Evolution AB reported a slight increase in revenue in the third quarter, with Chief Executive Officer Martin Carlesund describing the period as “uneventful”.
The Sweden-listed company saw net revenue rise 3.7% year-on-year to €526.1m ($589.3m). The main growth driver was a 10% increase in revenue from RNG games.
Adjusted EBITDA rose 2.7% year-on-year, from €336.9m ($377.8m) to €345.9m ($388m). However, the EBITDA margin declined from 66.4% to 65.8%.
Carlesund on “Regulatory Fickleness” in Brazil
Operating profit fell by €6.3m ($7.1m) to €290.3m ($325.3m) in an otherwise steady quarter that ended with major news: the Brazilian government abolished regulation of the legal gambling market.
Earlier this month, Evolution temporarily closed its Brazilian studio following these developments. However, Brazil is not a major market for the company, and further growth in other Latin American countries is expected to offset the negative impact over time.
Nevertheless, Martin Carlesund spoke passionately about the situation during the company’s investor call.
“It’s highly unfortunate that a populist agenda can overthrow a regulatory framework that has only been in place for one and a half years,” he said.
“However, Evolution has the advantage of our global scale and size, and it’s not the first time we had to handle the regulatory fickleness of the market.
“For now, we have closed the studio, but we are ready to reopen on short notice… If Brazil reopens its market, we are ready to accelerate.”
Evolution Sees Sequential Growth Across All Markets
Evolution’s net revenue in Europe and Asia increased slightly quarter-on-quarter. However, European revenue declined 4.7% year-on-year, from €182.3m ($204.2m) to €173.7m ($194.6m).
In North America, revenue grew 13.6% year-on-year to €84.3m ($94.4m), compared with €74.2m ($83.1m) in Q3 2025. Latin American revenue increased 23.1%, from €39.8m ($44.6m) to €49m ($54.9m).
Africa and other regions contributed €27.1m ($30.3m) to total revenue, up from €21.9m ($24.5m) in Q3 2025.
A “Spectacular” 2027?
“On a quarter-on-quarter basis, all regions contributed to growth for the first time since 2024.
“Q3 2026 has been uneventful, maybe even a little boring, and business as usual. It’s a state that I like. It helps us to focus on things that matter.”
Evolution remains locked in a long-standing legal battle with rival provider Playtech. The business confirmed that litigation is expected to extend at least through 2026.
The business has not changed its full-year outlook, but Carlesund assured investors that it will have a “spectacular roadmap” for a “spectacular year” in 2027.
Evolution remains embroiled in a long-running legal dispute with rival provider Playtech. The company confirmed that the litigation is expected to continue at least through the end of 2026.
The company has left its full-year outlook unchanged. However, Carlesund assured investors that Evolution would have a “spectacular roadmap” for a “spectacular year” in 2027.
On the day the financial report was published, Evolution’s share price rose 2.64% to SEK 833.40 ($89.70), representing a gain of 33.5% since the beginning of the year.
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