Evolution AB reported first-quarter 2026 net revenues of EUR 513.0 million, down 1.5% year-on-year, as continued weakness in Europe offset double-digit growth in Latin America and North America. EBITDA fell 1.9% to EUR 335.3 million, with the margin compressing to 65.4% from 65.6% in Q1 2025. At constant currency, management estimated underlying revenue growth at 6.8%.
The quarter extends a run of year-on-year revenue declines for the Stockholm-listed live casino supplier, which attributed the headline numbers to currency effects and ongoing pressure in European markets. Profit for the period came in at EUR 251.9 million, down 1.1% from EUR 254.7 million a year earlier. Earnings per share before dilution rose to EUR 1.26 from EUR 1.24, reflecting a lower share count following buybacks completed in 2025.
Revenue mix and geographic performance
Live games, Evolution’s core product, generated EUR 434.9 million in the quarter, down from EUR 448.7 million in Q1 2025. RNG revenue rose to EUR 78.2 million from EUR 72.3 million, continuing a gradual rebalancing of the company’s product mix. Mobile continues to dominate distribution, with 76% of operator GGR running through Evolution’s platform generated via mobile devices in the quarter, up from 72% a year earlier.
The geographic split tells a clearer story than the top line. Measured by player IP address, Europe generated EUR 167.1 million of net revenues, down from EUR 189.7 million in Q1 2025. Asia contributed EUR 197.8 million, slightly below EUR 201.9 million a year earlier but up 2.2% on the previous quarter. North America grew to EUR 78.7 million from EUR 71.5 million, and Latin America climbed to EUR 46.8 million from EUR 36.2 million. Revenue from regulated markets reached 48% of the total, up from 45% in Q1 2025 and 47% in Q4 2025.
| Metric (EUR million) | Q1 2026 | Q1 2025 | YoY change |
|---|---|---|---|
| Net revenues | 513.0 | 520.9 | -1.5% |
| Live revenues | 434.9 | 448.7 | -3.1% |
| RNG revenues | 78.2 | 72.3 | +8.1% |
| EBITDA | 335.3 | 342.0 | -1.9% |
| EBITDA margin | 65.4% | 65.6% | -20 bps |
| Operating profit | 292.6 | 303.4 | -3.6% |
| Profit for the period | 251.9 | 254.7 | -1.1% |
| EPS before dilution (EUR) | 1.26 | 1.24 | +2.1% |
| Cash and cash equivalents | 1,098.0 | 969.2 | +13.3% |
Europe under pressure
The European performance stands out as the weakest element of the quarter. Revenue from the region fell 5.9% quarter-on-quarter and 11.9% year-on-year on a player-IP basis. CEO Martin Carlesund addressed the outcome directly in his comments, pointing to regulatory volatility and subjectivity in local markets as the principal drags on player activity. He also reiterated that Evolution’s self-imposed ring-fencing of certain European markets continues to cost revenue in the short term.
The clear disappointment this quarter was Europe. Following a lacklustre end to 2025, the region declined another 5.9 percent quarter-on-quarter. The main reasons are regulatory volatility and subjectivity, which have a clear impact on player activity.
The European softness follows a full-year 2025 in which revenue was flat and EBITDA fell 9% under European regulatory pressure, as covered in Evolution’s FY2025 results. Channelisation, the share of gambling activity directed to licensed operators versus illegal alternatives, has been trending down in several European jurisdictions. That dynamic sits behind the regional headline numbers because it directly affects the legal player base Evolution’s customers can reach. Carlesund described the channelisation decline as negative for impacted countries, players, and the industry overall.
LatAm and North America drive growth
The offsetting story came from the Americas. Latin America revenue grew 29.3% year-on-year, and Evolution completed the acquisition of a second studio in Argentina from a competitor exiting the market. The purchase was part of EUR 27.6 million in total subsidiary investments during the quarter. Carlesund flagged additional capacity expansion needs in Brazil and Colombia, with plans for new studios and extra space in existing premises.
North America revenue rose 10.1% in EUR terms but 21.4% at constant currency, reflecting the weakness of the US dollar against the euro during the quarter. The region saw two regulatory movements that will feed into future performance. The Governor of Maine signed the state’s iGaming bill into law, opening a new regulated market for Evolution’s products. In Canada, Alberta is set to launch regulated online casino in July, becoming the second province after Ontario to open its market. Evolution completed construction of its second Michigan studio during the quarter, with launch expected in the coming months.
Asia recovery continues
Asia recorded quarter-on-quarter growth of 2.2%, the second consecutive quarter of positive sequential movement following a sustained period of decline driven by cybercrime disruptions in the region. Carlesund said the overall picture in Asia is better than a year ago but cautioned that volatility and uncertainty are likely to persist through the remainder of 2026.
The revenue shown in the customer-location split for Asia rose sharply to EUR 16.9 million from EUR 0.5 million a year earlier. That shift reflects contractual arrangements and where Evolution’s customers are licensed rather than end-player activity. The player-IP view, which tracks where end users actually play from, shows Asia at EUR 197.8 million, making it Evolution’s single largest region by player activity and a critical variable for 2026 performance.
Margin compression and cost base
Operating expenses rose to EUR 220.4 million from EUR 217.5 million in Q1 2025. Personnel costs held roughly flat at EUR 120.3 million, with the small increase reflecting the launch of new tables and general capacity expansion. Depreciation and amortisation charges rose to EUR 42.7 million from EUR 38.5 million, weighing on operating profit. Other operating expenses declined to EUR 57.4 million from EUR 59.0 million. Foreign exchange movements were a EUR 1.0 million tailwind to operating expenses.
The company employed 22,867 people at the end of March, up from 22,223 a year earlier, with full-time equivalents averaging 16,690 in the quarter against 15,617 in Q1 2025. Evolution’s adjusted EBITDA margin of 65.4% compares with 66.4% in both Q3 and Q4 2025, and 68.1% in Q4 2024. The trend represents steady compression relative to the peak margins the business delivered during the post-pandemic period, though it remains among the highest in listed B2B iGaming.
Capital allocation and legal overhang
Cash and cash equivalents rose to EUR 1,098.0 million at the end of the quarter, up from EUR 817.9 million at year-end 2025 and EUR 969.2 million in Q1 2025. Cash flow from operating activities came in at EUR 345.8 million, down from EUR 361.3 million a year earlier. The Board of Directors confirmed it will not propose a dividend for financial year 2025. There were no share buybacks during the quarter, compared with EUR 154.1 million of repurchases in Q1 2025.
Evolution’s pending acquisition of Galaxy Gaming, Inc., first agreed in 2024 at a total equity value of approximately USD 85 million, remains uncompleted and is not yet consolidated in the group accounts.
The company also updated investors on ongoing legal proceedings. The defamation lawsuit against Calcagni & Kanefsky LLP, Black Cube, and Playtech in the Superior Court of New Jersey is expected to extend through 2026 following the identification of the parties behind the 2021 report. That case has been one of the most closely watched storylines in B2B iGaming, with broader implications for how the industry handles corporate intelligence disputes, as tracked in coverage of the Evolution-Playtech legal battle and the New Jersey court’s disclosure order. Separately, the UK Gambling Commission’s Section 116 review of Evolution Malta Holding Limited’s operating licence, opened in December 2024, remains open, with potential sanctions or penalties still pending.
Outlook
The 2026 agenda reflects Evolution’s 20th anniversary as well as a strategic pivot the company has been signalling for several quarters. Carlesund pointed to the global exclusive partnership with Hasbro and the integration of the MONOPOLY franchise into Evolution’s content roadmap as a central piece of the transition beyond live casino tables into broader entertainment formats. The company’s Annual General Meeting is scheduled for 24 April. The next financial update is the interim report for January-June 2026, due on 17 July.
For operators watching Evolution’s numbers as a proxy for B2B live casino demand, the Q1 2026 report confirms a bifurcated market. Growth is concentrated in the Americas, while European regulated revenue is shrinking in parallel with broader channelisation concerns. The regulatory backdrop in Europe and the pace of cybercrime recovery in Asia remain the two variables most likely to define Evolution’s 2026 earnings trajectory.
Source: Evolution AB
