On July 17, Evolution announced its quarterly report for Q2 2026, revealing a revenue decline of 1.2% to €517.8 million. While revenue in euros decreased, it actually grew by 2.4% when adjusted for constant currency rates. Here are the key financial highlights:
Financial Performance:
- €517.8 million — revenue (1.2% YoY, 0.9% QoQ)
- €437.3 million — live casino (3.6% YoY, 84.5% of revenue)
- €80.5 million — RNG (14.1% YoY, 15.5%)
- €341 million — EBITDA (1.2% YoY), margin 65.9%
- €297.8 million — operating profit (2.8% YoY), margin 57.5%
- €251.4 million — net profit (1.3% YoY)
- €1.27 — earnings per share (4.7% YoY)
- 16.4% — effective tax rate (15.7%) amid Pillar II
- €1.15 billion — cash on company accounts (128% YoY)
Revenue by Region (based on player IP):
- Asia: €190.5 million (8.9% YoY, 3.7% QoQ) amid cybercrime concerns
- Europe: €173 million (4% YoY, 3.5% QoQ), marking the first quarterly growth after a series of declines
- North America: €81 million (9.5% YoY)
- Latin America: €47.5 million (26.3% YoY)
- Other markets (mainly Africa): €25.8 million (10.3% YoY, 14.2% QoQ)
Operational Highlights:
- 22,880 employees (2.8% YoY), 870 client operators
- 49% — share of regulated markets in revenue (44% YoY)
Key Events:
- Repurchase of 5,141,528 shares (2.58% of capital) for €303.2 million under a program launched in May
- Launch of second studios in Michigan and Argentina, with a July entry into Alberta, Canada following the opening of a regulated market
- Introduction of Monopoly Roulette and Monopoly Roll'em, the first games from an exclusive partnership with Hasbro. Monopoly Live has launched in four additional U.S. states
- A global settlement with the UK regulator UKGC for £4.75 million ($6.4 million) concluded an 18-month license review due to the availability of Evolution content on six unlicensed sites. No systemic violations were found during the review
- As of July 17, the agreed deadline for closing the $85 million acquisition of Galaxy Gaming, an American developer of games and technologies for land-based casinos, has expired. Now, either party has the right to exit the agreement unilaterally
CEO Martin Carlesund expressed satisfaction with the quarter, noting Europe's return to growth while cautiously assessing the low share of the legal segment in the region's markets. During a call with investors, Carlesund stated that following the resolution with UKGC, the company would continue operations in the UK without significant changes. Responding to a question about the increase in UK taxes, he warned that raising rates beyond a certain level pushes players out of the legal segment, which has dropped to 50% in the UK and the Netherlands. Carlesund described the Galaxy Gaming deal as insignificant for Evolution due to the asset size after two years of administration.
The share of the RNG segment in revenue increased from 13.5% to 15.5% year-on-year amid a decline in the live segment. Company cash doubled year-on-year as Evolution did not pay dividends for 2025 and returned €103.7 million from a redeemed bond portfolio. From these funds, the company has already repurchased shares worth €303.2 million.