OPRA

Opera Limited (NASDAQ:OPRA) moved its second-quarter earnings release from August 25 to August 19, focusing attention on whether another guidance increase is coming. First-quarter revenue rose 23% to $175.8 million, while adjusted EBITDA increased 30% to $42.0 million. Both exceeded the company’s guidance, and the shares gained 5.3% following the report. The financial momentum has been accompanied by faster adoption in valuable Western markets. Opera Limited (NASDAQ:OPRA) said combined MAUs for its Android and iOS browsers increased 66% year over year in the U.K. and 40% in the U.S. during the second quarter. Its built-in AI can search, answer questions, and generate content without requiring users to leave the browser. The question is whether Opera Limited (NASDAQ:OPRA) is building a durable AI-browser franchise or simply finding better ways to monetize traffic through advertising and search partners. Opera Limited (NASDAQ:OPRA) entered the second quarter with encouraging operating leverage. Average monthly active users reached 288 million in the first quarter, up four million sequentially, while annualized revenue per user increased 25% year over year to $2.43. Adjusted EBITDA grew faster than revenue, and free cash flow from operations nearly tripled to $35.5 million. Opera Limited (NASDAQ:OPRA) also raised its full-year outlook after exceeding first-quarter guidance. The company projected revenue of $727 million to $740 million and adjusted EBITDA of $170 million to $174 million. Its second-quarter forecast called for revenue growth of 23% to 25% and adjusted EBITDA of $40 million to $42 million, equivalent to a 23% margin at the midpoints. The combination of higher-value users, rising monetization and stable margins suggests that Opera’s overall business is scaling. The second quarter will test whether AI-led engagement is contributing materially to that progress. The revenue model at Opera Limited (NASDAQ:OPRA) remains highly concentrated. Advertising generated $117.0 million in the first quarter, while query revenue contributed $58.3 million. Together, those businesses accounted for $175.3 million of the company’s $175.8 million in quarterly sales. That leaves Opera Limited (NASDAQ:OPRA) exposed to advertising demand, search-partner economics and distribution decisions by operating-system and app-store providers. Its user gains must also be viewed against competition from Chrome, Safari, Edge and a growing field of AI-focused browsers. Built-in AI can attract downloads, but lasting value depends on retention, engagement and profitable searches. Opera Limited (NASDAQ:OPRA) must show that user growth is strengthening its economics rather than increasing its dependence on the partners that distribute and monetize its traffic. Insider Monkey’s hedge fund database shows that 14 hedge funds held positions in Opera Limited (NASDAQ:OPRA) at the end of the first quarter, compared with 19 funds at the end of the preceding quarter. These figures do not capture trades made after that date or investors’ reactions to the accelerated earnings schedule. Opera has user growth, improving revenue per user, and cash generation to support another guidance increase. The unresolved question is how much of that momentum belongs to its AI products and how much still comes from favorable advertising and query economics. Another increase would strengthen the growth narrative. A durable re-rating requires AI adoption to produce lasting engagement and better per-user economics without deepening dependence on distribution and search partners. While we acknowledge the potential of OPRA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: ConocoPhillips (COP): Wall Street Sees More Upside Despite Leadership Shakeup and Here is Why Chevron (CVX) is a Favorite Among Hedge Funds Disclosure: None. This article is originally published at Insider Monkey.

In August 2026, Opera Limited reported past second-quarter 2026 results showing sales of US$178.07 million and net income of US$27.55 million, with both basic and diluted earnings per share from continuing operations rising compared with a year earlier. Alongside these stronger earnings, Opera raised its 2026 guidance and highlighted progress in AI-enabled products and fintech monetization, sharpening investor focus on how effectively it can convert user engagement into profits and potential capital returns. With recent share price moves and Opera’s upgraded 2026 guidance, we’ll examine how its AI-enabled monetization efforts shape the investment narrative. Explore 24 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. For Opera to make sense in a portfolio, you need to believe its AI-enabled browsers and fintech tools can keep deepening user monetization while the company maintains disciplined profitability and regular capital returns like its semi-annual dividend. The latest Q2 2026 results, which came in at the top end of prior guidance, reinforce that story and lend credibility to management’s decision to raise full-year targets, so they strengthen rather than change the near-term earnings and monetization catalysts. The market reaction has been mixed, with a recent pullback after strong year-to-date gains, suggesting investors are still testing how durable these margins are once one-off gains fade. At the same time, governance issues, insider selling and a relatively new management team remain key risks that the stronger quarter does not fully resolve. However, some governance and insider-selling signals are worth a closer look for shareholders. Despite retreating, Opera's shares might still be trading above their fair value and there could be some more downside. Discover how much. Six fair value estimates from the Simply Wall St Community span roughly US$23 to over US$60 per share, underlining how far opinions can stretch. Set against Opera’s recent guidance upgrade and focus on AI monetization, this spread highlights why you might want to weigh several views before deciding how resilient the current earnings profile really is. Explore 6 other fair value estimates on Opera - why the stock might be worth over 3x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Opera research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision. Our free Opera research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Opera's overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: Find 48 companies with promising cash flow potential yet trading below their fair value. Rare earth metals are the new gold rush. Find out which 28 stocks are leading the charge. We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OPRA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Opera (NasdaqGS:OPRA) just reported second quarter 2026 results, with higher sales, net income and earnings per share compared with a year earlier. The company also updated full year guidance and highlighted progress in AI driven services. See our latest analysis for Opera. Opera’s latest earnings news arrives after a mixed few weeks for the stock, with a 7 day share price return that declined 6.74% but a year to date share price return of 33.24% and a 3 year total shareholder return of 73.13%, suggesting that momentum has built over a longer period. If Opera’s AI push has your attention, it could be a good moment to broaden your search and check out 29 AI small caps. Opera’s strong year to date climb and recent pullback leave you weighing two paths. Is it better to accept today’s price after the earnings update or wait and hope the valuation offers a clearer entry later on? Opera’s most followed valuation narrative puts fair value at $26.29 per share compared with the recent close at $18.96, which points to a meaningful gap that investors are trying to understand. Read the complete narrative. The fair value narrative leans heavily on Opera’s expanding AI features, higher margin advertising and gaming exposure, and an earnings profile that supports a richer multiple than a traditional browser stock. Result: Fair Value of $26.29 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Opera’s story can change quickly if its AI products fail to gain traction or if larger browser rivals limit user growth and reduce advertising economics. Find out about the key risks to this Opera narrative. The mix of optimism and concern around Opera is clear, so now is the time to review the data for yourself and decide where you stand. To weigh both sides in one place, take a closer look at the 5 key rewards and 2 important warning signs. If Opera’s update has sharpened your focus, do not stop here. Broaden your watchlist with a few targeted stock ideas that could suit different goals. Target higher yield potential by focusing on companies tagged as 12 dividend fortresses for income focused portfolios. Hunt for potential mispricing by reviewing 48 high quality undervalued stocks that combine quality fundamentals with appealing valuations. Strengthen your defense with 75 resilient stocks with low risk scores that score well on resilience and balance sheet stability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OPRA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, Aug. 19, 2026 at 8:00 a.m. ET Head of Investor Relations - Matthew Wolfson Chief Executive Officer - Song Lin Chief Financial Officer - Frode Jacobsen Operator: Welcome to the Opera Limited Second Quarter 2026 Earnings Call. [Operator Instructions] Please be advised that today's call is being recorded. [Operator Instructions] I would now like to turn the call over to your speaker today, Matt Wolfson, Head of Investor Relations. Please go ahead. Matthew Wolfson: Thank you, Erica, and thank you, everyone, for joining us this morning. I'm joined by our CEO, Song Lin; and our CFO, Frode Jacobsen. Before I hand over the call to Song Lin, I would like to remind you that some of the statements that we make today regarding our business, operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially as a result of various factors, including those set forth in today's earnings press release and in our most recent annual report on Form 20-F filed with the SEC. We undertake no obligation to update any forward-looking statement. During this call, we will present both IFRS and non-IFRS financial measures. A reconciliation of IFRS to non-IFRS measures is included in today's earnings press release. The earnings press release and an accompanying investor presentation are available on our Investor Relations website at investor.opera.com. Our comments will be on year-over-year comparisons unless we state otherwise. With that, let me turn the call over to our CEO, Song Lin, who will cover our second quarter operational highlights and strategy, and then to Frode Jacobsen, who will discuss the details of our financials and expectations for the third quarter and full year. Song? Lin Song: Thank you, and good morning, everyone. We have been looking forward to sharing today's report with you. Our second quarter results reaffirm that being an independent, well-established and innovative browser provider with a user base of nearly 300 million people and a significant advertising reach is a very attractive position to hold in a rapidly evolving and expanding ecosystem. Instead of placing bets on which AI services or infrastructure plays will be leading in the future, we cultivate our position as a tech enabler and platform that facilitates choice for the end user and access to our vast user base for our partners. In this landscape, the browser is becoming more valuable as AI changes how people search work and act online and Opera is already translating that shift into greater engagement and monetization. By continuing to give the most demanding users new reasons to switch from the operating system default browser and by expanding the functionality of our advertising platform, we broaden our partner ecosystem and grow monetization opportunities every month, adding to the foundation of our long-term trajectory as well. Both revenue and adjusted EBITDA exceeded the top of our guidance range, with growth fueled by acceleration of revenue growth from 23% year-over-year in Q1 to 25% year-over-year in Q2. The strength was broad-based. Advertising revenue grew 27% to $115 million, while Query revenue grew 21% to $62 million. With that, second quarter revenue exceeded $178 million and surpassed the seasonal Q4 peak a quarter earlier than what we've seen in most prior years. Adjusted EBITDA was also a quarterly record at $42.4 million, representing a margin of 24% and growing 32% year-over-year. And importantly, our confidence in this elevated trajectory allows us to raise full year guidance beyond the Q2 overperformance, which Frode will get back to. Advertising growth was again led by e-commerce in particular. As we look ahead, our road map includes additional high-intent formats, including AI-supported price comparisons designed to help shoppers evaluate the products while helping merchants reach users closer to a purchase decision. Our in-house commerce platform already helps match our users with the best deals across 100 merchants with over 100 million products. Within travel, another high potential vertical for us, we work with the top online travel agencies and have started initial campaigns beyond Opera's own user base. Our partners continue to expand their work with us because our performance-based campaigns deliver measurable outcomes. As a combined platform for first and third-party inventory, we are able to inform and allocate campaigns with a solid understanding of the relevant audiences. In fact, our total addressable audience when taking into account the millions of users that access our content platform through OEM white-label solutions and the broader SDK ratio of Opera apps has now reached beyond 700 million, up from the 500 million we announced just 6 months ago. This scale and growth reinforces our position among the largest online platforms. Our query revenue representing the monetization of our users' proactive intent continue to grow ahead of underlying search market benchmarks as we benefit from natively integrating key partners as a part of the browser interface. This revenue category directly captures the traffic monetization potential of increased engagement in our browsers with native AI functionalities, benefiting both time spent and the browser's ability to connect the right partners with our users at the right time. This is also true as it relates to the evolution of our search partnerships where the secular tailwind from longer and more complex user journeys continues to build. Search is evolving from short keywords to questions and increasingly to conversations. We combine this with rapid product innovation, driving both user appreciation and increased usage of our browsers, all of which results in more engagement within the address bar and omnibox with more opportunities to connect high-intent users with relevant results. Look at the ARPU-driven Western markets, as mentioned before, we see that the users who engage with AI within our browsers spend significantly more time in the browser and even conduct many more searches versus comparable users who are not yet engaged in AI, all of which directly contributes to ARPU growth. As an overall result, we see that query revenue is growing at 1.4x the pace in Western markets, this is the global average, up 29% year-over-year as opposed to 21% globally. It's a point worth making that Opera is already monetizing AI-driven query activity today, not simply describing a future opportunity. In the second quarter, Google announced a new commercialization of its AI mode, widening the basis for our query revenue stream. We also expanded our AI strategy by announcing Browser Connector for leading AI services, including Anthropic’s Claude and OpenAI’s ChatGPT. Browser Connector enables users to securely connect these AI services to the Opera browser, elevating those services to become agentic by understanding the live browsing context and interacting with the browser on the user's behalf. This represents a shift from closed single vendor AI experiences toward an open ecosystem where users can choose AI services that best meet their needs while retaining the browser as a central interface. We are fully committed to such interoperability as the best basis for growth of new AI platforms and services, allowing the users to have a deeply integrated experience without juggling multiple browsers and enabling new platforms to access the users in a native way without having to drive both adoption of the platform and a dedicated and perhaps narrow browser experience on top. This open approach aligns with Opera's position as an independent browser vendor and appeals to our most technologically sophisticated user base, many of whom value flexibility and avoiding dependency on a single AI provider. As AI assistant become increasingly capable, the browser is well positioned to serve as a trusted context and execution layer connecting users with multiple AI services, and we expect adoption of such integrations to eventually be commonplace for all users. Opera also introduced Opera Browser AI and open source command-line interface that enables developers and AI enthusiasts to integrate the browser directly into AI-driven workflows. By allowing AI coding agents and automation tools to interact with a live browser, Opera Browser AI extends the browser's role beyond traditional browsing and reinforces Opera's strategy of making the browser programmable infrastructure for the next generation of AI applications. Turning to our user base. Opera had 188 million (sic) [ 288 million ] monthly active users in the quarter. Our Western user base grew 4% year-over-year to 61 million with both desktop and mobile platforms contributing. Mobile was particularly strong, growing 8% year-over-year across Western markets, while the [ low ARPU Asia ] home base continues to phase out. This continued mix shift towards higher-value users helped increase annualized ARPU by 25% to $2.46. Opera GX reached 37 million monthly active users, adding almost 2 million users during the quarter. Both desktop and mobile grew with a larger absolute contribution coming from desktop. Partnerships with games like Forsaken, rewards players with in-game items like free skins and game boost, which resonates with our target audience. Our momentum is especially visible in some of the world's most competitive mobile markets. Over the past year, combined Android and iOS MAUs grew 66% in the United Kingdom and 40% in the United States. Across Europe, Opera One for iOS grew 42%, demonstrating our potential to broaden our smartphone base, which is still about 90% Android. Users continue to choose Opera for differentiated features, including our free no-log VPN, intuitive tab management and building browser AI. Our iOS user base growth shows how even a highly restrictive ecosystem has materialized and the opportunity for us to grow both users and overall ARPU. Our browser reach and brand trust also enables us to scale new services. MiniPay, our self-custodial stablecoin wallet solved the problem of access to international currency for users in emerging markets, removing complexities for the end user and making P2P transfers and Web3 access very easy. Given our ability to rapidly scale, we are also able to work closely with key partners such as Celo and Tether to drive adoption of these services. MiniPay's growth continued in the second quarter with 3 million new wallet activations and 88 million transactions since our last update, bringing the total to 18 million wallets and 518 million transactions. MiniPay now reaches more than 66 countries and includes more than 57 live mini apps and is rapidly expanding its capabilities. In June, we launched a card in collaboration with Visa that bridges the gap between stablecoin holding and daily spending. The card is now available across the EU and is being gradually introduced in supporting markets in Africa, Latin America and Asia. Stablecoin access has different use cases in different economies, but as a global yet locally integrated network, we remove friction from international money transfers while both parties are unbanked, and our users can travel globally like true locals in markets where mobile payment options are expanding. All of this strengthen our conviction that MiniPay can make stablecoins useful for everyday savings transfers and spending. It is still early, but the product scale, utility and ecosystem participation continue to progress rapidly. With that, I would like to turn the call over to Frode Jacobsen, our CFO, to discuss our financial results, guidance and capital allocation in greater detail. Frode? Frode Jacobsen: Thanks, Song. We remain very pleased with how our strategy and business performance converts to healthy financials, having exceeded our guidance ranges in both quarters of 2026 to date. As Song Lin pointed out, being an independent partner-oriented and tech-first browser in the evolving AI landscape is a great position that we will continue to cultivate. And yet again, we are able to lift our full year guidance, reflecting both the Q2 overperformance and our trajectory as we enter the second half of the year. Opera's growth is all organic and comes with healthy profitability. We invest in our growth through rapid and continuous product development, creative and engaging marketing and by acquiring the third-party inventories as we scale our ads business. Those who have followed us over time know that we balance this carefully to ensure a strong growth trajectory while also driving profits and cash generation that we return to our shareholders through our recurring dividend and share buybacks. Last quarter, I talked about how our 10-year average annual revenue growth stands at 21%. And in fact, if you zoom into the post-COVID period and look at the CAGR across the last 4 full years, the average annual revenue growth has been 23%, and profit metrics have grown even faster. At EPS level, our share buybacks have amplified that trend with average annual adjusted EPS growth of 33%, which excludes valuation gains from our stake in OPay that we eliminate from our adjusted metrics. Zooming back into our Q2 results, revenue grew 25% to $178.1 million. Overall expenses came in according to expectations, resulting in adjusted EBITDA growth of 32% to $42.4 million or a margin of 24%. In terms of cost categories, cost of revenue items combined came in at 38% of revenue, exactly as previously indicated. Marketing spend came in at $36.2 million, representing a sequential decline of 6% relative to Q1 with continued discipline. Cash-based compensation was $23.1 million, which included accelerated annual bonus accruals following the strong underlying performance in the quarter. The sum of all the smaller OpEx items, pre-adjusted EBITDA came in at $8.9 million and was overall flat versus Q1. Below the EBITDA line, we achieved adjusted net income of $30 million or 27% growth year-over-year and adjusted diluted EPS was $0.33, representing 25% growth. Operating cash flow was $22 million in the quarter with free cash flow from operations of $17 million. Year-to-date, we have converted 76% of adjusted EBITDA to operating cash flow and 62% of adjusted EBITDA to free cash flow from operations, both ratios nearly the same as in the first half of 2025. While we continue to expect fluctuations in cash conversion between quarters, the year-to-date ratios will stabilize and likely tick up in the second half of the year as they also did in 2025. In terms of capital allocation, our low CapEx business model allows us to return significant value to our shareholders through our recurring dividend and share buyback program. In fact, since 2020 and including our recent July dividend, we have returned $577 million to our shareholders, of which $320 million through dividends and $256 million spent to buy back a total of 37.2 million shares of Opera with an average cost per share of $6.88 and representing 31% of shares outstanding at the start of 2020. Our July semiannual dividend of $0.40 per share or $35.6 million total represented an annualized yield of 3.9% on the record date. During Q2, we repurchased 636,000 shares for a total spend of $11.1 million pro rata distributed between public buybacks and repurchases from our majority shareholder at the same price per share, which was $17.44. This corresponded to 0.7% of shares outstanding at the start of the quarter and reduced the total number of shares outstanding as of 30th of June to 88.9 million. You'll see $14.2 million of buyback spend in our Q2 cash flow, which includes $4.1 million of Q1 repurchases that settled in Q2 and excludes $1 million of Q2 purchases that will settle in Q3. Now turning to guidance. As we revise our full year ranges, we combine the Q2 beat on both revenue and adjusted EBITDA with additional upside in the second half of the year, in line with how we also raised guidance at this time last year. So while we build in a more normalized Q4 spike than the extraordinary year-end growth spikes we saw in 2024 and ultimately also in 2025, we also reflect our most recent momentum. For the full year, we guide revenue of $734 million to $742 million or 20% growth at the midpoint, adding $2 million to $5 million in addition to the Q2 overperformance. We guide adjusted EBITDA of $172 million to $175 million, representing a 24% margin on the elevated revenue midpoint. For the third quarter, we guide revenue of $181 million to $183 million or 19% to 20% growth. We guide adjusted EBITDA of $41 million to $43 million, representing a 23% margin at the midpoint. In terms of costs, we then implicitly guide to a full year OpEx base pre-adjusted EBITDA of $565 million at the midpoint, of which $140 million in Q3. At the new midpoint, we expect cost of revenue items combined to represent about 39% of revenue for the year and the quarterly percentages ticking up with seasonality in advertising. Marketing cost is expected to remain relatively stable around the Q2 level, resulting in mid-single-digit annual growth and representing about 20% of full year revenue. Cash-based compensation expense is expected to modestly reduce relative to Q2 with annual growth in the low double digits and representing about 12% of full year revenue. The sum of all other OpEx items, pre-adjusted EBITDA is expected to remain stable at about 5% of revenue. In sum, cash-based compensation and marketing will then decline from representing 36% of revenue last year to representing about 32% of revenue this year, supported by economies of scale and the inflow of revenue from Opera Ads that carries cost of revenue but limited incremental OpEx. This enables us to guide to an increase in adjusted EBITDA margin relative to 2025 of 25 to 40 basis points. Taken together, we are very pleased with the second quarter and our momentum and opportunity as we enter the second half of the year. We have continued returning capital to our shareholders while investing in the product and commercial opportunities that can fuel Opera's growth well into the future. With that, I'll turn the call back over to the operator for your questions. Operator: [Operator Instructions] We'll take our first question from Naved Khan with B. Riley Securities. Naved Khan: Great. I have a couple of questions. So maybe just on this audience number you gave, you said you have more than -- a reach of more than 700 million. which is up from 500 million plus that you had 6 months ago. Did you sign any new partners to drive this kind of reach? Can you maybe talk about that a little bit? And then on a related question -- related sort of note, the 100 or so advertisers that you have with 100 million or so listings, item listings, how does that compare with the last quarter and the year ago period? And then maybe finally on Opera -- sorry, OPay, any -- can you give us any sense of timing on when that might happen in terms of going public? Is it this year or next year? Just give us some thoughts there. Lin Song: Well, yes, so it's Song Lin. I think I'll try to answer the first 2 questions and Frode can also address a bit OPay for whatever he can comment about. So yes. So for the reach, yes, yes. We have actually expanded quite a lot of new partners in the field on the back of actually our strength of Opera Ads and also with the fact that with the help of AI and algorithm, we were able to bring a lot of demand and also make it much easier for our partners to work with us because we can also help them monetize. So I would almost say like the broader new partnerships that we see coming, actually, many of them are very encouraging because they are -- like many of them are very new AI services that they see a benefit of combined with our strengths. With those -- it could be in the field of AI-generated videos. It could be in the field of AI social and many others. And it's actually enhancement on both sides that they are very happy, but it also allow us also to reach advertisers, which are very keen on those audiences. So I think that we're actually very pleased and it's almost ahead of what we project. So reasonably happy about it. But again, it's still in early stage, right? Because I think our goal is just to reach billion, hopefully, ASAP, and then we should be the top-tier players in the field. And that's our goal. And then -- and also maybe also to briefly comment a bit about your question about 100 merchant and 100 million products. So just to be specific, that's actually particularly designed to power our AI services, right? So almost better if you imagine that as a way to show that with the help of AI for whatever previously may be only available if you do it from a search, now those are also available that we can directly pop up under the context. And it's also very relevant because it's directly combining like relevant context with a particular product with the right price and with the right information, so which is actually only possible with the help of AI. And it's rather new. So I would say it's almost no -- it's not really a comparison in the past because in the past, we are not really doing this because of many limitations. But now with AI, we can. That with AI is actually possible for us to -- under the context of whatever user is browsing or solving to try to give him as accurate information as possible. So view this as the future approach where we try to give you the relevant information and hopefully also be able to commercialize it in the right approach and in connection with many of our partners. So it's actually -- it's still early days, but it's a very important initiative from our side. So yes, as a summary, I think both of the 2 questions are actually relevant with our fast growth on AI. So the first one is actually we are able to work actually added many interesting partners on AI field, which has a very good positive loop on both sides. And the second one actually allow us to provide AI relevant commercial content, e-commerce content in the right context and pave a potential monetization base in the future. So quite excited. And with that, I think Frode can also help address the last question. Frode Jacobsen: Yes. In terms of OPay and question around an IPO, we continue to expect that OPay will ultimately go public. We are very impressed with what OPay has achieved. And at Opera, we're also proud to have been part of its founding. As a shareholder, we will welcome an IPO. It will lead to an immediate transparency as to the value of our founding stake in the company, but I can't really comment on timing. That will be more up to the OPay team to judge. Operator: And we'll take our next question from the line of Eric Sheridan with Goldman Sachs. Unknown Analyst: This is Alex on for Eric. I wanted to dig into the strength you saw in the quarter of mobile MAUs in U.S. and Europe. Can you talk about some of the key catalysts that have driven this growth recently? Is it just broader adoption of Chrome and Safari alternatives post the regulatory environment? Are there any active investments you're making in the regions to drive this growth? And any differences in AI adoption and consumer behavior within AI that you're seeing across the 2 regions would be helpful. Lin Song: Yes. So yes, I think I'll comment a bit on it. So yes, so in general, I think it's a bit of both, right? So in Europe, it's definitely because of the actions opening up. We do -- we always see from even last year on, we see a continued trend that users become aware, especially on iOS that there are alternative browsers and where we keep a nice growing trajectory. And this actually has been further helped by the advance of AI as, again, right, AI becoming much more visible to everybody that there is alternatives even on the open like iOS that you can choose as a browser player, right? So that we definitely see a very, very nice growth trajectory as reported, both in Europe, but also see the same trend happening in U.S. So very, very exciting about it. And we -- yes, so like we have a big hope on how that will continue to grow further. And then -- and then on top, we think that it's -- I would also say that it's also the trend that we see that it's a self-reinforcing loop that we also feel very encouraging that users come to the platform come to Opera browser instead of system default browser. Usually those systems are mobile, typically OS because of AI. But then what we also see is that the moment they use AI, they actually spend much longer time and even in traditional search and also they have much more engagement compared with those which do not come from AI, but from some other regular cases. So this actually overall create almost a positive feedback loop that they come to Opera for the AI and the more they use it, the more they actually engage with it, which actually makes it very encouraging. So I think that's also why we will probably likely continue to double down this by providing a better products for the end user and hopefully, also will nicely see a growth trajectory on those platforms. Operator: And we'll take our next question from Ron Josey with Citi. Ronald Josey: Song, you mentioned earlier just about greater engagement from users who engage with AI versus those who don't. I want to hear a little bit more from you on just the adoption, what tools those users are using within the browser, the insights of users who have adopted those tools, meaning who are they versus those that have not? And specifically, are they Western users? And just more insights on the plans to drive greater adoption of the AI tools given the impact of the shift, I think, toward an open AI ecosystem, which you talked about in the letter. And then just as a follow-up on Agentic commerce and the 100-plus merchants and 100 million, I think, products. Just talk to us a little bit more how Opera's positioning here as Agentic commerce evolves into a bigger part of everyone's shopping experience. Lin Song: Yes, sure. I think I'll try to get some answers there. So I think, first of all, we like -- at least internally, we have also done some stats and we have some -- as a browser, I think we are lucky that we are in a position to be able to have firsthand information of what user behave in those environments, right? So I think one thing we can definitely confirm is that the use of AI is definitely moving forward at a fast pace, right? So like both, I would say, in terms of using the popular service like the big players that we usually see, both from Google Gemini, but also from Anthropic and also from ChatGPT, -- most of them actually use it by visiting the web as we comment, and we can definitely see that both of the users growth largely in the last quarter and both year-over-year, but also very visible quarter-over-quarter. So that's definitely something which we can confirm, right? But then maybe I'll also comment a bit in a broader level, right? So there are also some very interesting other trends that we see during the Q2. So number one is that we also clearly see a pattern that on top of us using those big online service players, we also see an interesting trend that we saw an increased use of many open source services, right, that is out there. So that is very visible. And we believe that -- and for the combination of user behaviors, we believe that there seems to be a sense that us are now becoming to very -- like, let's say, if previously they only use one chat or whatever as a whole of their use of AI. Now it seems that the behavior becoming -- they use chat for something, they use even different chat for different things. Imagine one may be for company work, the other may be for private work. But then we also see that they now also started to use many other, let's say, alternative open source models as a potential tools in whatever context, right, that -- so that is actually, I think, quite interesting that we see in Q2. We believe that's partly just because of -- it's an illustration of diversification that's probably a function of more and more of many of the agentic functionality, whatever are better served by some open source ones either because of because they are becoming much cheaper and token price becoming much more cautious among the users. But potentially, I think also because of some of the agentic framework or whatever are better supported by open source, we believe maybe also by intention that because many of those guys do not want all their work whatever access to be available of one big single big AI player, maybe in the fair that those guys will take their share or whatever, right? So that's one thing which we see quite interesting. I would also say that the other thing which we see on the browser end is also that there seems to be also now more and more opening of both online model, but also local models, which also become very interesting. So like user will use big frontier models for the really top of note stuff. But we also see that many of them actually prefer to use local models in many other ways, like voice input and a few others. And again, primarily probably both for the concern of privacy, but also for potentially token price considerations because local model, of course, doesn't cost anything. It just cost electricity on your laptop. And this is even more obvious when it comes to the latest Mac machines and a few others, which are all well supported out those. So by and large, we think these are actually quite relevant and interesting, and that's actually partly why we define our strategy because we think both of them are very positive to Opera number one, being an independent player, we are a very natural place to serve all of those big frontier models, allow people to access it, which we see already happening. But we are also very not biased towards any other open source models among others. And we are also we access all the browser, which do support the local models, which are hosted on local machines in combination with other technologies. So we think all of those are very interesting directions and prompt us to move further in this area of being the browser infrastructure to support all those functionalities. So both the open source one and the big frontier models, but also both the cloud one, but also local ones. So we think we're very uniquely positioned on those space and very excited also about the trend of this moving in the future. Operator: And we'll take our next question from Jim Callahan from Piper Sandler. James Callahan: I guess starting with GX users with a strong uptick. I think you added as many users Q-over-Q as you did in all 2025. Any further commentary on kind of what drove the strength this quarter and maybe like the sustainability of that going forward? Lin Song: Yes. Song here. I think I'll still try to answer. So yes, no, I think we are very excited to see the fast growth of GX in Q2, quite pleased about it. Yes. So I think fundamentally, it's a combination of things that while I think we definitely see that GX users are very AI conscious and the continued integration of the latest AI services that we have been providing has been able to resonate with the end users, which we are very excited. But I think there's also a fact that we are also now starting to work with more and more games and game developers by have provided more better integrated gaming ecosystem. For instance, a typical case would be that now if you are a GX user, you would be able to participate in many interesting in Roblox games, for instance, where you can have game boosts and also daily rewards among others, right? So we basically see that GX almost becoming more and better integrated into the gaming ecosystem, and that definitely helps both for the access of those games, which provide hopefully future monetization opportunity, but also bring more users to GX, which we are very pleased about. So I would say it's a combination of both. So both more integration of AI, which is actually very helpful and very mindful to the end users, but also by we are maybe better embedded into the gaming world and gaming partners, which helps expand the user growth. And then super quickly, you also mentioned about the sustainability. So we think the model is definitely very sustainable. The only thing we are mindful is just that, of course, during the summertime, yes, like it's summer and holiday is always a low season for GX, just to say. So we are right now in July and August, we will always be low season. So just a reminder, that's a physical limitation because we have people are not in front -- not home [ summer home ] not in front of the computers. There's limited stuff we can do about. James Callahan: Great. That makes sense. And then with a couple of quick ones on the search business. Any comment on pricing versus impressions in terms of what's making up the revenue growth? And then I might have missed this, but any math we can do to back into like the other query part of the business would be helpful. Frode Jacobsen: Yes. This is Frode here. I can comment on the search side. So I think overall, we see search revenue being driven predominantly by the value per search. As I mentioned, we also through engagement have tendencies of increases in search per user, in particular, on the smartphone side. But the general trend has been better matching with early search results, fewer queries needed per search, but then more than offset by better monetization on a per search query. I think the non-search part of query revenue has continued to grow well over 200% year-over-year. It's still in the single million dollars, but an increasingly important part of our revenue potential. Operator: [Operator Instructions] We'll take our next question from Lance Vitanza with TD Cowen. Lance Vitanza: I have 2 questions, please. The first is on the durability of growth and this valuation disconnect. At 6.5x next year's EBITDA, the stock still appears to imply skepticism around the durability of your growth trajectory. This despite the fact that Frode, you pointed out, right, the 21% growth CAGR over the past 10 years. But what gives management confidence that the current level of growth can persist beyond the next few quarters? And what metrics should investors focus on to assess whether the growth is becoming more structural rather than cyclical? Frode Jacobsen: That's a difficult question to answer. As Song talked a lot about, and I touched on too, I think the environment that we operate within has not been this exciting for a company like Opera for many years. So much is happening, so quick evolution around us and the browser playing a bigger and bigger role in people's daily life. So I think that we are very excited about. We see that our ability to turn that engagement into monetization and revenue has been very strong over the many years and continues to be. And as we look ahead, we -- we also, in a way, take comfort in the fact that while we are very pleased with our growth, we've talked about e-commerce and how quickly that scales. We've mentioned travel as an opportunity that we think we also under-index in. Even if we are very pleased with the momentum in terms of the global market, we are still a very small player. And so what we see is that we still have the ability to navigate that opportunity space and sort of address opportunities, not just one by one, but as our capacity allows. Lance Vitanza: Great. And then on MiniPay, it's now reached 18 million wallets. It's in 60 countries. You've got several dozen mini apps, and you recently launched a Visa card. At what point do you think the platform will have achieved sufficient scale so that you can begin prioritizing monetization alongside user growth? Are we still in the early innings of user acquisition? Or are we approaching an inflection point where the economic contribution could become more visible? Lin Song: Yes, it's Song Lin. I'll try to comment a bit, right? So interesting. So okay. So first of all, I would say it's definitely still early stage, to be clear, right? So I think basically, -- it's -- we also learned it from our earlier experience in OPay and a few others that, of course, you almost have to be a bit more patient with fintech, especially with the fintech that we are doing, which is basically almost the infrastructure play and also the play to use technology to connect in the world almost, right? So I think those things do play a lot on very, very patient and careful growing of user base, but also connecting all the partners across all the different content and regions, whatever and interconnecting them with technology because it's all about technology, which is what Mini Pay is about, right? And so -- and also it's also about building up all the partnerships, which we are very pleased that Visa, I guess, is a good example that we work with now to launch the Visa card across different countries among others. So it's still early, but I think those are the nature of those kind of fintech services that it needs a huge infrastructure to be able to scale, but I think we also take comfort on a few things. So number one, I think from day 1, MiniPay is profitable and reasonably profitable. So we like -- so I think itself has been proven that it has a sound business model, and we have always been very disciplined. So that's number one, which we are very -- take comfort. And number two is, of course, that the trajectory of what happened in some other fintech investments we used to have also give us confidence that the moment this has scale and reach its network effect, it can happen relatively fast, right? Because it's all about like it has already have transaction volumes, it has already have right GMVs. So it's all about at a certain time of the day we turn around the right trigger and starting to monetize by transaction volumes and by potential take rate and a few others, which is rather standard in the fintech space, right? So I think that can happen very fast. Once we think that it actually has that volume and connections in the world. So overall, very positive. It's still very early stage, but we think there's a lot more potential that we can see in the future. Operator: And we'll take our next question from Jacob Stephan with Lake Street Capital Markets. Jacob Stephan: Maybe just to start out on kind of the Browser Connector economics. I guess to start, when a user resolves a query inside of Claude, OpenAI, ChatGPT, whatever, through the actual connector versus your own environment, do you monetize that session today? And is the monetization rate any different between LLMs, I guess? Lin Song: Yes. Okay. So I can try to answer that a bit, right? So I think that has a few benefits, both for the revenue and the others, right? So I think number one, as we also commented a bit that number one important is, of course, to solve the end user, right? Because many users say they like Opera, but they also like to use the AI of their choice, right, may be ChatGPT or may be others that from there, they can control it, right, that they can access the browser context and to visit the page and do a few things, right? So that's quite relevant. And we are happy, very happy to support that. And we think that's actually important functionality of Opera being stand-alone independent browser providers, right? We are very happy to be that infrastructure. So that's number one, that it's very important to the end user. It does have a benefit economically for the sense that, number one, it, of course, in those case, it doesn't cost Opera money because all the calculation and whatever, of course, based on the user subscription and from those cloud service. So there is no additional cost to it, except providing that browser infrastructure, but no total cost among others, which is very effective. But also that be aware that all those activities are still within Opera browser, right, everything. Like you can -- a typical scenario is that in ChatGPT, you can in that interface to ask browser to go to a certain web page and to search and to what level, right? And of course, all those are still happening inside the browser environment and subject to whatever commercial deals browser would have with particular partners. So that's why we are very happy to also see that as far as the whole infrastructure and environment remain inside the browser, we think that can still have future benefits -- well, it has both current and future benefit, and it's just part of the whole browser play as if it's in regular web pages. The only difference is just that in this case, it's not controlled by the end user, but controlled by the agent of choice or the AI of choice from the end user, all else equal. So I think both from us to be fairly positive about it, both for -- most important probably for be able to give you the choice, but also for the fact that as everything happened within the browser environment, we think there's plenty of opportunity for us to monetize. Jacob Stephan: Got it. And maybe just touching on kind of the advertising growth versus kind of the margin quality of that. Obviously, advertising revenue is up 27%. Cost of inventory has kind of continued to climb here. I guess as Opera Ads expands beyond your own owned inventory, should we expect kind of gross margin to continue to kind of structurally decline? Or how should we think about kind of the incremental EBITDA margins, I guess, from that revenue growth? Frode Jacobsen: Yes, Jacob, I can chime in on that. Even within Opera Ads, what we see also on third-party inventory is that our trend is an improving gross margin. So it's just about the mix between the different revenue types in our totality. In Q2, we had 38% cost of revenue, which is exactly what we expected. And we have guided it to tick up by about another percentage point or so for the year as a whole. But I would say we are able to do this while still increasing our adjusted EBITDA margin expectations because of economies of scale in the business as a whole and the fact that the Opera Ads platform has quite limited other OpEx from growing. So I think that's something that we always managed carefully. We focus mainly on adjusted EBITDA on our cash flow, our net earnings as opposed to the gross margin percentage. But even within the gross margin percentage, I think you will see when you look at our history that from being quite insignificant in our P&L, it started to scale when we launched Opera Ads and that went through its initial growth phase. And now you see a much more stable and softer trend. Operator: At this time, we have no further questions. So I'd like to turn it back over to Song Lin for any additional or closing remarks. Lin Song: Sure. So like again, I think I would just like to take the chance to thank everybody for joining us. For us, it's quite straightforward. Our focus for the second half is about execution. We need to continue to improve our products, deeper engagement, deliver for our commercial partners and also convert the opportunities in front of us into sustainable, profitable growth. We are energized by our progress and by the work ahead, and we look forward to keeping you updated. Have a good day, everyone. Operator: We'd like to thank everybody for their participation on today's conference call. Please feel free to disconnect your line at any time. Before you buy stock in Opera, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opera wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Opera (OPRA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Opera Ltd (NASDAQ:OPRA) delivered strong Q2 2026 results, with revenue growing 25% year-over-year to $178.1 million and adjusted EBITDA up 32% to $42.4 million, both exceeding the top of guidance. The company raised its full-year 2026 guidance for both revenue and adjusted EBITDA, reflecting confidence in its elevated growth trajectory. Advertising revenue grew 27% year-over-year to $115 million, driven by e-commerce and the expansion of its Opera Ads platform, which now reaches a total addressable audience of over 700 million users. Opera Ltd (NASDAQ:OPRA) is successfully monetizing AI-driven engagement, with query revenue in Western markets growing at 1.4 times the global average (29% year-over-year), and users engaging with AI spending significantly more time in the browser. The company's strategic initiatives are gaining traction, including the launch of Browser Connector for AI services like ChatGPT and Claude, strong user growth in Western markets (mobile MAUs up 8% year-over-year), and rapid scaling of MiniPay, which now has 18 million wallets and 518 million transactions. Opera Ltd (NASDAQ:OPRA) continues to return significant capital to shareholders, having returned $577 million since 2020 through dividends and buybacks, and maintains a low CapEx business model with strong cash conversion. Opera GX reached 37 million monthly active users, adding almost 2 million users in the quarter, driven by AI integration and deeper partnerships within the gaming ecosystem. The company is seeing a positive mix shift towards higher-value users, with ARPU increasing 25% year-over-year to $2.46, as the low-ARPU base phases out. Management highlighted that the non-search part of query revenue is growing over 200% year-over-year, representing an increasingly important and high-potential revenue stream. Opera Ltd (NASDAQ:OPRA) is expanding its AI strategy with the open-source Opera Browser CI, positioning the browser as programmable infrastructure for next-generation AI applications and reinforcing its independent, partner-oriented stance. Opera Ltd (NASDAQ:OPRA) faces a valuation disconnect, with the stock trading at 6.5 times next year's EBITDA, implying market skepticism about the durability of its growth trajectory. The company's cost of revenue is expected to tick up to about 39% of revenue for the full year, reflecting the growing mix of third-party inventory in its advertising business. MiniPay, while growing rapidly, is still in its early stages, and management acknowledged that monetization is not yet a priority, with the focus remaining on user acquisition and infrastructure build-out. Opera GX user growth is subject to seasonality, with the summer months (July and August) typically being a low season due to users being away from their computers. The company's growth is partly dependent on the evolving regulatory environment and partnerships with major players like Google, which could introduce uncertainties or changes in commercial terms. While the non-search query revenue is growing rapidly, it is still in the single-digit millions, indicating that it has not yet made a material contribution to overall financials. The company's cash-based compensation increased in Q2 due to accelerated annual bonus accruals, which could pressure margins if performance continues to exceed expectations. Opera Ltd (NASDAQ:OPRA) is investing in new initiatives like AI-supported price comparisons and travel campaigns, which are still in early stages and may not yield immediate returns. The company's reliance on third-party inventory for its advertising platform could lead to structurally lower gross margins over time, even if overall EBITDA margins improve. Management could not provide a timeline for the potential IPO of OPay, leaving uncertainty around the realization of value from its founding stake. Warning! GuruFocus has detected 5 Warning Sign with OPRA. Is OPRA fairly valued? Test your thesis with our free DCF calculator. Q: What gives management confidence that the current level of growth can persist beyond the next few quarters, and what metrics should investors focus on to assess whether the growth is becoming more structural rather than cyclical? A: CFO Frode Jacobsen stated that the operating environment has not been this exciting for a company like Opera in many years, with the browser playing a bigger role in daily life. He highlighted that the ability to turn engagement into monetization has been strong and continues to be. He pointed to e-commerce scaling quickly and travel as an under-indexed opportunity, noting that Opera is still a small player in the global market and has the capacity to address opportunities as they arise, which supports confidence in the durability of growth. Q: Can you talk about the key catalysts driving mobile MAU growth in the U.S. and Europe, and any differences in AI adoption and consumer behavior across the two regions? A: CEO Song Lin attributed the growth to a combination of factors, including the regulatory environment in Europe opening up alternatives to default browsers, particularly on iOS, and the increased visibility of AI, which makes users aware of browser alternatives. He noted a self-reinforcing loop where users come to Opera for AI features, and once they use AI, they spend significantly more time in the browser and have higher engagement, which drives further growth. This trend is visible in both Europe and the U.S., and Opera plans to continue investing in product improvements to capitalize on it. Q: When a user resolves a query inside of Claude, OpenAI, or ChatGPT through the Browser Connector versus Opera's own environment, do you monetize that session today, and is the monetization rate different between LLMs? A: CEO Song Lin explained that the Browser Connector is important for solving the end-user need to use their AI of choice while keeping the browser as the central interface. Economically, it doesn't cost Opera money because the AI computation is based on user subscriptions to those cloud services, with no additional token costs for Opera. Crucially, all activities still happen within the browser environment, subject to Opera's commercial deals with partners, so there are both current and future monetization benefits, similar to regular web pages, just controlled by the user's AI agent instead of the user directly. Q: Can you provide more insights on the adoption of AI tools within the browser, who the users are, and how Opera plans to drive greater adoption given the shift toward an OpenAI ecosystem? A: CEO Song Lin noted that AI usage is moving forward at a fast pace, with growth in both major services like Google Gemini, Anthropic, and ChatGPT, as well as a visible increase in open-source services. He observed that users are diversifying their AI usage, using different chats for different purposes and adopting local models for privacy and cost reasons. This diversification is positive for Opera, as its independent position makes it a natural platform to serve all frontier models, open-source models, and local models, reinforcing its strategy as browser infrastructure for all AI functionalities. Q: What drove the strong uptake in Opera GX users this quarter, and is that growth sustainable going forward? A: CEO Song Lin attributed the growth to a combination of factors: GX users are very AI-conscious, and the continued integration of the latest AI services resonates with them. Additionally, Opera has been working with more games and developers to create a better-integrated gaming ecosystem, such as partnerships with Roblox games offering game boosts and daily rewards. This makes GX more embedded in the gaming world, helping expand user growth. He confirmed the model is sustainable, though he noted that summer months are typically a low season for GX due to users being on holiday and away from their computers. Q: On the search business, can you comment on pricing versus impressions in terms of what's making up the revenue growth, and any math to back into the non-search query part of the business? A: CFO Frode Jacobsen stated that search revenue is predominantly driven by the value per search. While engagement has increased searches per user, particularly on smartphones, the general trend is better matching with search results, requiring fewer queries per search, but this is more than offset by better monetization per search query. He noted that the non-search part of query revenue has continued to grow well over 200% year-over-year, though it is still in the single-digit millions, and is becoming an increasingly important part of the revenue potential. Q: With Opera Ads expanding beyond owned inventory, should we expect gross margin to continue to structurally decline, and how should we think about incremental EBITDA margins from that revenue growth? A: CFO Frode Jacobsen explained that even within Opera Ads, the trend on third-party inventory is improving gross margin, and the overall cost of revenue is just a mix between different revenue types. In Q2, cost of revenue was 38%, as expected, and is guided to tick up by about another percentage point for the year. However, Opera is able to increase adjusted EBITDA margin expectations due to economies of scale and the fact that the Opera Ads platform has limited other OpEx from growing. He emphasized that the company focuses mainly on adjusted EBITDA, cash flow, and net earnings rather than the gross margin percentage. Q: At what point will MiniPay achieve sufficient scale to begin prioritizing monetization alongside user growth, and are we approaching an inflection point where economic contribution becomes more visible? A: CEO Song Lin stated that MiniPay is still in an early stage, typical for fintech infrastructure plays that require patience in growing the user base and connecting partners across continents. He noted that MiniPay has been profitable from day one, proving its sound business model. He drew confidence from the trajectory of other fintech investments, where once scale and network effects are reached, monetization can happen relatively fast through transaction volumes and take rates. He believes this can happen quickly once the volume and global connections are in place, making the future potential very positive. Q: Did Opera sign any new partners to drive the increase in total addressable audience to over 700 million, and how does the 100 merchants and 100 million product listings compare with previous periods? A: CEO Song Lin confirmed that Opera has expanded with many new platforms, particularly in the AI field, including AI-generated video and AI social services, which benefit from combining with Opera's strengths. These partnerships create a positive loop, allowing Opera to reach advertisers keen on those audiences. Regarding the 100 merchants and 100 million products, he clarified that this is specifically designed to power AI services, enabling Opera to pop up relevant product information in context, which was not possible before. This is a new initiative that combines relevant context with the right product and For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Opera Limited Sponsored ADR? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 25% year over year to $178.1 million, while adjusted EBITDA increased 32% to a record $42.4 million. Growth was driven by advertising, carrier revenue and higher engagement with AI-enabled browser features. AI and audience expansion support monetization: Opera reached 188 million monthly active users and expanded its broader addressable audience beyond 700 million. New AI integrations, e-commerce advertising formats and faster-growing query revenue—up 39% in Western markets—are increasing user engagement and revenue per user. Full-year guidance raised: Opera now expects 2025 revenue of $734 million to $742 million and adjusted EBITDA of $172 million to $175 million. The company also continued returning capital through a $0.40-per-share dividend and $11.1 million in share repurchases during the quarter. Buy, Hold, or Wait: 3 Small-Cap Stocks Telling Different Stories Opera (NASDAQ:OPRA) reported second-quarter revenue and adjusted EBITDA above its guidance range, citing broad-based growth in advertising and carrier revenue, higher engagement from AI-enabled browser features and continued expansion of its advertising platform. Revenue rose 25% year over year to $178.1 million, while adjusted EBITDA increased 32% to a quarterly record of $42.4 million. The adjusted EBITDA margin was 24%. Adjusted net income grew 27% to $30 million, and adjusted diluted earnings per share rose 25% to $0.33. → Looking Beyond CrowdStrike? 3 AI Security Stocks Stand Out Opera Limited Stock Set to End 2025 on a High Note CEO Song Lin said the company’s position as an independent browser provider gives it an opportunity to connect users with a range of AI services rather than betting on a single AI platform or infrastructure provider. Opera had 188 million monthly active users during the quarter and said its broader addressable audience, including third-party and white-label inventory, surpassed 700 million people, up from more than 500 million six months earlier. Advertising revenue increased 27% year over year to $115 million, while carrier revenue grew 21% to $62 million. Lin said e-commerce was a major contributor to advertising growth, with the company planning additional high-intent formats, including AI-supported price comparisons. → 3 Robotics Stocks Under $10: Value, Momentum, or Bet? Pinterest: The frictionless social commerce play for 2024 Opera’s in-house commerce platform works with more than 100 merchants and includes more than 100 million products, according to Lin. The company also identified travel as another potential advertising vertical and said it has begun campaigns extending beyond Opera’s owned user base. Lin said Opera’s performance-based campaigns have encouraged partners to expand their work with the company. He attributed the rise in total audience reach partly to new partnerships, including with AI-related services such as AI-generated video and AI social platforms. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? Query revenue, which includes monetization associated with users’ proactive intent and search behavior, continued to grow faster than underlying search-market benchmarks, management said. Lin said users who engage with AI tools inside Opera’s browsers spend more time browsing and conduct more searches than users who do not engage with AI. In Western markets, query revenue grew 39% year over year, compared with 31% globally, according to Lin. CFO Frode Jacobsen said search revenue was driven primarily by higher value per search, although increased searches per user also contributed, particularly on smartphones. He added that non-search query revenue was growing more than 200% year over year, though it remained in the single-digit millions of dollars. During the quarter, Opera announced Browser Connector, which allows users to connect AI services including Anthropic’s Claude and OpenAI’s ChatGPT to the Opera browser. Lin said the feature enables those services to understand live browsing context and interact with the browser on users’ behalf. The company also launched Opera Browser CLI, an open-source command-line interface designed to let developers and AI automation tools interact with a live browser. Lin characterized the initiatives as part of Opera’s strategy to make the browser an open interface and programmable infrastructure for AI workflows. Opera’s Western user base rose 4% year over year to 61 million monthly active users. Mobile users in Western markets grew 8%, while the company continued to phase out lower-ARPU users in its Asia home market. The mix shift helped raise annualized average revenue per user by 25% to $2.46. Management highlighted growth in competitive mobile markets. Combined Android and iOS monthly active users rose 66% in the United Kingdom and 40% in the United States over the past year, while Opera One for iOS grew 42% across Europe. Opera GX reached 7.7 million monthly active users after adding nearly 2 million users during the quarter. Lin said the growth reflected continued AI integration as well as deeper connections with gaming ecosystems, including partnerships that offer in-game items and rewards. He cautioned that July and August are seasonally slower periods for GX because users are less likely to be at their computers during summer holidays. MiniPay, Opera’s self-custodial stablecoin wallet, added 3 million wallet activations during the quarter, bringing its total to 18 million wallets. Transactions reached 518 million, including 88 million since the company’s prior update. MiniPay is now available in more than 66 countries and offers more than 57 mini apps. In June, MiniPay launched a card with Visa that allows users to spend stablecoin holdings. The card is available across the European Union and is being introduced gradually in supported markets in Africa, Latin America and Asia. Lin said MiniPay remains in an early stage of development but is already profitable. He said the company is focused on building the infrastructure and partnerships needed to scale the service, with monetization potential tied to transaction volume and take rates as the network expands. Opera raised its full-year outlook following its second-quarter performance and expectations for additional upside in the second half. The company now expects: Full-year revenue of $734 million to $742 million, representing 20% growth at the midpoint. Full-year adjusted EBITDA of $172 million to $175 million, with a 24% margin at the midpoint. Third-quarter revenue of $181 million to $183 million, representing 19% to 20% growth. Third-quarter adjusted EBITDA of $41 million to $43 million, implying a 23% margin at the midpoint. Jacobsen said cost of revenue represented 38% of second-quarter revenue and is expected to be about 39% for the full year as advertising seasonality affects quarterly percentages. The company expects marketing spending to remain around the second-quarter level, while cash-based compensation is expected to decline modestly from the quarter. Operating cash flow was $22 million in the second quarter, and free cash flow from operations was $17 million. Opera converted 76% of adjusted EBITDA into operating cash flow and 62% into free cash flow from operations year to date. The company paid a semiannual dividend of $0.40 per share in July, totaling $35.6 million. During the second quarter, it repurchased 636,000 shares for $11.1 million at an average price of $17.44 per share. Since 2020, Opera said it has returned $577 million to shareholders through dividends and share repurchases. Opera Limited (NASDAQ: OPRA) is a global software and internet services company best known for its cross-platform web browsers, including the flagship Opera Browser, Opera Mini for mobile devices and Opera GX designed for the gaming community. The company integrates features such as ad blocking, built-in VPN services and a cryptocurrency wallet into its desktop and mobile applications, aiming to deliver fast, secure and feature-rich browsing experiences to hundreds of millions of users worldwide. Beyond its consumer-facing browsers, Opera operates Opera News, a personalized content and news aggregation platform with a strong presence in Africa and Asia, and Opera Ads, a digital advertising network that leverages user-behavior data to provide targeted ad placements across devices. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Opera Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Revenue increased 25% year-over-year to $178.1 million, exceeding the guidance range Adjusted EBITDA was $42.4 million, representing a 24% margin and 32% year-over-year growth, also exceeding the guidance range Third quarter 2026 revenue guidance of $181–183 million with adjusted EBITDA margin of 23% at the midpoints Raised full-year guidance to $734–742 million revenue with adjusted EBITDA of $172–175 million (24% margin) OSLO, Norway, Aug. 19, 2026 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), a leading global browser and AI agent company, today announced financial results for the quarter ended June 30, 2026. "Second quarter revenue and Adjusted EBITDA both came in above the top end of our guidance, with revenue growth accelerating to 25% year-over-year, reaching $178.1 million, and Adjusted EBITDA reaching $42.4 million. Notably, with healthy growth across both advertising and query revenue streams, our business continues to compound organically and capital-efficiently," said Lin Song, CEO. "As AI fundamentally reshapes how people search, work and interact online, Opera's position as an independent, tech-enabling platform is more valuable than ever. Through our open ecosystem strategy, highlighted by our new Browser Connector for leading AI services like Claude and ChatGPT, we are facilitating user choice while converting elevated browser utility into immediate commercial momentum. The growth of time spent and browser engagement supports our healthy annualized ARPU growth of 25% to $2.46 alongside strong expansion across core products like Opera GX and MiniPay," continued Mr. Song. Second Quarter 2026 Financial Highlights Second Quarter 2026 and Recent Business Highlights Advertising revenue: Grew 27% year-over-year to $115.4 million, representing 65% of total revenue. Advertising revenue was driven by continued strong momentum from e-commerce partners, which remained the fastest-growing vertical. Query revenue: Grew 21% year-over-year to $62.1 million, accounting for 35% of total revenue and benefiting from both strong search performance and the evolution of our broader opportunities to address user queries. User base & ARPU: Average monthly active users ("MAUs") was 288 million across all products and services, with annualized average revenue per user ("ARPU") increasing 25% year-over-year to $2.46. Opera GX: Averaged 37 million MAUs in the quarter across PC and mobile, up 2 million sequentially and 10% year-over-year. MiniPay: Reached 18 million cumulative activated wallets as of June 2026, representing a 121% year-over-year increase. Cash flow & liquidity: Net cash flow from operating activities was $22.2 million in the quarter and $64.3 million year-to-date. This represented a 76% conversion of year-to-date adjusted EBITDA, equal to the cash conversion in the same period of 2025. Total cash and cash equivalents stood at $145.2 million at quarter-end. Dividends: A dividend of $0.40 per share under our semi-annual dividend program was paid in July, totaling $35.6 million. Share repurchases: During the quarter, Opera repurchased 0.64 million shares for $11.1 million or an average of $17.44 per share. This includes shares repurchased from the public and the according pro-rata shares repurchased, or agreed to be repurchased, from our majority shareholder. Cash used for repurchases was $14.2 million, which included settlement of the $4.1 million commitment outstanding as of March 31, 2026, partially offset by a $1.0 million period-end commitment which will be settled in the third quarter. As of June 30, 2026, 88,917,384 shares were outstanding net of cumulative repurchases of 1,776,194 shares for $28.1 million, or an average of $15.79 per share, under our current $300 million repurchase program. Second Quarter 2026 Financial Results All comparisons in this section are relative to the second quarter of 2025 unless otherwise stated. Revenue increased 25% to $178.1 million. Advertising revenue increased 27% to $115.4 million. Query revenue increased 21% to $62.1 million. Other revenue was $0.6 million. Operating expenses increased 22% to $152.2 million. The total amount of technology and platform fees, content cost and cost of inventory sold, all being costs of revenue, was $67.5 million, or 38% of revenue. Personnel expenses excluding share-based compensation increased 24% to $23.1 million. Share-based compensation expenses decreased 11% to $7.8 million. Marketing and distribution expenses increased 6% to $36.2 million. Depreciation and amortization increased 17% to $5.4 million. All other operating expenses increased 53% to $12.2 million, driven mainly by impairments of non-financial assets. Operating profit was $25.9 million, representing a 15% margin, compared to an operating profit of $18.1 million and a margin of 13% in the second quarter of 2025. Fair value gain on long-term investments was $6.3 million, driven by the passage of time affecting the present value of probability-weighted expected returns. Net finance income was $0.6 million, reflecting net interest income of $0.8 million, partially offset by foreign exchange loss of $0.2 million. Income tax expense was $6.1 million, corresponding to an effective tax rate of 18%, and representing 14% of adjusted EBITDA in the quarter and 13% of adjusted EBITDA year-to-date. This compares to a full-year ratio of income tax expense to adjusted EBITDA of 12% in 2025. Net income was $27.6 million, representing a 15% margin, compared to net income of $15.7 million and a margin of 11% in the second quarter of 2025. Adjusted net income was $30.0 million, representing a 17% margin and an increase of 27% relative to $23.7 million and a 17% margin in the second quarter of 2025. Adjusted EBITDA was $42.4 million, representing a 24% margin and an increase of 32% relative to $32.1 million and a 22% margin in the second quarter of 2025. Diluted earnings per share was $0.30, whereas adjusted diluted earnings per share was $0.33. Net cash flow from operating activities was $22.2 million, or 52% of adjusted EBITDA in the quarter and 76% of adjusted EBITDA year-to-date. Free cash flow from operations was $16.9 million, or 40% of adjusted EBITDA in the quarter and 62% of adjusted EBITDA year-to-date. Business Outlook "Our second quarter outperformance is incorporated into a further raised full-year outlook that now includes 20% top-line growth at the midpoint. While our second-half trajectory reflects the strong underlying momentum of our business, our updated guidance maintains our disciplined and prudent approach toward guiding around year-end seasonality. We enter the third quarter with solid commercial velocity, driven by the expanding reach and engagement of our platform," said Frode Jacobsen, CFO. "Our updated outlook highlights the structural operating leverage inherent in our business model, driving an expected 25–40 basis point expansion in Adjusted EBITDA margin over 2025. This ongoing efficiency gives us full flexibility to fund our product and marketing initiatives while continuing to return capital to our shareholders," continued Mr. Jacobsen. Conference Call and Webcast Information Opera's management will host a conference call to discuss the second quarter 2026 financial results at 8:00 a.m. ET today. The live webcast of the conference call can be accessed at our investor relations website at investor.opera.com, along with the earnings press release and financial tables. Following the call, a replay will be available at the same website. We also provide announcements on our investor relations website at investor.opera.com regarding our financial performance and other matters, including SEC filings, press releases, slide presentations, business blog posts and information on corporate governance. Non-IFRS Financial Measures In addition to financial measures presented in accordance with IFRS Accounting Standards, we use the non-IFRS performance measures adjusted net income, adjusted EBITDA, adjusted diluted earnings per share, as well as the non-IFRS liquidity measure free cash flow from operations, to manage our business, evaluate performance, support planning and decision-making, and allocate resources. The non-IFRS performance measures are intended to provide supplemental information by excluding items that we believe are not representative of core business operating performance. While free cash flow from operations does not represent residual cash available for discretionary uses, we believe that it provides useful supplemental information regarding our ability to generate cash from ongoing operations to fund investments, including acquisitions, and to support capital allocation decisions. Adjusted net income is defined as net income adjusted to exclude (i) profit (loss) from discontinued operations, (ii) gain (loss) on investments in unconsolidated entities, (iii) non-recurring expenses, (iv) impairment of non-financial assets, (v) amortization of acquired intangible assets, (vi) share-based compensation expenses, and (vii) the income tax effect of these adjustments. Adjusted net income margin is calculated as adjusted net income divided by revenue. Adjusted diluted earnings per share is calculated as adjusted net income divided by the diluted weighted average number of shares outstanding. Adjusted EBITDA is defined as net income adjusted to exclude (i) profit (loss) from discontinued operations, (ii) income tax expense, (iii) net finance income (expense), (iv) gain (loss) on long-term investments in unconsolidated entities, (v) non-recurring expenses, (vi) impairment of non-financial assets, (vii) depreciation and amortization, (viii) share-based compensation expenses, and (ix) other operating income. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue. Free cash flow from operations is defined as net cash flows from (used in) operating activities less (i) purchases of fixed and intangible assets, (ii) development expenditure and (iii) payment of lease liabilities. We believe these non-IFRS financial measures are useful to investors because they facilitate period-to-period comparisons of operating performance and are consistent with how management evaluates the business. These measures should not be considered in isolation or as substitutes for, or superior to, the financial information prepared in accordance with IFRS Accounting Standards. Our definitions of adjusted net income, adjusted EBITDA, adjusted diluted earnings per share and free cash flow from operations may differ from similarly-titled measures used by other companies. In addition, these measures may be limited in their usefulness because they do not present the full economic effects of certain items of income, expenses and cash flows. We address the limitations of these non-IFRS financial measures by providing reconciliations from the most closely comparable IFRS financial measures in the section titled "Reconciliations of Non-IFRS Financial Measures" included at the end of this earnings press release. Investors are encouraged to review these reconciliations and to consider non-IFRS financial measures together with our IFRS results. Forward-Looking Statements This press release contains statements of a forward-looking nature. These statements include, but are not limited to, statements relating to our expectations regarding our business, strategy, products, services, outlook and guidance. Forward-looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially include, among others: (i) our ability to attract, retain, and engage users and to increase ARPU; (ii) changes in macroeconomic conditions, including inflationary pressures, interest rates, consumer and advertiser spending trends, and the effects of higher energy prices and market volatility; (iii) our ability to maintain and improve monetization from query and revenue-sharing arrangements, including dependence on major partners and changes in their commercial terms, policies, algorithms, or distribution mechanics; (iv) changes by platform providers (including mobile operating systems, app stores, and device manufacturers) that could affect distribution, product functionality, data access, attribution, or monetization; (v) competition in browsers, AI-enabled user experiences, digital advertising, and consumer internet products; (vi) the successful development, deployment, adoption, and monetization of new products and features, including AI initiatives, and the costs and risks associated with them; (vii) privacy, data protection, consumer protection, competition/antitrust, online safety, and other laws and regulations (including changes in interpretation, enforcement, or compliance obligations) and related litigation or regulatory inquiries; (viii) security incidents, service disruptions, outages, and failures of our or third parties' systems; (ix) our ability to manage operational, technical, and infrastructure costs, including hosting and distribution costs, and to scale effectively; (x) foreign currency exchange rate fluctuations and other market volatility; (xi) geopolitical events, including armed conflicts, sanctions, trade or shipping disruptions, or other instability in the Middle East and other regions, and their effects on energy prices, inflation, financial markets, supply chains, and broader economic conditions; (xii) our ability to attract and retain key personnel; and (xiii) other risks and uncertainties described under "Risk Factors" in our most recent Annual Report on Form 20-F and in our other filings and submissions with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof and is based on assumptions that the Company believes to be reasonable as of this date, and it undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. About Opera Opera is a user-centric and innovative software company focused on enabling the best possible internet browsing experience across devices. Hundreds of millions worldwide use Opera's mobile and desktop browsers for their speed, security, and unique features, enhanced with integrated AI that enables users to navigate and interact with the web in new transformative ways. Founded in 1995 and headquartered in Oslo, Norway, Opera is listed on the Nasdaq stock exchange under the ticker symbol "OPRA". Download Opera products from opera.com and learn more about Opera at investor.opera.com. View original content to download multimedia:https://www.prnewswire.com/news-releases/opera-reports-second-quarter-2026-results-beyond-the-high-end-of-guidance-ranges-302855091.html

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Opera (NasdaqGS: OPRA) has set August 25, 2026 as the release date for its second quarter results, with management planning a same-day conference call and webcast for investors. See our latest analysis for Opera. Opera’s share price has gained 44.13% year to date and 9.33% over the past 90 days, while the 1 year total shareholder return of 30.73% and 5 year total shareholder return of 183.84% point to momentum that has built over several years. If Opera’s upcoming earnings has you watching the broader software and AI space, this could be a good moment to uncover 68 profitable AI stocks that aren't just burning cash Bulls point to Opera’s rising user metrics, AI push and fresh buyback, while bears question how much of that is already in the share price after the recent run. Do current numbers still leave room in the valuation? Opera closed at $20.51 while the most followed narrative on Simply Wall St points to a fair value of $26.29. That gap sets the stage for a closer look at how one investor frames the upside. Read the complete narrative. Curious what supports a higher fair value for Opera. The narrative leans on growing earnings, expanding margins, and a profit multiple usually reserved for larger internet platforms. Result: Fair Value of $26.29 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Opera’s story can change quickly if browser user growth stalls or if AI products fail to gain traction, which could challenge assumptions behind that 22% upside. Find out about the key risks to this Opera narrative. With mixed sentiment around Opera and its valuation, this is a good time to review the underlying data yourself and decide how comfortable you are with both the upside and the risks. To help you balance those views quickly, take a closer look at the 5 key rewards and 2 important warning signs If you want fresh ideas beyond Opera before the next earnings date hits, now is the time to widen your watchlist using focused stock screeners. Target potential value opportunities by scanning for companies that combine quality fundamentals with what may be attractive pricing using the 52 high quality undervalued stocks. Strengthen your defensive side by focusing on businesses with robust finances and steady balance sheets through the solid balance sheet and fundamentals stocks screener (49 results). Spot potential future standouts by filtering for quality companies that are not widely followed yet using the screener containing 18 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OPRA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]