Opera (OPRA) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: 5.61%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.49
• Revenue Growth: 30.00%
• EPS Growth: -9.72%
• Country: US
• Employees: 599
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.21
• Shares Outstanding: 89,500,854
• 10 Day Avg. Volume: 1,146,838
• 30 Day Avg. Volume: 1,051,795
• PEG Ratio: -0.44
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 3.49
• P/FCF Ratio: 20.52
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 6.25
• Enterprise Value/Ebitda: 15.52
• 1Y Price Target: $26.30
• Price Target Upside: 89.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.86
• Revenue Forecast (FY): $602.05M

• Rating: 72 Outperform
• Price Target: $17.00 ▲(22.21% Upside)

Opera's overall stock score reflects strong financial performance and positive earnings call sentiment, highlighting robust growth and strategic innovation. However, technical analysis indicates bearish momentum, which tempers the overall score. The valuation is reasonable, supported by a solid dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates Opera's expanding market reach and effective monetization strategies, supporting long-term financial health.

AI and Product Innovation

Innovative product launches like Opera Neon enhance user experience and position Opera as a leader in AI-driven browser technology.

Strong Financial Performance

Strong EBITDA performance indicates efficient operations and profitability, ensuring Opera's capability to invest in growth and innovation.

Negative Factors

Margin Pressures

Declining margins may signal rising costs or competitive pressures, potentially impacting Opera's profitability if not managed effectively.

Currency Fluctuations

Currency fluctuations can affect financial results, creating uncertainty in earnings and potentially impacting international operations.

Leadership Transition

Leadership changes can impact strategic direction and stakeholder confidence, potentially affecting Opera's long-term growth trajectory.

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 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 Money

Opera 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 Financial Statement Overview

Summary

Opera exhibits strong financial health with consistent revenue growth, solid profitability, and a robust balance sheet with low leverage. While the company faces some margin pressures, its cash flow generation remains strong, supporting its financial stability and growth potential.

Income Statement

Opera has demonstrated consistent revenue growth, with a TTM revenue growth rate of 6.37%. The company maintains solid profitability with a gross profit margin of 67.11% and a net profit margin of 14.53% in the TTM. However, there is a slight decline in margins compared to the previous year, indicating potential cost pressures or competitive challenges.

Balance Sheet

Opera's balance sheet is strong, characterized by a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity is moderate at 8.63%, suggesting efficient use of equity capital. The equity ratio of 89.38% reflects a robust capital structure with significant equity backing.

Cash Flow

The cash flow statement shows healthy cash generation, with a free cash flow growth rate of 18.16% in the TTM. The operating cash flow to net income ratio is slightly above 1, indicating good cash conversion. The free cash flow to net income ratio of 92.79% suggests strong cash profitability, though there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.00T>	480.65M	396.75M	331.04M	250.99M	165.27M
Gross Profit	282.19M	348.09M	207.40M	276.45M	237.30M	153.16M
EBITDA	113.68M	114.52M	173.98M	39.68M	10.05M	56.50M
Net Income	81.27M	80.77M	153.30M	15.04M	-14.97M	34.31M
Balance Sheet
Total Assets	1.06B	1.06B	1.01B	964.69M	1.12B	1.11B
Cash, Cash Equivalents and Short-Term Investments	126.80M	126.80M	93.86M	118.66M	181.01M	135.02M
Total Debt	0.00	9.59M	10.55M	7.83M	13.51M	8.97M
Total Liabilities	115.48M	115.48M	91.09M	76.47M	80.17M	60.95M
Stockholders Equity	0.00	940.10M	919.85M	888.21M	1.04B	1.05B
Cash Flow
Free Cash Flow	67.21M	81.63M	76.36M	46.69M	20.67M	82.00M
Operating Cash Flow	70.71M	104.98M	82.76M	56.66M	26.56M	93.32M
Investing Cash Flow	-8.07M	-27.11M	20.00M	44.45M	-49.70M	2.96M
Financing Cash Flow	-39.21M	-42.15M	-59.84M	-150.58M	-6.68M	-100.97M

Opera Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 13.91 is below the 20-day moving average (MA) of 15.29, below the 50-day MA of 17.28, and below the 200-day MA of 17.34, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 33.25 is Neutral, neither overbought nor oversold. The STOCH value of 18.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPRA.

Opera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	72 Outperform	$1.29B	15.84	8.73%	5.61%	30.00%	-9.72%
TBLA	71 Outperform	$1.10B	51.86	2.63%	―	10.96%	―
YELP	70 Outperform	$2.03B	14.54	20.37%	―	5.35%	33.74%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MAX	59 Neutral	$879.82M	―	―	―	64.86%	-112.92%
PERI	56 Neutral	$417.04M	―	-0.67%	―	-38.18%	-107.00%
SMWB	49 Neutral	$696.60M	―	-123.81%	―	16.06%	-134.90%

Opera Corporate Events

Opera Exceeds Q3 Expectations and Raises 2025 Guidance

On October 29, 2025, Opera Limited announced its third-quarter financial results, reporting a 23% year-over-year revenue increase to $151.9 million, surpassing expectations. The company also raised its full-year guidance for both revenue and adjusted EBITDA, reflecting strong performance and strategic positioning in the evolving AI landscape. Opera’s recent release of the Neon browser and updates to its flagship and GX gaming browsers highlight its commitment to enhancing user experiences with advanced AI capabilities.

Opera’s Lin Song Takes Over as Sole CEO

On October 10, 2025, Opera Limited announced that Lin Song, formerly Co-CEO, has become the sole CEO of the company. This change follows James Yahui Zhou’s decision to step down from his co-CEO role after five years, although he will continue to serve as Opera’s Executive Chairman. This leadership transition is significant for Opera as it continues to strengthen its position in the global browser and AI agent industry, potentially impacting its strategic direction and stakeholder relations.

Opera Exceeds Q2 Expectations, Raises 2025 Guidance

On August 19, 2025, Opera Limited announced its second-quarter financial results, reporting a 30% year-over-year revenue increase to $143 million, surpassing expectations. The company also raised its full-year revenue guidance to between $585 million and $597 million. This growth was driven by strong performance in AI-powered advertising, particularly in e-commerce, and a significant rise in search revenue. Opera’s innovative launch of the Opera Neon browser, which integrates AI to enhance user experience, underscores its commitment to advancing web technology. The company also reported a 44% increase in advertising revenue and a 35% rise in annualized average revenue per user, reflecting its robust market position.