Opera (OPRA) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: 5.47%
• Average Volume (3M): 785.80K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.38
• Revenue Growth: 30.00%
• EPS Growth: -9.72%
• Country: US
• Employees: 599
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.61
• Shares Outstanding: 89,500,854
• 10 Day Avg. Volume: 964,086
• 30 Day Avg. Volume: 785,805
• PEG Ratio: 0.35
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 11.01
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 3.48
• Enterprise Value/Ebitda: 8.66
• 1Y Price Target: $24.63
• Price Target Upside: 63.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.17
• Revenue Forecast (FY): $731.16M

• Rating: 82 Outperform
• Price Target: $18.50 ▲(22.44% Upside)
• Action: Upgraded Date: 03/02/26
• Date: Action: Upgraded 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

Balance sheet strength

Opera’s very low leverage and conservative financing materially lower financial risk and preserve strategic optionality. Over a multi‑month horizon this supports sustained dividends, a large buyback program, and the ability to invest in AI, MiniPay and partnerships without stress in downturns.

Robust cash generation

Consistent operating and free cash flow with high cash conversion (~83% of adj. EBITDA) provides repeatable funding for buybacks, dividends and product investment. Strong cash generation enhances resilience and funds scaling of monetization initiatives over the coming quarters.

Diversified monetization & product innovation

Opera is broadening revenue beyond core search/ads via AI browsers, subscription Neon, query monetization and MiniPay. This multi‑pronged approach increases ARPU, reduces single‑stream dependency and creates durable growth levers as AI and digital payments adoption matures across markets.

Negative Factors

Rising cost of revenue

A structural shift toward off‑platform ad inventory and higher cost of revenue implies narrower gross margins. If sustained, this reduces operating leverage and requires higher revenue growth to maintain historical EBITDA/net margins, pressuring margin sustainability over coming quarters.

Increasing operating expenses

Planned increases in compensation, marketing and other operating costs expand the fixed cost base. Over a 2–6 month horizon this raises the revenue growth threshold needed to sustain margins and free cash flow, making outputs more sensitive to execution and slower top‑line scenarios.

Early-stage monetization of new products

Rapid percentage growth from nascent lines (non‑search queries, Neon) starts from a small base. Their modest absolute contribution today means scaling and consistent monetization must continue to prove durable revenue diversification; failure would keep dependence on core ad/search streams.

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 several key streams. Firstly, it earns money through advertising, specifically by offering advertising solutions within its browsers and other products. The company also monetizes its user base through partnerships with search engines, where it receives a share of ad revenue generated via its default search options. Additionally, Opera has developed a subscription-based model for premium services, allowing users to access enhanced features and tools. The introduction of a cryptocurrency wallet has also opened new avenues for revenue, particularly through transaction fees and related services. Strategic partnerships with telecom companies and content providers further bolster its earnings, enabling bundled offerings and targeted marketing initiatives.

Opera Financial Statement Overview

Summary

Strong overall fundamentals supported by a very low-leverage balance sheet (minimal debt) and solid, improving operating and free cash flow. Profitability is consistently positive with healthy 2025 net margins, but recent margin compression and historical earnings/cash-flow volatility temper the score.

Income Statement

Opera shows solid revenue momentum over time (strong growth in 2021–2023 and positive growth again in 2025), with profitability now consistently positive. 2025 annual margins are healthy (about 43% gross margin and ~18% net margin), and net income has improved versus 2024. The main weakness is margin compression versus 2022–2024 (gross and EBITDA/EBIT margins notably lower in 2025), and the history includes a loss year in 2021 plus unusually volatile profitability (e.g., outsized net margin in 2020), which reduces earnings stability.

Balance Sheet

The balance sheet is very conservatively financed: debt is minimal and leverage is extremely low (debt-to-equity roughly ~1% across recent years), which lowers financial risk and supports flexibility. Equity and assets are sizable and appear stable, and returns on equity are positive in most years (rebounding meaningfully from 2022 to 2023–2025). The key drawback is that returns on equity have fluctuated materially (negative in 2021, very low in 2022, then higher in 2023), indicating variability in how efficiently capital is being converted into earnings.

Cash Flow

Cash generation is strong and improving: operating cash flow and free cash flow are both solid in 2025, and free cash flow growth accelerated sharply in 2025 after a slight decline in 2024. Cash conversion is generally healthy, with operating cash flow roughly covering net income in 2023–2025 and free cash flow close to net income in 2025. The weakness is historical volatility—coverage was weak in 2021 and below 1x in 2022—suggesting cash generation can fluctuate with operating conditions.

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

• Technical Analysis Sentiment: Positive
• Last Price: 15.11
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 15.11 is above the 20-day moving average (MA) of 13.22, above the 50-day MA of 13.57, and below the 200-day MA of 15.61, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 61.42 is Neutral, neither overbought nor oversold. The STOCH value of 78.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPRA.

Opera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	82 Outperform	$1.35B	11.67	11.11%	5.47%	30.00%	-9.72%
YELP	71 Outperform	$1.38B	13.22	20.02%	―	5.35%	33.74%
TBLA	61 Neutral	$873.32M	33.98	4.32%	―	10.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PERI	55 Neutral	$357.38M	-50.84	-1.13%	―	-28.29%	-126.12%
MAX	55 Neutral	$660.44M	28.43	783.82%	―	64.86%	-112.92%
SMWB	50 Neutral	$233.06M	-19.21	-129.58%	―	14.25%	-211.21%

Opera Corporate Events

Opera Tops 2025 Targets and Launches $300 Million Buyback as AI Browsers, MiniPay Fuel Growth

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 million and adjusted EBITDA reached $142.5 million with a 23% margin, underpinned by strong growth in advertising and query revenue tied to e-commerce and user-intent monetization.

The company also unveiled a $300 million share repurchase program to be executed over two years, with pro rata buybacks from public shareholders and its majority owner, signaling confidence in its cash generation and complementing its recurring dividend strategy. Management framed 2025 as a year of “financial overperformance” and highlighted strategic advances, including the launch of two new AI-enhanced browsers and rapid expansion of the MiniPay wallet to 13 million activated accounts, moves that reinforce Opera’s bid to deepen user engagement and strengthen its position at the intersection of browsers, AI and digital finance.

Opera introduced 2026 guidance calling for full-year revenue of $720 million to $735 million, implying 17% to 20% growth over 2025 and adjusted EBITDA of $167 million to $172 million, maintaining margins around 23%. For the first quarter of 2026, the company projected revenue of $169 million to $172 million, representing 18% to 21% year-on-year growth, and adjusted EBITDA of $38 million to $40 million, suggesting continued disciplined scaling with strong profitability and cash conversion that may appeal to growth- and income-oriented investors.

The most recent analyst rating on (OPRA) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Opera stock, see the OPRA Stock Forecast page.

Opera Expects Q4 2025 Results to Top Guidance as Full-Year Revenue Jumps Over 26%

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, representing more than 26% growth versus 2024. The company also anticipates adjusted EBITDA for both the quarter and full year to come in above the high end of prior guidance, with full-year adjusted EBITDA expected to exceed $141 million, driven by a roughly 2 million sequential increase in high-ARPU Western users and strong monetization from e-commerce, search and partner promotions, reinforcing Opera’s growth trajectory and strengthening its position in the competitive browser and AI tools market ahead of its detailed earnings release on February 26, 2026.

The most recent analyst rating on (OPRA) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Opera stock, see the OPRA Stock Forecast page.

Opera Announces $0.40 Dividend for January 2026

Opera Limited announced on December 11, 2025, that its Board of Directors has declared a semi-annual cash dividend of $0.40 per share, payable on January 14, 2026, to shareholders of record as of January 7, 2026. This dividend, amounting to an aggregate payment of $35.9 million, reflects Opera’s ongoing commitment to returning value to its shareholders and underscores its stable financial position in the global browser and AI industry.

The most recent analyst rating on (OPRA) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Opera stock, see the OPRA Stock Forecast page.

Opera Limited Expands Share Incentive Plan Following AGM Approval

On December 9, 2025, Opera Limited announced the results of its 2025 Annual General Meeting, where an amendment to the Share Incentive Plan was approved. The amendment, effective December 10, 2025, increases the number of American Depositary Shares (ADSs) from 10 million to 12 million, with an annual increase of 1 million ADSs starting January 1, 2026. This move aims to attract and retain talent, providing additional incentives to stakeholders and promoting the company’s long-term success.

The most recent analyst rating on (OPRA) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Opera stock, see the OPRA Stock Forecast page.