Opera delivered strong second-quarter growth across revenue, profitability and monetization metrics, while quarterly free cash flow moved sharply in the opposite direction.
Revenue increased 25% year-over-year to $178.1 million, while net income jumped 76% to $27.6 million from $15.7 million.
Operating profit increased 43% to $25.9 million, and operating margin expanded to 15% from 13%. Adjusted EBITDA increased 32% to $42.4 million.
The browser company’s monetization continued to improve: Annualized average revenue per user increased 25% to $2.46, while Opera maintained an average user base of 288 million monthly active users across its products and services. Advertising remained the largest revenue source.
Advertising revenue increased 27% to $115.4 million and represented 65% of total revenue. Opera said e-commerce partners remained its fastest-growing advertising vertical.
Query revenue increased 21% to $62.1 million, accounting for approximately 35% of total revenue.
Opera’s MiniPay cryptocurrency wallet operation also continued expanding rapidly. Cumulative activated wallets reached 18 million as of June, an increase of 121% year-over-year.
Opera GX, its gaming-focused browser, averaged 37 million monthly active users across PC and mobile, up 10% year-over-year and two million sequentially.
Cash generation was the notable weak spot in the quarter.
Operating cash flow declined 33% to $22.2 million from $33.1 million, while free cash flow from operations fell 42% to $16.9 million from $29.1 million.
Free cash flow represented 40% of adjusted EBITDA compared with 91% in the prior-year quarter. On a six-month basis, however, free cash flow increased 28% to $52.4 million.
Opera raised its full-year outlook and now expects revenue of $734 million to $742 million, representing growth of approximately 19% to 21%, with adjusted EBITDA of $172 million to $175 million.
The company is also positioning its browser as an interface for outside AI services, including through its Browser Connector for services such as ChatGPT and Claude.
KEY QUOTE:
“Notably, with healthy growth across both advertising and query revenue streams, our business continues to compound organically and capital-efficiently.”
Lin Song, Chief Executive Officer of Opera
