Opera (OPRA) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: 5.9%
• Average Volume (3M): 870.74K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.52
• 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: 638,350
• 30 Day Avg. Volume: 870,739
• 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: 1.44
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 15.47
• 1Y Price Target: $26.67
• Price Target Upside: 101.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.86
• Revenue Forecast (FY): $602.05M

• Rating: 67 Neutral
• Price Target: $14.00 ▲(5.98% Upside)

Opera's overall stock score is driven by strong financial performance and positive earnings call highlights, including record revenue and strategic growth in AI and browser markets. However, technical analysis indicates bearish momentum, which tempers the overall score. Valuation is fair with an attractive dividend yield, adding to the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth reflects Opera's expanding market reach and successful product adoption, enhancing its competitive position.

AI and Browser Innovation

The launch of AI-powered Opera Neon positions Opera as a leader in browser innovation, potentially driving user engagement and revenue.

Strong Financial Performance

Record EBITDA and strong margins indicate efficient operations and financial health, supporting long-term growth and stability.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could limit Opera's ability to invest in new opportunities and maintain operational flexibility.

Currency Fluctuations Impact

Currency fluctuations can affect profitability and financial predictability, challenging Opera's financial performance and planning.

Decreased Gross Profit Margin

A decrease in gross profit margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability.

Opera Business Overview & Revenue Model

Company Description

Opera (OPRA) is a technology company known for its web browser and a suite of digital products that enhance online experiences. Founded in 1995, the company operates in the internet software and services sector, providing solutions that include web browsing, online gaming, and mobile apps. Opera is recognized for its innovative features like a built-in VPN, ad blocker, and cryptocurrency wallet, catering to a wide range of users from casual internet surfers to tech-savvy individuals seeking enhanced privacy and security online.

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	583.45M	480.65M	396.83M	331.04M	250.99M	165.06M
Gross Profit	381.48M	348.09M	303.58M	276.45M	237.30M	156.73M
EBITDA	114.00M	114.52M	173.53M	38.09M	-23.19M	58.34M
Net Income	81.27M	80.77M	153.30M	15.04M	-43.96M	179.17M
Balance Sheet
Total Assets	1.06B	1.06B	1.01B	964.69M	1.09B	1.11B
Cash, Cash Equivalents and Short-Term Investments	119.04M	126.80M	93.86M	118.66M	181.01M	135.03M
Total Debt	8.82M	9.59M	10.55M	7.83M	13.51M	8.97M
Total Liabilities	112.15M	115.48M	91.09M	76.47M	79.42M	60.72M
Stockholders Equity	947.64M	940.10M	919.85M	888.21M	1.01B	1.05B
Cash Flow
Free Cash Flow	87.82M	74.37M	76.36M	46.69M	20.67M	82.00M
Operating Cash Flow	99.16M	104.98M	82.76M	56.66M	26.56M	93.32M
Investing Cash Flow	-13.13M	-27.11M	20.00M	44.45M	-49.70M	2.96M
Financing Cash Flow	-76.32M	-42.15M	-59.84M	-150.58M	-6.68M	-100.97M

Opera Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 13.21 is below the 20-day moving average (MA) of 13.53, below the 50-day MA of 15.66, and below the 200-day MA of 16.92, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 37.51 is Neutral, neither overbought nor oversold. The STOCH value of 70.34 is Neutral, 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
YELP	70 Outperform	$1.76B	12.63	20.37%	―	5.35%	33.74%
OPRA	67 Neutral	$1.22B	14.97	8.73%	5.90%	30.00%	-9.72%
TBLA	67 Neutral	$1.18B	56.12	2.63%	―	10.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PERI	60 Neutral	$460.28M	―	-1.56%	―	-28.29%	-126.12%
MAX	59 Neutral	$822.47M	―	―	―	64.86%	-112.92%
SMWB	50 Neutral	$648.55M	―	-120.56%	―	14.25%	-211.21%

Opera Corporate Events

Opera Limited Announces AGM and Share Reserve Expansion

On November 7, 2025, Opera Limited announced its upcoming annual general meeting (AGM) scheduled for December 9, 2025, in Wroclaw, Poland. The meeting’s agenda includes a proposal to expand the company’s employee equity incentive plan by increasing the share reserve by 2 million American depositary shares (ADSs) and an annual increase of 1 million ADSs starting January 1, 2026. This move aims to align the interests of officers, employees, and directors with shareholders, ensuring the company’s continued ability to grant awards and promote business success.

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.