Quarterly Results Top Forecasts, Driven by Advertising and Robust Cash Flow
Opera Limited reported Q1 2026 results that not only cleared the high end of its own guidance range, but did so convincingly—with revenue jumping 23% year-over-year to $175.8 million and adjusted EBITDA up 30% to $42 million, representing a healthy 24% margin. Management raised full-year guidance as cash flow and margins continued to expand, thanks to strong advertising momentum and disciplined expense management.
Strong Performance Across Core Financials and Business Metrics
Opera’s business execution shows up in both topline and profitability metrics, as shown in the table below:
| Metric | Q1 2025 | Q1 2026 | % Change |
|---|---|---|---|
| Revenue | $142.72M | $175.77M | 23% |
| Adjusted EBITDA | $32.26M | $41.99M | 30% |
| Net Income | $18.28M | $24.79M | 36% |
| Free Cash Flow from Operations | $12.03M | $35.51M | 195% |
| Adjusted EBITDA Margin | 23% | 24% |
Advertising revenue stood out, rising 24% to $117 million and contributing two-thirds of total revenue. Query revenue also performed strongly, up 23% year-on-year to $58.3 million—a testament to Opera’s diversified monetization engine. Notably, average monthly active users reached 288 million, and ARPU climbed 25% to $2.43.
Cash Generation Accelerates, Enabling Buybacks and Dividends
What’s especially striking in this quarter’s results is Opera’s surge in free cash flow. Free cash flow from operations jumped 195% to $35.5 million, representing 85% of adjusted EBITDA. This robust cash position allowed Opera to return capital through a $0.40 per share dividend ($35.9 million) and a $17 million share repurchase (1.14 million shares at an average price of $14.88 per share).
Outlook Raised as Opera Builds on AI-Driven Growth and Cost Discipline
Management lifted full-year expectations: 2026 revenue is now projected between $727 million and $740 million (up 18-20% year-over-year), with adjusted EBITDA targeted at $170–174 million for roughly a 23% margin. The company’s AI-driven innovations—like the new Browser Connector and continued MiniPay growth—complement steady investment in monetizable verticals, such as e-commerce advertising.
| Guidance Metric | Q2 2026 | FY2026 |
|---|---|---|
| Revenue | $176–178M | $727–$740M |
| Year-over-year Revenue Growth | 23–25% | 18–20% |
| Adjusted EBITDA | $40–42M | $170–174M |
| Adjusted EBITDA Margin | 23% | 23% |
Key Takeaway: Execution Momentum and Shareholder Returns Underpin the Story
Opera’s ability to consistently exceed guidance and pass on value to shareholders—while delivering robust revenue and free cash flow growth—signals both operational strength and careful expense discipline. As AI integration deepens and user engagement climbs, investors will be watching how the company balances investment in innovation with its capital return strategy. The next quarters will test if Opera can maintain this positive trajectory in the face of intensifying competition and evolving market dynamics.
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