Opera Limited

Please stand by. We're about to begin. Good day, everyone, and welcome to the Opera Limited Third Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this period, you will need to press star 1 on your telephone keypad. If you want to remove yourself from the queue, please press star 2. Please be advised that today's call is being recorded. Lastly, if you should need operator assistance, please press star zero. I would now like to turn the call over to your speaker today, Matt Wolfson, Head of Investor Relations. You may begin.

Thank you for joining us. This morning, I am joined by our CEO, Song Lin, and our CFO, Frodo Jacobson. 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. Please refer to the Safe Harbor Statement in our earnings press release as well as our annual report, Form 20F, including the risk factors. We undertake no obligation to update any forward-looking statement. During this call, we will present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is included in today's earnings press release, which is distributed and available to the public through our investor relations website located at investor.opera.com. Our comments will be on a year-over-year comparison unless otherwise stated. With that, let me turn the call over to our CEO, Song Lin, who will cover our third quarter operational highlights and strategy, and then Frodo Jacobson, who will discuss our financials and expectations for the remainder of the year. Song?

Sure. Thank you, Matt, and everyone else for joining us today. These are certainly exciting times for Opera and for our industry. And while it's only been two months since our last release, it already feels like ages ago. The product opportunities around AI that we have been advocating and preparing for over the past years are coming to fruition, and I could not be more pleased about our strategic position in this rapidly evolving landscape. And while this is playing out, we combine our strategic positioning for the future with a healthy business that continues to scale faster than we have expected. I will start with some of the big industry things that have happened since we last spoke. First, the remedy case between the U.S. DOJ and Google came to a conclusion in which it became clear that Google can continue to compete for U.S. traffic in the same way as other players in the broader and rapidly evolving content discovery landscape. While anything else would have been quite surprising, it was good to get clarity on that. Second, the broader recognition of the web browser's strategic importance continues to increase, even if the opportunities for Opera might not be fully appreciated yet. Household AI names are investing heavily to expand their reach and knowledge about the fuller context of end users with the browser being the focal point of attention. Opera's advantage in this situation is our agnostic approach to the underlying large language models that powers our browsers. We believe in an increasingly broad landscape of AI services that assist users across a multitude of areas from information gathering to making purchasing decisions to producing content and performing tasks. We believe that these services all come together in the browsing experience. In particular, on computers where most of us are spending an increasing amount of time as more products and tools are becoming web-based. And crucially, we don't believe people will install one browser for each use case or each AI services. The browser needs to work across all platforms and its approach to assist the user has to be powered by the right tool for each job. That is where Opera Neon comes in as an early stage window into how we see the future of browsers. Opera's browsers are not AI professional windows nor are they tools to lock users into a specific large language model. Rather, we offer the most sophisticated alternatives targeted to a growing segment of users that care about the functionality of their browser. This includes hardware integrated services, managed tabs and workspaces, optimized memory and battery utilization, not to mention the design and visual customizations. We differ from others in that our specialization is the browser itself. and we use that skill set to create the best possible AI experiences. We know that people are different, and the one-size-fits-all system does not work for everyone. Our flagship browser, Opera One, is carefully tailored for people who want to have the richest possible browsing experience, while Opera GX and Opera Air both rethink what browsers should be for their core audiences. All the Opera browsers ship with a free and advanced LLM-agnostic AI solution. Opera One was the first of our three browsers to receive the new chat functionality. Opera Neon complements this with being tailored for the most advanced and demanding users out there. Those who want to participate in shaping the future of web browsing and believe AI agents will be a core part of their experience when doing so. Those of you who have experienced the early release of the Opera Neon browser have seen how we believe AI can integrate into the existing workflow in a way that people are already used to working, as opposed to existing within a terminal-like process remotely operated in a server farm. As we evaluate our strategic position, we take pride in the exceptional quality of our products and the rapid expansion of partnership opportunities. Such partnerships, along with the efforts of multiple niche players in terms of promoting browser choice, significantly increase public awareness that alternatives exist. In an environment where more users are actively considering switching browsers, we are well positioned and eager to compete for the most discerning and demanding users, offering them innovation, reliability, and a truly differentiated browsing experience. And while running at full speed to seize these opportunities, we are proud to have an already healthy financial profile of growth, profitability, and ability to turn capital to our shareholders. The third quarter experienced year-over-year revenue growth of 23%, as always, all organic, and compared to guidance of 18% to 21% growth. Our 152 million of revenue in the short haul was a new record, and for the first time, our annualized APU crossed $2 per user, growing 28% year-over-year to an annualized level of $2.13. Our revenue outperformance lead to adjusted EBITDA of $36.3 million, also above the high end of our previously issued guidance, and also setting a new quarterly record. This translates to an adjusted EBITDA margin of 24%, expanding, reaches the first half of the year as expected, and marking our 18th straight quarter as the rule of Foley Company. As for the well-detailed shortly, the Q3 results and trajectory with which we enter Q4 allow us to raise our revenue guidance well beyond the Q3 overperformance. Our updated midpoint estimate now exceeds $600 million and represents 25% growth for the year as a whole. Taking a step back, our 2025 guidance has reached nearly four times the revenue we had in 2018, the year we went public, and our CAGR over these seven years is 21%, another feat to be proud of. Our company was recognized by Fortune magazine this month, which named Opera in its 2025 list of the 100 fastest growing companies based on growth in revenue, profits, and stock returns. I wanted to spend the next few minutes on the launch of Opera Neo and what it tells you about how we see the future of AI-powered browsing. Currently, Neon is a premium subscription-based browser that showcases our ambition to transform web browsing. Opera Neon implements native AI assistant functionality that can step in at any point in time as you browse. As you are logged in to your services in the browser, Neon acts locally on your behalf and supports you with everything from deep research to new done tasks such as filling out forms, comparing products across sites, and acting as your personal assistant with that efficiency befitting a browser veteran. The key innovation is architectural. Instead of adding chatbots to existing browsers like some of our competitors, Opera built a task-based system where AI agents operate directly in your authenticated browser session. This overcomes the limitation of cloud-based AI tools and the standalone apps. They cannot access your logged in accounts or interact with real websites. Neon can because it runs locally in your browser where you have already been authenticated. Benefiting from our task architecture, Neon is also able to define the right context for a given task without the need to access or upload the entire set of open tabs or your browsing history to a platform in the cloud. This is putting privacy first and represents another competitive benefit of Opera's architecture. We are also tackling the complexity that hinders broader AI adoption With so many AI services and models, users struggle to choose the right tools. As an independent player, we are introducing a new interface where Opera Near guides users to the right group of agents for any task. And while we are on the topic of agents, one of our own agents, Opera Deep Research, is already scoring better than the deep research capabilities of those AI-focused platforms as we showed in a press release last week. It shows the benefit of combining the strengths of different large language models as we do not invest in the already crowded LLM landscape. UltraNEO is a product tailored for the most advanced and AI-forward users, but our mission is to expand these innovations in our mainstream products, such as Opera One and Opera GX. As we evolve our monetization of AI opportunities and our industrial partnerships, we will be able to facilitate an increasingly advanced experience for our total user base. That's a future that we are really excited about, and you'll see us acting rapidly on those fronts as well. While I wanted to mostly focus today on how we see the AI opportunity, there are also other highlights worth mentioning. Last time we updated you on how far along we've come with MiniPay. Since we last spoke two months ago, MiniPay has grown the number of non-custodial wallets to over 10.5 million, up from 9 million during our last report. while the number of transactions has increased to almost 310 million from 250 million as of this morning. We are building Minipay with multiple use cases in mind. Building upon the power of stablecoins, it can allow immigrants walking abroad to quickly and cheaply send money home. It allows the traveler who does not have access to local payment rails pay like local, and can even facilitate payments to global freelancers in USD. We are a deep believer in how new technology can be used to facilitate transformation and have an exciting pipeline of partnerships and product features that we plan to launch in this space. Finally, I'm going to briefly touch on Opera GX, the browser for gamers. We ended the quarter with 33 million users up 3% year over year and with a new up record of $3.69 on an annualized basis. Opera GX has recently expanded its offering with exclusive in-browser gaming deals and introduced advanced features like smart home integration designed for tech enthusiasts seeking seamlessly device control. The browser also continues to enhance its AI capabilities by deploying faster, more powerful models, further improving performance and user experience for the gaming community. Lastly, GX modes allow users to personalize their browser even further, including animated cursors for highly customized and immersive experience. We are also excited about our continued sponsorship of the League of Legends World Championships currently underway. To conclude, I am incredibly excited about our ability to innovate and take our browser offering to the next level. And at the same time, while it always feels like the future can't come fast enough, we also take pride in running a healthy business with solid revenue growth and profitability that directly benefits our shareholders through our recurring dividend program. Ultra shows that it's possible to combine growth and strategic potential with healthy financials and meaningful return of capital to shareholders along the way. With that, I will now turn the call over to Frida to go into the financials in more detail.