Opera (OPRA) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 5.47%
• Average Volume (3M): 600.24K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.45
• 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: 513,632
• 30 Day Avg. Volume: 600,242
• PEG Ratio: -0.44
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 3.49
• P/FCF Ratio: 22.53
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 3.36
• Enterprise Value/Ebitda: 11.23
• 1Y Price Target: $26.75
• Price Target Upside: 81.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.86
• Revenue Forecast (FY): $602.05M

• Rating: 67 Neutral
• Price Target: $14.00 ▼(-5.02% Downside)

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 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

Opera demonstrates strong financial health with consistent revenue growth and improved profitability. The balance sheet is robust with low leverage, and cash flows are managed effectively despite recent declines in free cash flow growth. The company is well-positioned in its industry, but attention should be given to maintaining operational efficiency and cash flow stability.

Income Statement

Opera has shown consistent revenue growth with a TTM growth rate of 5.18%. The company maintains a healthy gross profit margin, although it has decreased from previous years. Net profit margin has improved significantly from negative figures in 2021 to positive in the TTM, indicating better profitability. However, margins such as EBIT and EBITDA have seen a decline in the TTM, suggesting potential operational challenges.

Balance Sheet

Opera's balance sheet is strong, with a very low debt-to-equity ratio indicating minimal leverage risk. The return on equity has improved over the years, reflecting efficient use of equity to generate profits. The equity ratio remains stable, showcasing a solid financial foundation with a high proportion of equity in the asset base.

Cash Flow

The cash flow statement shows a decline in free cash flow growth in the TTM, which could be a concern. However, the operating cash flow to net income ratio remains healthy, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong, suggesting effective cash management despite the recent decline in free cash flow growth.

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: Positive
• Last Price: 14.74
• 50DMA: Positive
• 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 Positive. The current price of 14.74 is above the 20-day moving average (MA) of 13.86, above the 50-day MA of 14.33, and below the 200-day MA of 16.58, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 59.99 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
YELP	77 Outperform	$1.92B	13.69	20.37%	―	5.35%	33.74%
TBLA	72 Outperform	$1.16B	56.53	2.63%	―	10.96%	―
OPRA	67 Neutral	$1.26B	15.49	8.73%	5.47%	30.00%	-9.72%
MAX	61 Neutral	$834.20M	-596.30	―	―	64.86%	-112.92%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PERI	60 Neutral	$444.52M	-38.42	-1.56%	―	-28.29%	-126.12%
SMWB	50 Neutral	$602.24M	―	-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.