Opera (OPRA) Moved Its Earnings Forward. Can AI Browser Growth Produce Another Guidance Increase?

Opera Limited (OPRA) has pushed its second-quarter earnings release forward to August 19, sparking speculation about whether AI-driven growth can generate another guidance increase. In Q1, revenue climbed 23% to $175.8 million, while adjusted EBITDA surged 30% to $42.0 million, surpassing the company's guidance. This financial momentum has been driven by increased usage of Opera's Android and iOS browsers, with a 66% year-over-year rise in combined MAUs in the U.K. and a 40% increase in the U.S. The company's built-in AI allows for search, question answering, and content generation directly within the browser.

However, investors are questioning whether Opera has created a sustainable AI-browser franchise or merely optimized ad and search monetization. The company has seen operating leverage improve during Q2, with MAUs reaching 288 million and adjusted EBITDA growing faster than revenue. Despite these positive signs, Opera's dependence on advertising and search partner economics remains a concern.

The company raised its full-year outlook to revenue of $727 million to $740 million and adjusted EBITDA of $170 million to $174 million. If AI adoption can deliver lasting engagement and stronger per-user economics without increasing reliance on distribution and search partners, another guidance increase could bolster the growth narrative.

However, given the concentration of Opera's revenue model, the upcoming quarter will be crucial in determining whether its AI-led engagement is genuinely contributing to long-term progress.