Opera Delivers Strong Growth and $300 Million Buyback—Profitability and Cash Flow Remain Robust

28% Revenue Growth Paired with Improved Margins

Opera Limited (NASDAQ: OPRA) exceeded expectations in 2025, closing the year with standout results—annual revenue soared 28% to $614.83 million and adjusted EBITDA expanded to $142.53 million, representing a healthy 23% margin. The company’s fourth quarter revenue jumped 22% to $177.21 million, also surpassing guidance, with adjusted EBITDA at $41.89 million for a 24% margin.

Shareholder Returns Take Center Stage: $300 Million Repurchase and Dividend

Opera’s board authorized a two-year, $300 million share repurchase program, notably larger than all previous buybacks combined. This move, funded by strong operational cash flow and a robust balance sheet ($155.5 million in cash at year-end), comes on top of an ongoing semi-annual dividend—$0.40 per share announced in December and paid in January—reinforcing management’s focus on rewarding shareholders.

Multiple Growth Engines: Advertising, AI Innovation, and Global User Base

Advertising revenue, which makes up 65% of total sales, accelerated by 25% year-over-year in Q4, reaching $114.4 million as e-commerce partnerships continued to fuel momentum. Query revenue also advanced 16% to $62.3 million, supported by over 200% growth in non-search queries. Opera’s product engine remains lively—the company launched two new browsers (Air and Neon), expanded AI capabilities using Google’s latest Gemini models, and grew its MiniPay digital wallet past 13 million active users and 360 million transactions. MAUs (monthly active users) averaged 284 million in Q4, while ARPU (annualized revenue per user) rose 26% to $2.49 versus the prior year.

Margin Expansion and Cash Generation Remain Strong

Despite increased investment in share-based compensation ($7.46 million in Q4, up over 600% year-over-year due to new grants) and select cost increases in personnel and network infrastructure, Opera maintained or improved core profitability ratios. Q4 adjusted EBITDA margin was 24%, up a point versus last year, and net cash flow from operating activities rose 86% to $40.21 million. Free cash flow from operations hit $35.35 million in Q4, representing 84% of adjusted EBITDA—a strong indicator of operational discipline and cash conversion.

2026 Outlook: Revenue and Profit Guidance Remain Upbeat

For 2026, Opera projects full-year revenue of $720–735 million—implying 17–20% top-line growth—and adjusted EBITDA between $167–172 million, with margins maintained at 23%. The company expects Q1 2026 revenue of $169–172 million, up 18–21% year-over-year, and Q1 adjusted EBITDA of $38–40 million. Management notes that guidance reflects continued investment in innovation while targeting consistent cash returns for shareholders.

Takeaway: Scale, Diversification, and Shareholder Focus Stand Out

Opera is entering 2026 with strong momentum: accelerating revenue, expanding cash flows, disciplined margin management, and a significant capital return program. While share-based compensation and select costs ticked up, the company’s underlying operational and financial discipline stood firm. The sizable buyback and steady dividend show confidence in Opera’s growth model and continued commitment to rewarding shareholders. Investors tracking user engagement, new product launches, and global monetization may find Opera’s 2026 trajectory worth further watching.

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