Evolution reports 3.7% Q3 revenue rise to €526.1m as net profit falls

Evolution reported a 3.7% increase in Q3 revenue to €526.1 million ($590 million), though net profit fell 3.6% to €243.3 million ($273 million). Adjusted EBITDA rose 2.7% to €345.9 million ($388 million), but the margin narrowed from 66.4% to 65.8%.

Revenue by product and region

Live casino revenue increased 2.6% to €443 million ($497 million), while RNG revenue climbed 10.1% to €83.1 million ($93 million). North America grew 13.6%, and Latin America and Africa recorded increases of 23.1% and 23.7%, respectively. Revenue from European players declined 4.7% year-on-year.

The Latin America region generated €49 million ($55 million) during Q3. Evolution closed its Brazilian studio on October 5 and said it does not know when operations might resume. Brazil accounts for well below half of Evolution’s Latin American revenue, the company said.

Guidance and capital allocation

CEO Martin Carlesund confirmed that Evolution’s full-year margin guidance remains unchanged. Up until the end of September, Evolution has repurchased approximately €1.13 billion ($1.27 billion) of its own shares under its €2 billion ($2.24 billion) buyback program. CFO Joakim Andersson told analysts that repurchases would slow during Q4 and Q1 2027 to align more closely with cash generation.

U.S. expansion

A fourth New Jersey studio is scheduled to open during Q4. The studio will also serve Delaware, bringing its total number of hubs in the U.S. to eight. The company is also preparing to launch Spinning Whale, a new RNG brand specifically targeting American players.