Opera Raises 2025 Guidance After Strong Q3: Revenue Up 23% with AI and Browser Innovation Driving Growth

Revenue and Earnings Beat Expectations—2025 Guidance Now Raised

Opera Limited delivered a robust third quarter, outpacing internal forecasts on both revenue and profit margins. Revenue jumped 23% year-over-year to $151.94 million, with adjusted EBITDA hitting $36.29 million (24% margin), also surpassing the high end of company guidance. In response to this outperformance, Opera now expects full-year 2025 revenue to reach between $600 million and $603 million (a 25% increase at the midpoint), and adjusted EBITDA between $138 million and $141 million (23% margin at midpoint).

Advertising and Query Revenues Power Expansion—Ad Revenue Up 27%

The revenue mix reveals notable trends: advertising income grew 27% year-over-year to $95.87 million, now representing 63% of total revenues, powered especially by e-commerce partnerships. Query revenues (encompassing both traditional search and AI-driven user prompts) climbed 17% to $55.63 million and account for 37% of total revenue, reflecting Opera’s AI integration momentum. Both these segments demonstrate healthy user monetization and the impact of browser-integrated AI features.

User Engagement and Monetization Reach New Highs—ARPU Up 28%

Average monthly active users (MAUs) stood at 284 million, with average annual revenue per user (ARPU) rising 28% year-over-year to $2.13. This highlights Opera’s effective monetization of its user base, which spans its core browser, Opera GX for gamers (33 million MAUs, +3%), and its new premium offering Opera Neon—a browser built for power users seeking AI-driven workflows.

AI-Driven Product Launches and Expansion—Innovating the Browser Experience

Innovation is at the center of Opera’s results. September saw the launch of Opera Neon, an agentic AI browser built around personalized task automation and productivity. Alongside, new versions of Opera’s flagship and GX gaming browsers shipped with faster, integrated AI models and more flexible open-source support. With the introduction of upgraded free browser AI and increased usage limits, Opera continues to invest heavily in product differentiation.

Beyond browsers, Opera’s MiniPay wallet platform saw 175% user growth over the past year, surpassing 10 million activations and enabling $300 million in peer-to-peer transactions globally.

Cost Structure in Focus—Margins Remain Robust Despite Rising Investments

Opera’s operating expenses climbed 29% to $129.74 million in Q3, mainly due to increased marketing, higher platform fees, and a significant rise in share-based compensation expenses ($9.05 million, +120% YoY) tied to new equity grants. Despite these outlays, adjusted EBITDA margin stayed at a healthy 24%, while adjusted net income margin reached 18% for the quarter.

Balance Sheet and Capital Returns—Strong Cash Position Supports Future Growth

At quarter’s end, Opera’s cash and equivalents stood at $119.04 million. The company’s free cash flow from operations reached $21.26 million for Q3, while a semi-annual dividend of $0.40 per share ($35.8 million total) was paid out in July, demonstrating a commitment to shareholder returns even amid investment in future expansion.

Forward Guidance Indicates Continued Growth—Fourth Quarter and Full-Year 2025 Outlook

CFO Frode Jacobsen pointed to consistent growth and innovation as drivers for the improved outlook, with the full-year revenue guidance raised to support a third consecutive year of accelerating expansion—from 20% growth in 2023, to 21% in 2024, and now a projected 25% in 2025.

Key Takeaway: Sustainable Growth Powered by AI, Product Innovation, and Monetization

Opera’s Q3 performance demonstrates that integrating AI directly into browsers—alongside continuous product upgrades—can produce both strong revenue expansion and robust profitability. For investors and analysts, the upward revision in full-year guidance signals that management’s growth strategy is working, while cash returns and a strong balance sheet add confidence for future execution. With a diversified and expanding revenue base, Opera is poised to capitalize on continued digital adoption and AI-powered user experiences throughout 2025.

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