Evolution in line with expectations (update)

(addition throughout the story)

Live casino developer Evolution reports revenue and adjusted EBITDA in line with expectations for the second quarter.

'Overall, I am pleased with the performance during the quarter. Revenue and margin are moving in the right direction compared with the first quarter, cost control remains strong, cash flow is improving, and we continue to expand in key markets while delivering on our product roadmap,' CEO Martin Carlesund says.

Revenue fell 1.2% to €517.8m (€524.3m). The outcome can be compared with Factset's analyst consensus of €522m.

Martin Carlesund says Europe returned to growth in the second quarter, driven by strong performance for game show titles and continued demand for tables in local languages, even as channelization rates remain low. Latin America continued to post strong growth, with the studio in Argentina reopened and a local version of Ice Fishing in Brazil. North America grew steadily with new launches and studios, while Asia was weighed down by volatility and rising cybercrime.

EBITDA came in at €341m (€345.3m), versus an expected €342m, with an EBITDA margin of 65.9% (65.9%).

Adjusted EBITDA totaled €341m (€345.3m), versus an expected €343m, with an adjusted EBITDA margin of 65.9% (65.9%).

Operating profit was €297.8m (€306.4m). The operating margin was 57.5% (58.4%).

Net profit was €251.4m (€248m).

Earnings per share were €1.27 (€1.22).

Martin Carlesund continues: 'Today, the now agreed long-stop date under our agreement to acquire Galaxy Gaming expires. After today, either party may choose to terminate the agreement. Two years have passed, and Evolution has devoted significant time, effort and resources to managing the relatively extensive administration required to complete this acquisition. Galaxy is a fantastic company, but given its size, the transaction is not material to Evolution. The outcome has no significant impact on our existing business, our operations in the US, or our long-term ambitions.'

Evolution, €m	Q2-2026	Consensus	Change vs consensus	Q2-2025	Change
Net revenue	517,8	522	-0,8%	524,3	-1,2%
EBITDA	341	342	-0,3%	345,3	-1,2%
EBITDA margin	65,9%	65,5%		65,9%
Adjusted EBITDA	341	343	-0,6%	345,3	-1,2%
Adjusted EBITDA margin	65,9%	65,7%		65,9%
Operating profit	297,8			306,4	-2,8%
Operating margin	57,5%			58,4%
Net profit	251,4			248	1,4%
Earnings per share, EUR	1,27			1,22	4,1%

Consensus data from Factset