Evolution raises Q3 revenue 3.7% to €526.1M and closes Brazil studio

Evolution AB reported net revenues of €526,1 millones in the third quarter, a 3,7% increase year‑on‑year, and announced the closure of its Brazil studio on 5 October after a federal ban on gambling. In the same period the company repurchased shares for €823,9 millones and recorded adjusted EBITDA of €345,9 millones, a 2,7% rise, according to the interim report published on 23 October.

Financial results and key metrics

Evolution reported live product revenues of €443,0 millones and RNG revenues of €83,1 millones, the latter growing 10,1% year‑on‑year. The reported EBITDA was €333,8 millones, with a margin of 63,5%, while profit for the period fell 3,6% to €243,3 millones. Earnings per share rose 4,8% to €1,31, helped by an average reduction in shares outstanding of 7,8%. (See more on live products in [casino](/casino).)

The company reported an adjusted EBITDA margin of 65,8%, compared with 66,4% a year earlier. For the first nine months of the year the accumulated margin was 65,7%, versus prior guidance to deliver a 2026 margin in line with 2025, when adjusted margin was 66,1%.

Regional and market breakdown

By player IP location, Asia remained the largest region with €192,1 millones, up 0,8% in the quarter and 1,6% year‑on‑year. Europe contributed €173,7 millones, up 0,4% in the quarter but down 4,7% year‑on‑year. North America grew 13,6% to €84,3 millones, Latin America rose 23,1% to €49,0 millones, and Africa and other markets increased 23,7% to €27,1 millones.

Evolution said revenues from markets it classifies as regulated amounted to €258,5 millones, an increase of 10,3% and equivalent to 49% of total revenue, up from 46% in the prior period. Operators based in Europe accounted for €336,3 millones, almost two‑thirds of revenues. (Regulatory context available at [regulation](/regulation).)

Costs, workforce and cash flow

Operating expenses rose 12,0% to €235,9 millones, mainly due to personnel costs related to new tables and studio expansion. As of 30 September Evolution reported 23.408 employees, up from 21.652, equivalent to 17.020 full‑time positions.

Operating cash flow for the quarter was €366,1 millones. Cash at the end of September was €656,4 millones, down from €818,0 millones at year‑end 2025.

Share buyback and capital

Evolution carried out buybacks of €823,9 millones in the quarter, more than twice the operating cash flow, and has spent €1.127,1 millones under a total €2.000 millones programme approved by the board. The company proposed not to pay a dividend for 2025. After cancelling 16.168.492 shares, shares outstanding stood at 183.058.121, a reduction of about 8,1%; this increased the relative holding of shareholders who did not sell, including Candle Lake, which exceeded 30% in July. There remains €872,9 millones to execute under the buyback programme. (Corporate actions coverage at [b2b](/b2b).)

Brazil, UKGC and the aborted Galaxy Gaming deal

Evolution's Brazil studio was closed "temporarily" on 5 October after Provisional Measure 1.394 was signed by President Luiz Inácio Lula da Silva on 25 September, banning fixed‑odds betting and online casino. Parliament was considering 94 amendments and planned to vote before 23 November, unless extended. Evolution said Brazil represents "well below half" of Latin America revenue by player IP; Latin America was €49,0 millones in the quarter, so Brazil's exposure is below roughly 4,7% of the group, based on iGaming Times' calculation.

Other operating items included an agreement with the UK Gambling Commission for €5,6 millones (equivalent to £4,75 millones) and €6,5 millones in termination and legal costs related to the abandoned acquisition of Galaxy Gaming, including a termination fee of $5,2 millones. Both amounts were excluded from adjusted EBITDA.

"A quarter without major events with focus on the core business," said CEO Martin Carlesund in the report, noting that all regions grew quarter‑on‑quarter for the first time since 2024.

Product and roadmap

Evolution confirmed that the title Ice Fishing will be deployed in North America in the fourth quarter and that Game Night, licensed from Hasbro, will launch before year‑end. The report did not update formal financial guidance for 2026.

The product growth comparison shows the RNG segment grew 10,1%, a figure close to reported expectations from other slot suppliers.