Opera (OPRA) Q3 2025: Query Revenue Jumps 17% as AI Browsing Drives Platform Differentiation

2025-10-29 | By EarningsIQ Research

Opera’s AI-centric browser strategy is translating into sustained revenue acceleration and margin expansion, as premium offerings like Neon and agentic commerce gain early traction. Query-based monetization and e-commerce partnerships are scaling rapidly, while cost discipline underpins robust cash flow and capital return. The company’s agnostic AI approach and architectural advantages position it for continued outperformance into a seasonally strong Q4 and beyond.

Summary

• AI-Driven Product Differentiation: Opera’s multi-browser portfolio and agnostic AI integration are capturing advanced user segments and powering new monetization pathways.
• Query Revenue Expansion: Broadening from classic search, Opera is scaling intent-based monetization across paid recommendations and agentic browsing.
• Strategic Cost Focus: Operating leverage and disciplined marketing spend support margin gains and cash conversion in a volatile digital ad environment.

Performance Analysis

Opera posted another record quarter, with revenue topping $151.9 million and adjusted EBITDA reaching $36.3 million, both exceeding the high end of guidance. Year-over-year revenue growth accelerated to 23%, outpacing expectations and reflecting broad-based strength across both query-based and advertising revenue streams.

Query revenue, which now aggregates classic search and new forms of user intent monetization, rose 17% year-over-year to $55.6 million, with classic search contributing $52.4 million and other query monetization tripling from a year ago. Advertising revenue, net of query monetization, grew 27% to $95.9 million, powered by e-commerce partnerships that now represent about half of ad revenue. Cost of revenue held steady at 34.6% of revenue, and disciplined operating expense management enabled continued margin expansion and strong free cash flow conversion.

• Query Monetization Broadens: New revenue streams from AI-driven user prompts and recommendations are scaling, supplementing traditional search.
• E-Commerce Advertising Momentum: E-commerce ad revenue continues to double year-over-year, offsetting broader digital ad volatility.
• Operating Cash Flow Strength: Operating cash flow reached $28 million, or 78% of adjusted EBITDA, highlighting underlying business health.

Opera’s ability to balance aggressive product innovation with cost discipline is translating into sustained profitability, even as it invests in AI and user acquisition. Annualized ARPU (average revenue per user) crossed $2 for the first time, rising 28% year-over-year and reinforcing the platform’s monetization potential.

Executive Commentary

Strategic Positioning

1. AI-Native Browsing Platform

Opera’s core differentiation lies in its AI-first, multi-browser portfolio, with flagship products like Opera One, Opera GX, and the new premium Neon browser. The company’s LLM-agnostic (large language model-neutral) approach enables integration of best-in-class AI agents from across the ecosystem, positioning Opera as a horizontal platform rather than a vertically integrated AI silo. Neon, launched as a premium, invitation-based browser, showcases native agentic functionality—AI agents that operate locally within authenticated browser sessions, enabling deep research, automated form-filling, and advanced privacy controls. This architecture avoids cloud dependency, enhances efficiency, and positions Opera ahead in agentic commerce and productivity use cases.

2. Intent-Based Monetization and E-Commerce Scale

Opera is rapidly expanding beyond classic search monetization, leveraging AI-driven user prompts, paid recommendations, and performance-based e-commerce partnerships. Query revenue now includes not just search, but also monetization of user interactions with AI assistants and curated partner listings. E-commerce advertising, which has doubled year-over-year, is underpenetrated relative to the broader ad market and offers continued runway as Opera deepens relationships with leading e-commerce players across regions. The company is also investing in agentic commerce—AI agents that can execute transactions on behalf of users—unlocking new monetization models as checkout mechanisms evolve.

3. Operating Leverage and Capital Allocation Discipline

Cost management remains a strategic focus, with cost of revenue stable and operating expenses growing slower than revenue. Marketing investments are tightly targeted at high-ARPU user segments, while compensation cost increases are tied to performance and FX headwinds. Opera’s asset-light model and recurring dividend program ensure that robust cash flow conversion translates into capital returns, even as the company invests in AI product development and user acquisition.

4. Ecosystem Expansion: MiniPay and Strategic Partnerships

MiniPay, Opera’s non-custodial wallet, has scaled to over 10.5 million wallets and 310 million transactions, supporting stablecoin-based remittances, cross-border payments, and freelancer payouts. While revenue from MiniPay is currently reinvested to drive adoption, the platform is already generating income through partnerships and is positioned for broader integration with Opera’s browser ecosystem and agentic commerce initiatives. Strategic partnerships—especially with leading e-commerce and fintech players—are deepening Opera’s network effects and reinforcing its ecosystem moat.

Key Considerations

Opera’s Q3 performance underscores the company’s ability to execute on a differentiated AI browser strategy while maintaining financial rigor. The following considerations are central to its evolving investment case:

Key Considerations:

• Premium AI Product Traction: Neon’s invitation-only launch has generated strong early engagement and media buzz, validating Opera’s agentic browser vision and providing a pipeline for broader rollout.
• Underpenetrated E-Commerce Ad Opportunity: E-commerce advertising remains a high-growth, high-margin driver, with Opera still under-indexed relative to the broader digital ad market—a dynamic expected to persist into 2026.
• Query Monetization Diversification: The shift from classic search to broader query-based monetization increases Opera’s resilience to changes in search market share and unlocks new revenue streams tied to AI-driven intent.
• Cash Conversion and Dividend Stability: Continued strong free cash flow and a debt-free balance sheet underpin recurring dividends and provide flexibility for further AI investment.

Risks

Opera faces competitive pressure as new AI-native browsers and agentic platforms enter the market, with well-capitalized players investing aggressively in user acquisition and integration. Macro volatility in digital advertising and FX fluctuations (notably a weaker USD) pose ongoing margin risks. The pace of user adoption for premium products like Neon and agentic commerce remains unproven at scale, and the company must balance innovation with privacy and regulatory considerations as AI-driven browsing evolves.

Forward Outlook

For Q4 2025, Opera guided to:

• Revenue of $162 to $165 million, representing 11-13% year-over-year growth
• Adjusted EBITDA of $37.5 to $40.5 million, with a 24% margin at the midpoint

For full-year 2025, management raised guidance:

• Revenue of $600 to $603 million, marking 25% annual growth
• Adjusted EBITDA of $138 to $141 million, or a 23% margin at midpoint

Management emphasized:

• Continued stabilization of cost of revenue and OPEX as a percentage of revenue
• Marketing and compensation growth rates below top-line expansion, supporting margin improvement

Takeaways

Opera’s strategic focus on AI-native browsing and intent-based monetization is translating into both top-line acceleration and margin expansion. The company’s agnostic approach to AI, strong e-commerce partnerships, and disciplined cost management underpin its ability to outperform in a dynamic digital landscape.

• AI Platform Differentiation: Opera’s architecture and LLM-neutral strategy give it a unique position as the browser becomes the focal point for AI-driven user interaction and commerce.
• Resilient Revenue Mix: Growth in query and e-commerce advertising revenue is offsetting macro ad volatility and de-risking the business model.
• Watch for Neon and Agentic Commerce: Broader rollout and adoption of premium AI browser features and agentic commerce will be critical for sustaining above-market growth into 2026.

Conclusion

Opera’s Q3 results highlight a business executing on both innovation and financial discipline, with AI-driven product differentiation and intent-based monetization powering new growth vectors. The company’s guidance lift and strong cash generation reinforce its positioning as a leading independent browser platform as the AI era unfolds.

Industry Read-Through

Opera’s results signal a broader shift in the browser and digital advertising landscape, as AI-native features and agentic commerce become central to user engagement and monetization. The move toward LLM-agnostic platforms and local AI agent execution is likely to pressure vertically integrated or single-model browser strategies. E-commerce and performance-based advertising are emerging as key growth drivers across the sector, with browsers increasingly capturing upstream value. Competitors and digital platforms should monitor Opera’s success in premium AI product adoption and intent-driven monetization as leading indicators for the next phase of browser and ad market evolution.

OPRA Technology Internet Artificial Intelligence Digital Advertising Browser E-commerce Query Monetization