Opera Limited (OPRA) Q2 2025 Earnings Call Transcript

Opera Limited (OPRA) reported strong Q2 2025 results, outperforming guidance with 30% year-over-year revenue growth and $32 million in adjusted EBITDA, marking its 17th consecutive quarter as a Rule of 40 company. Performance was fueled by a 44% surge in advertising revenue, notably from e-commerce, and an 11% rebound in search revenue, leading the company to raise its full-year 2025 revenue guidance to $585-$597 million and adjusted EBITDA to $136-$140 million. Strategically, Opera is poised to launch its AI-native browser, Opera Neon, in the fall, aiming to be a core platform for AI services, while its MiniPay stablecoin wallet has rapidly scaled to 9 million activated wallets and over 250 million transactions. These initiatives position Opera to capitalize on significant AI and fintech opportunities, alongside continued shareholder returns through dividends.

Analysis

Opera Limited (OPRA) reported a significantly strong second quarter for 2025, demonstrating accelerating growth and sustained profitability. The company posted 30% year-over-year revenue growth, substantially beating its own guidance of 22-26%, and delivered adjusted EBITDA of $32 million, marking its 17th consecutive quarter as a "Rule of 40" company. This performance was driven by a 44% surge in advertising revenue to $93 million, fueled by over 100% growth in the e-commerce vertical, which successfully offset tariff-related headwinds. Concurrently, search revenue returned to robust health with 11% year-over-year growth to $50 million, supported by a user base shift to higher ARPU regions. Beyond the strong core performance, Opera is positioning itself for two major technological shifts: the launch of its AI-native browser, Opera Neon, in the fall, and the rapid scaling of its MiniPay stablecoin wallet, which has already reached 9 million activated wallets and 250 million transactions. In light of this momentum, management raised its full-year 2025 revenue guidance for the second time to $585-$597 million, implying an acceleration in annual growth to 23% at the midpoint and signaling strong confidence in its strategic initiatives and operational execution.

Key Decisions for Investors

• Given the consecutive beat-and-raise quarters and sustained 'Rule of 40' status, investors should recognize the robust health and accelerating momentum in the core advertising and search businesses.
• The upcoming launch of the Opera Neon AI browser and the rapid scaling of the MiniPay stablecoin wallet are the primary long-term catalysts; monitor user adoption and early monetization progress for these initiatives closely.
• While the company has effectively mitigated risks, it is prudent to continue tracking the impact of e-commerce tariffs and foreign exchange volatility, which management flagged as potential headwinds to revenue and margins.
• Evaluate the strategic value of Opera's 289 million MAU base and independent status in the evolving browser and AI landscape, as this scale could present partnership or M&A opportunities not fully reflected in the current valuation.