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Overall the call was positive: the company reported strong top-line outperformance (Q1 revenue +23% to $176M), healthy adjusted EBITDA and cash conversion, raised full-year revenue guidance, and highlighted meaningful product and AI-driven engagement gains (ARPU +25%, Browser Connector launch, MiniPay scale). Offsetting items include rising hosting and other OpEx due to AI usage, a mix-driven cost-of-revenue profile for Opera Ads, and remaining uncertainty around how early-stage initiatives (e.g., MiniPay) scale. On balance, the positive operational momentum and capital returns outweigh the manageable cost pressures.
Management raised full‑year revenue guidance to $727–$740 million (18%–20% growth, up $7M/$5M on the low/high ends versus prior range) and lifted adjusted EBITDA guidance to $170–$174 million (≈23.4% margin at the midpoint), noting they let just over 40% of incremental revenue flow to EBITDA; Q2 guidance is $176–$178 million revenue (23%–25% YoY) and $40–$42 million adjusted EBITDA (23.2% margin; ~28% adj. EBITDA growth at the midpoint). They expect full‑year OpEx (pre‑adj. EBITDA) of about $562 million at the midpoint (Q2 = $136M), cost of revenue around 38% of revenue for the year, cash‑based compensation to grow just above 10%, marketing to grow ~10% (Q2 similar to Q1’s $38.5M), other OpEx (pre‑adj. EBITDA) to rise just over 20% YoY, and a modest uplift to adjusted EBITDA margin (~+15 bps at the midpoint versus prior guidance) while reiterating 2025‑like EBITDA‑to‑cash conversion as a reasonable expectation.
Q1 revenue of $176 million, up 23% year-over-year, exceeded the high end of guidance by $4 million; full-year revenue guidance raised to $727 million–$740 million (18%–20% growth), with the low end up $7M and high end up $5M versus prior guidance.
Adjusted EBITDA of $42 million (24% margin) for the quarter; operating cash flow also $42 million (100% conversion of adjusted EBITDA) and free cash flow from operations $35.5 million (85% of adjusted EBITDA).
Advertising revenue reached $117 million (67% of total), up 24% year-over-year and noted as an all-time high; query revenue $58 million (33% of total), up 23% year-over-year with pure search revenue growth of 14%.
Average monthly users (MAU) at 288 million after adding 4 million users in the referenced quarter; added 400,000 Western users and ~1 million new Opera GX users globally. Annualized ARPU was $2.43, up 25% year-over-year.
Launched Browser Connector (MCP protocol) enabling 'bring your own AI' integrations across Opera One, GX and Opera Neon; AI-engaged users in Western markets spend ~1 additional hour per day in-browser and perform ~50% more traditional searches, supporting ARPU growth and new monetization paths.
MiniPay activated over 15 million wallets and processed over 430 million transactions; MiniPay and related ecosystem generate roughly $20 million of revenue today and MiniPay developer incentives announced (USD 1M) to spur mini app growth.
Recurring dividend program ($0.80/year) with $0.40 ($36M) paid in January; launched $300 million buyback program and repurchased 1.14 million shares in March for $17 million at $14.88 per share, reducing shares outstanding to 89.55 million.
20th consecutive quarter as a 'Rule of 40' company; 10-year CAGR of revenue at 21% — signaling consistent long-term growth and profitability.
Welcome to the Opera Limited First Quarter 2026 Earnings Call. [Operator Instructions] Please be advised that today's call is being recorded. [Operator Instructions] I would now like to turn the call over to your speaker today, Matt Wolfson, Head of Investor Relations. Please begin.
Thank you for joining us. This morning, I am joined by our CEO, Song Lin; and our CFO, Frode Jacobsen. Before I hand over the call to Song Lin, I would like to remind you that some of the statements that we make today regarding our business, operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially as a result of various factors, including those set forth in today's earnings press release and in our most recent annual report on Form 20-F filed with the SEC. We undertake no obligations to update any forward-looking statement. During this call, we will present both IFRS and non-IFRS financial measures. A reconciliation of IFRS to non-IFRS measures is included in today's earnings press release.
The earnings press release and an accompanying investor presentation are available on our Investor Relations website at investor.opera.com. Our comments will be on a year-over-year comparison unless we state otherwise. With that, let me turn the call over to our CEO, Song Lin, who will cover our first quarter operational highlights and strategy, and then Frode Jacobsen, who will discuss the details of our financials and expectations fo...