Opera (OPRA) AI Stock Analysis

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Opera

(NASDAQ:OPRA)

Rating:73Outperform

Price Target:

$19.00

▲(23.38% Upside)

Opera's stock is supported by strong financial performance, impressive earnings call results, and fair valuation. However, technical indicators suggest bearish momentum, and challenges in user base growth pose potential risks.

Positive Factors

Financial Performance

With no debt, rising free cash flow, and a disciplined capital return strategy, accelerating shareholder returns are expected.

Market Positioning

Opera's focus on higher-value users in developed markets positions it for sustained, profitable growth.

Revenue Growth

Opera guided for continued 29% revenue growth in Q1, reinforcing confidence in sustained momentum into 2025.

Negative Factors

Economic Conditions

Strong ad demand and strategic marketing investments drove results above expectations, but economic downturns could threaten ad revenue.

Market Competition

Opera's ad-tech e-commerce strategy remains a key growth driver, but increasing competition in ad-tech could impact future growth.

Operational Challenges

While integrating AI-powered features enhances user engagement, the complexity of implementation may pose challenges.

Opera (OPRA) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.47B

Dividend Yield5.06%

Average Volume (3M)496.66K

Price to Earnings (P/E)22.3

Beta (1Y)1.41

Revenue Growth26.71%

EPS Growth-23.67%

CountryUS

Employees599

SectorCommunication Services

Sector Strength90

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.20

Shares Outstanding89,500,854

10 Day Avg. Volume436,675

30 Day Avg. Volume496,658

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.91

Enterprise Value/Revenue2.58

Enterprise Value/Gross Profit3.71

Enterprise Value/Ebitda11.47

Forecast

1Y Price Target

$24.00

Price Target Upside55.84% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Opera Business Overview & Revenue Model

Company DescriptionOpera 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 Mobile, and Opera Touch; PC browsers, including Opera for Computers and Opera GX; and Opera News, an AI-powered personalized news discovery and aggregation service. It also provides browser-based cashback rewards under the Dify brand name; owns GameMaker Studio, a 2D gaming development platform; and GXC, a gaming portal. In addition, the company operates online marketing platforms, including Opera Ads, an online advertising platform; and Opera Ads Manager, designs to create, manage, and report on digital advertising campaigns in one place allowing advertisers to reach customers. It operates in Ireland, Singapore, Russia, and internationally. The company was founded in 1995 and is headquartered in Oslo, Norway. Opera Limited is a subsidiary of Kunlun Tech Limited.

How the Company Makes MoneyOpera generates revenue through multiple streams, primarily by offering a freemium model for its browser services, where basic features are free, but premium features require payment. The company earns significant income from advertising, as it partners with various advertisers to display ads within its browser and apps. Additionally, Opera monetizes its services through affiliate marketing, where it receives commissions for directing users to partner services, such as online shopping or gaming platforms. In recent years, Opera has expanded into cryptocurrency services, generating revenue through transaction fees and partnerships with blockchain projects. The company has also secured strategic partnerships with telecommunications companies to bundle its services, further enhancing its revenue opportunities.

Opera Earnings Call Summary

Earnings Call Date:Apr 28, 2025

(Q1-2025)

% Change Since: 1.18%|

Next Earnings Date:Aug 19, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong start to 2025 with record revenue growth, significant advertising and e-commerce performance, and innovative product launches. However, there were some concerns regarding the slowdown in search revenue growth, stable yet declining MAU numbers, and a slight decrease in GX ARPU.

Q1-2025 Updates

Positive Updates

Record Revenue Growth

Year-over-year revenue growth increased from 29% in Q4 2024 to 40% in Q1 2025, surpassing the previously guided range of 28% to 31%. This resulted in a record first-quarter revenue of $143 million.

Advertising Revenue Surge

Advertising revenue grew 3% in Q1, reaching $96 million and now represents two-thirds of total revenue. E-commerce was the fastest-growing vertical with over 100% annualized growth.

Strong EBITDA and Profitability

Adjusted EBITDA was $32 million, exceeding the high end of previously issued guidance, with a corresponding margin of 23%.

Innovative Product Launches

Opera became the first major browser to present AI agentic browsing through the browser operator, showcasing its ability to perform tasks like travel bookings and online purchases. Opera Air was also launched, targeting users in Western markets.

Significant ARPU Increase

Annualized ARPU grew 44% year-over-year, reflecting successful monetization strategies.

Negative Updates

Search Revenue Growth Slowdown

Search revenue grew 8% year-over-year, which is a slowdown compared to previous growth in the teens.

Stable but Declining MAUs

The user base remained stable at 293 million MAUs, but there is a slight downward trend indicating potential challenges in user acquisition or retention.

GX ARPU Decline

Opera GX's annualized ARPU was $3.41, slightly down from the seasonal peak of Q4.

Company Guidance

During the Opera Limited First Quarter 2025 Earnings Call, the company reported impressive financial results that exceeded expectations. The company achieved a 40% year-over-year revenue growth, surpassing its previous guidance range of 28% to 31%. This translated to a record revenue of $143 million for the first quarter. Advertising revenue, which grew by 3% and reached $96 million, accounted for two-thirds of total revenue, with e-commerce being the fastest-growing vertical at over 100% annualized growth. Search revenue also saw an 8% increase to $47 million. Adjusted EBITDA was reported at $32 million, with a margin of 23%, highlighting the company’s ability to accelerate top-line growth without sacrificing profitability. The user base remained stable at 293 million monthly active users (MAUs), and annualized ARPU grew by 44% year-over-year. Opera also highlighted the successful product launches and updates, including AI implementations in its browsers. Looking ahead, Opera raised its full-year revenue guidance to $567 million to $582 million, reflecting a 20% annual growth at the midpoint, and adjusted EBITDA guidance to $135 million to $140 million. The company expects continued growth in both advertising and e-commerce, despite potential macroeconomic challenges.

Opera Financial Statement Overview

Summary

Opera shows strong financial performance with significant revenue growth, robust operational efficiency, and a stable balance sheet with low debt. The company's cash flow is strong, supporting future growth initiatives.

Income Statement

Very Positive

Opera's income statement shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue of $522.4 million, reflecting a significant growth from the previous year. The gross profit margin is high, indicating efficient cost management relative to revenues. Net profit margin has improved, showcasing increased profitability. EBIT and EBITDA margins are healthy, suggesting robust operational performance.

Balance Sheet

Positive

Opera's balance sheet demonstrates solid financial health with a low debt-to-equity ratio, indicating low leverage risk. The equity ratio is strong, reflecting a stable capitalization structure. Return on equity is improving, highlighting effective use of equity to generate profits. The balance sheet stability supports long-term financial sustainability.

Cash Flow

Positive

Opera's cash flow statement reveals a positive free cash flow with growth over the prior period, indicating good cash generation capabilities. The operating cash flow to net income ratio is strong, supporting the quality of earnings. Free cash flow to net income ratio also indicates effective conversion of profits into cash, which is vital for reinvestment and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	521.49M	480.65M	396.75M	331.04M	250.99M	165.27M
Gross Profit	362.26M	348.09M	207.40M	276.45M	237.30M	153.16M
EBITDA	117.19M	114.52M	173.98M	39.68M	10.05M	56.50M
Net Income	84.22M	80.77M	153.30M	15.04M	-14.97M	34.31M
Balance Sheet
Total Assets	1.04B	1.06B	1.01B	964.69M	1.12B	1.11B
Cash, Cash Equivalents and Short-Term Investments	103.55M	126.80M	93.86M	118.66M	181.01M	135.02M
Total Debt	9.55M	9.59M	10.55M	7.83M	13.51M	8.97M
Total Liabilities	113.52M	115.48M	91.09M	76.47M	80.17M	60.95M
Stockholders Equity	929.53M	940.10M	919.85M	888.21M	1.04B	1.05B
Cash Flow
Free Cash Flow	82.93M	81.63M	76.36M	46.69M	20.67M	82.00M
Operating Cash Flow	90.77M	104.98M	82.76M	56.66M	26.56M	93.32M
Investing Cash Flow	-10.66M	-27.11M	20.00M	44.45M	-49.70M	2.96M
Financing Cash Flow	-67.46M	-42.15M	-59.84M	-150.58M	-6.68M	-100.97M

Opera Technical Analysis

Technical Analysis Sentiment

Negative

Last Price15.40

Price Trends

50DMA

17.77

Negative

100DMA

17.04

Negative

200DMA

17.62

Negative

Market Momentum

MACD

-0.56

Positive

RSI

33.80

Neutral

STOCH

49.50

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPRA, the sentiment is Negative. The current price of 15.4 is below the 20-day moving average (MA) of 16.61, below the 50-day MA of 17.77, and below the 200-day MA of 17.62, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 33.80 is Neutral, neither overbought nor oversold. The STOCH value of 49.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks

Opera Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	73 Outperform	$1.47B	22.30	9.18%	5.06%	26.71%	-23.67%
WB	73 Outperform	$2.56B	8.46	10.80%	7.17%	0.86%	22.11%
TBLA	72 Outperform	$958.40M	90.19	1.40%	―	12.01%	―
ANGI	66 Neutral	$779.98M	15.34	5.86%	―	-15.79%	―
Sector *	60 Neutral	$44.03B	1.92	-11.93%	4.00%	2.46%	-39.70%
TEAD	57 Neutral	$182.35M	―	-16.75%	―	19.67%	-1183.48%
IAC	51 Neutral	$2.72B	―	-8.49%	―	-23.79%	-138.59%

* Communication Services Sector Average

Performance Comparison

OPRA

Opera

15.40

3.22

26.44%

ANGI

Angi

18.17

-7.43

-29.02%

Weibo

11.44

4.07

55.22%

IAC

IAC/InteractiveCorp.

35.14

-6.86

-16.33%

TBLA

Taboola.com

3.29

0.04

1.23%

TEAD

Teads Holding

1.84

-3.02

-62.14%

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.Date of analysis: Jul 25, 2025