Key Highlights
- Opera stock climbs 23% to $15.41 following Q4 earnings beat and new $300M share repurchase initiative
- Fourth-quarter revenue reaches $177.2M with solid margins and upgraded forward guidance
- Advertising and search query expansion fuel momentum with 284M MAUs and improving ARPU
- Full-year performance shows 28% revenue growth, enhanced cash generation, and increased shareholder returns
- 2026 projections anticipate up to 20% revenue growth driven by AI innovation and MiniPay expansion
Shares of Opera Limited (OPRA) experienced a significant rally following the release of impressive fourth-quarter earnings that surpassed analyst expectations and featured a substantial new share repurchase program. The stock climbed 23.38% to close at $15.41, representing its most dramatic single-session gain of the year. The upward movement accelerated as investors responded positively to robust financial performance and an enhanced capital allocation strategy.
Robust Q4 Revenue Performance Drives Positive Investor Sentiment
Opera delivered fourth-quarter revenue totaling $177.2 million, surpassing guidance while achieving 22% year-over-year expansion. The company simultaneously increased adjusted EBITDA to $41.9 million, achieving a 24% margin that exceeded internal projections. These results demonstrated the organization’s capacity to drive top-line growth while maintaining disciplined profitability.
Advertising-related revenue climbed 25% to reach $114.4 million, continuing as the dominant revenue stream for the quarter. Query-based revenue similarly expanded 16% to $62.3 million, with non-search segments showing particularly strong performance. Accordingly, the diversified revenue mix illustrated healthy business momentum across multiple channels.
The platform reported average monthly active users of 284 million, supporting an improved annualized ARPU of $2.49. Opera acquired 2 million additional users in Western regions, while its gaming-focused Opera GX browser reached 34 million monthly users. Furthermore, newly integrated AI capabilities powered by Gemini technology enhanced the experience for over 80 million PC-based users.
Annual Performance Demonstrates Consistent Expansion and Margin Enhancement
For the full year, Opera recorded revenue of $614.8 million, reflecting 28% year-over-year advancement. Adjusted EBITDA totaled $142.5 million with a 23% margin, highlighting effective operational leverage. Annual net income rose 34% to $108.3 million.
Annual advertising and query revenues sustained robust trajectories through expanded e-commerce partnerships and strengthened intent-driven monetization strategies. The company simultaneously enhanced its browser portfolio with multiple releases designed for various user demographics. Its MiniPay digital wallet exceeded 13 million activations while processing 360 million total transactions.
Opera concluded the fiscal year holding $155.5 million in cash while generating operating cash flow of $117.7 million. Free cash flow from operations increased 39% to $97.7 million as operational efficiency improved. Consequently, the organization finished the period with enhanced financial flexibility.
$300M Share Buyback Authorization and 2026 Projections Signal Management Optimism
Opera unveiled a two-year share repurchase program authorized for up to $300 million. This initiative encompasses ADS purchases from open markets as well as proportional acquisitions from its controlling shareholder. The program operates in conjunction with the existing semi-annual dividend distribution framework.
Leadership provided 2026 revenue guidance ranging from $720 million to $735 million, indicating anticipated growth approaching 20%. Adjusted EBITDA projections span $167 million to $172 million, with margin profiles expected to remain consistent. First-quarter guidance calls for revenue reaching $172 million and EBITDA of approximately $40 million.
Opera remains committed to expanding AI-powered tools and browser functionality while broadening financial inclusion through its MiniPay platform. The organization seeks to deepen user engagement by developing additional product verticals. Therefore, Opera positions itself for 2026 with strengthened strategic direction and expanded global market presence.
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