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... Wait they said "The five subheadings — Title, Abstract, Market Forecast, Last Quarter Review, Current Quarter Outlook, Analyst Opinions — must each be on a separate line and bolded using H2 styling." But "Title" is also the overall title? They want article title separately; They also provide "Output Format" withTitle
Earning Preview: Opera’s revenue is expected to increase by 19.69%, and institutional views are bullishAbstract
Opera will release its quarterly results on February 26, 2026, Pre-Market; investors are watching revenue growth, margins, and EPS momentum as the company navigates ad demand, user engagement, and cost discipline ahead of its update.Market Forecast
The market expects Opera to deliver revenue of $165.00 million this quarter, representing 19.69% year-over-year growth, with estimated EPS of $0.38, up 33.80% year-over-year, and estimated EBIT of $28.13 million, up 16.31% year-over-year. Forecasts for gross profit margin and net profit margin are not explicitly available, but the company’s prior-quarter margin profile offers a constructive baseline for comparison. Opera’s main business is concentrated in advertising and search distribution, and guidance implies resilient demand and stable monetization across its flagship browser ecosystem. Advertising remains the most promising segment by scale, supported by user engagement and ad yield optimization; last quarter advertising generated $95.87 million, while search contributed $55.63 million, indicating a balanced revenue mix even as overall company revenue expanded 23.32% year-over-year.Last Quarter Review
Opera’s previous quarter delivered revenue of $151.94 million, a gross profit margin of 51.62%, GAAP net profit attributable to the parent company of $18.62 million, a net profit margin of 12.25%, and adjusted EPS of $0.30; revenue rose 23.32% year-over-year and adjusted EPS rose 15.38% year-over-year, while EBIT declined 3.49% year-over-year. A notable highlight was profitability resilience amid mixed operating leverage, with net profit up sequentially by 18.77%, signaling improved cost control and monetization into year-end. In the main business areas, advertising accounted for $95.87 million (approximately 63.10% of revenue) and search generated $55.63 million (about 36.62% of revenue); segment-level year-over-year growth was not disclosed in detail.Current Quarter Outlook
Advertising Revenue and Monetization Dynamics
Advertising is the core revenue engine and the largest contributor to Opera’s top line, with $95.87 million last quarter and a revenue share of roughly 63.10%. This quarter, revenue is projected to grow to $165.00 million at the company level, with advertising expected to track the broader uplift, supported by steady ad fill rates and pricing across premium placements in Opera’s native surfaces. User engagement within the browser environment is a key driver for ad impressions and click-through rates, and management’s recent trajectory suggests stable audience metrics that underpin revenue quality. Given that the prior quarter’s net margin was 12.25% and EPS rose 15.38% year-over-year, incremental revenue at solid gross margins can translate into EPS leverage if operating costs remain contained.Advertiser demand seasonality typically moderates after peak holiday periods, but rising digital budgets and targeted campaigns can offset typical first-quarter normalization. Opera’s in-product ad formats, including performance placements and sponsored content modules, may benefit from better relevance and conversion, helping defend pricing. On the cost side, any optimization of traffic acquisition and distribution expenses would help sustain margin carryover from last quarter’s 51.62% gross margin baseline.
Several variables bear monitoring for advertising this quarter. Changes in regional mix may influence effective CPMs and ad yields, as higher-yield geographies can lift blended pricing. Brand safety, viewability, and inventory quality remain important for campaign performance consistency. Finally, volatility in macro advertising budgets could affect volumes, but the current revenue forecast implies confidence in continued demand stabilization.
Search Distribution and Query-Based Revenue
Search revenue was $55.63 million last quarter, representing roughly 36.62% of Opera’s total revenue, and it remains the second largest component of the business. The current quarter’s revenue forecast points to a 19.69% year-over-year increase at the company level, and search is likely to contribute meaningfully if query volume and user retention trends are steady. Typically, search monetization follows query counts, default search positioning, and revenue share terms; sustained engagement in Opera’s browser products supports query execution and monetizable events.With adjusted EPS estimated to rise 33.80% year-over-year to $0.38 and EBIT expected to grow 16.31% year-over-year to $28.13 million, the operational implication is that search monetization is contributing positively alongside advertising. Distribution costs tied to search partnerships tend to be predictable quarter-to-quarter, so the margin outcome will hinge on the relationship between query growth and the mix of monetized searches. If higher-value queries or regions expand faster, the effective search yield could improve, bolstering overall margin.
Risks to search revenue this quarter include potential shifts in default search agreements, algorithmic changes influencing click-through rates, and currency impacts on revenue-share settlements. None of these are signaled explicitly in the current data, yet they represent typical moving parts in search-linked models. The company’s prior-quarter margin profile offers a useful benchmark for reading through this quarter’s results: if gross margin is stable against rising revenue, search monetization is likely tracking as expected.
Stock Price Drivers: Margins, EPS Trajectory, and Revenue Mix
This quarter’s stock reaction is likely to be driven by the interplay between revenue growth, margin trajectory, and EPS delivery relative to expectations. The top-line estimate of $165.00 million (+19.69% year-over-year) and EPS of $0.38 (+33.80% year-over-year) frame a setup in which investors will focus on evidence of operating leverage. After a prior-quarter EBIT decline of 3.49% year-over-year, the forecasted EBIT increase of 16.31% year-over-year is a key inflection investors will scrutinize; confirmation of this improvement would be supportive of the earnings path.Gross margin and net margin will be central to the narrative. Last quarter’s 51.62% gross margin and 12.25% net margin provide a reference point; if advertising and search monetize efficiently and operating costs remain measured, investors may view the margin profile as durable. An EPS delivery that tracks or exceeds $0.38 would reinforce the idea that revenue growth is translating into shareholder value, especially given the prior-quarter sequential net profit lift of 18.77%.
Revenue mix is another determinant of share reaction. If the proportion of higher-yield advertising sustains or expands from the last quarter’s 63.10% share, blended monetization could support margins; conversely, if mix shifts toward lower-yield components, margin carry-through may be tempered. Investors will also assess any commentary on user trends and engagement, since these drive both ad opportunities and search queries. Clear color on these dynamics in the report and call would influence post-release sentiment.
Analyst Opinions
Among the collected views within the specified period, the prevailing stance is bullish, reflecting confidence in Opera’s projected year-over-year revenue growth of 19.69% and EPS acceleration to $0.38. The bullish commentary emphasizes the combination of a strong last-quarter margin baseline (51.62% gross margin and 12.25% net margin) and the sequential net profit improvement of 18.77% as supportive factors for the quarter’s setup. Observers point to the consistency of monetization across advertising and search as the backbone of consensus expectations, and highlight the estimated EBIT growth of 16.31% year-over-year as an important indicator of improved operating leverage.In their analysis, supportive voices focus on the quality of revenue and the likelihood that management’s discipline on costs will allow incremental margin capture as volume grows. Upside scenarios center on ad yield stability and steady query volume, reinforcing the top-line trajectory. The bullish framing also underscores that the previous quarter’s revenue surprise against estimates and the positive EPS trend suggest Opera has room to meet or exceed current forecasts if core engagement metrics remain favorable.
From an investment narrative standpoint, the bullish majority views the quarter’s risk-reward as balanced-to-positive, conditioned on Opera maintaining a strong revenue mix skewed to high-yield advertising while sustaining search monetization. Margin commentary is constructive, with attention on whether gross margin can remain near last quarter’s level and whether net margin can benefit from scale and controlled distribution costs. This majority perspective assesses the guidance-implied revenue and EPS growth rates as reasonable and achievable, and anticipates that clarity on cost cadence and monetization efficiency will be the key validation points on February 26, 2026, Pre-Market.