Opera Reports Third Quarter 2025 Results Ahead of Expectations, Raises Full-Year Guidance Ranges for Both Revenue and Adjusted EBITDA

Revenue grew 23% year-over-year to $151.9 million, and exceeded the guidance range

Adjusted EBITDA of $36.3 million, a 24% margin, also exceeded the guidance range

Opera raises growth expectations well beyond the third quarter overperformance, increasing full-year revenue guidance to $600 – 603 million, 25% growth at the midpoint, and full-year adjusted EBITDA guidance to $138 - 141 million, 23% margin at the midpoints

OSLO, Norway, Oct. 29, 2025 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), a leading global browser and AI agent company, today announced financial results for the quarter ended September 30, 2025.

"I'm proud of our team's strong execution this quarter, which drove another period of solid growth with both revenue and adjusted EBITDA yet again exceeding our guidance ranges. Our continued focus on innovation positions us well for the future, and I could not be more pleased about our strategic opportunities in this rapidly evolving landscape," said Lin Song, CEO.

"Opera Neon was released in September and represents our vision for the next generation of web browsers," continued Mr. Song. "We believe in an increasingly broad landscape of AI services that assist users across a multitude of areas that all come together in the browser. The browser has to work across all platforms, and its approach to assisting the user has to be powered by the right tool for each job. Opera differs from others in that our specialization is the browser itself, and we use that skill set to create the best possible AI experiences where agents operate directly in your authenticated browser session. In parallel to the premium, subscription-based Neon browser, we are launching new versions of our flagship and GX gaming browsers with upgraded free browser AI, further extending our leadership in delivering practical AI directly within the browsing experience. Our objective is to facilitate an increasingly advanced experience across our browser products in line with our broader views on how these services will best serve people."

Third Quarter and Nine Months 2025 Financial Highlights

Three Months Ended

September 30,

Nine Months Ended

September 30,

In thousands, except percentages and per share amounts

2024

2025

% Change

2024

2025

% Change

Revenue

123,210

151,937

334,815

437,616

Net income

17,940

18,618

52,082

52,576

Net income margin

Adjusted net income (1)

22,884

26,834

61,335

74,712

Adjusted net income margin

Adjusted EBITDA (1)

30,797

36,288

82,316

100,640

Adjusted EBITDA margin

Diluted earnings per share

0.20

0.21

0.58

(0)

Adjusted diluted earnings per share (1)

0.26

0.30

0.69

0.82

Net cash flow from operating activities

34,896

28,454

(18)

83,334

77,518

(7)

As percentage of adjusted EBITDA

113

101

Free cash flow from operations (1)

29,739

21,257

(29)

51,555

62,357

As percentage of adjusted EBITDA

_______________

(1)

See the sections below titled "Non-IFRS Financial Measures" and "Reconciliations of Non-IFRS Financial Measures" for explanations and reconciliations of non-IFRS financial measures.

Third Quarter 2025 and Recent Business Highlights

Third Quarter 2025 Financial Results

All comparisons in this section are relative to the third quarter of 2024 unless otherwise stated.

Revenue increased 23% to $151.9 million.

Operating expenses increased 29% to $129.7 million.

Operating profit was $22.4 million, representing a 15% margin, compared to an operating profit of $23.2 million and a margin of 19% in the third quarter of 2024.

Net finance income was $0.2 million, a result of $0.7 million in net interest income, partially offset by foreign exchange loss of $0.5 million.

Income tax expense was $4.0 million, corresponding to an effective tax rate of 18%, and representing 11% of adjusted EBITDA. This compares to income tax expense of $4.8 million in the third quarter of 2024, representing 16% of adjusted EBITDA.

Net income was $18.6 million, representing a 12% margin, compared to net income of $17.9 million and a margin of 15% in the third quarter of 2024.

Adjusted net income was $26.8 million, representing a 18% margin and an increase of 17% relative to $22.9 million and a 19% margin in the third quarter of 2024.

Adjusted EBITDA was $36.3 million, representing a 24% margin and an increase of 18% relative to $30.8 million and a 25% margin in the third quarter of 2024.

Diluted earnings per share was $0.21, whereas adjusted diluted earnings per share was $0.30.

Net cash flow from operating activities was $28.5 million, or 78% of adjusted EBITDA. Free cash flow from operations was $21.3 million, or 59% of adjusted EBITDA.

Business Outlook

Fourth Quarter 2025 Guidance

Full-Year 2025 Guidance

Revenue

$162 – 165 million

$600 – 603 million

Year-over-year revenue growth (1)

Adjusted EBITDA (2)

$37.5 – 40.5 million

$138 – 141 million

Adjusted EBITDA margin (1)

_______________

(1)

The percentages shown for revenue growth and adjusted EBITDA margin have been calculated based on the midpoints of the revenue and adjusted EBITDA guidance.

(2)

See the section below titled "Non-IFRS Financial Measures" for explanations of non-IFRS financial measures.

"The momentum in our business has continued to outperform even recent expectations, and we are pleased to exceed our guidance ranges on both revenue and adjusted EBITDA. While we are executing on great strategic opportunities in a rapidly evolving ecosystem, we are simultaneously generating healthy organic growth in both revenue and profit," said Frode Jacobsen, CFO.

"Our trajectory allows us to raise the outlook for the year well beyond our third quarter overperformance. While the fourth quarter in isolation compares to the extraordinary revenue acceleration in late 2024, our guidance represents increased sequential growth and supports our continued annual growth expansion from 20% in 2023, 21% in 2024 and now 25% at the midpoint of 2025 guidance," continued Mr. Jacobsen.

Conference Call and Webcast Information

Opera's management will host a conference call to discuss the third quarter 2025 financial results at 8:00 a.m. ET today. The live webcast of the conference call can be accessed at our investor relations website at investor.opera.com, along with the earnings press release and financial tables. Following the call, a replay will be available at the same website.

We also provide announcements on our investor relations website at investor.opera.com regarding our financial performance and other matters, including SEC filings, press releases, slide presentations, business blog posts and information on corporate governance.

Non-IFRS Financial Measures

In addition to revenue, net income, net cash flow from operating activities and other financial measures presented in accordance with IFRS Accounting Standards, we use adjusted net income, adjusted EBITDA, adjusted diluted earnings per share and free cash flow from operations to manage our business, make planning decisions, evaluate our performance, and allocate resources. We believe adjusted net income, adjusted EBITDA and adjusted diluted earnings per share provide meaningful supplemental information regarding our financial performance by excluding certain items that may not be indicative of recurring core business operating results. We believe free cash flow from operations provides useful information regarding our ability to generate cash from business operations that is available for acquisitions and other investments, and for distributions to our shareholders, even though free cash flow from operations does not represent the residual cash flow available for discretionary expenditures.

We define adjusted net income as net income excluding (i) profit (loss) from discontinued operations, (ii) gain (loss) on investments in unconsolidated entities, (iii) non-recurring expenses, (iv) impairment of non-financial assets, (v) amortization of acquired intangible assets, (vi) share-based compensation expenses, and (vii) the income tax effect of these adjustments. Adjusted net income margin is calculated as adjusted net income divided by revenue, whereas adjusted diluted earnings per share is calculated as adjusted net income divided by the diluted weighted average number of shares outstanding.

We define adjusted EBITDA as net income excluding (i) profit (loss) from discontinued operations, (ii) income tax expense, (iii) net finance income (expense), (iv) gain (loss) on long-term investments in unconsolidated entities, (v) non-recurring expenses, (vi) impairment of non-financial assets, (vii) depreciation and amortization, (viii) share-based compensation expenses, and (ix) other operating income. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue.

We define free cash flow from operations as net cash flows from (used in) operating activities less (i) purchases of fixed and intangible assets, (ii) development expenditure and (iii) payment of lease liabilities.

We believe the non-IFRS financial measures defined above are useful to investors both because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and because they are used by our institutional investors and the analyst community to help them analyze the health of our business. However, these non-IFRS financial measures should not be considered substitutes for, or superior to, the financial information presented in accordance with IFRS Accounting Standards. Our calculations of adjusted net income, adjusted EBITDA, adjusted diluted earnings per share and free cash flow from operations may differ from similarly-titled non-IFRS measures, if any, reported by our peers. In addition, the non-IFRS financial measures may be limited in their usefulness because they do not present the full economic effects of certain items of income, expenses and cash flows. We compensate for these limitations by providing reconciliations of our non-IFRS financial measures to the most closely related financial measures in IFRS Accounting Standards in the section titled "Reconciliations of Non-IFRS Financial Measures" included at the end of this earnings press release. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view our reported non-IFRS financial measures in conjunction with net income and net cash flow from operating activities.

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements, including statements relating to the Company's future financial and operating results, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "may," "expect," "believe," "anticipate," "intend," "aim," "estimate," "seek," "plan," "potential," "continue," "ongoing," "target," "guidance," "is/are likely to," "future" and similar statements. Among other things, management's quotations and the Business Outlook section contain forward-looking statements. The Company may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which it operates. Potential risks and uncertainties include, but are not limited to, those relating to: implementations of tariffs and other trade-limiting policies, the duration and development of international wars and conflicts, such as in Ukraine and the Middle East, and related economic sanctions, as well as resulting changes in consumer behaviors; the outcome of regulatory processes or litigation involving the Company or its business partners; the Company and its goals and strategies; expected development and launch, and market acceptance, of products and services; Company's expectations regarding demand for and market acceptance of its brands, platforms and services including, for example, agentic browsing; Company's expectations regarding changes in its user base, user retention and level of engagement; changes in consumer behavior, for example from increased adoption of AI powered services; Company's ability to attract, retain and monetize users; Company's ability to continue to develop new technologies, products and services and/or upgrade its existing technologies, products and services; quarterly variations in Company's operating results caused by factors beyond its control; and global macroeconomic conditions and their potential impact in the markets in which the Company has business. All information provided in this press release is as of the date hereof and is based on assumptions that the Company believes to be reasonable as of this date, and it undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Opera is included in the Company's filings with the SEC, including its annual reports on Form 20-F.

About Opera

Opera is a user-centric and innovative software company focused on enabling the best possible internet browsing experience across devices. Hundreds of millions worldwide use Opera's mobile and desktop browsers for their speed, security, and unique features, enhanced with integrated AI that enables users to navigate and interact with the web in new transformative ways. Founded in 1995 and headquartered in Oslo, Norway, Opera is listed on the Nasdaq stock exchange under the ticker symbol "OPRA". Download Opera products from opera.com and learn more about Opera at investor.opera.com.

Opera Limited

Consolidated Statement of Operations

(In thousands, except per share amounts, unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Revenue

123,210

151,937

334,815

437,616

Other operating income

654

177

2,278

178

Operating expenses:

Technology and platform fees

(1,841)

(2,206)

(7,497)

(6,734)

Content cost

(897)

(1,924)

(2,767)

(4,363)

Cost of inventory sold

(30,377)

(48,512)

(74,523)

(143,101)

Personnel expenses excluding share-based compensation

(19,069)

(20,865)

(53,232)

(57,090)

Share-based compensation expenses

(4,115)

(9,052)

(8,657)

(23,816)

Marketing and distribution expenses

(32,516)

(35,893)

(91,007)

(104,091)

Credit loss expense

335

252

342

Depreciation and amortization

(4,146)

(4,854)

(11,229)

(13,921)

Impairment of non-financial assets

(4)

(182)

(4)

(1,521)

Other operating expenses

(7,758)

(6,584)

(23,723)

(21,938)

Total operating expenses

(100,678)

(129,737)

(272,389)

(376,233)

Operating profit

23,185

22,377

64,703

61,560

Share of net loss of equity-accounted investees

—

(15)

—

(30)

Net finance income (expense):

Finance income

784

794

2,583

2,366

Finance expense

(117)

(115)

(432)

(457)

Net foreign exchange gain (loss)

(1,067)

(457)

(2,472)

(2,302)

Net finance income (expense)

(400)

222

(321)

(393)

Income before income taxes

22,786

22,584

64,382

61,137

Income tax expense

(4,846)

(3,966)

(12,300)

(8,561)

Net income attributable to Opera shareholders

17,940

18,618

52,082

52,576

Earnings per share:

Basic

0.20

0.21

0.59

Diluted

0.20

0.21

0.58

Weighted-average number of shares outstanding:

Basic

88,472

89,580

88,458

89,524

Diluted

89,487

90,800

89,482

90,691

Opera Limited

Consolidated Statement of Comprehensive Income

(In thousands, unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Net income

17,940

18,618

52,082

52,576

Other comprehensive income (loss):

Items that may be reclassified to the Statement of Operations:

Exchange differences on translation of foreign operations

1,469

1,304

3,196

Other comprehensive income (loss)

1,469

1,304

3,196

Total comprehensive income attributable to Opera shareholders

19,409

18,701

53,386

55,773

Opera Limited

Consolidated Statement of Financial Position

(In thousands, unaudited)

As of December 31,

As of September 30,

2024

2025

Assets:

Property and equipment

34,058

32,438

Goodwill

429,742

430,319

Intangible assets

97,509

98,869

Investment in OPay

258,300

Equity-accounted investments

1,248

3,718

Other non-current investments and financial assets

1,760

1,651

Deferred tax assets

1,063

1,273

Total non-current assets

823,681

826,568

Trade receivables

92,823

101,272

Other current receivables

4,560

6,973

Cash and cash equivalents

126,797

119,042

Other current assets

7,724

5,935

Total current assets

231,904

233,222

Total assets

1,055,585

1,059,790

Equity:

Share capital

Additional paid-in capital

647,212

576,046

Treasury shares

(238,815)

Retained earnings

536,623

612,137

Foreign currency translation reserve

(4,938)

(1,742)

Total equity attributable to Opera shareholders

940,100

947,644

Liabilities:

Non-current lease liabilities

5,631

4,657

Deferred tax liabilities

8,689

6,299

Other non-current liabilities

Total non-current liabilities

14,391

10,968

Trade and other payables

75,285

75,081

Current lease liabilities

3,955

4,167

Income tax payable

3,190

6,583

Deferred revenue

5,441

3,994

Other current liabilities

13,222

11,354

Total current liabilities

101,093

101,178

Total liabilities

115,484

112,146

Total equity and liabilities

1,055,585

1,059,790

Opera Limited

Consolidated Statement of Changes in Equity

(In thousands, except number of shares, unaudited)

For the nine months ended September 30, 2024:

Number of

outstanding

capital

Additional

paid-in

capital

Treasury

Retained

earnings

Foreign

currency

translation

reserve

Total equity

attributable

to Opera

shareholders

As of January 1, 2024

87,518,284

717,610

(238,815)

445,164

(4,127)

919,850

Net income

—

52,082

—

52,082

Other comprehensive income

—

1,304

Cost of equity awards, net of tax

—

8,861

—

8,861

Issuance of shares upon exercise of equity awards

961,870

—

Dividends

—

(70,406)

—

(70,406)

As of September 30, 2024

88,480,154

647,204

(238,815)

506,107

(2,823)

911,692

For the nine months ended September 30, 2025:

Number of

outstanding

capital

Additional

paid-in

capital

Treasury

Retained

earnings

Foreign

currency

translation

reserve

Total equity

attributable

to Opera

shareholders

As of January 1, 2025

88,480,154

647,212

(238,815)

536,623

(4,938)

940,100

Net income

—

52,576

—

52,576

Other comprehensive income

—

3,196

Cost of equity awards, net of tax

—

22,938

—

22,938

Issuance of shares upon exercise of equity awards

1,167,902

—

Dividends

—

(71,167)

—

(71,167)

As of September 30, 2025

89,648,056

576,046

(238,815)

612,137

(1,742)

947,644

Opera Limited

Consolidated Statement of Cash Flows

(In thousands, unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Cash flows from operating activities:

Income before income taxes

22,786

22,584

64,382

61,137

Adjustments to reconcile income before income taxes to net cash flow from operating activities:

Net finance (income) expense

400

(222)

321

393

Share of net loss of equity-accounted investees

—

Impairment of non-financial assets

182

1,521

Depreciation and amortization

4,146

4,854

11,229

13,921

Cost of equity awards

3,554

8,359

7,775

22,379

Other adjustments

(300)

150

290

(795)

Changes in working capital:

Trade and other receivables

(8,519)

(5,503)

(1,987)

(11,226)

Other current assets

(136)

(223)

1,187

395

Trade and other payables

10,686

(2,107)

11,432

(170)

Deferred revenue

(1,658)

(171)

(6,800)

(1,447)

Other liabilities

4,021

1,485

(231)

(1,927)

Income taxes paid

(87)

(947)

(4,268)

(6,694)

Net cash flow from operating activities

34,896

28,454

83,334

77,518

Cash flows from investing activities:

Purchase of equipment

(1,845)

(3,222)

(23,310)

(4,207)

Development expenditure

(2,271)

(2,756)

(5,391)

(7,462)

Investment in an associate

—

(1,250)

—

(2,500)

Sale of long-term investments

—

500

—

Interest received

773

794

2,417

2,366

Net cash flow used in investing activities

(3,343)

(6,433)

(25,784)

(11,803)

Cash flows from financing activities:

Dividends paid

(27,569)

(35,772)

(37,443)

(71,167)

Payment of lease liabilities

(1,041)

(1,219)

(3,078)

(3,491)

Interest paid

(117)

(115)

(389)

(424)

Net cash flow used in financing activities

(28,726)

(37,106)

(40,910)

(75,082)

Net change in cash and cash equivalents

2,826

(15,085)

16,640

(9,367)

Cash and cash equivalents at beginning of period

104,356

133,823

93,863

126,797

Effect of exchange rate changes on cash and cash equivalents

(1,177)

304

(4,498)

1,612

Cash and cash equivalents at end of period

106,005

119,042

106,005

119,042

Opera Limited

Supplemental Financial Information

(In thousands, unaudited)

Revenue

The following table presents revenue disaggregated by type:

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Advertising

75,740

95,865

198,968

281,639

Query

47,370

55,634

135,107

154,534

Technology licensing and other revenue

100

438

740

1,442

Total revenue

123,210

151,937

334,815

437,616

Share-based Compensation Expenses

The table below presents the amounts of share-based compensation expenses:

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Cost of Opera-granted awards

(1,957)

(6,854)

(3,372)

(21,143)

Cost of parent-granted awards (1)

(1,589)

(1,505)

(4,399)

(1,236)

Total cost of equity awards

(3,547)

(8,359)

(7,771)

(22,379)

Social security contributions for Opera-granted awards

(569)

(693)

(887)

(1,437)

Total share-based compensation expenses

(4,115)

(9,052)

(8,657)

(23,816)

_______________

(1)

Kunlun, the majority shareholder of Opera, has granted equity awards to Opera employees as compensation for services provided to Opera. Opera does not have any obligation to settle the awards granted by Kunlun and such awards do not lead to dilution for Opera shareholders.

Other Operating Expenses

The table below presents the items of other operating expenses:

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Hosting

(3,417)

(3,341)

(9,234)

(9,511)

Audit, legal and other advisory services

(1,600)

(565)

(5,788)

(4,467)

Software license fees

(804)

(812)

(3,256)

(2,487)

Rent and other office expenses

(593)

(576)

(1,764)

(1,713)

Travel

(518)

(447)

(1,465)

(1,458)

Other

(826)

(843)

(2,216)

(2,303)

Total other operating expenses

(7,758)

(6,584)

(23,723)

(21,938)

Opera Limited

Reconciliations of Non-IFRS Financial Measures

(In thousands, except per share amounts, unaudited)

The following table presents a reconciliation of adjusted net income to net income:

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Net income

17,940

18,618

52,082

52,576

Add (deduct):

Share of net loss of equity-accounted investees

—

Impairment of non-financial assets

182

1,521

Amortization of acquired intangible assets

645

1,935

Share-based compensation expenses

4,115

9,052

8,657

23,816

Income tax effect on adjustments

180

(1,677)

(1,344)

(5,166)

Adjusted net income

22,884

26,834

61,335

74,712

Diluted weighted-average number of shares outstanding

89,487

90,800

89,482

90,691

Adjusted diluted earnings per share

0.26

0.30

0.69

0.82

The following table is a reconciliation of adjusted EBITDA to net income:

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Net income

17,940

18,618

52,082

52,576

Add (deduct):

Income tax expense

4,846

3,966

12,300

8,561

Net finance (income) expense

400

(222)

321

393

Share of net loss of equity-accounted investees

—

Impairment of non-financial assets

182

1,521

Depreciation and amortization

4,146

4,854

11,229

13,921

Share-based compensation expenses

4,115

9,052

8,657

23,816

Other operating income

(654)

(177)

(2,278)

(178)

Adjusted EBITDA

30,797

36,288

82,316

100,640

The table below reconciles free cash flow from operations to net cash flow from operating activities:

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Net cash flow from operating activities

34,896

28,454

83,334

77,518

Deduct:

Purchase of equipment

(1,845)

(3,222)

(23,310)

(4,207)

Development expenditure

(2,271)

(2,756)

(5,391)

(7,462)

Payment of lease liabilities

(1,041)

(1,219)

(3,078)

(3,491)

Free cash flow from operations

29,739

21,257

51,555

62,357

SOURCE Opera Limited