Opera (OPRA) Reports Strong Revenue Growth Exceeding Expectations in Q2

Opera Limited (NASDAQ: OPRA) announced its financial results for the second quarter of 2026, reporting robust revenue growth that exceeded expectations. For the three-month period ended June 30, 2026, the company's revenue increased by 25% year-over-year to $178.1 million. This performance surpassed the high end of its guidance range and marked Opera's 21st consecutive quarter of achieving the "Rule of 40" performance.

According to the company's financial statements, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 32% year-over-year to $42.4 million, representing a 24% margin, also exceeding guidance. Net income saw a significant 76% increase, reaching $27.6 million. Adjusted diluted earnings per share (EPS) was reported at $0.33, aligning with analyst consensus. Lin Song, CEO of Opera, highlighted that healthy growth across both advertising and query revenue streams has enabled the business to compound organically and capital-efficiently.

During the quarter, Opera's average monthly active users (MAUs) reached 288 million globally, with 61 million users in Western markets. The annualized average revenue per user (ARPU) increased by 25% to $2.46. In terms of revenue mix, advertising revenue accounted for $115.4 million, or 65% of total revenue, while query revenue contributed $62.1 million, or 35% of the total. Both segments demonstrated strong year-over-year growth of 27% and 21%, respectively. Notably, the Opera GX gaming browser reached 37 million users, and MiniPay wallets expanded to 18 million, showcasing the success of the company's diversified product strategy.

Despite the strong second-quarter results, Opera's shares experienced a decline of approximately 5% to 7% in pre-market trading. This market reaction could be attributed to the adjusted EPS only meeting analyst expectations and some investors perceiving the full-year sales guidance as softer. Nevertheless, Opera announced it has returned approximately $541 million to shareholders through dividends and share buybacks since 2020 and initiated a new two-year share buyback program of $300 million.

Opera emphasizes that as AI fundamentally reshapes how people search, work, and interact online, its position as an independent, tech-enabling platform is more valuable than ever. The company aims to facilitate user choice through its open ecosystem strategy, exemplified by its Browser Connector for leading AI services like Claude and ChatGPT, thereby converting elevated browser utility into immediate commercial momentum. Management reiterated its commitment to continued investment in AI integration and innovative product development.

Looking ahead, Opera provided third-quarter 2026 revenue guidance in the range of $181 million to $183 million. The full-year 2026 revenue outlook was raised to a range of $734 million to $742 million. Additionally, the full-year adjusted EBITDA guidance was updated to $172 million to $175 million, projecting a 24% margin. Analysts generally hold a positive view, expecting the company's strong organic growth and AI-centric strategy to bolster future performance.