Opera Limited Q4 FY2025 earnings call

CEO Song Lin mentioned 2025 was a year of rapid innovation, launched new browsers like Opera Air and Opera Neo, Opera GX had over 34 million MAUs in Q4, mobile browsers had healthy user base dynamics in Europe. CFO Broda Jacobsen discussed financials, Q1 revenue guidance 169 - 172 million with 18 - 21% growth, adjusted EBITDA guidance 38 - 40 million, 2026 revenue guidance 720 - 735 million with 17 - 20% growth, adjusted EBITDA guidance 167 - 172 million, and new share buyback program.

Advertising revenue led by e-commerce scaling had 25% year - over - year growth, with an unprecedented sequential increase of 19 million versus the third quarter. Query revenue continued with 16% year - over - year growth, fueled by search revenue growth and over 200% year - over - year growth in non - search power revenue. Q4 revenue growth was 22% against tough 2024 comparisons and 8% higher than guidance midpoint. Annual revenue growth in 2025 was 28%. EBITDA came in well above guidance range. Q4 ARPU grew by 26% to $2.49. Opera Ads more than doubled growth pace in 2025 versus 2024, processing 12 million ad queries per second, over double year ago period. MiniPay had over 13 million activated wallets, accumulated transactions increased from 290 million to 390 million.

Q1 revenue guided 169 - 172 million, 18 - 21% year - over - year growth, adjusted EBITDA guided 38 - 40 million. 2026 revenue guided 720 - 735 million, 17 - 20% growth, adjusted EBITDA guided 167 - 172 million. Implicitly guide full - year OPEX base pre - adjusted EBITDA 558 million at midpoints, cost of revenue items about 38% of revenue, cash - based compensation expense to grow low teens, marketing cost grow ~10% from 2025, other ROPEX items grow ~15% for year. Launch new share buyback program with 300 million authorization.

Statements made may be forward - looking based on current expectations and assumptions subject to number of risks and uncertainties, actual results could differ materially as a result of various factors including those set forth in earnings press release and most recent annual report on Form 20F filed with the SEC.

Q: Talk about Western users growth despite greater competition and e - commerce ads traction.

A: Western users growth is good, focus on desktop and mobile browsers, AI helps, e - commerce is a big market with potential, Opera Ads platform sees growth and deepening relationships with advertisers.

Q: Engagement or monetization of Neon since roll - out?

A: Neon widely available mid - December, potential as AI power users community hub, technology allows advanced orchestrations, some functionalities moved to Opera AI, potential subscription revenue streams.

Q: Sustainability of gross margin trend with off - platform scaling?

A: 2026 has good growth potential, Opera ads platform grows slightly faster, EBITDA contribution healthy, EBITDA margin expectation ticked up.

Q: View on Neon wider adoption and investments?

A: Balancing act on features for Neon, focus on powerful users, some functionalities in Opera AI for wider audience, payment infrastructure focus on emerging markets.

Q: Opera GX user growth regions and Japan/Korea markets?

A: GX users valuable across regions, US is big market, East Asian markets like Japan and Korea have developments. OPE IPO not confirmed on timing.

Q: Monetization path for MiniPay and Stripe - PayPal acquisition read - through?

A: Priority is build scale and user base, monetize from partner ecosystem, no specific read - through on Stripe - PayPal acquisition related to MiniPay.

Q: Non - search query revenue explanation and leverage?

A: New revenue stream exceeded $5 million in quarter, consists of addressing user intent with search queries or direct references to partners, excited about monetization potential as dialogues expand.