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Important April 7, 2025 Deadline Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Neumora Therapeutics, Inc. Investors of Securities Fraud Class Action Lawsuit

Important April 7, 2025 Deadline Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Neumora Therapeutics, Inc. Investors of Securities Fraud Class Action Lawsuit

RADNOR, PA - March 26, 2025 ( NEWMEDIAWIRE) - The law firm of Kessler Topaz Meltzer & Check, LLP ( www.ktmc.com) informs investors that a securities class action lawsuit has been filed against Neumora Therapeutics, Inc. ('Neumora') ( NASDAQ: NMRA) on behalf of those who purchased or otherwise acquired Neumora common stock pursuant and/or traceable to Neumora's prospectus and registration statement (collectively, the 'Offering Documents') issued in connection with Neumora's initial public offering held on or around September 15, 2023. The lead plaintiff deadline is April 7, 2025.
CONTACT KESSLER TOPAZ MELTZER & CHECK, LLP:
You can also contact attorney Jonathan Naji, Esq. by calling (484) 270-1453 or by email at [email protected].
DEFENDANTS' ALLEGED MISCONDUCT:
The complaint alleges that, in the Offering Documents, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) in order for Neumora to justify conducting its Phase Three Program, Neumora was forced to amend the original Phase Two Trial inclusion criteria to include a patient population with moderate to severe major depressive disorder ('MDD') to show that Navacaprant offered a statistically significant improvement in treating MDD; (2) Neumora also added a prespecified analysis to the Phase Two statistical analysis plan, focusing on patients suffering from moderate to severe MDD; and (3) the Phase Two Trials lacked adequate data, particularly in regards to the patient population size and the ratio of male to female patients within the patient population, to be able to accurately predict the results of the KOASTAL-1 study.
THE LEAD PLAINTIFF PROCESS:
Neumora investors may, no later than April 7, 2025, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087
May be considered attorney advertising in certain jurisdictions. Past results do not guarantee future outcomes.
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Revenues for the second quarter increased by 11.3% year over year, reaching a second quarter all-time high of $743.4 million OR YEHUDA, Israel, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (Nasdaq and TASE: FORTY) ('Formula Systems,' or the 'Company'), a global information technology group engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results of operations for the second quarter and first half period ended June 30, 2025. Financial Highlights for the Quarter Ended June 30, 2025 Revenues for the quarter ended June 30, 2025 increased by 11.3% year over year, reaching a second quarter all-time high of approximately $743.4 million, compared to approximately $667.7 million in the same period last year. This increase was attributable to the confluence of the revenue increases of its various subsidiary companies and affiliates during the quarter, as described in the 'Comments of Management' below. Operating income for the quarter ended June 30, 2025 increased by 4.4% year over year, to approximately $67.9 million, compared to approximately $65.0 million in the same period last year. Operating income for the second quarter of 2024 included a one-time income item of approximately $2.9 million, related to a retroactive reimbursement from the Israeli National Insurance Institute in respect of Formula Systems subsidiaries' employees who were called to reserve duty during the fourth quarter of 2023 and the first quarter of 2024. Excluding the impact of that one-time income in 2024, operating income for the second quarter of 2025 would have reflected an 9.3% year-over-year increase. Net income attributable to Formula Systems' shareholders for the quarter ended June 30, 2025, decreased by approximately 20.1% year over year, to $15.1 million, or $0.95 per fully diluted share, compared to $18.8 million, or $1.20 per fully diluted share, in the same period last decrease in net income attributable to Formula Systems' shareholders was primarily driven by an increase in Financial expenses, net, which totaled approximately $10.2 million in the second quarter of 2025, compared to approximately $3.8 million in the same period last year. The increase in financial expenses mainly reflected adverse exchange rate differences resulting from the appreciation of the New Israeli Shekel (the 'NIS') against the U.S. the second quarter of 2025, the NIS appreciated by 9.3% relative to the U.S. dollar. This appreciation reduced the U.S. dollar value of the Company's monetary assets, principally cash and cash equivalents and trade receivables denominated in U.S. dollars, which are recorded in NIS (Formula Systems' and certain of its Israeli subsidiaries functional currency) and subsequently translated into U.S. dollars (Formula Systems' reporting currency). As a result, the appreciation of the NIS adversely impacted the reported U.S. dollar value of these assets and contributed to the increase in financial expenses. Financial Highlights for the Six-Month Period Ended June 30, 2025 Revenues for the six-month period ended June 30, 2025 increased by 9.7% to a first-half all-time high of approximately $1.5 billion, compared to approximately $1.37 billion in the same period last year. This increase was attributable to the growth in revenue of its various subsidiary companies and affiliates during the six-month period, relative to the first half of 2024. Operating income for the six-month period ended June 30, 2025 increased by 8.5% to approximately $138.4 million, compared to approximately $127.6 million in the same period last year. Net income attributable to Formula Systems' shareholders for the six-month period ended June 30, 2025 decreased by 4.5% to approximately $34.4 million, or $2.20 per fully diluted share, compared to approximately $36.0 million, or $2.31 per fully diluted share, in the same period last year. This change was attributable to the same trend involving higher financial expenses affecting net income attributable to Formula Systems' shareholders for the quarter ended June 30, 2025, as described above. As of June 30, 2025, Formula Systems held 48.13%, 43.50%, 46.71%, 100%, 42.34%, 90.1%, 80%, 100%, 100% and 51% of the outstanding ordinary shares of Matrix IT Ltd., Sapiens International Corporation N.V., Magic Software Enterprises Ltd., Michpal Technologies Ltd., TSG IT Advanced Systems Ltd., Insync Staffing Solutions, Inc., Ofek Aerial Photography Ltd., ZAP Group Ltd., Shamrad Electronics (1997) Ltd., and Hashahar Telecom and Electricity Ltd., respectively. Consolidated cash and cash equivalents and short-term bank deposits totaled approximately $406.2 million as of June 30, 2025, compared to approximately $563.2 million as of December 31, 2024. Total equity as of June 30, 2025, was approximately $1.46 billion (representing 45.8% of the total consolidated statements of financial position), compared to approximately $1.39 billion (representing 46.1% of the total consolidated statements of financial position) as of December 31, 2024. 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The dividend will be paid in New Israeli Shekels with respect to the Company's ordinary shares traded on the Tel Aviv Stock Exchange and American Depositary Receipts traded on the Nasdaq Global Select accordance with Israeli tax law, the dividend is subject to withholding tax at source at the rate of 30% (if the recipient of the dividend is at the time of distribution or was at any time during the preceding 12-month period the holder of 10% or more of the Company's share capital) or 25% (for all other dividend recipients) of the dividend amount payable to each shareholder of record, subject to applicable exemptions. Debentures Covenants As of June 30, 2025, Formula Systems was in compliance with all of its financial covenants under the debenture series issued by it, based on the following achievements: Covenant 1 Target equity attributable to Formula Systems' shareholders (excluding non-controlling interests): required to be above $325 million. Actual equity attributable to Formula Systems' shareholders as of June 30, 2025 was $722.9 million. Covenant 2 Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for Formula Systems' Series C and D Secured Debentures): required to be below 65%. Actual ratio of net financial indebtedness to net capitalization, as of June 30, 2025, was 6.13%. Covenant 3 Target ratio of net financial indebtedness to EBITDA (based on the accumulated calculation for the four most recent quarters): required to be below 5. Actual ratio of net financial indebtedness to EBITDA as of June 30, 2025 was 0.23. Comments of Management Commenting on the results, Guy Bernstein, CEO of Formula Systems, said: 'The Formula Systems group continues to demonstrate strong and consistent performance, achieving record first-half results across key financial and operational metrics, including revenues, gross profit, operating income and EBITDA. These achievements reflect our ongoing focus on driving sustainable growth and operational excellence across all of our business segments. We are proud to be continually recognized as leaders in our fields of expertise, while implementing and advancing fast-growing technologies such as cloud, cyber, digital, data, DevOps, InsureTech and AI. These technologies allow us to generate meaningful value for our customers by helping them manage, streamline, accelerate and expand their businesses. Guided by our core values of innovation, professionalism, agility and transparency, we remain committed to consistently creating value for our customers and contributing to their long-term growth.' 'Matrix reported its best second quarter in history with record-breaking results recorded across all its key financial indices: revenues, gross profit, operating income, net income and EBITDA. Matrix revenues for the second quarter grew by 8.9% year over year, when measured based on New Israeli Shekel, reaching an all-time second quarter high of NIS 1.45 billion (approximately $405.3 million). Operating income for the second quarter increased by 13.9%, year over year, when measured based on New Israeli Shekel, reaching an all-time second quarter high of NIS 126.7 million (approximately $35.4 million). We are pleased with Matrix's continued recognition as a market leader in Israel in the implementation of the fastest-growing technologies, such as cloud, cyber, digital, data, DevOps and AI, which enable the company to create significant value for its customers in managing, streamlining, accelerating and making its businesses thrive. Our activities with the defense sector and defense industries continue to be extensive and demonstrate consistent growth. Matrix's leading position, particularly in high-demand technologies and solutions, its broad range of technological services and solutions, its wide sectoral diversification, and its extensive U.S. operations all enable Matrix to maintain its vitality, value, and leadership in the industry for its clients, partners, and investors. These strengths allow Matrix to continue demonstrating growth even during challenging political and security periods, including the mobilization of hundreds of Matrix employees to reserve duty.' 'Magic Software reported another strong quarter of growth and resilience, with a 11.3% year-over-year increase in revenues, reaching $151.6 million, crossing $150 million of quarterly revenues for the first time. This performance reflects the continued success of Magic Software's strategic focus on delivering value to its customers through innovative digital and cloud transformation solutions. While navigating a challenging political and security period, Magic Software's diversified portfolio and strong client relationships have enabled it to achieve consistent growth. Looking ahead, we are confident in Magic Software's ability to continue building on this momentum as it further invests in its business and enhances its capabilities to meet the evolving needs of its customers worldwide. Magic Software revised its full-year 2025 revenue guidance, increasing the previous estimated range of $593 million to $603 million to a revised range of $600 million to $610 million. This updated guidance reflects Magic Software's sustained operational momentum and favorable outlook for the second half of the fiscal year, representing an anticipated annual revenue growth rate of approximately 8.6% to 10.4% as compared to the prior fiscal year. We believe in Magic Software's ability to sustain momentum and drive long-term profitability, delivering lasting value to its shareholders.' 'During the second quarter of 2025, Sapiens completed the acquisitions of AdvantageGo and Candella. These transactions are expected to further strengthen Sapiens' position in the Property & Casualty (P&C) and Life segments, while supporting the continued execution of its 2025 strategic priorities, including the signing of new agreements and the deepening of customer relationships across its Life, P&C, and Reinsurance businesses. Sapiens' comprehensive insurance platform enables insurers to advance their digital transformation, enhance operational efficiency, and adopt AI-driven innovations. Sapiens reaffirmed its commitment to ongoing platform innovation, increased cross-selling opportunities, accelerated cloud adoption, and the global expansion of its Life & Annuities business, all of which are intended to serve as key growth drivers in 2026.' 'Alongside Sapiens' solid business performance this quarter, I am pleased to highlight the recently announced agreement with Advent for the acquisition of a majority stake in Sapiens ('Agreement'), which represents a significant milestone in Sapiens' journey. Under the terms of the Agreement, which has been unanimously approved by Sapiens' Board of Directors, Sapiens shareholders will receive $43.50 per common share in cash, representing a premium of approximately 64% over Sapiens' undisturbed closing share price of $26.52 on August 8, 2025, the last full trading day prior to this announcement, and a premium of approximately 51% to both the 30-day and 60-day volume-weighted average price as of August 8, 2025. Formula Systems is selling approximately 72% of its interest in Sapiens while rolling over the remaining 28%, which under the new structure will translate into an approximately 18% ownership stake. Retaining this meaningful minority position reflects our continued conviction in Sapiens' long-term strategy, its talented team, and the exciting opportunities ahead in partnership with Advent to accelerate the transition to AI and SaaS, delivering the next generation of insurance solutions for our customers. This partnership builds on Formula's longstanding commitment to innovation while bringing in Advent's global expertise and resources. Customers can be assured that the trusted relationships, service quality, and industry leadership they have relied upon will remain, strengthened by a shared vision for driving the future of insurance technology. The transaction is expected to close in Q4 2025 or Q1 2026, subject to the satisfaction of customary closing conditions, including approval by Sapiens' shareholders and receipt of regulatory approvals. Subject to conditions precedent, Formula estimates an expected capital gain of approximately $775 million before costs in its consolidated financial statements upon closing.' 'Michpal Technologies' is currently in advanced stages of preparation for an initial public offering (the 'IPO'), subject to prevailing market conditions, regulatory approvals and other customary closing conditions. No assurance can be given as to the timing, pricing or ultimate terms of the IPO, nor that the IPO will be completed in accordance with the anticipated timeline or at all. Michpal Technologies, together with its subsidiaries (collectively, the 'Michpal Group'), engages in the fields of payroll, recruitment, time and attendance, pension administration, and human resources, as well as in the provision of software solutions for business and financial processes. As part of its activities, the Michpal Group develops and offers a broad suite of services, software products and proprietary technological solutions covering the full spectrum of human capital management within organizations. These offerings integrate cloud-based, artificial intelligence and automation technologies, alongside advanced solutions for the management of complex (partly digital) business processes across multiple use cases. Michpal Technologies revenues for the first half of 2025 reached a record-breaking NIS 97.2 million (approximately $27 million), reflecting 29.1% year-over-year growth. Michpal Technologies is one of the most established companies in the Israeli market in the areas of payroll and pension solutions, with a proven track record, significant experience, and, in our assessment, a leading position in Israel in payroll and human resources solutions. Its subsidiaries, which generally exemplify technological integration, also possess longstanding reputations in a variety of technological activities and solutions. This enables the Michpal Group to provide a comprehensive and innovative portfolio of solutions, creating synergies between payroll and Human Resources systems on the one hand, and financial and operational systems on the other.' 'TSG concluded the first half of 2025 with record-breaking results, demonstrating significant growth in revenue and profits. Revenues for the first half increased by approximately 35% year over year to a first-half record-breaking NIS 205.6 million (approximately $57.2 million). Operating income for the first half of 2025 increased by 49.8% year-over-year to NIS 18.5 million (approximately $5.1 million), compared to NIS 12.4 million (approximately $3.4 million) in the same period last year. TSG continues to advance the expansion and enhancement of its operations while strengthening its marketing and sales capabilities both domestically and internationally. TSG has also expanded product development across its two main sectors and is actively pursuing mergers and acquisitions initiatives to enhance its capabilities and further capitalize on its business potential.' 'Over the recent period, Zap Group, Israel's leading consumer websites company, has demonstrated agility in adapting to evolving market dynamics. The launch of its groundbreaking E-Commerce Marketplace platform marked a pivotal transformation in its business model. By integrating cutting-edge technology and service-driven solutions, Zap Group has enhanced its relationships with small and medium-sized businesses, driving higher sales volumes, while deepening connections with end consumers through a 360-degree, holistic experience. The Marketplace platform is delivering strong and consistent results, with tens of thousands of transactions and revenues in the tens of millions of NIS. It currently hosts over 400 active stores offering more than 100,000 products, highlighting its established market presence and role as a key growth engine for Zap Group. The platform enables businesses to engage directly with consumers, fostering personalized relationships, leveraging data-driven insights, and effectively managing customer journeys. This innovation positions Zap Group at the forefront of Israel's digital economy. In response to broader economic challenges, including the political and security situations in Israel, Zap Group has adopted a prudent approach to investments and operations. While prioritizing operational efficiency and cost optimization, Zap Group remains committed to growth. As it continues to expand its digital platforms, enhance customer engagement, and optimize data management, Zap Group is well-positioned to deliver seamless and value-driven e-commerce experiences.' Stand-Alone Financial Measures This press release presents, further below, certain stand-alone financial measures to reflect Formula Systems' stand-alone financial position in reference to its assets and liabilities as the parent company of its group of companies. These financial measures are prepared consistently with the accounting principles applied in the consolidated financial statements of the group. Such measures include investments in subsidiaries and a jointly controlled entity measured at cost adjusted by Formula Systems' share in the investees' accumulated undistributed earnings and other comprehensive income or loss. Formula Systems believes that these financial measures provide useful information to management and investors regarding Formula Systems' stand-alone financial position. Formula Systems' management uses these measures to compare the Company's performance in the current period to that of prior periods for trend analysis. These measures are also used in financial reports prepared for management and in quarterly financial reports presented to the Company's board of directors. The Company believes that the use of these stand-alone financial measures provides an additional tool for investors to use in evaluating Formula Systems' financial position. Management of the Company does not consider these stand-alone measures in isolation or as an alternative to financial measures determined in accordance with GAAP. Formula Systems urges investors to review the consolidated financial statements which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company's business or financial position. Important Note re: Potential Initial Public Offering of Michpal Technologies This press release is not an offer for sale of securities of Michpal Technologies. Securities of Michpal Technologies may not be offered or sold in the United States absent registration under the Securities Act of 1933, as amended, or an exemption from the registration requirements thereunder. Any potential initial public offering of securities of Michpal Technologies will only occur pursuant to an effective registration statement filed under the U.S. Securities Act of 1933, as amended, and a prospectus forming a part thereof. About Formula Systems Formula Systems, whose ordinary shares are traded on the Tel-Aviv Stock Exchange and ADSs are traded on the Nasdaq Global Select Market, is a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products. For more information, visit Press Contact: Formula Systems (1985) Ltd. +972-3-5389487 ir@ Forward Looking Statements Certain matters discussed in this press release that are incorporated herein and therein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on Formula Systems' ('we,' 'us' or 'our') beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words 'anticipate,' 'believe,' 'estimate,' 'expect,' 'may,' 'will,' 'plan' and similar expressions. Such statements reflect our current views with respect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: adverse macro-economic trends and their duration, including persistent inflation, relatively high interest rates, and supply chain delays, which trends may last for a significant period and materially adversely affect our results of operations; the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the degree of our success in developing and deploying new technologies for software solutions that address the updated needs of our customers and serve as the basis for our revenues; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers' systems particularly in the current hybrid office/work-from-home environment; risks related to industries, such as the insurance, healthcare, defense and the telecom, in which certain of our clients operate; risks posed by our global sales and operations, such as changes in regulatory requirements, supply chain disruptions, geopolitical, wide-spread viruses and epidemics or fluctuations in currency exchange rates; and risks related to our and our subsidiaries' principal location in Israel. While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading 'Item 3.D Risk Factors' in our most recent Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission on May 14, 2025, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance, events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, or to conform those statements to actual results or to changes in our expectations. FORMULA SYSTEMS (1985) LTD. CONSOLIDATED CONDENSED STATEMENTS OF PROFIT OR LOSS U.S. dollars in thousands (except per share data) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Unaudited Unaudited Revenues 743,369 667,680 1,498,051 1,366,081 Cost of revenues 557,874 501,234 1,131,848 1,035,420 Gross profit 185,495 166,446 366,203 330,661 Research and development costs, net 23,821 20,432 44,909 40,649 Selling, marketing and general and administrative expenses 93,785 80,975 182,861 162,388 Operating income 67,889 65,039 138,433 127,624 Financial expenses, net 10,226 3,829 15,764 9,431 Income before taxes on income 57,663 61,210 122,669 118,193 Taxes on income 14,428 13,650 29,880 27,108 Income after taxes 43,235 47,560 92,789 91,085 Share of profit (loss) of companies accounted for at equity, net 211 (135 ) 1,039 (32 ) Net income 43,446 47,425 93,828 91,053 Net income attributable to non-controlling interests 28,393 28,586 59,459 55,055 Net income attributable to Formula Systems shareholders 15,053 18,839 34,369 35,998 Earnings per share (basic) 0.98 1.23 2.26 2.36 Earnings per share (diluted) 0.95 1.20 2.20 2.31 Number of shares used in computing earnings per share (basic) 15,308,389 15,304,355 15,308,014 15,303,811 Number of shares used in computing earnings per share (diluted) 15,758,290 15,624,160 15,741,968 15,597,645 FORMULA SYSTEMS (1985) LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION U.S. dollars in thousands June 30, December 31, 2025 2024 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents 393,190 507,799 Short-term deposits 12,975 55,401 Trade receivables, net 883,206 803,235 Prepaid expenses and other accounts receivable 109,612 89,882 Inventories 48,100 30,728 Total current assets 1,447,083 1,487,045 NON-CURRENT ASSETS: Long-term investments and receivables 65,344 54,629 Deferred taxes 39,572 33,850 Investments in companies accounted for at equity 35,673 39,196 Property, plants and equipment, net 55,985 51,795 Right-of-use assets 170,188 156,225 Intangible assets, net and goodwill 1,382,824 1,192,156 Total non-current assets 1,749,586 1,527,851 Total assets 3,196,669 3,014,896 LIABILITIES AND EQUITY CURRENT LIABILITIES: Loans from banks and others 158,385 141,782 Debentures 93,410 86,782 Current maturities of lease liabilities 49,649 45,240 Trade payables 287,712 296,211 Deferred revenues 205,175 173,959 Employees and payroll accrual 239,596 234,845 Other accounts payable 93,116 98,046 Dividend payable 7,139 - Liabilities in respect of business combinations 8,348 9,191 Put options of non-controlling interests 50,715 52,420 Total current liabilities 1,193,245 1,138,476 LONG-TERM LIABILITIES: Loans from banks and others 79,319 62,733 Debentures 170,561 188,090 Lease liabilities 132,549 119,586 Other long-term liabilities 12,615 11,708 Deferred taxes 51,421 42,894 Deferred revenues 16,672 12,522 Liabilities in respect of business combinations 8,074 8,751 Put options of non-controlling interests 56,882 30,553 Employees benefit liabilities 12,801 10,238 Total long-term liabilities 540,894 487,075 EQUITY Total equity attributable to Formula Systems (1985) Ltd. shareholders 722,920 679,338 Non-controlling interests 739,610 710,007 Total equity 1,462,530 1,389,345 Total liabilities and equity 3,196,669 3,014,896 FORMULA SYSTEMS (1985) LTD. STAND-ALONE STATEMENTS OF FINANCIAL POSITION U.S. dollars in thousands June 30, December 31, 2025 2024 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents 56,603 25,599 Dividend receivable 9,438 12,013 Other accounts receivable and prepaid expenses 5,220 4,798 Total current assets 71,261 42,410 NON-CURRENT ASSETS: Investment in subsidiaries and a jointly controlled entity (*) Matrix IT Ltd. 177,573 162,133 Sapiens International Corporation N.V. 272,760 264,349 Magic Software Enterprises Ltd. 134,556 133,786 TSG IT Advanced Systems Ltd. 22,107 20,453 Michpal Technologies Ltd. 80,241 69,127 ZAP Group 55,975 55,392 Other 45,563 47,722 Total investment in subsidiaries and a jointly controlled entity 788,775 752,962 Other investments and Long term receivables 23,408 24,860 Property, plants and equipment, net 10 10 Total non-current assets 812,193 777,832 Total assets 883,454 820,242 LIABILITIES AND EQUITY CURRENT LIABILITIES: Loans from banks and others 2,478 2,294 Debentures 49,562 45,807 Trade payables 1,268 1,146 Other accounts payable 4,189 2,109 Put options of non-controlling interests 1,185 1,005 Dividends payable 7,139 - Total current liabilities 65,821 52,361 LONG-TERM LIABILITIES: Loans from banks and others 2,059 3,047 Debentures 92,654 85,496 Total long-term liabilities 94,713 88,543 EQUITY 722,920 679,338 TOTAL LIABILITIES AND EQUITY 883,454 820,242 (*) The investments' carrying amounts are measured consistent with the accounting principles applied in the consolidated financial statements of the Group and representing the investments' cost adjusted by Formula's share in the investees' accumulated undistributed earnings and other comprehensive income or loss. 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Opera Reports Second Quarter 2025 Results Ahead of Expectations, Raises Full-Year Guidance
Opera Reports Second Quarter 2025 Results Ahead of Expectations, Raises Full-Year Guidance

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Opera Reports Second Quarter 2025 Results Ahead of Expectations, Raises Full-Year Guidance

Revenue grew 30% year-over-year to $143.0 million, and exceeded the guidance range Adjusted EBITDA of $32.1 million, a 22% margin, also exceeded the guidance range Opera yet again raises growth expectations, guiding full-year revenue of $585 – 597 million with 23% adjusted EBITDA margin at the midpoints OSLO, Norway, Aug. 19, 2025 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), a leading global browser and AI agent company, today announced financial results for the quarter ended June 30, 2025. "Our strong second quarter results, with both revenue and adjusted EBITDA surpassing expectations, were fueled by continued momentum in AI powered intent-based advertising, in particular for e-commerce, and an acceleration to double-digit growth in search revenue. Our financial results and solid balance sheet provide a strong foundation as we continue to develop the world's most innovative web browsers," said co-CEO Lin Song. "In May we announced Opera Neon, a new agentic browser that redefines the role and productivity potential of the browser. With its native and fully-integrated AI agent, Opera Neon combines advanced reasoning and summarization with seamless access to user context, unlocking a transformative browsing experience that doesn't just execute tasks, but understands and anticipates them. With 30 years of pioneering web productivity, and scale far greater than most web-based AI platforms, we will make AI widely accessible, naturally integrated, and with immediate productivity benefits for our users," continued Mr. Song. Second Quarter and First Half 2025 Financial Highlights Three Months Ended June 30,Six Months Ended June 30, In thousands, except percentages and per share amounts2024 2025 % Change 2024 2025 % ChangeRevenue$ 109,734 $ 142,96230 %$ 211,605 $ 285,67835 %Net income$ 19,303 $ 15,676(19) %$ 34,142 $ 33,959(1) % Net income margin 18 % 11 %16 % 12 % Adjusted net income (1)$ 20,773 $ 23,72314 %$ 38,450 $ 47,87825 % Adjusted net income margin 19 % 17 %18 % 17 % Adjusted EBITDA (1)$ 26,606 $ 32,09421 %$ 51,519 $ 64,35225 % Adjusted EBITDA margin 24 % 22 %24 % 23 % Diluted earnings per share$ 0.22 $ 0.17(20) %$ 0.38 $ 0.38(1) % Adjusted diluted earnings per share (1)$ 0.23 $ 0.2613 %$ 0.43 $ 0.5323 %Net cash flow from operating activities$ 17,416 $ 33,11990 %$ 48,438 $ 49,0631 % As percentage of adjusted EBITDA 65 % 103 %94 % 76 % Free cash flow from operations (1)$ 13,525 $ 29,073115 %$ 21,815 $ 41,09988 % As percentage of adjusted EBITDA 51 % 91 %42 % 64 %_______________ (1) See the sections below titled "Non-IFRS Financial Measures" and "Reconciliations of Non-IFRS Financial Measures" for explanations and reconciliations of non-IFRS financial measures. Second Quarter 2025 and Recent Business Highlights Advertising revenue grew 44% year-over-year to $92.9 million, representing 65% of total revenue, driven by continued strong momentum from e-commerce partners, which remained the fastest-growing vertical. Search revenue grew 11% year-over-year to $49.6 million, accounting for 35% of total revenue, supported by the ongoing shift of our user base toward higher-ARPU regions. Opera had 289 million average monthly active users ("MAUs") in the quarter, with annualized average revenue per user ("ARPU") of $1.97, an increase of 35% versus the second quarter of 2024. The Opera GX gaming browser had 33 million average MAUs in the quarter across PC and mobile, up 11% year-over-year. Net cash flow from operating activities was $33.1 million, representing 103% of adjusted EBITDA. At quarter-end, cash and cash equivalents totaled $133.8 million. A dividend of $0.40 per share under our recurring semi-annual dividend program was announced in June and paid in July. Opera Neon, a new agentic browser that rethinks the role of the browser in the coming generation of the AI agentic web, was announced for public rollout later this year. MiniPay surpassed 9 million activated wallets and has processed over 250 million transactions since its launch, with a 255% activation surge in the second quarter, making it one of the fastest-growing non-custodial stablecoin wallets globally. VPN Pro was revamped to offer faster speeds, reinforced privacy and security, and more locations worldwide. Second Quarter 2025 Financial Results All comparisons in this section are relative to the second quarter of 2024 unless otherwise stated. Revenue increased 30% to $143.0 million. Advertising revenue increased 44% to $92.9 million. Search revenue increased 11% to $49.6 million. Technology licensing and other revenue was $0.5 million. Operating expenses increased 40% to $124.9 million. The total amount of technology and platform fees, content cost and cost of inventory sold, all being costs of revenue, was $50.9 million, or 36% of revenue, stable versus the first quarter of 2025. Personnel expenses excluding share-based compensation increased 5% to $18.7 million. Share-based compensation expenses amounted to $8.8 million, a 354% increase versus $1.9 million in the second quarter of 2024. The increase follows the granting of approximately 1.9 million share-equivalent RSUs in early 2025 and front-loaded cost recognition of multi-year grants. Marketing and distribution expenses increased 17% to $34.0 million, stable versus the first quarter of 2025. Depreciation and amortization increased 15% to $4.6 million. All other operating expenses decreased 7% to $8.0 million, mostly due to lower spend on professional services. Operating profit was $18.1 million, representing a 13% margin, compared to an operating profit of $21.9 million and a margin of 20% in the second quarter of 2024. Net finance loss was $0.3 million, a result of foreign exchange loss of $1.0 million, partially offset by $0.7 million in net interest income. Income tax expense was $2.1 million, corresponding to an effective tax rate of 12%, and representing 7% of adjusted EBITDA. This compares to income tax expense of $2.8 million in the second quarter of 2024, representing 11% of adjusted EBITDA. Net income was $15.7 million, representing a 11% margin, compared to net income of $19.3 million and a margin of 18% in the second quarter of 2024. Adjusted net income was $23.7 million, representing a 17% margin and an increase of 14% relative to $20.8 million and a 19% margin in the second quarter of 2024. Adjusted EBITDA was $32.1 million, representing a 22% margin and an increase of 21% relative to $26.6 million and a 24% margin in the second quarter of 2024. Diluted earnings per share was $0.17, whereas adjusted diluted earnings per share was $0.26. Net cash flow from operating activities was $33.1 million, or 103% of adjusted EBITDA. Free cash flow from operations was $29.1 million, or 91% of adjusted EBITDA. Business Outlook Third Quarter 2025 Guidance Full-Year 2025 GuidanceRevenue$146 – 149 million $585 – 597 millionYear-over-year revenue growth (1)20 %23 % Adjusted EBITDA (2)$34 – 36 million $136 – 140 millionAdjusted EBITDA margin (1)24 %23 % _______________ (1) The percentages shown for revenue growth and adjusted EBITDA margin have been calculated based on the midpoints of the revenue and adjusted EBITDA guidance. (2) See the section below titled "Non-IFRS Financial Measures" for explanations of non-IFRS financial measures. "We saw significant acceleration in our revenue in the second half of last year, followed by unprecedented sequential growth from the seasonal peak of the fourth quarter of last year into the first quarter of this year. In this most recent quarter, we saw the expansion of global opportunities offset the impact of tariff-related headwinds in the United States," said Frode Jacobsen, CFO. "Our rapidly scaling advertising revenue has proven to be resilient in an otherwise volatile environment. We also saw search revenue return to double-digit growth as expected, which adds to our ability to significantly raise our guidance for the year," continued Mr. Jacobsen. Conference Call and Webcast Information Opera's management will host a conference call to discuss the second quarter 2025 financial results at 8:00 a.m. ET today. The live webcast of the conference call can be accessed at our investor relations website at along with the earnings press release and financial tables. Following the call, a replay will be available at the same website. We also provide announcements on our investor relations website at regarding our financial performance and other matters, including SEC filings, press releases, slide presentations, business blog posts and information on corporate governance. Non-IFRS Financial Measures In addition to revenue, net income, net cash flow from operating activities and other financial measures presented in accordance with IFRS Accounting Standards, we use adjusted net income, adjusted EBITDA, adjusted diluted earnings per share and free cash flow from operations to manage our business, make planning decisions, evaluate our performance, and allocate resources. We believe adjusted net income, adjusted EBITDA and adjusted diluted earnings per share provide meaningful supplemental information regarding our financial performance by excluding certain items that may not be indicative of recurring core business operating results. We believe free cash flow from operations provides useful information regarding our ability to generate cash from business operations that is available for acquisitions and other investments, and for distributions to our shareholders, even though free cash flow from operations does not represent the residual cash flow available for discretionary expenditures. We define adjusted net income as net income excluding (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 expenses, and (vii) the income tax effect of these adjustments. Adjusted net income margin is calculated as adjusted net income divided by revenue, whereas adjusted diluted earnings per share is calculated as adjusted net income divided by the diluted weighted average number of shares outstanding. We define adjusted EBITDA as net income excluding (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 expenses, and (ix) other operating income. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue. We define free cash flow from operations as net cash flows from (used in) operating activities less (i) purchases of fixed and intangible assets, (ii) development expenditure and (iii) payment of lease liabilities. We believe the non-IFRS financial measures defined above are useful to investors both because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and because they are used by our institutional investors and the analyst community to help them analyze the health of our business. However, these non-IFRS financial measures should not be considered substitutes for, or superior to, the financial information presented in accordance with IFRS Accounting Standards. Our calculations of adjusted net income, adjusted EBITDA, adjusted diluted earnings per share and free cash flow from operations may differ from similarly-titled non-IFRS measures, if any, reported by our peers. In addition, the non-IFRS financial measures may be limited in their usefulness because they do not present the full economic effects of certain items of income, expenses and cash flows. We compensate for these limitations by providing reconciliations of our non-IFRS financial measures to the most closely related financial measures in IFRS Accounting Standards in the section titled "Reconciliations of Non-IFRS Financial Measures" included at the end of this earnings press release. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view our reported non-IFRS financial measures in conjunction with net income and net cash flow from operating activities. Safe Harbor Statement This press release contains statements of a forward-looking nature. These statements, including statements relating to the Company's future financial and operating results, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "may," "expect," "believe," "anticipate," "intend," "aim," "estimate," "seek," "plan," "potential," "continue," "ongoing," "target," "guidance," "is/are likely to," "future" and similar statements. Among other things, management's quotations and the Business Outlook section contain forward-looking statements. The Company may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which it operates. Potential risks and uncertainties include, but are not limited to, those relating to: implementations of tariffs and other trade-limiting policies, the duration and development of international wars and conflicts, such as in Ukraine and the Middle East, and related economic sanctions, as well as resulting changes in consumer behaviors; the outcome of regulatory processes or litigation involving the Company or its business partners; the Company and its goals and strategies; expected development and launch, and market acceptance, of products and services; Company's expectations regarding demand for and market acceptance of its brands, platforms and services; Company's expectations regarding changes in its user base, user retention and level of engagement; changes in consumer behavior, for example from increased adoption of AI powered services; Company's ability to attract, retain and monetize users; Company's ability to continue to develop new technologies, products and services and/or upgrade its existing technologies, products and services; quarterly variations in Company's operating results caused by factors beyond its control; and global macroeconomic conditions and their potential impact in the markets in which the Company has business. All information provided in this press release is as of the date hereof and is based on assumptions that the Company believes to be reasonable as of this date, and it undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Opera is included in the Company's filings with the SEC, including its annual reports on Form 20-F. About Opera Opera is a user-centric and innovative software company focused on enabling the best possible internet browsing experience across all devices. Hundreds of millions use the Opera web browsers for their unique and secure features on their mobile phones and desktop computers. Founded in 1995, and headquartered in Oslo, Norway, Opera is a public company listed on the Nasdaq stock exchange under the ticker symbol "OPRA". Download the Opera web browser and access other Opera products from Learn more about Opera at Opera Limited Consolidated Statement of Operations (In thousands, except per share amounts, unaudited)Three Months Ended June 30, Six Months Ended June 30,2024 2025 2024 2025Revenue$ 109,734 $ 142,962 $ 211,605 $ 285,678Other operating income 1,281181,6241Operating expenses: Technology and platform fees (1,893)(2,290)(5,656)(4,527)Content cost (901)(1,517)(1,871)(2,439)Cost of inventory sold (24,862)(47,055)(44,147)(94,588)Personnel expenses excluding share-based compensation (17,848)(18,657)(34,163)(36,225)Share-based compensation expenses (1,932)(8,764)(4,542)(14,764)Marketing and distribution expenses (29,026)(33,994)(58,491)(68,198)Credit loss expense 1431662076Depreciation and amortization (4,012)(4,634)(7,083)(9,067)Impairment of non-financial assets —(605)—(1,338)Other operating expenses (8,741)(7,521)(15,965)(15,354)Total operating expenses (89,072)(124,870)(171,711)(246,496)Operating profit 21,94318,10941,51839,184Share of net loss of equity-accounted investees —(8)—(15)Net finance income (expense): Finance income 9368941,7991,572Finance expense (173)(223)(315)(343)Net foreign exchange gain (loss) (578)(1,009)(1,405)(1,845)Net finance income (expense) 185(338)79(615)Income before income taxes 22,12817,76341,59638,553Income tax expense (2,825)(2,087)(7,454)(4,595)Net income attributable to Opera shareholders$ 19,303 $ 15,676 $ 34,142 $ 33,959 Earnings per share: Basic$ 0.22 $ 0.18 $ 0.39 $ 0.38Diluted$ 0.22 $ 0.17 $ 0.38 $ 0.38Weighted-average number of shares outstanding: Basic 88,45889,50588,45589,495Diluted 89,31590,31689,30390,305 Opera Limited Consolidated Statement of Comprehensive Income (In thousands, unaudited)Three Months Ended June 30, Six Months Ended June 30,2024 2025 2024 2025Net income$ 19,303 $ 15,676 $ 34,142 $ 33,959Other comprehensive income (loss): Items that may be reclassified to the Statement of Operations: Exchange differences on translation of foreign operations 811,960(165)3,113Other comprehensive income (loss) 811,960(165)3,113Total comprehensive income attributable to Opera shareholders$ 19,384 $ 17,636 $ 33,978 $ 37,072 Opera Limited Consolidated Statement of Financial Position (In thousands, unaudited)As of December 31, As of June 30,2024 2025Assets: Property and equipment$ 34,058 $ 33,949Goodwill 429,742430,504Intangible assets 97,50998,232Investment in OPay 258,300258,300Equity-accounted investments 1,2482,483Other non-current investments and financial assets 1,7601,925Deferred tax assets 1,0631,290Total non-current assets 823,681826,683Trade receivables 92,82396,772Other current receivables 4,5606,515Cash and cash equivalents 126,797133,823Other current assets 7,7245,894Total current assets 231,904243,005Total assets$ 1,055,585 $ 1,069,688 Equity: Share capital$ 18 $ 18Additional paid-in capital 647,212611,818Treasury shares (238,815)(238,815)Retained earnings 536,623584,566Foreign currency translation reserve (4,938)(1,825)Total equity attributable to Opera shareholders 940,100955,761Liabilities: Non-current lease liabilities 5,6315,253Deferred tax liabilities 8,6898,486Other non-current liabilities 7110Total non-current liabilities 14,39113,750Trade and other payables 75,28579,179Current lease liabilities 3,9554,473Income tax payable 3,1902,488Deferred revenue 5,4414,165Other current liabilities 13,2229,871Total current liabilities 101,093100,177Total liabilities 115,484113,927Total equity and liabilities$ 1,055,585 $ 1,069,688 Opera Limited Consolidated Statement of Changes in Equity (In thousands, except number of shares, unaudited)For the six months ended June 30, 2024:Number ofsharesoutstanding Sharecapital Additionalpaid-incapital Treasuryshares Retainedearnings Foreigncurrencytranslationreserve Total equityattributableto OperashareholdersAs of January 1, 2024 87,518,284 $ 18 $ 717,610 $ (238,815) $ 445,164 $ (4,127) $ 919,850Net income ————34,142—34,142Other comprehensive loss —————(165)(165)Cost of equity awards, net of tax ————3,625—3,625Issuance of shares upon exercise of equity awards 947,495——————Dividends ——(35,007)———(35,007)As of June 30, 2024 88,465,779 $ 18 $ 682,603 $ (238,815) $ 482,931 $ (4,292) $ 922,445 For the six months ended June 30, 2025:Number ofsharesoutstanding Sharecapital Additionalpaid-incapital Treasuryshares Retainedearnings Foreigncurrencytranslationreserve Total equityattributableto OperashareholdersAs of January 1, 2025 88,480,154 $ 18 $ 647,212 $ (238,815) $ 536,623 $ (4,938) $ 940,100Net income ————33,959—33,959Other comprehensive income —————3,1133,113Cost of equity awards, net of tax ————13,984—13,984Issuance of shares upon exercise of equity awards 1,033,137——————Dividends ——(35,395)———(35,395)As of June 30, 2025 89,513,291 $ 18 $ 611,818 $ (238,815) $ 584,566 $ (1,825) $ 955,761 Opera Limited Consolidated Statement of Cash Flows (In thousands, unaudited)Three Months Ended June 30, Six Months Ended June 30,2024 2025 2024 2025Cash flows from operating activities: Income before income taxes$ 22,128 $ 17,763 $ 41,596 $ 38,553Adjustments to reconcile income before income taxes to net cash flow from operating activities: Net finance (income) expense (185)338(79)615Share of net loss of equity-accounted investees —8—15Impairment of non-financial assets —605—1,338Depreciation and amortization 4,0124,6347,0839,067Cost of equity awards 2,0648,2594,22214,020Other adjustments 1,167(374)589(945)Changes in working capital: Trade and other receivables (1,759)5,3116,532(5,723)Other current assets 1,2271821,324619Trade and other payables 2768,6307461,937Deferred revenue (2,573)(226)(5,142)(1,276)Other liabilities (4,920)(6,552)(4,251)(3,411)Income taxes paid (4,019)(5,460)(4,182)(5,747)Net cash flow from operating activities 17,41633,11948,43849,063Cash flows from investing activities: Purchase of equipment (1,232)(389)(21,466)(985)Development expenditure (1,729)(2,476)(3,120)(4,707)Investment in an associate ———(1,250)Sale of long-term investments 500—500—Interest received 8698941,6441,572Net cash flow used in investing activities (1,592)(1,971)(22,441)(5,370)Cash flows from financing activities: Dividends paid ——(9,874)(35,395)Repayment of borrowings 111———Payment of lease liabilities (930)(1,181)(2,038)(2,272)Interest paid (130)(189)(272)(309)Net cash flow used in financing activities (949)(1,370)(12,184)(37,976)Net change in cash and cash equivalents 14,87629,77713,8145,717Cash and cash equivalents at beginning of period 91,338103,54693,863126,797Effect of exchange rate changes on cash and cash equivalents (1,858)500(3,320)1,308Cash and cash equivalents at end of period$ 104,356 $ 133,823 $ 104,356 $ 133,823 Opera Limited Supplemental Financial Information (In thousands, unaudited)RevenueThe following table presents revenue disaggregated by type:Three Months Ended June 30, Six Months Ended June 30,2024 2025 2024 2025Advertising$ 64,631 $ 92,896 $ 123,279 $ 188,502Search 44,54749,58587,68696,172Technology licensing and other revenue 5564806401,004Total revenue$ 109,734 $ 142,962 $ 211,605 $ 285,678 Share-based Compensation ExpensesThe table below presents the amounts of share-based compensation expenses:Three Months Ended June 30, Six Months Ended June 30,2024 2025 2024 2025Cost of Opera-granted awards$ (636) $ (6,990) $ (1,415) $ (14,288)Cost of parent-granted awards (1) (1,430)(1,269)(2,809)268Total cost of equity awards (2,066)(8,259)(4,224)(14,020)Social security contributions for Opera-granted awards 134(504)(318)(744)Total share-based compensation expenses$ (1,932) $ (8,764) $ (4,542) $ (14,764)_______________ (1) Kunlun, the majority shareholder of Opera, has granted equity awards to Opera employees as compensation for services provided to Opera. Opera does not have any obligation to settle the awards granted by Kunlun and such awards do not lead to dilution for Opera shareholders. Other Operating ExpensesThe table below presents the items of other operating expenses:Three Months Ended June 30, Six Months Ended June 30,2024 2025 2024 2025Hosting$ (2,809) $ (3,240) $ (5,817) $ (6,170)Audit, legal and other advisory services (2,588)(1,699)(4,188)(3,902)Software license fees (1,211)(836)(2,452)(1,675)Rent and other office expenses (576)(506)(1,172)(1,137)Travel (517)(512)(947)(1,011)Other (1,042)(727)(1,390)(1,460)Total other operating expenses$ (8,741) $ (7,521) $ (15,965) $ (15,354) Opera Limited Reconciliations of Non-IFRS Financial Measures (In thousands, except per share amounts, unaudited)The following table presents a reconciliation of adjusted net income to net income:Three Months Ended June 30, Six Months Ended June 30,2024 2025 2024 2025Net income$ 19,303 $ 15,676 $ 34,142 $ 33,959Add (deduct): Share of net loss of equity-accounted investees —8—15Impairment of non-financial assets —605—1,338Amortization of acquired intangible assets 6456451,2901,290Share-based compensation expenses 1,9328,7644,54214,764Income tax effect on adjustments (1,107)(1,975)(1,524)(3,489)Adjusted net income$ 20,773 $ 23,723 $ 38,450 $ 47,878Diluted weighted-average number of shares outstanding 89,31590,31689,30390,305Adjusted diluted earnings per share$ 0.23 $ 0.26 $ 0.43 $ 0.53 The following table is a reconciliation of adjusted EBITDA to net income:Three Months Ended June 30, Six Months Ended June 30,2024 2025 2024 2025Net income$ 19,303 $ 15,676 $ 34,142 $ 33,959Add (deduct): Income tax expense 2,8252,0877,4544,595Net finance (income) expense (185)338(79)615Share of net loss of equity-accounted investees —8—15Impairment of non-financial assets —605—1,338Depreciation and amortization 4,0124,6347,0839,067Share-based compensation expenses 1,9328,7644,54214,764Other operating income (1,281)(18)(1,624)(1)Adjusted EBITDA$ 26,606 $ 32,094 $ 51,519 $ 64,352 The table below reconciles free cash flow from operations to net cash flow from operating activities:Three Months Ended June 30, Six Months Ended June 30,2024 2025 2024 2025Net cash flow from operating activities$ 17,416 $ 33,119 $ 48,438 $ 49,063Deduct: Purchase of equipment (1,232)(389)(21,466)(985)Development expenditure (1,729)(2,476)(3,120)(4,707)Payment of lease liabilities (930)(1,181)(2,038)(2,272)Free cash flow from operations$ 13,525 $ 29,073 $ 21,815 $ 41,099 View original content to download multimedia: SOURCE Opera Limited

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