Abstract

Opera Limited is scheduled to report second-quarter 2026 results on August 25, 2026 Pre-MKt, with current projections pointing to solid year-over-year revenue and earnings growth driven by search and advertising momentum and supported by ongoing product monetization initiatives.

Market Forecast

The market’s current view for the June quarter centers on revenue of US dollars 177.26 million, up 27.82% year over year, EPS of US dollars 0.33, up 25.87% year over year, and EBIT of US dollars 29.96 million, up 35.68% year over year; margin guidance has not been issued for the quarter. Opera’s prior commentary for the year indicated sustained top-line expansion, and last quarter’s reported revenue trajectory supports this framework, with no formal gross margin or net margin outlook provided for the current period. Main business expectations remain anchored in search and advertising performance, with continued monetization of user intent and engagement. The most promising revenue engine remains advertising and query monetization: last quarter advertising contributed US dollars 116.99 million, and company-level revenue grew 23.16% year over year, with advertising identified as the primary driver of the growth mix.

Last Quarter Review

Opera reported revenue of US dollars 175.77 million, a gross profit margin of 50.91%, GAAP net profit attributable to shareholders of US dollars 24.79 million, a net profit margin of 14.10%, and adjusted EPS of US dollars 0.34, with revenue up 23.16% year over year and adjusted EPS up 25.93% year over year. A notable highlight was EBIT of US dollars 29.76 million, representing 41.22% year-over-year growth, and adjusted EPS surpassed consensus by US dollars 0.02. Main business contributions showed advertising revenue at US dollars 116.99 million, search-related revenue at US dollars 58.30 million, and technology licensing/other at US dollars 0.48 million; management cited advertising and query monetization as the central growth engines for the quarter, consistent with company-level revenue growth of 23.16% year over year. Sequentially, net profit stepped down 55.51% from a seasonally strong prior quarter, consistent with expected normalization after the year-end period. Nevertheless, Opera held gross margin above 50%, reflecting disciplined cost control and favorable revenue mix, while ending the quarter ahead of revenue and EPS forecasts. The company’s previous guidance framework for first-quarter revenue of US dollars 169.00–172.00 million was exceeded by the reported US dollars 175.77 million, suggesting resilient execution against monetization initiatives.

Current Quarter Outlook

Search and advertising revenue momentum

For the June quarter, consensus implies a steady build on last quarter’s base, with revenue projected at US dollars 177.26 million, up 27.82% year over year, and EPS of US dollars 0.33, up 25.87% year over year. The core drivers remain consistent with recent trends: higher-value user sessions, better conversion of user intent, and improved yield from search and advertising partnerships. Management’s earlier commentary and recent third-party checks point to momentum in key regions, and last quarter’s beat versus internal guidance provides an additional cushion to current-quarter expectations. Gross margin is not guided, but the prior-quarter print of 50.91% offers a solid starting point for the model, particularly if the revenue mix continues to tilt toward higher-margin advertising and search. EBIT is forecast at US dollars 29.96 million, up 35.68% year over year, indicating operating leverage as revenue scales. Taken together, the projected revenue and EBIT expansion set an achievable path to replicate last quarter’s earnings profile, provided engagement metrics and partner monetization rates hold through quarter-end. One variable to track into results is the distribution environment and product updates that can lift the default usage and click-through behavior. While these drivers are operational rather than macro, they can exert tangible influence on paid click volumes and revenue-per-user, helping bridge any gap between conservative assumptions and actual outcomes. If the quarter reflects sustained session growth and stable monetization, the consensus ranges for revenue and EPS appear attainable.

AI-enhanced monetization and wallet initiatives

Opera has continued to embed AI assistants and features into its flagship browsers, which can increase session depth, time spent, and relevance of commercial queries—key contributors to revenue-per-user. Recent releases integrated upgraded AI capabilities into the browsing experience, complementing the company’s own AI agent roadmap; these efforts are designed to improve user retention and the precision of monetized actions. The company also highlighted that MiniPay, its lightweight wallet, reached approximately 13.00 million activated wallets, expanding the optionality for financial features that can enhance engagement. While wallet-related contributions are not yet the primary revenue driver, the increased activation base provides a future lever for monetization around transactions and partner services. In the near term, the benefits of AI features are more visible through improved ad relevance and better conversion: as users rely on AI-assisted discovery and task execution, Opera stands to capture a higher share of navigational and commercial-intent queries. The cumulative effect can be measured through higher ARPU, which has been a multi-quarter theme in the company’s results and remains a key datapoint to watch in this print. With EBIT expected to grow faster than revenue year over year, the combination of AI-supported engagement and ongoing cost discipline can extend operating leverage. If management reiterates continued AI feature rollouts along with any early signs of monetization uplift, the market may credit the strategy with a re-rating of earnings power in the back half of the year. Clear commentary on product roadmaps and the pace at which AI features translate into ad yield could be a positive catalyst for the stock.

What will move the stock this quarter

The most material swing factors for shares in this event are likely to be the magnitude of the revenue and EPS delta versus consensus, the cadence of operating margin, and updates on capital returns. On capital returns, the two-year repurchase authorization of US dollars 300.00 million remains in place, and the semi-annual dividend of US dollars 0.40 per ADS (paid on July 14, 2026 to holders of record on July 7, 2026) underscores a balanced capital allocation stance that can support the equity story through volatility. Confirmation of repurchase execution and a continued dividend path can provide a valuation backstop if top-line beats are modest. From an operating standpoint, investors will focus on whether Opera sustains gross margin at or above the low-50% range and keeps net margin near the teens, consistent with last quarter’s 14.10%. Any commentary that search and advertising demand held firm throughout the quarter, combined with measured expense growth, could support EBIT outperformance relative to the US dollars 29.96 million estimate. The company’s last quarter outpaced its own revenue outlook, so investors may parse management’s tone on second-half trends for indications of conservatism in current estimates. Finally, unit-based disclosures—monthly active users, engagement metrics around AI features, and the activated wallet base—will shape expectations for the next two quarters. Sustained growth in high-intent sessions, coupled with improved ad yield, should translate into resilient ARPU trends, which is central to the current valuation framework. If management ties user-engagement achievements directly to revenue-per-user gains and signals a durable pace of product enhancements, the market is likely to lean favorably on the outlook into the next print.

Analyst Opinions

Bullish opinions dominate in the current coverage set, with 100% of the seven tracked ratings categorized as Buy and no Hold or Sell recommendations; the median 12-month price target cited is US dollars 24.00, materially above the stock’s late-February reference price. The positive stance centers on consistent top-line expansion, durable gross margin above 50%, and expanding operating leverage, as reflected in the current-quarter EBIT growth expectation of 35.68% year over year. Analysts also highlight the combination of a sizable buyback authorization and a recurring dividend policy as supportive of per-share value accretion, particularly when earnings deliver within or above the guided range. This constructive view places emphasis on the reliability of search and advertising monetization, which analysts see as the core engine for near-term growth, and on AI feature deployment that can lift engagement and monetized intent. The fact that Opera exceeded its first-quarter revenue outlook with actual revenue of US dollars 175.77 million adds confidence in execution, and the projected revenue of US dollars 177.26 million for the June quarter appears aligned with this trajectory. In their majority perspective, the path to upside remains tied to Opera proving sustained revenue-per-user gains, preserving gross margin near the prior quarter’s level, and demonstrating that AI-driven product innovation can convert to incremental ad yield and EBIT expansion without requiring outsized operating expense growth. On balance, the majority view is that Opera can meet or modestly exceed the consensus profile for revenue and EPS this quarter, with limited downside if capital returns and margin discipline anchor the narrative. Should management underpin the forecast with tangible updates on AI integration, wallet activation cohorts, and the monetization funnel, bullish estimates are likely to remain intact and potentially drift higher for the second half. In sum, the prevailing institutional stance remains upbeat, anchored by healthy year-over-year growth expectations, evidence of cost control, and a capital return framework that supports shareholder value through varying market conditions.