Summary of Opera Limited Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: $178.1 million, up 25% year-over-year, exceeding guidance.

Adjusted EBITDA: $42.4 million, a record high, representing a 24% margin and a 32% year-over-year increase.

Advertising Revenue: Grew 27% to $115 million; Query revenue increased 21% to $62 million.

Annualized ARPU: Increased by 25% to $2.46.

Monthly Active Users (MAUs): Reached 288 million, with Western user base growing 4% year-over-year to 61 million.

Cash Flow: Operating cash flow of $22 million; free cash flow from operations of $17 million.

2Strategic Updates and Business Highlights

Opera is positioning itself as a tech enabler, focusing on AI integration within its browser to enhance user engagement and monetization.

The company is expanding its advertising platform and partnerships, particularly in e-commerce and travel sectors.

The total addressable audience has grown to over 700 million, up from 500 million six months prior.

New initiatives include the Browser Connector for AI services, enhancing user experience by allowing secure connections to AI tools like ChatGPT and Claude.

MiniPay, Opera's stablecoin wallet, continues to grow, with 18 million wallets activated and 518 million transactions.

3Forward Guidance and Outlook

Full Year Revenue Guidance: Revised to $734 million to $742 million, indicating 20% growth at the midpoint.

Adjusted EBITDA Guidance: Set at $172 million to $175 million, maintaining a 24% margin.

Q3 Revenue Guidance: Expected between $181 million and $183 million, reflecting 19%-20% growth.

The company remains optimistic about sustaining growth due to its strategic positioning and product enhancements.

4Bad News, Challenges, or Points of Concern

The browser market remains competitive, with ongoing pressure from dominant players like Google and Apple.

Seasonal fluctuations may impact user engagement, particularly with Opera GX during summer months.

While the company is experiencing growth, there is skepticism in the market regarding the durability of this growth trajectory, as reflected in its valuation.

5Notable Q&A Insights

The increase in audience reach to over 700 million is attributed to new partnerships, particularly in AI services.

The growth in mobile MAUs in the U.S. and Europe is partly driven by increased awareness of alternative browsers and the integration of AI features.

Users engaging with AI tools within the browser show significantly higher engagement and search activity compared to those who do not.

The company is cautious about monetization timelines for MiniPay, emphasizing the importance of building a robust user base before prioritizing revenue generation.

The Browser Connector is seen as a way to enhance user choice while maintaining monetization opportunities within the Opera ecosystem. Overall, Opera Limited's Q2 2026 results reflect strong financial performance and strategic initiatives aimed at leveraging AI to enhance user engagement and expand monetization opportunities, despite facing competitive pressures and market skepticism regarding growth sustainability.