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Opera
(NASDAQ:OPRA)
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Rating:72Outperform
Price Target:
$17.00
▼(-12.42% Downside)
Action:Reiterated
Date:10/31/26
The score is driven primarily by strong financial quality (high profitability and an extremely conservative balance sheet) and appealing valuation (low P/E with a high dividend yield), reinforced by raised guidance and positive operating momentum from the latest earnings call. These positives are partially offset by weak technicals, with the stock in a clear downtrend (below major moving averages and negative MACD).
Positive Factors
Accelerating revenue and user monetization
Strong revenue growth alongside higher ARPU indicates improving monetization of Opera’s browser ecosystem. Continued user engagement, advertising expansion, and search growth could support durable topline gains over the medium term.
Negative Factors
Potential gross-margin pressure from advertising expansion
Greater reliance on third-party advertising inventory may raise traffic-acquisition and fulfillment costs. If revenue growth increasingly requires lower-margin inventory, gross-margin normalization could limit the operating leverage from scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue and user monetization
Strong revenue growth alongside higher ARPU indicates improving monetization of Opera’s browser ecosystem. Continued user engagement, advertising expansion, and search growth could support durable topline gains over the medium term.
Read all positive factors
Opera (OPRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.37B
Dividend Yield5.19%
Average Volume (3M)339.55K
Price to Earnings (P/E)10.9
Beta (1Y)1.54
Revenue Growth23.24%
EPS Growth75.74%
CountryUS
Employees605
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)1.41
Shares Outstanding89,552,960
10 Day Avg. Volume392,556
30 Day Avg. Volume339,553
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)1.25
Price to Sales (P/S)2.06
P/FCF Ratio11.01
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue2.45
Enterprise Value/Gross Profit4.63
Enterprise Value/Ebitda10.03
Forecast
1Y Price Target
$26.83Price Target Upside38.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.12
Revenue Forecast (FY)$739.10M
Opera Business Overview & Revenue Model
Company Description
Opera Limited, together with its subsidiaries, provides mobile and PC web browsers and related products and services in Ireland, Singapore, the United States, and internationally. The company offers specialized browsers, including Opera One browse...
How the Company Makes Money
Opera primarily monetizes its browser user base through a combination of advertising and partner relationships tied to search and content distribution. A key revenue stream is advertising, which can include ads shown within Opera’s products (for e...
Opera Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call communicated strong operating and financial momentum — double-digit topline growth (25% YoY in Q2), record adjusted EBITDA (+32% YoY), robust ad and query revenue expansion, product-led user engagement gains (ARPU +25%, MAU scale), raised full-year guidance, and continued shareholder returns. Key growth initiatives (AI integrations, Browser Connector, Opera Ads, MiniPay) and an expanded addressable audience (>700M) underpin the positive outlook. Headwinds and cautions include early-stage monetization for MiniPay, small absolute size of some high-growth revenue streams, expected modest rise in cost of revenue as third-party inventory scales, seasonality, shifts away from low-ARPU users, and some market skepticism about durability. On balance, the positives — recurring revenue acceleration, margin expansion, raised guidance, and platform-level product traction — materially outweigh the listed lowlights.Positive Updates
Strong Revenue Growth
Total Q2 revenue grew 25% year-over-year to $178.1 million, above the top of guidance and surpassing a typical seasonal Q4 peak one quarter early.
Negative Updates
MiniPay Monetization Still Early
Although MiniPay reached 18 million wallets and broad distribution, management emphasized the product is still in early stages of growth; monetization runway exists but meaningful economic contribution is not yet visible.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total Q2 revenue grew 25% year-over-year to $178.1 million, above the top of guidance and surpassing a typical seasonal Q4 peak one quarter early.
Read all positive updates
Company Guidance
Opera raised its full‑year guidance to $734–742M in revenue (about 20% growth at the midpoint) and $172–175M in adjusted EBITDA (≈24% margin on the midpoint), and guided Q3 revenue of $181–183M (19–20% y/y) with Q3 adjusted EBITDA of $41–43M (≈23% margin at the midpoint); management also expects a full‑year pre‑adjusted‑EBITDA OpEx base of ~$565M at the midpoint (with ~$140M in Q3), cost of revenue of roughly 39% of revenue, marketing ≈20% of revenue (Q2 marketing was $36.2M), cash‑based compensation to modestly decline and represent ~12% of revenue, other OpEx ~5% of revenue, and the combination of marketing plus cash compensation to fall from 36% of revenue in 2025 to ~32% this year, supporting a 25–40 bp increase in adjusted EBITDA margin versus 2025.Opera Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 682.19M | 616.73M | 480.65M | 396.83M | 331.04M | 250.99M |
| Gross Profit | 360.82M | 266.01M | 348.09M | 303.58M | 276.45M | 237.30M |
| EBITDA | 166.33M | 145.14M | 114.52M | 173.53M | 38.09M | -23.19M |
| Net Income | 126.50M | 108.62M | 80.77M | 153.30M | 15.04M | -43.96M |
Balance Sheet | ||||||
| Total Assets | 1.16B | 1.14B | 1.06B | 1.01B | 964.69M | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 145.22M | 155.47M | 126.80M | 93.86M | 118.66M | 181.01M |
| Total Debt | 8.00M | 12.95M | 9.59M | 10.55M | 7.83M | 13.51M |
| Total Liabilities | 148.76M | 132.54M | 115.48M | 91.09M | 76.47M | 79.42M |
| Stockholders Equity | 1.01B | 1.01B | 940.10M | 919.85M | 888.21M | 1.01B |
Cash Flow | ||||||
| Free Cash Flow | 120.69M | 115.22M | 74.37M | 76.36M | 46.69M | 20.67M |
| Operating Cash Flow | 134.29M | 120.79M | 104.98M | 82.76M | 56.66M | 26.56M |
| Investing Cash Flow | -19.68M | -17.80M | -27.11M | 20.00M | 44.45M | -49.70M |
| Financing Cash Flow | -103.66M | -76.18M | -42.15M | -59.84M | -150.58M | -6.68M |
Opera Technical Analysis
Negative
19.41
Price Trends
18.04
Negative
18.58
Negative
16.90
Negative
Market Momentum
-0.22
Positive
32.36
Neutral
41.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPRA, the sentiment is Negative. The current price of 19.41 is above the 20-day moving average (MA) of 17.58, above the 50-day MA of 18.04, and above the 200-day MA of 16.90, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 32.36 is Neutral, neither overbought nor oversold. The STOCH value of 41.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPRA.
Opera Risk Analysis
Opera disclosed 61 risk factors in its most recent earnings report. Opera reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Your ability to achieve a return on your investment will depend on the combination of future dividend payments and the price appreciation of the ADSs. Q4, 2023
2.
Potential issues raised by the use of AI technologies in our products and services may result in reputational harm or liability, adversely affecting our business, financial condition, and operating results. Q4, 2023
Opera Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.93B | 18.79 | 3.35% | 6.72% | 7.52% | ― | |
73 Outperform | $3.41T | 14.35 | 42.62% | 0.31% | 22.21% | 89.60% | |
72 Outperform | $1.37B | 10.93 | 12.78% | 5.19% | 23.24% | 75.74% | |
64 Neutral | $10.95B | 77.46 | 5.25% | ― | 15.38% | -91.36% | |
61 Neutral | $9.03B | -28.93 | -14.61% | ― | 12.65% | 42.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
48 Neutral | $25.57B | -37.35 | -1.38% | ― | -1.11% | -116.12% |
* Communication Services Sector Average
OPRA
Opera
15.41
1.34
9.48%
BIDU
Baidu
76.40
-44.47
-36.79%
GOOGL
Alphabet Class A
279.84
-0.62
-0.22%
JOYY
JOYY
80.32
25.57
46.70%
SNAP
Snap
5.34
-2.46
-31.54%
PINS
Pinterest
19.36
-13.74
-41.51%
Opera Corporate Events
Opera Lifts 2026 Outlook After Beating Q2 Guidance on AI-Driven Browser Growth
Aug 19, 2026
Opera Limited is a global software company best known for its web browsers and AI-enabled online tools, serving consumers worldwide from its base in Oslo, Norway. Listed on Nasdaq under the ticker OPRA, Opera focuses on advertising and search-quer...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.