A UKGC settlement and Galaxy Gaming termination fees added €12.1m to costs, and the group has since closed its Brazilian studio after the country’s betting ban.
Evolution returned to year-on-year revenue growth in the third quarter of 2026, with net revenues up 3.7% to €526.1 million. Net profit fell 3.6% in a quarter that included €12.1 million in one-off costs, and the Stockholm-listed live casino supplier has since closed its Brazilian studio after the country banned licensed betting.
Q3 2026 at a glance
Evolution published its interim report for January to September on 23 October. Revenue had fallen year on year in each of the previous four quarters, by 2.4%, 3.7%, 1.5%, and 1.2%, before growth resumed in the third quarter.
| € million | Q3 2026 | Q3 2025 | Change |
| Net revenues | 526.1 | 507.1 | +3.7% |
| Live casino revenue | 443.0 | 431.7 | +2.6% |
| RNG revenue | 83.1 | 75.5 | +10.1% |
| Adjusted EBITDA | 345.9 | 336.9 | +2.7% |
| Adjusted EBITDA margin | 65.8% | 66.4% | -0.6pp |
| EBITDA | 333.8 | 336.9 | -0.9% |
| Operating profit | 290.3 | 296.6 | -2.1% |
| Profit for the period | 243.3 | 252.3 | -3.6% |
| Earnings per share (€) | 1.31 | 1.25 | +4.6% |
Revenue growth at constant currency was an estimated 4.0%. Mobile devices generated 77.0% of operators’ gross gaming revenue (GGR) through Evolution’s platform, up from 74.0% a year earlier.
Earnings per share rose even though profit fell. The average number of shares dropped to 186.0 million from 201.8 million after Evolution bought back and cancelled shares.
Martin Carlesund, chief executive officer of Evolution, 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.’
One-off costs and staff spending lift operating expenses
Operating expenses rose 12.0% to €235.9 million from €210.5 million. Evolution said the main driver was higher personnel costs linked to new tables in its studios and general expansion. Personnel expenses rose to €124.3 million from €117.5 million.
Other operating expenses included two one-off items, worth €12.1 million together:
- A €5.6 million settlement fee with the UK Gambling Commission, equal to £4.75 million, announced in July.
- €6.5 million in termination and legal fees after Evolution ended its merger agreement with Galaxy Gaming in July. This includes a $5.2 million termination fee.
Adjusted EBITDA excludes both items.
Regional revenue: LatAm and Asia grow as Europe slips
| € million (by customer location) | Q3 2026 | Q3 2025 | Change |
| Europe | 336.3 | 357.6 | -6.0% |
| North America | 81.0 | 73.0 | +11.0% |
| LatAm | 76.6 | 55.0 | +39.3% |
| Asia | 19.1 | 13.4 | +42.5% |
| Africa & other | 13.1 | 8.1 | +61.7% |
Percentage changes are EG calculations from figures in Evolution’s report.
Evolution also reports revenue by the IP addresses of its customers’ players. On this basis, all five regions grew quarter on quarter, which the company said happened for the first time since 2024. Europe rose 0.4% and Asia 0.8%. Year on year, North America grew 13.6%, LatAm 23.1%, and Africa 23.7%.
By customer location, Europe fell 2.4% compared with the second quarter.
Regulated markets accounted for 49% of revenue by player IP, up from 46% a year earlier.
Brazil studio closed after betting ban
Brazil’s ban on fixed-odds betting and online casino games was signed on 25 September. Licensed sites went offline from 6 October. Evolution closed its Brazilian studio on 5 October, citing uncertain regulatory conditions.
Carlesund said:
‘The final outcome of this regulatory decision remains unclear, and it is difficult to predict how player behaviour in Brazil will evolve.’
He said Brazil accounts for ‘well below half’ of LatAm revenues, based on the company’s estimated split by player IP. He added that momentum in the rest of the region would offset part of the impact. LatAm generated €49.0 million by player IP in the third quarter.
New games, buybacks, and nine-month results
Evolution launched Monopoly Roll’em and Disco Balls in the quarter and introduced Spinning Whale, a slots brand focused on the US. It plans to roll out Ice Fishing in North America in the fourth quarter. It also plans to launch Game Night, a new title under its Hasbro partnership, before the end of the year.
The company spent €823.9 million on share buybacks in the third quarter. Under the €2 billion programme announced on 18 May, it had bought 16,925,584 shares for €1,127.1 million by 30 September. Cash and cash equivalents stood at €656.4 million.
For the first nine months of 2026:
- Net revenues rose 0.3% to €1,557.0 million.
- Adjusted EBITDA fell 0.2% to €1,022.2 million.
- Operating profit fell 2.8% to €880.7 million.
- Profit for the period fell 1.1% to €746.7 million.
Share price and analyst ratings
Evolution shares were trading 1.26% above their previous close of SEK 812.00, at SEK 822.20, on Nasdaq Stockholm at 12:05 CEST on 23 October. They were up 31.7% since the start of the year, according to TradingView. Over the past 52 weeks, they have traded between SEK 515.40 and SEK 911.00.
Analysts remain cautious on the stock. Investing.com collected 16 ratings over the past three months: three buy, eight hold, and five sell, giving a neutral consensus. The average 12-month price target is SEK 761.65, about 7.4% below the current share price. Targets range from SEK 540.38 to SEK 1,108.91.
The five most recent broker updates all came before the third-quarter results:
| Broker | Rating | Price target (SEK) | Previous target (SEK) | Date |
| Citi | Hold | 820 | 725 | 13 October |
| Barclays | Sell | 685 | 575 | 2 October |
| JPMorgan | Sell | 660 | 565 | 25 September |
| UBS | Hold (upgraded) | 750 | 520 | 3 August |
| Goldman Sachs | Sell | 610 | 550 | 27 July |
All five raised their price targets, but only UBS changed its rating.
Evolution will publish its year-end report on 4 February 2027.
