow | 115.22M | 74.37M | 76.36M | 46.69M | 20.67M |
| Operating Cash Flow | 120.79M | 104.98M | 82.76M | 56.66M | 26.56M |
| Investing Cash Flow | -17.80M | -27.11M | 20.00M | 44.45M | -49.70M |
| Financing Cash Flow | -76.18M | -42.15M | -59.84M | -150.58M | -6.68M |
Opera Technical Analysis
Positive
17.12
Price Trends
14.28
Positive
13.95
Positive
15.20
Positive
Market Momentum
0.60
Negative
71.00
Negative
91.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPRA, the sentiment is Positive. The current price of 17.12 is above the 20-day moving average (MA) of 14.90, above the 50-day MA of 14.28, and above the 200-day MA of 15.20, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 71.00 is Negative, neither overbought nor oversold. The STOCH value of 91.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPRA.
Opera Risk Analysis
Opera disclosed 61 risk factors in its most recent earnings report. Opera reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Your ability to achieve a return on your investment will depend on the combination of future dividend payments and the price appreciation of the ADSs. Q4, 2023
2.
Potential issues raised by the use of AI technologies in our products and services may result in reputational harm or liability, adversely affecting our business, financial condition, and operating results. Q4, 2023
Opera Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.57B | 11.67 | 11.26% | 5.47% | 30.00% | -9.72% | |
78 Outperform | $1.68B | 13.22 | 19.96% | ― | 5.35% | 33.74% | |
61 Neutral | $1.05B | 33.98 | 4.51% | ― | 10.96% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $640.29M | 28.43 | -477.82% | ― | 64.86% | -112.92% | |
55 Neutral | $437.02M | -50.84 | -1.15% | ― | -28.29% | -126.12% | |
50 Neutral | $231.32M | -19.21 | -137.41% | ― | 14.25% | -211.21% |
* Communication Services Sector Average
OPRA
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Opera Corporate Events
Opera Tops 2025 Targets and Launches $300 Million Buyback as AI Browsers, MiniPay Fuel Growth
Feb 26, 2026
On February 26, 2026, Opera reported that its fourth-quarter 2025 revenue rose 22% year-over-year to $177.2 million, with adjusted EBITDA of $41.9 million and a 24% margin, both ahead of guidance. For full-year 2025, revenue climbed 28% to $614.8 ...
Opera Expects Q4 2025 Results to Top Guidance as Full-Year Revenue Jumps Over 26%
Feb 2, 2026
On February 2, 2026, Oslo-based Opera Limited reported that its preliminary fourth-quarter 2025 results are expected to exceed earlier guidance, with revenue projected to surpass $170 million and full-year 2025 revenue set to top $608 million, rep...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.