Opera Limited (NASDAQ:OPRA) shares fell 5.48% in pre-market trading after the browser and AI agent company reported second-quarter earnings slightly below Wall Street expectations, despite beating revenue forecasts and delivering strong adjusted EBITDA growth.
Adjusted earnings per share came in at $0.26, narrowly missing the analyst consensus of $0.27. Revenue, however, reached $178.1 million, slightly ahead of expectations of $177.25 million and up 25% year-on-year from $143.0 million.
Adjusted EBITDA Rises 32% as Margins Remain Strong
Opera generated adjusted EBITDA of $42.4 million during the quarter, representing growth of 32% from the previous year and exceeding the upper end of management’s guidance.
The adjusted EBITDA margin stood at 24%, highlighting continued profitability alongside the company’s accelerating top-line growth.
“Second quarter revenue and Adjusted EBITDA both came in above the top end of our guidance, with revenue growth accelerating to 25% year-over-year,” said Lin Song, CEO. “Notably, with healthy growth across both advertising and query revenue streams, our business continues to compound organically and capital-efficiently.”
Advertising and Search Revenue Deliver Double-Digit Growth
Advertising remained Opera’s largest source of revenue, increasing 27% year-on-year to $115.4 million and accounting for approximately 65% of total quarterly sales.
Query revenue also performed strongly, rising 21% from the previous year to $62.1 million.
Opera reported an average of 288 million monthly active users, while annualised average revenue per user increased 25% year-on-year to $2.46, indicating stronger monetisation of its existing audience.
Third-Quarter Revenue Forecast Beats Consensus
For the third quarter of 2026, Opera expects revenue of between $181 million and $183 million. The midpoint of $182 million is above the current analyst consensus of $180.1 million.
Adjusted EBITDA is forecast at between $41 million and $43 million, with the midpoint representing a margin of approximately 23%.
The guidance suggests Opera expects double-digit growth to continue as it expands its browser products and develops its position in AI-powered online services.
Opera Raises Full-Year 2026 Guidance
Management also upgraded its outlook for the full year, forecasting 2026 revenue of between $734 million and $742 million.
At the midpoint, the revised guidance represents revenue growth of approximately 20%. Adjusted EBITDA is now expected to reach between $172 million and $175 million, corresponding to a margin of around 24% at the midpoint.
Despite the stronger revenue performance, EBITDA growth and upgraded outlook, investors focused on the modest earnings miss following the results, sending Opera shares lower ahead of the opening bell.