Opera Limited Q1 FY2026 earnings call

• Q1 revenue and adjusted EBITDA exceeded guidance ranges, with revenue growth comparable across advertising and query. Advertising revenue was new all-time high of $117 million. • Introduced Browser Connector allowing users to plug favorite AI tools into live browser sessions, reinforcing user choice. • Added 4 million users in Q1, total monthly average users at 288 million, with growth in Western users, Android adoption, PC platform, and Opera GX users. • MiniPay has momentum with over 15 million wallets activated and $20 million revenue from its ecosystem.

Q1 revenue exceeded the high end of guidance range by $4 million, adjusted EBITDA exceeded the high end of guidance range by $2 million. Year-over-year revenue growth was 23% to $176 million, adjusted EBITDA was $42 million with a 24% margin. Advertising revenue was $117 million, 67% of total revenue, grew 24%. Query revenue was $58 million, 33% of total revenue, grew 23%. Added 4 million users during Q1, total monthly average users at 288 million. Analyzed APU was $2.43, a 25% increase year over year. Minipay has activated over 15 million wallets and processed over 413 million total transactions, generating about $20 million of revenue from the broader ecosystem around it.

• Raised full year revenue guidance to $727 to $740 million, 18 to 20% growth. Adjusted EBITDA guidance updated to $170 to $174 million, 23.4% margin at midpoints. • Second quarter revenue guidance 176 to 178 million, 23 to 25% growth. Adjusted EBITDA guidance 40 to 42 million, 23.2% margin. • Cost of revenue expected to be about 38% of revenue for the year. Cash-based compensation expense expected to grow just above 10% for the year. Marketing spend expected to grow about 10% from 2025 level. Other OpEx items pre-adjusted EBITDA expected to increase just over 20% year over year.

Q: Eric Sheridan with Goldman Sachs asked about learnings on AI adoption and long-term opportunity set.

A: Song Lin said AI is embedded in browser, users with AI spend more time and search more, focus is on giving user what they want and respecting user behavior.

Q: Naved Han with B Reilly Securities asked about percentage of users engaging with AI chat feature and Google renewal.

A: Song Lin said it's hard to define exact percentage as AI is in many touch points, and Google renewal is going well with good dialogue.

Q: Ron Josie with Citi asked about search evolution and advertising environment.

A: Frodo Jacobson said search revenue growth is strong and broadening, and advertising has opportunities.

Q: Jim Callahan with Piper Sandler asked about travel product rollout and query vs advertising growth.

A: Song Lin said travel is an opportunity to scale using e-commerce lessons.

Q: Jacob Steffen with Lake Street Capital Markets asked about MCP cannibalizing Opera Neo subscriptions.

A: Song Lin said Browser Connector is complementary and makes sense to be widely available.

Q: Jonathan Navarette with TD Cowan asked about buybacks and OpenAI's impact.

A: Frida Jacobson said buybacks are going well and Opera is distinguished from other AI companies by its business model.