Opera Limited (NASDAQ: OPRA) closed out 2025 with a strong fourth quarter, capping a year that blended ad-driven revenue growth, expanding AI integration, and a sizable capital return plan.

For the full year ended December 31, 2025, Opera reported revenue of $614.8 million, up 28% year over year. Fourth-quarter revenue reached $177.2 million, a 22% increase compared to Q4 2024, exceeding the company’s own guidance.

The headline numbers are solid. But what’s more interesting is how Opera is positioning itself: not just as a browser company, but as an AI orchestration layer—and a fintech player in emerging markets.

Advertising and Query Revenue Drive Growth

Opera’s monetization engine remains firmly rooted in advertising and search partnerships.

• Advertising revenue climbed 25% year over year in Q4 to $114.4 million, representing 65% of total revenue.

• Query revenue rose 16% to $62.3 million, accounting for the remaining 35%.

• Non-search query revenue grew more than 200%, signaling diversification beyond traditional search deals.

E-commerce partnerships were the fastest-growing vertical, reflecting a broader trend: browsers are becoming commerce gateways, not just navigation tools. With intent-rich user data and integrated shopping experiences, Opera is clearly leaning into performance marketing economics rather than pure traffic arbitrage.

Opera’s annualized ARPU reached $2.49 in Q4, up 26% year over year, supported by 284 million average monthly active users (MAUs). Western markets added 2 million MAUs during the quarter, bringing that segment to 60 million users.

For context, while Opera remains smaller than dominant players like Google and Microsoft in the browser market, its strategy isn’t about share dominance. It’s about monetizing high-intent, niche audiences—especially gamers, crypto users, and power users seeking AI features.

Profitability Improves—Despite Higher Share-Based Compensation

Opera paired top-line growth with improved profitability:

• Net income nearly doubled in Q4 to $55.7 million, up 94% year over year.

• Full-year net income rose 34% to $108.3 million.

• Adjusted EBITDA for 2025 reached $142.5 million, up 24% year over year, with a 23% margin.

Diluted EPS for Q4 came in at $0.61, compared to $0.32 a year ago.

One notable swing factor: share-based compensation jumped sharply in 2025 following the granting of approximately 1.9 million RSUs earlier in the year, with front-loaded expense recognition driving a 603% year-over-year increase in Q4 share-based costs. Even so, operating profit remained stable at a 16% margin in the quarter.

Cash generation was strong. Q4 operating cash flow totaled $40.2 million—96% of adjusted EBITDA—while full-year free cash flow from operations reached $97.7 million.

Opera ended the year with $155.5 million in cash and cash equivalents.

$300 Million Share Buyback Signals Confidence

Perhaps the most market-moving announcement: Opera’s board authorized a $300 million share repurchase program over two years.

The size of the buyback exceeds all previous repurchases combined. It complements Opera’s semi-annual dividend program, including a recently paid $0.40 per share dividend.

Importantly, the buyback includes both open-market ADS repurchases and proportional purchases from Opera’s majority shareholder, maintaining the same public free float percentage.

In a market where many mid-cap tech firms are conserving cash amid AI infrastructure spending, Opera is signaling confidence in its operating model and balance sheet strength.

AI as the “Orchestration Layer”

Opera’s broader ambition is becoming clearer: position the browser as an AI command center.

In 2025, the company launched two new browsers—Opera Air and Opera Neon—expanding beyond its flagship Opera One and gaming-focused Opera GX. Each targets distinct user segments, a segmentation strategy reminiscent of how device makers differentiate product lines rather than pursuing a one-size-fits-all approach.

Opera integrated AI features powered by Google’s latest Gemini models across Opera One, Opera GX, and Opera Neon, bringing enhanced capabilities to more than 80 million PC users.

CEO Lin Song described the company’s vision as building the “best orchestration layer” for navigating AI platforms and services. Rather than building foundational models, Opera leverages third-party LLMs and layers its own agentic engine on top, aiming for contextual, privacy-aware AI experiences embedded directly in the browser.

This mirrors a growing industry shift: browsers are evolving into AI-native environments, not just rendering engines. Microsoft has Copilot embedded in Edge; Google is integrating Gemini across Chrome and Workspace. Opera’s differentiation lies in speed of iteration and targeting demanding user cohorts.

MiniPay and Stablecoin Expansion in Emerging Markets

Beyond browsing, Opera is pushing deeper into fintech via its MiniPay wallet.

MiniPay reached 13 million activated wallets and processed 360 million peer-to-peer transactions. During the quarter, Opera expanded USDT and Tether Gold support through its partnership with Tether.

The rollout of “Pay like a local” in Latin America enables real-time payments from stablecoin balances to platforms like Mercado Pago and Brazil’s PIX system, bridging digital assets and everyday commerce.

In emerging markets where currency volatility and limited banking access remain structural challenges, stablecoin-backed wallets offer practical utility—not just speculative use. Opera appears to be leveraging its browser distribution footprint to seed fintech adoption.

2026 Outlook: Slower Growth, Higher Absolute Dollars

For Q1 2026, Opera expects revenue between $169 million and $172 million, representing 18%–21% year-over-year growth. Full-year 2026 guidance calls for revenue between $720 million and $735 million, or 17%–20% growth.

Adjusted EBITDA for 2026 is projected at $167 million to $172 million, maintaining a 23% margin.

While that implies some deceleration from 2025’s 28% growth, it still represents strong double-digit expansion at scale—particularly for a company balancing dividends, buybacks, and AI investments.

The Bigger Picture

Opera’s 2025 results show a company successfully straddling three domains:

1. Performance-driven digital advertising

2. AI-enhanced browsing experiences

3. Stablecoin-enabled fintech in emerging markets

That combination is unusual—and potentially resilient. Advertising remains cyclical, but fintech and AI-driven engagement offer alternative growth levers.

For martech and adtech watchers, Opera’s results reinforce a key insight: distribution is power. A browser with nearly 300 million users is more than a utility—it’s a monetization platform, a commerce gateway, and increasingly, an AI interface.

With strong cash flow and a $300 million buyback underway, Opera is betting that its hybrid browser-AI-fintech model can keep delivering.

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