Evolution reports Q3 revenue up 3.7% to €526.1m and closes Brazilian studio

Evolution AB reported net revenues of €526.1 million for the third quarter, up 3.7% year on year, and adjusted EBITDA of €345.9 million, the company said in its interim report published on 23 October 2026. The live casino supplier closed its Brazilian studio on 5 October after a federal ban on fixed-odds betting and online casino, and it spent €823.9 million repurchasing its own shares in the quarter.

Quarter results and regional splits

Evolution's net revenue rose from €507.1 million in Q3 2025 to €526.1 million for July to September 2026; the company also cited an estimated 4.0% increase at constant currency. Adjusted EBITDA increased to €345.9 million from €336.9 million a year earlier, giving an adjusted EBITDA margin of 65.8% versus 66.4% in Q3 2025. Reported EBITDA fell to €333.8 million, a margin of 63.5%, and profit for the period declined 3.6% to €243.3 million. Earnings per share rose 4.8% to €1.31 because the average number of shares outstanding was 7.8% lower.

Live revenue climbed 2.6% to €443.0 million while RNG revenue increased 10.1% to €83.1 million. By player IP location, Asia remained the largest region at €192.1 million (up 0.8% on the quarter and 1.6% year on year). Europe-generated revenue was €173.7 million, up 0.4% on the quarter but down from €182.2 million a year earlier. North America rose 13.6% to €84.3 million, Latin America was €49.0 million (up 23.1%) and Africa and other markets were €27.1 million (up 23.7%). Revenue from what Evolution classes as regulated markets rose 10.3% to €258.5 million, representing 49% of total revenue.

The split by operator customer location showed a different picture: Europe-based customers account for €336.3 million, nearly two thirds of the company's revenue.

Cash, buyback and capital allocation

Evolution repurchased €823.9 million of its own shares during the quarter, more than twice the operating cash flow of €366.1 million for the period. That brings cumulative spending to €1,127.1 million of the €2 billion buyback programme announced earlier; the board proposed no dividend for 2025 and backed repurchases with a €300 million revolving credit facility. Cash on hand was €656.4 million at 30 September, down from €818.0 million at the end of 2025.

The company cancelled 16,168,492 shares in the period, reducing the share count by about 8.1% to 183,058,121. The reduction raised the percentage holdings of shareholders who did not sell, and Candle Lake passed 30% ownership in July. With €872.9 million of the buyback programme remaining, Evolution noted the question of how long per-share growth can be sustained if group revenue expands only in low single digits.

Brazil closure, regulatory items and costs

Evolution dated the closure of its Brazilian studio to 5 October 2026, after President Luiz Inácio Lula da Silva signed Provisional Measure 1.394 on 25 September, which bans fixed-odds betting and online casino. Congress was considering 94 live amendments with a vote due by 23 November unless extended. CEO Martin Carlesund wrote in the report that the regulatory outcome is unclear and said Brazil accounts for "well below half" of Latin American revenue by player IP; Latin America generated €49.0 million in the quarter. The company described the studio as "temporarily closed."

Other operating costs in the quarter included a £4.75 million settlement with the UK Gambling Commission, reported as €5.6 million, and €6.5 million of termination and legal fees related to the abandoned Galaxy Gaming acquisition (the Galaxy figure includes a $5.2 million termination fee). Both the UKGC settlement and the Galaxy costs were excluded from adjusted EBITDA.

"An uneventful quarter with focus on core business," CEO Martin Carlesund wrote in the interim report.

Operations, workforce and product pipeline

Operating expenses rose 12.0% to €235.9 million, driven mainly by personnel costs from new tables and studio expansion. Evolution reported 23,408 employees at 30 September, up from 21,652 at the same date a year earlier; the company also noted 17,020 full-time positions.

Operating profit fell 2.1% to €290.3 million. The report did not update financial outlook figures; in February Carlesund said Evolution estimated a 2026 margin in line with 2025, when adjusted EBITDA margin was 66.1%. The nine‑month adjusted margin to 30 September stood at 65.7%.

Evolution said the title Ice Fishing will roll out in North America in the fourth quarter and Game Night, a Hasbro-licensed title, is due before year-end.

Strategic notes: regulated mix and regional exposure

Revenue from regulated markets increased to 51% of the total by the company's calculation, up from 49% reported in the quarter figures. By player IP, Latin America was 9.3% of third-quarter revenue; Evolution's comment that Brazil is "well below half" of that puts Brazil's exposure at under roughly 4.7% of group revenue, a figure iGaming Times calculated from the report. The company said growth momentum elsewhere in Latin America "will offset part of the impact" if the Brazilian ban holds.

The interim report highlighted that Europe-based operators account for almost two thirds of revenue while European players supply roughly a third. Evolution framed that split as a feature of its operator-licensed distribution model.

Live casino remains Evolution's core product vertical while the company also noted the growing share of revenue from regulated markets. Capital allocation and the buyback programme featured centrally in the quarter's financial dynamics and are discussed in the report's notes and board statements.