Evolution Q3 Revenue Rises 3.7% as Brazilian Studio Closes

Evolution AB published its interim report for January–September 2026 on October 23, 2026, reporting third-quarter net revenues of EUR 526.1 million, up 3.7 percent from a year earlier, and adjusted EBITDA of EUR 345.9 million at a 65.8 percent margin. The report also disclosed that Evolution’s studio in Brazil closed on October 5, 2026, after the end of the reporting period.

Profit for the third quarter amounted to EUR 243.3 million, against EUR 252.3 million in the corresponding period of 2025, with basic earnings per share of EUR 1.31 against EUR 1.25. Operating profit came to EUR 290.3 million (296.6), an operating margin of 55.2 percent against 58.5 percent, according to the full interim report. Revenue growth adjusted for changes in foreign exchange rates is estimated at 4.0 percent year-on-year.

For the first nine months, net revenues rose 0.3 percent to EUR 1,557.0 million (1,552.3). Adjusted EBITDA declined 0.2 percent to EUR 1,022.2 million (1,024.1), a margin of 65.7 percent (66.0), and profit amounted to EUR 746.7 million (755.3), or EUR 3.85 (3.71) per share. The adjustments to EBITDA consist of a EUR 5.6 million settlement fee with the UK Gambling Commission and EUR 6.5 million of termination and legal fees connected to the Galaxy Gaming acquisition. The effective tax rate for the quarter was 15.6 percent (15.2); the report states the rate is affected by the estimated Pillar II top-up tax and by the countries in which earnings are generated.

Live, RNG and Regional Detail

Live games generated EUR 443.0 million (431.7) of third-quarter revenue and RNG games EUR 83.1 million (75.5). Allocated by the IP addresses of customers’ players, Asia contributed EUR 192.1 million, Europe EUR 173.7 million, North America EUR 84.3 million, Latin America EUR 49.0 million and Africa and other markets EUR 27.1 million. Regulated markets supplied a 49 percent share of revenue, or EUR 258.5 million. Mobile devices generated 77.0 percent (74.0) of operators’ gross gaming revenue via Evolution’s platform in the quarter.

Operating expenses rose to EUR 235.9 million (210.5), driven mainly by higher personnel costs connected to the launch of new tables in the company’s studios and expansion in general. As of September 30, 2026, Evolution had 23,408 employees (21,652), corresponding to 17,020 full-time positions.

Chief executive Martin Carlesund said all regions reported quarter-on-quarter growth for the first time since 2024, with Europe up 0.4 percent and Asia up 0.8 percent sequentially and year-on-year increases of 13.6 percent in North America, 23.1 percent in Latin America and 23.7 percent in Africa. Live revenue grew 2.6 percent and RNG 10.1 percent year-on-year, he said.

“All in all, I am pleased to state that this was an uneventful quarter with focus on core business and stable to good development across our markets,” Carlesund said.

Brazil Studio Closed After Quarter End

A note on events after the balance sheet date records that the studio in Brazil closed on October 5, 2026, due to uncertain regulatory conditions. Carlesund said Brazil’s regulatory framework was rolled back at the beginning of October following a decision by the president, that the final outcome of the decision remains unclear, and that the Brazilian studio is temporarily closed.

Based on Evolution’s estimated revenue split by player IP, Brazil accounts for well below half of Latin American revenues, and the company said momentum in the rest of the region remains strong and will offset part of the impact from the situation in Brazil. Evolution said its immediate focus is supporting its employees and managing the practical consequences on the ground.

Buyback, Galaxy Termination and UK Settlement

On May 18, 2026, the board resolved, under authorisation from the 2026 annual general meeting, to acquire own shares for a maximum amount of EUR 2 billion. Between May 19, 2026, and September 30, 2026, Evolution acquired 16,925,584 shares for EUR 1,127.1 million. The 16,168,492 shares repurchased through September 21, 2026, were cancelled in September under a resolution of the extraordinary general meeting held on September 22, 2026, leaving 183,058,121 shares and votes; Evolution held 757,092 own shares at September 30, 2026. Third-quarter cash flow from financing activities was negative EUR 828.5 million and included EUR 823.9 million of share repurchases; cash flow from operating activities amounted to EUR 366.1 million (371.9), and cash and cash equivalents stood at EUR 656.4 million at the end of the quarter. Under the Swedish Companies Act the company may not hold more than 10 percent of its total shares, setting the programme’s maximum at 19,922,661 shares; once that number is repurchased, Evolution intends to resolve on and announce a continuation of the programme for the cash amount remaining of the EUR 2 billion.

In July 2026, Evolution gave notice of termination of its merger agreement with Galaxy Gaming and paid a USD 5.2 million termination fee; the company said it expects to continue working with Galaxy Gaming within the framework of their existing commercial relationship. The UK Gambling Commission’s review of Evolution Malta Holding Limited’s operating licence, announced in December 2024, concluded with a GBP 4.75 million settlement announced on July 15, 2026, which is fully paid. The lawsuit Evolution filed in December 2021 in the Superior Court of New Jersey against Calcagni & Kanefsky LLP and the parties behind a defamatory report, now known to be Black Cube and Playtech, is expected to extend at least through 2026. In the first quarter of 2026, Evolution acquired a studio operation in Argentina for EUR 6.0 million in cash, generating a non-tax-deductible goodwill of EUR 5.8 million.

Game Launches and Reporting Calendar

During the quarter Evolution launched Monopoly Roll’em and Disco Balls and introduced Spinning Whale, a US-focused slots brand. Carlesund said Ice Fishing will be rolled out in North America during the fourth quarter and that a further showcase title under the company’s Hasbro partnership, Game Night, is planned before year-end.

Carlesund and chief financial officer Joakim Andersson present the report at 09:00 CEST on October 23, 2026, via teleconference and webcast in English. Reviewer Öhrlings PricewaterhouseCoopers AB concluded that nothing had come to its attention causing it to believe the interim report was not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, noting that a review is substantially less in scope than an audit. The year-end report for 2026 is scheduled for February 4, 2027, the interim report for January–March 2027 for April 21, 2027, and the annual general meeting for April 23, 2027.