You should read the following discussion and analysis of our results of operations and financial condition together with our consolidated financial statements and the related notes included elsewhere in this annual report. This discussion includes forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those expressed or implied by these forward-looking statements due to various factors, including those described under “Item 3. Key Information—D. Risk Factors” and elsewhere in this annual report. This section discusses our results of operations and financial condition for the year ended December 31, 2025, compared to the year ended December 31, 2024. For a discussion of the year ended December 31, 2024, compared to the year ended December 31, 2023, see “Item 5. Operating and Financial Review and Prospects” in our annual report on Form 20-F for the year ended December 31, 2024, filed with the SEC on April 10, 2025. Our consolidated financial statements are prepared in accordance with IFRS Accounting Standards. In addition, we present adjusted net income, adjusted EBITDA, adjusted diluted earnings per share and free cash flow from operations, which are non-IFRS financial measures. We believe these measures provide useful supplemental information for evaluating our operating performance and liquidity. Definitions of these measures, the reasons for their use and reconciliations from the most directly comparable IFRS measures are included below under the sections titled “Adjusted Net Income, Adjusted EBITDA and Adjusted Diluted Earnings per Share,” and “Free Cash Flow From Operations.” A.Operating Results Executive Overview Opera is a global web innovator whose core business centers on developing distinctive web browsers and integrated, AI-driven digital products for a global user base. Our portfolio includes our flagship PC and mobile browsers, as well as Opera GX, a specialized browser optimized for gamers, and Opera Neon, a premium subscription-based agentic AI browser designed for power users. We focus on delivering a superior, personalized, and secure online experience to our extensive user base. We monetize this diverse user base and generate revenue through two streams: advertising and queries. Advertising revenue is derived from the delivery of targeted ad units, programmatic advertising, and promotional placements across our proprietary platforms and third-party publisher networks. Query revenue is generated from traffic referral arrangements with search engine providers, e-commerce platforms, AI platforms and other partners, and is earned when users submit qualifying queries or access partner services through our integrated browser features. Our executive chairman, who is our chief operating decision maker, reviews operating results on a consolidated basis. As a result, we operate and report as a single operating segment. For a more detailed description of our business and products, see “Item 4. Information on the Company—B. Business Overview.” 31 Table of Contents The following table presents our financial highlights (in thousands, except for per share amounts and percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Revenue $ 396,827 $ 480,648 $ 614,825 21 % 28 % Net income $ 153,301 $ 80,771 $ 108,282 (47 )% 34 % Net income margin 39 % 17 % 18 % Adjusted net income (1) $ 72,284 $ 86,093 $ 102,069 19 % 19 % Adjusted net income margin (1) 18 % 18 % 17 % Adjusted EBITDA (1) $ 93,719 $ 115,309 $ 142,530 23 % 24 % Adjusted EBITDA margin (1) 24 % 24 % 23 % Diluted earnings per share $ 1.69 $ 0.90 $ 1.19 (47 )% 32 % Adjusted diluted earnings per share (1) $ 0.80 $ 0.96 $ 1.12 21 % 17 % Net cash flow from operating activities $ 82,761 $ 104,977 $ 117,728 27 % 12 % As percentage of adjusted EBITDA 88 % 91 % 83 % Free cash flow from operations (1) $ 72,451 $ 70,190 $ 97,707 (3 )% 39 % As percentage of adjusted EBITDA 77 % 61 % 69 % _______________ (1)See the sections below titled “Adjusted Net Income, Adjusted EBITDA and Adjusted Diluted Earnings per Share” and “Free Cash Flow From Operations” for explanations and reconciliations of these non-IFRS financial measures. •Revenue was $614.8 million in 2025, an increase of $134.2 million, or 28%, from 2024. Driven by continued strong momentum from e-commerce partners and our ability to deliver targeted high-purchase-intent traffic to our advertising partners, advertising revenue increased by $105.3 million, or 36%, from 2024 to 2025. Query revenue increased $27.8 million, or 15%, over the same period, driven by our ongoing focus on users with the greatest monetization potential and broadening interfaces to address users’ intent. •Operating expenses totaled $524.4 million in 2025, an increase of $133.6 million, or 34%, compared to 2024. The increase was primarily driven by the cost of inventory sold, which rose by $86.5 million, or 73%, to $205.1 million following our successful scaling of the Opera Ads platform also outside Opera’s own inventory. Marketing and distribution expenses increased by $10.3 million, or 8%, to $142.2 million. Share-based compensation expenses increased by $21.6 million, or 222% due to awards of multi-year grants in early 2025 for which cost recognition is front loaded while the number of share units vesting each year remains relatively stable. Cash-based personnel expenses increased by $9.1 million, or 13%. •Net income was $108.3 million in 2025, an increase of 34% from 2024. The increase was primarily driven by the recognition of an unrealized gain of $36.3 million on our OPay investment in 2025, compared to an unrealized gain of $5.0 million recognized in 2024 and more than offsetting the increase in share-based compensation expenses. Adjusted net income, which excludes gains and losses on unconsolidated investments, share-based compensation expenses, and other items that may not be indicative of our recurring core business operating results, was $102.1 million in 2025, an increase of 19% from 2024. •Adjusted EBITDA was $142.5 million in 2025, representing a 23% margin, up from $115.3 million and a 24% margin in 2024. •In 2025, diluted earnings per share was $1.19, whereas adjusted diluted earnings per share was $1.12. •Net cash flow from operating activities in 2025 was $117.7 million, or 83% of adjusted EBITDA, representing an increase of 12% from 2024 when net cash flow from operating activities was $105.0 million, or 91% of adjusted EBITDA following accelerated revenue collection at the end of the year. Free cash flow from operations was $97.7 million, or 69% of adjusted EBITDA in 2025, compared to $70.2 million, or 61% of adjusted EBITDA in 2024, which included the investment of $19.1 million in an AI data cluster. At year-end 2025, cash and cash equivalents totaled $155.5 million. 32 Table of Contents Other Information •In 2025, we paid two cash dividends of $0.40 per share under our recurring dividend program. In January 2026, we paid an additional cash dividend of $0.40 per share under the program to shareholders of record as of January 7, 2026. •As of December 31, 2025, we had 605 full-time employees, an increase of 1% year-over-year. User Metrics We disclose MAU and ARPU metrics to provide investors with additional information about user engagement, monetization trends and operating performance. These metrics are subject to inherent limitations and may not be comparable to similarly titled metrics used by other companies. See “Item 3. Key Information—D. Risk Factors—Risks Related to Financial Reporting and Information Disclosure—Inaccuracies or misinterpretation of our operating metrics could harm our business.” The table below presents our MAU metrics for the periods indicated (in millions): Three months ended (1) Mar. 31, 2024 June 30, 2024 Sept. 30, 2024 Dec. 31, 2024 Mar. 31, 2025 June 30, 2025 Sept. 30, 2025 Dec. 31, 2025 Smartphone average MAUs 177.6 180.2 179.6 178.1 174.1 174.8 172.9 167.2 PC browser average MAUs 80.4 78.2 78.9 83.9 85.5 82.7 80.8 86.2 Feature phone average MAUs 45.4 39.9 37.3 33.4 33.4 31.6 30.4 30.7 Other 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Total MAUs 303.6 298.5 296.0 295.5 293.2 289.2 284.2 284.3 _______________ (1)Average across the three months included in each period, with each month calculated as of its final day using a 30-day lookback window. Average smartphone MAUs for the three months ended December 31, 2025, were 167 million, including approximately 141 million smartphone browser users and 25 million Opera News app users. Opera GX reached 34 million MAUs across PC and mobile in the fourth quarter of 2025. While total MAUs declined modestly in 2025 as we prioritized user quality, engagement and monetization in higher-monetization Western markets over absolute user growth, our strategy and focus resulted in annualized ARPU increasing by 26% from the fourth quarter of 2024 to the same quarter in 2025, driven by growth in both advertising and query revenue. 33 Table of Contents _______________ (1)Calculated as advertising and query revenue for the quarter ended on the indicated date, divided by average MAUs for that quarter, and annualized (multiplied by four). Major Factors Affecting Our Results of Operations The following factors have materially affected, and may continue to affect our results of operations. User Base Composition and Monetization Our user base is a key driver of revenue through its attractiveness to advertisers and search partners and its impact on user-level monetization. Our revenue depends not only on the size of our user base, but also on its composition, including geographic distribution, demographics, engagement, and commercial value to partners. In recent periods, we have prioritized growth in geographies and user segments with higher monetization potential, which has shifted our user and revenue mix toward more developed markets. As a result, a decline in total MAUs has been offset by higher ARPU. Future changes in user mix across regions or segments, or shifts in engagement levels, may affect ARPU and overall revenue, even if total user levels remain stable. Broader industry trends, competitive dynamics, and evolving user behavior continue to influence how users discover and consume content, interact with advertising, and use search and AI-enabled services. Our ability to adapt to these changes, and to attract, retain, and engage users with high monetization potential, will remain an important determinant of our revenue growth, profitability, and results of operations. Monetization Partner Relationships and Revenue Sharing We maintain long-standing relationships with a number of key monetization partners, including Google. Changes to revenue-sharing arrangements, fee structures, payment policies or other contractual terms with these partners, as well as legal or regulatory developments affecting their business models, could affect our revenues, either positively or negatively. While we did not experience material adverse impacts from such changes during the period from 2023 through 2025, our results remain sensitive to the terms and performance of these arrangements. Our results are also influenced by our ability to integrate and optimize our partners’ services within our products and to access third-party advertising inventory. In 2025, we worked with more than 620 monetization partners, including providers of third-party inventory. Our ability to maintain and expand these relationships depends in part on the effectiveness of our advertising and targeting capabilities, including through our Opera Ads platform. These capabilities rely, in part, on data signals from third-party websites, services and platforms that we do not control. As a result, changes in regulation, platform policies or technical restrictions that limit targeting effectiveness or measurement could adversely affect our advertising revenue. 34 Table of Contents Advertising Market Conditions and Demand Cyclicality A significant portion of our revenue is generated from advertising, which is influenced by advertiser demand, pricing dynamics, budget allocation decisions and broader economic conditions. Changes in advertiser spending levels, campaign mix or pricing, particularly when advertisers constrain budgets in response to economic volatility, may affect our advertising revenue and margins. Advertising demand is also subject to seasonal patterns, with higher levels of spending typically occurring in the fourth quarter and lower levels in the first quarter. In addition, shifts in the mix of advertisers, formats and campaign types, including between brand-oriented and performance-based advertising, may affect monetization levels and revenue growth from period to period. Our ability to grow advertising revenue depends in part on maintaining sufficient demand from advertisers, the effectiveness of our advertising solutions, and our ability to align advertising inventory with advertiser objectives. Marketing and Distribution Economics Our results of operations are affected by the costs and economics associated with user acquisition. We incur costs to promote and distribute our products across different platforms, including through marketing activities, distribution arrangements and other user acquisition initiatives. Changes in these costs, or in the effectiveness of our distribution efforts, may affect our revenue growth and margins. User acquisition and product distribution economics vary by geography, platform and product. As we focus on attracting and retaining users in higher-monetizing segments and regions, our user acquisition costs and distribution mix may change, which can influence ARPU and overall profitability. In addition, changes in distribution arrangements or platform dynamics may affect our ability to efficiently reach users or maintain usage levels. Our ability to manage user acquisition and product distribution economics depends on the effectiveness of our marketing and distribution strategies, the performance of our products, and competitive conditions in the markets in which we operate. Variations in these factors may affect our results of operations from period to period. Brand Recognition and Reputation Our brand recognition and reputation are important to our ability to attract and retain users and to maintain relationships with monetization, content and distribution partners. A strong brand also supports the adoption of new products and services and enhances the effectiveness of our user acquisition and marketing efforts. A deterioration in brand perception could reduce user engagement, weaken partner relationships and adversely affect our results of operations. Product and Platform Mix Our results of operations are influenced by the mix of products and platforms through which users access our services. Usage across mobile and PC platforms, as well as across different browser variants, monetizes at different rates and involves different cost structures. Accordingly, changes in the relative mix of platforms or products can affect our revenue growth, margins and results of operations, even if total user levels remain stable. Mobile and PC usage differ in terms of advertising formats, query behavior and monetization potential. In addition, our browser variants, including Opera GX and other differentiated products, serve distinct user segments and may exhibit different engagement patterns, monetization profiles and development or marketing costs. Shifts in user adoption or engagement among these platforms or products may therefore affect ARPU and overall monetization. Our ability to manage product and platform mix depends on user preferences, distribution dynamics and our ongoing product development and marketing efforts. Changes in this mix, whether driven by user behavior or strategic focus, may impact our results of operations from period to period. Technology Investment and Operating Cost Structure Our results of operations are influenced by our investment in technology, including AI capabilities, and the composition of our operating cost structure. We incur significant costs related to product development, platform infrastructure, data processing and personnel to support our browsers, AI initiatives and advertising technology. Changes in the level, timing or efficiency of these investments may affect our operating expenses and margins from period to period. Our operating costs may not move in direct proportion to revenue, with economies of scale being paired with changes in our business mix and investments in marketing and new products, features and platform capabilities, including AI-enabled functionality. While these investments support long-term growth and scalability, they may increase operating expenses in the near term. AI-related initiatives may also require incremental spending on computing capacity, data acquisition and processing, third-party services and specialized personnel, and the magnitude and timing of these costs may vary. 35 Table of Contents Our ability to manage our operating cost structure depends on maintaining operating leverage as our business scales, prioritizing technology investments and aligning costs with revenue growth. Variations in these factors may affect our results of operations. Regulatory, Legal and Macroeconomic Environment Changes in the global regulatory, legal and macroeconomic environment may affect our business practices, cost structure and results of operations. These factors include changes in laws and regulations, economic growth conditions, inflation, fiscal and monetary policy, foreign exchange movements and geopolitical developments. During 2025, macroeconomic and geopolitical conditions contributed to volatility in foreign exchange markets, including a weakening of the U.S. dollar against other currencies, which affected our results. Furthermore, the escalation of geopolitical conflict in the Middle East in early 2026 has introduced significant new volatility into global energy and foreign exchange markets. More broadly, these ongoing conditions, including the potential for renewed inflationary pressures or economic slowdowns, may negatively influence advertiser spending, partner demand, and our operating cost base in the current and future periods. We continue to monitor the direct and indirect effects of these developments on our business and financial performance. Strategic Investments and Acquisitions We hold strategic investments and may pursue further investments or acquisitions to expand our products, capabilities or market opportunities. These investments and acquisitions may not generate the expected financial returns and could adversely affect our results of operations, including through impairment charges, amortization of intangible assets or credit losses. The timing and magnitude of any such charges may vary from period to period and could reduce our profitability and affect comparability of our financial results. Results of Operations The following table set forth our consolidated Statement of Operations data (in thousands): Year Ended December 31, 2023 2024 2025 Revenue $ 396,827 $ 480,648 $ 614,825 Other operating income 666 2,367 (378 ) Operating expenses: Technology and platform fees (3,145 ) (10,010 ) (9,312 ) Content cost (4,297 ) (3,891 ) (6,066 ) Cost of inventory sold (85,808 ) (118,658 ) (205,127 ) Personnel expenses excluding share-based compensation (65,801 ) (69,940 ) (78,994 ) Share-based compensation expenses (16,950 ) (9,718 ) (31,273 ) Marketing and distribution expenses (109,947 ) (131,951 ) (142,218 ) Credit loss expense (3,967 ) 784 713 Depreciation and amortization (13,165 ) (15,582 ) (18,861 ) Impairment of non-financial assets (681 ) (113 ) (1,946 ) Other operating expenses (30,842 ) (31,674 ) (31,291 ) Total operating expenses (334,603 ) (390,753 ) (524,375 ) Operating profit 62,890 92,262 90,072 Share of net income (loss) of equity-accounted investees — (2 ) 268 Fair value gain on long-term investments 89,838 5,000 36,300 Net finance income (expense): Finance income 8,876 3,577 3,294 Finance expense (644 ) (586 ) (610 ) Foreign exchange gain (loss) (963 ) (1,839 ) (4,108 ) Net finance income (expense) 7,269 1,152 (1,424 ) Income before income taxes 159,997 98,412 125,216 Income tax expense (6,697 ) (17,642 ) (16,934 ) Net income attributable to Opera shareholders $ 153,301 $ 80,771 $ 108,282 36 Table of Contents The following table sets forth the components of our consolidated Statement of Operations data as a percentage of revenue (1): Year Ended December 31, 2023 2024 2025 Revenue 100 % 100 % 100 % Other operating income — — — Operating expenses: Technology and platform fees (1 ) (2 ) (2 ) Content cost (1 ) (1 ) (1 ) Cost of inventory sold (22 ) (25 ) (33 ) Personnel expenses excluding share-based compensation (17 ) (15 ) (13 ) Share-based compensation expenses (4 ) (2 ) (5 ) Marketing and distribution expenses (28 ) (27 ) (23 ) Credit loss expense (1 ) — — Depreciation and amortization (3 ) (3 ) (3 ) Impairment of non-financial assets — — — Other operating expenses (8 ) (7 ) (5 ) Total operating expenses (84 ) (81 ) (85 ) Operating profit 16 19 15 Share of net income (loss) of equity-accounted investees — — — Fair value gain on long-term investments 23 1 6 Net finance income (expense): Finance income 2 1 1 Finance expense — — — Foreign exchange gain (loss) — — (1 ) Net finance income (expense) 2 — — Income before income taxes 40 20 20 Income tax expense (2 ) (4 ) (3 ) Net income attributable to Opera shareholders 39 % 17 % 18 % _______________ (1)Percentages have been rounded for presentation purposes and may differ from unrounded results. Revenue We generate revenue from advertising, query (inclusive of the former “search” category), and other services. Advertising revenue is generated from the delivery of advertisements across our PC and mobile browsers, the Opera News platform, and third-party partner properties. This category also includes income from non-query, user-related monetization activities. Query revenue is generated from traffic referral arrangements with third-party partners, including search engine providers, e-commerce platforms, AI platforms and other partners, when users submit queries or proactively access partner services through integrated browser features. Query revenue includes revenue-share payments and fees related to customizations and integrations that facilitate user access to partner services. Non-search query revenue that in prior periods was classified as advertising has been reclassified to conform to the current classification. Other revenue consists primarily of income from on-demand cloud computing services. The table below presents revenue from each category (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Advertising $ 230,980 $ 290,723 $ 396,040 26 % 36 % Query 162,168 188,997 216,832 17 % 15 % Other revenue 3,679 927 1,953 (75 )% 111 % Total revenue $ 396,827 $ 480,648 $ 614,825 21 % 28 % Advertising revenue increased $105.3 million, or 36%, from 2024 to 2025. Underlying advertising demand, in particular from e-commerce partners, led to better monetization on a per-user basis, which together with improved pricing factors and the growth of our user bases in Western markets, resulted in the continuing growth of our Opera Ads platform where we also leveraged third-party inventories to meet the demand we sourced from advertisers, as evidenced by the growth of our cost of inventory sold. Query revenue increased $27.8 million, or 15%, from 2024 to 2025. The increase was driven by both underlying monetization improvements by our search partners and broadening of the interfaces in which we can address users’ intent, and the growth of our 37 Table of Contents browser user base in Western markets where advertisers typically pay more to be promoted. As our query revenue includes income from revenue sharing arrangements with our search partners, these factors together had a direct positive impact on our query revenue. Other revenue increased $1.0 million, or 111%, from 2024 to 2025. See Note 3 to our consolidated financial statements included elsewhere in this annual report for more information about our revenues. Other Operating Income Other operating income consists of income arising from activities that are not part of our ordinary operations, including net gains or losses on disposals of property, equipment and intangible assets. The table below presents other operating income (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Other operating income $ 666 $ 2,367 $ (378 ) 255 % NM _______________ NM - not meaningful. Other operating income decreased $2.7 million, from 2024 to 2025 and changed from income in 2024 to a net loss in 2025, primarily due to converting crypto assets to cash at reduced market prices. Technology and Platform Fees Technology and platform fees primarily consist of platform and collection service costs incurred to support subscription services for which we act as the principal, and transaction and communication platform expenses. The table below presents technology and platform fees (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Technology and platform fees $ (3,145 ) $ (10,010 ) $ (9,312 ) 218 % (7 )% Technology and platform fees decreased $0.7 million, or 7%, from 2024 to 2025, primarily driven by decreased spending on performance marketing technologies and solutions used in our advertising business. Content Cost Content cost consists primarily of payments to content creators on our platforms, including Opera News Hub, as well as payments to publishers and monetization partners. Content cost also includes cashback payments to users. We expect our content cost will be fairly stable as a percentage of the related revenue streams. The table below presents content cost (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Content cost $ (4,297 ) $ (3,891 ) $ (6,066 ) (9 )% 56 % Content cost increased by $2.2 million, or 56%, to $6.1 million from 2024 to 2025, mostly related to Opera News. Cost of Inventory Sold Cost of inventory sold consists primarily of the cost incurred to acquire third-party advertising inventory that is sold alongside our own inventory to meet advertiser demand. We expect this cost category to grow as a percentage of overall revenue as we see it driving incremental profitability of our advertising business. The table below presents the cost of inventory sold (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Cost of inventory sold $ (85,808 ) $ (118,658 ) $ (205,127 ) 38 % 73 % 38 Table of Contents The cost of inventory sold increased $86.5 million, or 73%, from 2024 to 2025, and represented 33% of our revenue in 2025, up from 25% of our revenue in 2024. This increase was driven mainly by the continuing expansion of the Opera Ads platform, our audience extension product. Personnel Expenses Excluding Share-based Compensation Cash-based personnel expenses consist primarily of salaries and bonuses, related social security contributions, costs of external temporary hires, and other personnel-related expenses, and are presented net of capitalized development costs. We expect cash-based compensation expenses to increase in absolute terms over time, primarily reflecting business growth, expansion of our global operations, and periodic salary adjustments, while declining as a percentage of revenue. The table below presents cash-based personnel expenses (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Personnel expenses excluding share-based compensation $ (65,801 ) $ (69,940 ) $ (78,994 ) 6 % 13 % Cash-based compensation expenses increased $9.1 million, or 13%, mostly due to a weakening of the US dollar relative to our primary salary currencies, as well as salary adjustments and an increase in the cost of temporary hires. See Note 4 to our consolidated financial statements included elsewhere in this annual report for additional details of our personnel expenses. Share-Based Compensation Expenses Share-based compensation expenses include costs related to restricted share units and options granted under our share incentive plan, related social security contributions, and options granted by Kunlun to our employees. Awards granted by Kunlun are accounted for as equity-settled share-based payments in our consolidated financial statements. We have no obligation to settle awards granted by Kunlun and these awards do not lead to dilution of our shareholders. Share-based compensation expense may be volatile, as it is affected by the fair value of equity awards at grant, the number of awards granted, and the length of vesting periods. The table below presents share-based compensation expenses (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Share-based compensation expense for Opera-granted awards $ (10,500 ) $ (6,846 ) $ (28,476 ) (35 )% 316 % Share-based compensation expense for parent-granted awards $ (6,450 ) $ (2,872 ) $ (2,797 ) (55 )% (3 )% Total share-based compensation expenses $ (16,950 ) $ (9,718 ) $ (31,273 ) (43 )% 222 % Share-based compensation expenses increased $21.6 million, or 222%, from 2024 to 2025, primarily due to the grant of approximately 1.9 million share-equivalent RSUs in early 2025. These awards vest over the 2025–2028 period and largely replaced awards that had completed their vesting cycles. Expense recognition for multi-year grants is front-loaded, resulting in a higher proportion of total expense being recognized in the earlier years of the vesting period. Marketing and Distribution Expenses Marketing and distribution expenses consist primarily of performance-based marketing campaigns for our browsers and news platform. We expect these expenses to increase in absolute terms while declining as a percentage of revenue. The table below presents marketing and distribution expenses (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Marketing and distribution expenses $ (109,947 ) $ (131,951 ) $ (142,218 ) 20 % 8 % Marketing and distribution expenses increased by $10.3 million, or 8%, from 2024 to 2025. The increase was primarily driven by expanded marketing and distribution activities in Western markets to target users with greater monetization potential. As a result, expenses related to our browsers increased by $18.6 million, or 16%, to $136.1 million in 2025, with the remaining spend relating to MiniPay and Opera News. 39 Table of Contents Credit Loss Expense Credit loss expense consists of write-offs of receivables for which there is no reasonable expectation of recovery and changes in provisions for expected credit losses on outstanding balances. Provisions are determined based on specific invoice-level credit risk where identifiable, and otherwise using a provision matrix based on historical loss experience adjusted for forward-looking information. Credit losses are affected by our ability to collect contractual cash flows and the credit risk of our customers, including general market conditions. The table below presents our credit loss expense (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Credit loss expense $ (3,967 ) $ 784 $ 713 NM (9 )% _______________ NM - not meaningful. Our credit loss recovery was $0.7 million in 2025, due to reversals of previous provisions for credit losses on receivables due from certain specific customers in emerging markets as the receivables were ultimately settled, similar to gains realized in 2024. See Note 12 to our consolidated financial statements included elsewhere in this annual report for more information about our credit loss allowance. Depreciation and Amortization Depreciation expenses primarily relate to servers, other equipment, and leased office premises, while amortization expenses primarily relate to technology-related assets, including internally developed assets and customer relationship assets recognized in connection with our 2016 acquisition of Opera Norway AS. The amounts of depreciation and amortization are driven by the capital investment levels and the expected useful lives of the related assets. We expect these expenses to increase as we continue to invest in our products and digital infrastructure. The table below presents depreciation and amortization (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Depreciation and amortization $ (13,165 ) $ (15,582 ) $ (18,861 ) 18 % 21 % Depreciation and amortization increased $3.3 million, or 21%, from 2024 to 2025, primarily due to higher depreciation of servers and related infrastructure supporting our AI initiatives, as well as increased amortization of internally developed technology assets. See Notes 9 and 10 to our consolidated financial statements included elsewhere in this annual report for more information about our fixed and intangible assets. Impairment of Non-financial Assets Impairment of non-financial assets consists of impairment losses recognized on property, equipment, and intangible assets when the recoverable amount of the individual asset or the cash-generating unit to which it belongs is below its carrying amount. The table below presents impairment of non-financial assets (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Impairment of non-financial assets $ (681 ) $ (113 ) $ (1,946 ) (83 )% 1619 % Impairment of non-financial assets increased $1.8 million, or 1619%, from 2024 to 2025. The impairment charge in 2025 was mostly related to a decline in market values of certain crypto assets we hold in connection with our MiniPay partnerships. See Note 10 to our consolidated financial statements included elsewhere in this annual report for more information. Other Operating Expenses Other operating expenses consist primarily of hosting costs, audit and advisory fees, software license fees, office-related expenses, and travel. We expect these expenses to increase in absolute terms while declining as a percentage of revenue. The table below presents other operating expenses (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Other operating expenses $ (30,842 ) $ (31,674 ) $ (31,291 ) 3 % (1 )% 40 Table of Contents Our other operating expenses decreased by $0.4 million, or 1%, from 2024 to 2025. The decrease was mostly driven by lower cost of professional services, partially offset by higher costs related to our infrastructure and network. See Note 5 to our consolidated financial statements included elsewhere in this annual report for more information. Share of Net Income (Loss) of Equity-accounted Investees We have investments in a venture fund operated by Verda Ventures (the “MiniPay fund”) and in nHorizon Innovation, both of which are accounted for under the equity method. The MiniPay fund was formed in the second half of 2024 to invest in companies operating in the stablecoin ecosystem related to our MiniPay platform, and our share of net income or loss reflects the performance of the underlying investments. In 2022, we discontinued recognizing our share of losses from nHorizon Innovation as our cumulative share of losses exceeded our investment balance. Any future profits will be recognized only after previously unrecognized losses have been recovered; however, we do not expect such amounts to be material. The table below presents our share of net income (loss) of equity-accounted investees (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Share of net income (loss) of equity-accounted investees $ — $ (2 ) $ 268 NM NM _______________ NM - not meaningful. In 2025, our share of the MiniPay fund’s net income was $0.3 million, reflecting unrealized gains recognized by the fund on its investments. Our unrecorded share of nHorizon Innovation’s net loss in 2025 was immaterial. See Note 11 to our consolidated financial statements included elsewhere in this annual report for more information. Fair Value Gain on Long-Term Investments Our long-term minority investments in unconsolidated entities over which we do not have significant influence or joint control are accounted for at fair value through profit or loss, with changes in fair value recognized in the statement of operations as fair value gain on long-term investments. This category consists exclusively of our investment in OPay. The fair value of this investment is subject to significant estimation uncertainty, as its future valuation depends on OPay’s financial and operational performance, as well as the macroeconomic conditions within its core markets. The table below presents fair value gains on our long-term investments (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Fair value gain on long-term investments $ 89,838 $ 5,000 $ 36,300 (94 )% 626 % In 2025, we recognized an unrealized fair value gain of $36.3 million on our OPay investment, compared to an unrealized gain of $5.0 million in 2024. The fair value gain in 2025 reflected the underlying growth and financial performance of OPay, captured as changes in the probability-weighted expected return model used to estimate fair value. See Note 11 to our consolidated financial statements included elsewhere in this annual report for more details. Net Finance Income (Expense) Finance income primarily consists of interest income earned on cash deposits with financial institutions, while finance expense primarily consists of interest expense on leases of office premises and equipment. Net foreign exchange gain or loss, included in net finance income (expense), reflects gains or losses arising from the settlement and remeasurement of monetary items denominated in currencies other than the functional currency of each subsidiary, including intercompany balances. The table below presents finance income, finance expense and foreign exchange gain (loss) (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Finance income $ 8,876 $ 3,577 $ 3,294 (60 )% (8 )% Finance expense (644 ) (586 ) (610 ) (9 )% 4 % Foreign exchange gain (loss) (963 ) (1,839 ) (4,108 ) 91 % 123 % Net finance income (expense) $ 7,269 $ 1,152 $ (1,424 ) (84 )% (224 )% 41 Table of Contents In 2025, net finance expense amounted to $1.4 million while in 2024 finance items netted to an income of $1.2 million. The deterioration was mostly due to foreign exchange losses increasing by $2.3 million, or 123%, to $4.1 million in 2025, largely attributable to exchange differences on intercompany balances. Finance income, comprising interest income on our deposits of cash, totaled $3.3 million, down $0.3 million, or 8% from 2024. Finance expense, mostly comprising interest expense on leases, amounted to $0.6 million in both 2024 and 2025. See Note 6 to our consolidated financial statements included elsewhere in this annual report for more details. Income Tax Expense Income tax expense consists of current tax based on taxable income in each jurisdiction and deferred tax arising from temporary differences and unused tax losses. A substantial portion of our revenue and operating profit is generated in jurisdictions with stable tax regimes, including Norway, Ireland, and Singapore, with statutory tax rates of 22.0%, 12.5%, and 17.0%, respectively. Gains on our investment in OPay are not taxable to Opera, which is a significant factor contributing to our low effective tax rate. We also recognize tax effects related to equity awards granted to employees, including deferred tax assets based on the estimated future tax deduction measured using our share price at the reporting date. Any tax benefit on market values exceeding the related cumulative share-based compensation expense is recognized directly in equity. The table below presents income tax expense and the effective tax rate (in thousands, except for percentages): Year Ended December 31, % Change 2023 2024 2025 2024 vs. 2023 2025 vs. 2024 Income tax expense $ (6,697 ) $ (17,642 ) $ (16,934 ) 163 % (4 )% Effective tax rate 4.2 % 17.9 % 13.5 % The income tax expense decreased $0.7 million, or 4%, from 2024 to 2025, resulting in the effective tax rate also decreasing. The decrease in our effective tax rate was primarily due to the amount of fair value gain on our investment in OPay, which represents tax-exempt income. See Note 7 to our consolidated financial statements included elsewhere in this annual report for further details. Adjusted Net Income, Adjusted EBITDA and Adjusted Diluted Earnings per Share In addition to financial measures presented in accordance with IFRS Accounting Standards, we use the non-IFRS financial measures adjusted net income, adjusted EBITDA and adjusted diluted earnings per share to manage our business, evaluate performance, support planning and decision-making, and allocate resources. These non-IFRS measures are intended to provide supplemental information by excluding items that we believe are not representative of core business operating performance. Adjusted net income is defined as net income adjusted to exclude (i) profit (loss) from discontinued operations, (ii) gain (loss) on investments in unconsolidated entities, (iii) non-recurring expenses, (iv) impairment of non-financial assets, (v) amortization of acquired intangible assets, (vi) share-based compensation expense, and (vii) the income tax effect of these adjustments. Adjusted net income margin is calculated as adjusted net income divided by revenue. Adjusted diluted earnings per share is calculated as adjusted net income divided by the diluted weighted average number of shares outstanding. Adjusted EBITDA is defined as net income adjusted to exclude (i) profit (loss) from discontinued operations, (ii) income tax expense, (iii) net finance income (expense), (iv) gain (loss) on long-term investments in unconsolidated entities, (v) non-recurring expenses, (vi) impairment of non-financial assets, (vii) depreciation and amortization, (viii) share-based compensation expense, and (ix) other operating income. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue. We believe these non-IFRS financial measures are useful to investors because they facilitate period-to-period comparisons of operating performance and are consistent with how management evaluates the business. These measures should not be considered in isolation or as substitutes for, or superior to, the financial information prepared in accordance with IFRS Accounting Standards. Our definitions of adjusted net income, adjusted EBITDA and adjusted diluted earnings per share may differ from similarly titled measures used by other companies. In addition, measures may be limited in their usefulness because they do not present the full economic effects of certain items of income and expenses. We address the limitations of these non-IFRS financial measures by providing reconciliations from the most closely comparable IFRS financial measures. Investors are encouraged to review these reconciliations and to consider non-IFRS financial measures together with our IFRS results. 42 Table of Contents The following table presents a reconciliation of net income to adjusted net income (in thousands): Year Ended December 31, 2023 2024 2025 Net income $ 153,301 $ 80,771 $ 108,282 Add (deduct): Fair value (gain) loss on short-term investments (1) (3,243 ) — — Fair value (gain) loss on long-term investments (89,838 ) (5,000 ) (36,300 ) Share of net loss of equity-accounted investees — 2 (268 ) Non-recurring expenses (2) 698 — — Impairment of non-financial assets 681 113 1,946 Amortization of acquired intangible assets 2,580 2,580 2,580 Share-based compensation expenses 16,950 9,718 31,273 Income tax effect on adjustments (8,845 ) (2,091 ) (5,444 ) Adjusted net income $ 72,284 $ 86,093 $ 102,069 _______________ (1)Fair value gains on short-term investments were included in finance income in the Statement of Operations. (2)Non-recurring expenses in 2023 primarily related to audit, legal, and other advisory fees incurred in connection with a secondary public offering of our ADSs by a pre-IPO shareholder. These expenses were included in other operating expenses in the Statement of Operations. The following table is a reconciliation of net income to adjusted EBITDA (in thousands): Year Ended December 31, 2023 2024 2025 Net income $ 153,301 $ 80,771 $ 108,282 Add (deduct): Income tax expense 6,697 17,642 16,934 Net finance (income) expense (7,269 ) (1,152 ) 1,424 Fair value (gain) on long-term investments (89,838 ) (5,000 ) (36,300 ) Share of net loss of equity-accounted investees — 2 (268 ) Non-recurring expenses 698 — — Impairment of non-financial assets 681 113 1,946 Depreciation and amortization 13,165 15,582 18,861 Share-based compensation expenses 16,950 9,718 31,273 Other operating income (666 ) (2,367 ) 378 Adjusted EBITDA $ 93,719 $ 115,309 $ 142,530 The following table is a reconciliation of diluted earnings per share to adjusted diluted earnings per share: Year Ended December 31, 2023 2024 2025 Diluted earnings per share $ 1.69 $ 0.90 $ 1.19 Add (deduct): Fair value (gain) loss on short-term investments (0.04 ) — — Fair value (gain) loss on long-term investments (0.99 ) (0.06 ) (0.40 ) Share of net loss of equity-accounted investees — — — Non-recurring expenses 0.01 — — Impairment of non-financial assets 0.01 — 0.02 Amortization of acquired intangible assets 0.03 0.03 0.03 Share-based compensation expenses 0.19 0.11 0.34 Income tax effect on adjustments (0.10 ) (0.02 ) (0.06 ) Adjusted diluted earnings per share $ 0.80 $ 0.96 $ 1.12 B.Liquidity and Capital Resources Cash Flows Our principal sources of liquidity are our cash and cash equivalents, and cash generated from our operating activities. As of December 31, 2025, we had $155.5 million in cash and cash equivalents, comprising of cash on deposit with banks and limited holdings of stablecoins, primarily denominated in U.S. dollars, with limited amounts held in euros, Norwegian kroner and other local 43 Table of Contents currencies of the markets where we operate. As part of our cash management strategy, we concentrate cash deposits with large financial institutions. The following table sets forth a summary of our cash flows for the periods indicated (in thousands): Year Ended December 31, 2023 2024 2025 Net cash flow from operating activities $ 82,761 $ 104,977 $ 117,728 Net cash flow from (used in) investing activities $ 19,999 $ (27,112 ) $ (14,451 ) Net cash flow used in financing activities $ (59,843 ) $ (42,146 ) $ (76,552 ) Cash Provided by Operating Activities Net cash flow from operating activities was $117.7 million in 2025. Operating profit of $90.1 million, adjusted for non-cash items such as depreciation, amortization and share-based compensation totaling $50.4 million, contributed $140.4 million, which was partially offset by changes in items of working capital such as trade receivables and payables totaling $9.9 million. Income taxes paid in 2025 amounted to $12.9 million. The increase in net cash flow from operating activities during 2025 compared to 2024 of $12.8 million, was due to an increase in cash collection from customers driven by the increases in advertising and query revenues, partially offset by a higher amount of cash paid for operational spending. Cash Provided by and Used in Investing Activities Cash used in investing activities during 2025 mostly consisted of $5.5 million spent on purchases of property and equipment, and $9.7 million spent on the development of new products and services. In 2024, investing activities mostly consisted of $23.3 million on purchases of property and equipment, including $19.1 million spent on AI data center infrastructure, and $7.3 million on the development of new products and services. Cash Used in Financing Activities Cash used in financing activities during 2025 mostly consisted of dividend payments totaling $71.2 million and to a lesser extent payments of lease liabilities of $4.8 million. In 2024, cash dividend payments were lower at $37.4 million due to $33.0 million of dividends being offset against a receivable that was due from Kunlun from the sale of Opera’s former ownership interest in Star X. Payments of lease liabilities amounted to $4.2 million in 2024. In total, cash used in financing activities was $34.4 million higher in 2025 compared to 2024. Free Cash Flow From Operations In addition to net cash flow from operating activities presented in accordance with IFRS Accounting Standards, we use free cash flow from operations as a supplemental measure to evaluate our operating performance and cash generation. We define free cash flow from operations as net cash flows from operating activities less (i) purchases of fixed and intangible assets, (ii) development expenditure and (iii) payment of lease liabilities. Free cash flow from operations does not represent residual cash available for discretionary uses. We believe, however, that it provides useful supplemental information regarding our ability to generate cash from ongoing operations to fund investments, including acquisitions, and to support capital allocation decisions. Free cash flow from operations should not be considered in isolation or as a substitute for, or superior to, net cash flows from operating activities or other measures prepared in accordance with IFRS Accounting Standards. Our definition may differ from similarly titled measures used by other companies. We address the limitations of this non-IFRS financial measure by providing a reconciliation to net cash flow from operating activities, the most directly comparable IFRS measure, and investors are encouraged to consider this measure together with our IFRS cash flow information. 44 Table of Contents The table below reconciles net cash flow from operating activities to free cash flow from operations (in thousands): Year Ended December 31, 2023 2024 2025 Net cash flow from operating activities $ 82,761 $ 104,977 $ 117,728 (Deduct): Purchase of equipment (1,873 ) (23,344 ) (5,546 ) Purchase of intangible assets (250 ) — — Development expenditure (4,281 ) (7,263 ) (9,699 ) Payment of lease liabilities (3,907 ) (4,181 ) (4,776 ) Free cash flow from operations $ 72,451 $ 70,190 $ 97,707 Liquidity and Material Cash Requirements We expect that our existing cash and cash equivalents, together with cash flows from operations, will be sufficient to fund our operating activities and cash commitments for investing and financing activities, including dividends and share repurchases, for at least the next 12 months and thereafter for the foreseeable future. We continuously evaluate our liquidity and capital resources, including our access to external capital and potential realization of strategic investments, to ensure we can finance our future capital requirements. Dividends In June 2023, our Board of Directors adopted a recurring semi-annual cash dividend program. Beginning with an initial distribution of $0.40 per ADS in July 2023, we have consistently paid cash dividends in that amount every January and July. Portions of dividends payable on the ordinary shares held by Kunlun, amounting to $25.1 million in 2023 and $33.0 million in 2024, were not paid in cash but were offset against a receivable from the 2022 sale of Star X shares. In 2025, total cash dividends amounted to $71.2 million. We intend to continue paying semi-annual dividends; however, the declaration, timing and amount of any future dividends remain subject to Board approval and will depend on our financial condition, results of operations, capital requirements, contractual restrictions and other relevant factors. Share Repurchases On February 26, 2026, our Board of Directors authorized a new share repurchase program of up to $300 million, executable over a two-year period. While this program represents a potential material use of capital, it is entirely discretionary and does not impose a legally binding contractual obligation on the company to acquire any specific volume of shares or expend the full authorized amount. We anticipate funding these repurchases, which will include both ADSs from the open market and pro-rata purchases of ordinary shares from our majority shareholder, through our ongoing cash generation and existing strong cash balances. We believe our current liquidity position is highly robust and sufficient to support this program without compromising our ability to fund day-to-day operations, working capital needs, strategic growth investments, or our continued commitment to our semi-annual recurring dividend program. Capital Expenditures Our capital expenditures primarily relate to technical infrastructure, including servers and network equipment, to support our computing, storage, and networking needs, including for AI-related initiatives. In addition, we invest in developing and enhancing our software products, which is primarily reflected in operating expenses rather than capital expenditures. During 2024 and 2025, our capital expenditures were $30.6 million and $15.2 million, respectively. The higher level spending in 2024 primarily reflected the acquisition of an AI data cluster for $19.1 million. We do not expect to make similarly significant investments in AI data clusters in the foreseeable future, and therefore consider the 2025 level to be a better baseline for future capital expenditures. Contractual Obligations As of December 31, 2025, our contractual obligations for which we had recognized financial liabilities, such as trade payables and leases, totaled $112.8 million, of which $108.0 million is due to be paid during 2026. See Note 15 to our consolidated financial statements included elsewhere in this annual report for additional information on our financial liabilities, including maturity profiles, and liquidity risk management. 45 Table of Contents In addition, as of December 31, 2025, we had the following contractual commitments: •A commitment to make five quarterly investments of $1.25 million, or $6.25 million in total, in the MiniPay Fund, a venture fund established and managed by Verda Ventures to invest in companies operating in the stablecoin ecosystem associated with our MiniPay platform. •A commitment under our strategic partnership agreement with AP Grant Foundation Company to purchase CELO tokens for $0.25 million per quarter through the first quarter of 2029, subject to a one-year contractual lock-up on each purchase. In March 2026, as part of a broader amendment to this partnership agreement, our ongoing purchase obligation was removed. C.Research and Development, Patents and Licenses, etc. See “Item 4. Information on the Company—B. Business Overview—Technology.” and “Item 4. Information on the Company—B. Business Overview—Intellectual Property.” D.Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events during the year ended December 31, 2025, that are reasonably likely to materially affect our revenues, income, profitability, liquidity or capital resources, or to cause our historical results not to be indicative of future operating results or financial condition. E.Critical Accounting Estimates Note 2 to our consolidated financial statements included elsewhere in this annual report provides an overview of our significant accounting judgments and sources of estimation uncertainty. For the purposes of this operating and financial review, we have identified the fair value measurement of our investment in OPay as our sole critical accounting estimate. This designation is based on the high degree of subjective judgment required and the fact that changes in this estimate have had, or are reasonably likely to have, a material impact on our financial condition and results of operations. We hold a 9.5% ownership interest in OPay, a privately-held fintech company operating in emerging markets across Africa and Asia. This investment is measured at fair value through profit or loss. Because OPay is a private entity with no active market for its shares, we estimate its fair value using a probability-weighted expected return method (“PWERM”). This Level 3 valuation methodology requires us to make highly subjective assumptions regarding future events that are inherently uncertain. Our PWERM valuation incorporates multiple potential exit scenarios, including initial public offerings, private sales, dissolution, and redemption, reflecting the economic rights of different share classes. The most significant unobservable inputs requiring our judgment include: •the subjective weights assigned to each potential exit outcome, representing our estimate of the likelihood of each specific liquidity event occurring; •the estimated equity values, ranging from $0.2 billion to $6.0 billion across various scenarios; •the estimated time to a liquidity event, currently projected between nine months and two years; •the discount rate (cost of equity), applied to calculate the present value of the future outcomes, estimated at 18.5% for 2025; and •the discount for lack of marketability of 10% applied to account for the illiquidity of OPay’s private shares. To corroborate our PWERM results, we also utilize a discounted cash flow analysis, which relies on further estimates including projected revenue growth (assumed at 39% over the 2025-2031 period) and a terminal growth rate (6%). The fair value of our OPay investment is highly sensitive to changes in these unobservable inputs. The estimation uncertainty is elevated by OPay’s operation in emerging markets and the broader macroeconomic environment impacting the fintech sector. During the year ended December 31, 2025, the probability-weighted present value of the scenarios increased from $3.0 billion to $3.4 billion, driven by improved operating profitability expectations and a slight decrease in our estimated cost of equity from 18.9% in 2024 to 18.5% in 2025, and revised estimates indicating that potential liquidity events are closer in time compared to our estimates at the end of 2024, which reduces the discounting period. While changes in this fair value estimate do not directly impact our short-term liquidity, even minor adjustments to the expected timing of an exit event, the probability weights we assign to the scenarios, or the discount rates could result in a materially different fair value. Any such remeasurement is recognized directly in profit or loss, which could cause substantial volatility in our reported earnings and total equity (see “Item 3. Key Information—D. Risk Factors—Risks Related to Financial Reporting and Information 46 Table of Contents Disclosure—The valuation of our OPay investment is highly uncertain and may result in material volatility in our results of operations.”) For a detailed quantitative sensitivity analysis of these unobservable inputs, see Note 11 to our consolidated financial statements included elsewhere in this annual report.