Opera Stock Shatters Glass With First-Quarter Report

The first quarter of 2025 has been a watershed moment for Opera Software. The Norwegian browser giant delivered a performance that’s hard to ignore, with revenue surging 40% year-over-year and its stock jumping over 10% on the news. This isn’t just a fleeting victory—it’s a signal of Opera’s evolution into a tech powerhouse. Let’s dissect why investors should pay attention.

The Numbers Don’t Lie

Opera’s Q1 results are a masterclass in execution. Total revenue hit $142.7 million, driven by a 63% leap in advertising revenue to $95.6 million. This segment now accounts for 67% of total revenue, cementing Opera Ads as its crown jewel. Even search revenue grew steadily, up 8% to $46.6 million.

But the real story is user engagement. Average monthly active users (MAUs) hit 293 million, while annualized ARPU jumped 45% to $1.94—a clear sign of monetization strength. The Opera GX browser, targeting gamers, also grew 14% to 34 million MAUs. These metrics aren’t just numbers; they’re proof of Opera’s ability to scale across demographics.

AI as the New Engine

Opera isn’t just riding the ad wave—it’s betting big on AI. The launch of Browser Operator, an AI tool that turns browsers into “agentic” assistants, and Opera Air, a mindfulness-focused browser, signals a pivot toward innovation. These products aren’t just gimmicks; they’re strategic plays to capture market share in a crowded space.

The company’s R&D investments are paying off. The $4.4 million increase in depreciation/amortization hints at hardware and software upgrades, likely tied to AI infrastructure. This isn’t just cost inflation—it’s future-proofing.

The Elephant in the Room: Costs and Margins

Not all metrics were rosy. Operating expenses jumped 47% to $121.6 million, driven by share-based compensation (up 130%) and marketing (up 16%). While these costs are justified for growth, they’ve crunched margins. Net income dipped to 13% from 15% last year, and adjusted EBITDA margins fell to 23%.

But here’s the catch: Opera is reinvesting wisely. The CEO, Lin Song, framed this as a “strategic pivot,” not a misstep. With $103.5 million in cash and a $0.40/share dividend, the balance sheet remains resilient. Plus, the tax rate dropped to 12%, a silver lining from currency fluctuations and equity incentives.

Looking Ahead: The Full-Year Gamble

Opera’s guidance is aggressive but achievable. Full-year revenue is expected to hit $567–582 million, a 20% YoY jump. Adjusted EBITDA margins are projected to hold at 24%, a testament to cost discipline.

The Opera Air and Browser Operator launches are critical here. If these products gain traction, they could unlock entirely new revenue streams—think subscriptions, premium features, or enterprise partnerships. Meanwhile, the Norwegian krone’s strength (a key factor in tax savings) could provide further tailwinds if currency trends persist.

Conclusion: A Stock on the Verge of Greatness

Opera’s Q1 report isn’t just a good quarter—it’s a turning point. With 40% revenue growth, a 293M MAU base, and AI-driven products hitting the market, the company is positioned to capitalize on two megatrends: ad tech innovation and AI-driven user experience.

The numbers back this up:
- Adjusted EBITDA grew 29%, even with margin headwinds.
- Free cash flow rose 45%, signaling operational health.
- The stock’s 12% pop post-earnings shows investor confidence in its narrative.

While costs are rising, Opera’s strategy is clear: invest now to dominate later. With guidance raised and a $17.28 post-earnings price, the stock is primed for further gains—if these products deliver.

In short, Opera isn’t just a browser company anymore. It’s a tech innovator with financial discipline, and its Q1 results are proof. This could be the start of something roaring.