Opera (NASDAQ:OPRA) Posts Earnings Results, Beats Expectations By $0.02 EPS

Opera (NASDAQ:OPRA) released its quarterly earnings data on Tuesday. The company reported $0.34 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $0.02, FiscalAI reports. Opera had a return on equity of 8.00% and a net margin of 17.61%.The business had revenue of $175.82 million during the quarter, compared to the consensus estimate of $171.04 million. During the same period in the prior year, the firm posted $0.27 EPS.

Here are the key takeaways from Opera’s conference call:

• Q1 outperformance: Opera reported revenue of $176M (+23% YoY) and adjusted EBITDA of $42M (24% margin), beating the high end of guidance by $4M in revenue and $2M in adjusted EBITDA.
• Ad/e‑commerce momentum: Advertising hit a record $117M (24% growth), driven by performance e‑commerce partnerships (recent recognition from AliExpress and Shopee) and scaling of the Opera Ads platform.
• Query & AI monetization opportunity: Query revenue grew 23% to $58M (search up 14%), and new products like Browser Connector (MCP) position Opera to monetize conversational, context‑aware queries and integrate third‑party AI tools.
• User and ARPU trends: MAUs rose by 4M to 288M, annualized ARPU was $2.43 (+25% YoY), and users who engage with AI spend ~1 hour more per day and perform ~50% more searches, supporting higher monetization potential.
• Rising cost pressures: Management raised its full‑year estimate for “other OpEx” due to hosting, increased AI usage and constrained supply, which narrows expected margin expansion despite higher revenue guidance.

Opera Price Performance

Opera stock traded down $0.02 during midday trading on Thursday, hitting $17.33. 194,300 shares of the stock were exchanged, compared to its average volume of 672,836. Opera has a 1 year low of $11.71 and a 1 year high of $21.06. The firm has a market cap of $1.56 billion, a P/E ratio of 14.57 and a beta of 1.22. The company has a 50 day moving average price of $15.08 and a two-hundred day moving average price of $14.36.

Analysts Set New Price Targets

Several equities research analysts have commented on OPRA shares. The Goldman Sachs Group dropped their price target on Opera from $24.50 to $21.50 and set a “buy” rating for the company in a research note on Tuesday, January 13th. Wall Street Zen lowered Opera from a “buy” rating to a “hold” rating in a research note on Sunday, April 19th. Zacks Research cut Opera from a “strong-buy” rating to a “hold” rating in a report on Monday. TD Cowen reissued a “buy” rating on shares of Opera in a research report on Friday, March 13th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Opera in a report on Friday, March 27th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, Opera has a consensus rating of “Moderate Buy” and a consensus price target of $21.50.

Institutional Trading of Opera

Large investors have recently modified their holdings of the business. Janney Montgomery Scott LLC lifted its stake in shares of Opera by 305.1% in the fourth quarter. Janney Montgomery Scott LLC now owns 91,016 shares of the company’s stock worth $1,289,000 after acquiring an additional 68,549 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in Opera by 24.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 153,906 shares of the company’s stock valued at $2,453,000 after purchasing an additional 30,662 shares in the last quarter. Caxton Associates LLP purchased a new stake in Opera during the 1st quarter worth approximately $270,000. State of Tennessee Department of Treasury acquired a new position in shares of Opera in the 2nd quarter valued at approximately $83,000. Finally, Harvey Capital Management Inc. raised its position in shares of Opera by 0.9% in the 4th quarter. Harvey Capital Management Inc. now owns 100,950 shares of the company’s stock valued at $1,429,000 after purchasing an additional 925 shares in the last quarter. 10.21% of the stock is currently owned by institutional investors and hedge funds.

Opera Company Profile

Opera Limited (NASDAQ: OPRA) is a global software and internet services company best known for its cross-platform web browsers, including the flagship Opera Browser, Opera Mini for mobile devices and Opera GX designed for the gaming community. The company integrates features such as ad blocking, built-in VPN services and a cryptocurrency wallet into its desktop and mobile applications, aiming to deliver fast, secure and feature-rich browsing experiences to hundreds of millions of users worldwide.

Beyond its consumer-facing browsers, Opera operates Opera News, a personalized content and news aggregation platform with a strong presence in Africa and Asia, and Opera Ads, a digital advertising network that leverages user-behavior data to provide targeted ad placements across devices.