Note 7 - Income Tax (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Major components of tax expense (income) [abstract] |
|
| Summary of Income Tax Expense |
The table below presents the components of the income tax expense (in thousands):
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Year Ended December 31, |
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2023 |
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|
2024 |
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|
2025 |
|
Current income taxes |
|
$ |
(7,227 |
) |
|
$ |
(10,757 |
) |
|
$ |
(18,950 |
) |
Deferred income taxes |
|
|
531 |
|
|
|
(6,884 |
) |
|
|
2,016 |
|
Income tax expense |
|
$ |
(6,697 |
) |
|
$ |
(17,642 |
) |
|
$ |
(16,934 |
) |
|
| Reconciliation of Differences Between Expected Income Tax Expense Expressed as Accounting Profit Multiplied by Corporate Income Tax Rate and Actual Income Tax Expense |
As Opera is headquartered in Norway and a significant portion of its taxable income is generated by Opera Norway AS, a Norwegian subsidiary, the reconciliation below compares income tax expense calculated at the Norwegian statutory corporate income tax rate of 22% with Opera’s reported income tax expense (in thousands, except for percentages):
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Year Ended December 31, |
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2023 |
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|
2024 |
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|
2025 |
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|
|
Amount |
|
|
Effective Tax Rate (1) |
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|
Amount |
|
|
Effective Tax Rate (1) |
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|
Amount |
|
|
Effective Tax Rate (1) |
|
Income before income taxes |
|
$ |
159,997 |
|
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|
|
|
$ |
98,412 |
|
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|
$ |
125,216 |
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|
Tax using the Norwegian tax rate of 22% |
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|
(35,199 |
) |
|
|
22.0 |
% |
|
|
(21,651 |
) |
|
|
22.0 |
% |
|
|
(27,548 |
) |
|
|
22.0 |
% |
Differences between computed tax rate and effective tax rate due to: |
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Different tax rates of subsidiaries operating in other jurisdictions |
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5,346 |
|
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|
(3.3 |
) |
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|
7,945 |
|
|
|
(8.1 |
) |
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|
8,738 |
|
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|
(7.0 |
) |
Pillar Two top-up taxes |
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— |
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— |
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— |
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— |
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|
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(939 |
) |
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|
0.8 |
|
Changes in tax rates |
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|
(64 |
) |
|
|
— |
|
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|
2 |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
Non-deductible expenses |
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|
(4,588 |
) |
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|
2.9 |
|
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(3,861 |
) |
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3.9 |
|
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(4,831 |
) |
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|
3.9 |
|
Tax-exempt income |
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23,149 |
|
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|
(14.5 |
) |
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2,986 |
|
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(3.0 |
) |
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|
8,399 |
|
|
|
(6.7 |
) |
Foreign withholding taxes |
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|
270 |
|
|
|
(0.2 |
) |
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|
(138 |
) |
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0.1 |
|
|
|
(7 |
) |
|
|
— |
|
Recognition and derecognition of deferred tax assets |
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|
4,848 |
|
|
|
(3.0 |
) |
|
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(1,554 |
) |
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|
1.6 |
|
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|
482 |
|
|
|
(0.4 |
) |
Changes in estimates related to prior years |
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|
(67 |
) |
|
|
— |
|
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|
48 |
|
|
|
— |
|
|
|
(503 |
) |
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0.4 |
|
Movements in exchange rates |
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(391 |
) |
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0.2 |
|
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(1,419 |
) |
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1.4 |
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(718 |
) |
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0.6 |
|
Income tax expense at effective tax rate |
|
$ |
(6,697 |
) |
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|
4.2 |
% |
|
$ |
(17,642 |
) |
|
|
17.9 |
% |
|
$ |
(16,934 |
) |
|
|
13.5 |
% |
_______________ (1)Percentages have been rounded for presentation purposes and may differ from unrounded results.
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| Reconciliation of Deferred Taxes by Type of Temporary Differences |
The following table shows a reconciliation of deferred taxes by type of temporary differences (in thousands):
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Property and Equipment |
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Intangible Assets |
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Trade Receivables |
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Equity Awards |
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Intra-group Interest Expenses Carried Forward |
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Tax Losses Carried Forward |
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Other |
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Total |
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Net deferred tax asset (liability) as of January 1, 2024 |
|
$ |
(38 |
) |
|
$ |
(19,978 |
) |
|
$ |
367 |
|
|
$ |
4,094 |
|
|
$ |
7,648 |
|
|
$ |
5,247 |
|
|
$ |
979 |
|
|
$ |
(1,679 |
) |
Income (expense) recognized in the Statement of Operations |
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|
(1,188 |
) |
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|
568 |
|
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|
(346 |
) |
|
|
(401 |
) |
|
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(1,497 |
) |
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(4,081 |
) |
|
|
61 |
|
|
|
(6,884 |
) |
Expense recognized in the Statement of Comprehensive Income |
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— |
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— |
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— |
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— |
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— |
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— |
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(55 |
) |
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|
(55 |
) |
Deferred tax benefit recognized in equity |
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|
— |
|
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|
— |
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— |
|
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|
993 |
|
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— |
|
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— |
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|
— |
|
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|
993 |
|
Net deferred tax asset (liability) as of December 31, 2024 |
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|
(1,226 |
) |
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|
(19,410 |
) |
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|
21 |
|
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|
4,686 |
|
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|
6,151 |
|
|
|
1,166 |
|
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|
985 |
|
|
|
(7,626 |
) |
Income (expense) recognized in the Statement of Operations |
|
|
(644 |
) |
|
|
568 |
|
|
|
(25 |
) |
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|
2,133 |
|
|
|
(864 |
) |
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|
587 |
|
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|
262 |
|
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|
2,016 |
|
Expense recognized in the Statement of Comprehensive Income |
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|
— |
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— |
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— |
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— |
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— |
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|
— |
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|
88 |
|
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|
88 |
|
Deferred tax benefit recognized in equity |
|
|
— |
|
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|
— |
|
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|
— |
|
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(2,105 |
) |
|
|
— |
|
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|
— |
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|
|
— |
|
|
|
(2,105 |
) |
Net deferred tax asset (liability) as of December 31, 2025 |
|
$ |
(1,870 |
) |
|
$ |
(18,842 |
) |
|
$ |
(4 |
) |
|
$ |
4,714 |
|
|
$ |
5,287 |
|
|
$ |
1,753 |
|
|
$ |
1,335 |
|
|
$ |
(7,627 |
) |
|
| Deferred Tax Assets and Liabilities |
After offsetting deferred tax assets and liabilities within the same tax jurisdiction, the following amounts are presented in the Statement of Financial Position (in thousands):
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As of December 31, |
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|
2024 |
|
|
2025 |
|
Deferred tax assets |
|
$ |
1,063 |
|
|
$ |
1,585 |
|
Deferred tax liabilities |
|
$ |
8,689 |
|
|
$ |
9,212 |
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|