TLDR
- Evolution reported Q2 2026 net revenue of €517.8 million, missing analyst forecasts.
- Americas revenue hit record highs, with Latin America up 26.3% year-on-year.
- Europe live casino revenue fell 3.6% year-on-year but grew from the first quarter.
- Evolution settled with the UK Gambling Commission for £4.75 million, closing an 18-month probe.
- The deal to buy Galaxy Gaming is now in doubt after its deadline passed.
Evolution AB released its second quarter 2026 results on July 17. The Swedish gaming technology company reported net revenue of €517.8 million, just under the €520 million analysts expected.
EBITDA came in at €341 million, also slightly below the forecast of €343.5 million. The EBITDA margin held at 65.9%, matching the company’s guidance for the year.
Earnings per share reached €1.27, a small miss against the €1.28 estimate. That figure still marked a 4.1% rise from a year earlier, helped by fewer shares outstanding and a swing in financial gains.
Americas Lead Growth While Europe Stays Weak
North America and Latin America posted record revenue for the quarter. Latin America grew 26.3% year-on-year, lifted by a reopened studio in Argentina and the newly regulated market in Brazil.
North America expanded 9.5% during the same period. A second studio in Michigan and an expanded studio in São Paulo both contributed to the gains.
Europe told a different story. Group live casino revenue fell 3.6% year-on-year to €437.3 million, a drop the company linked mostly to European markets.
The region did return to growth compared with the first quarter of the year. Management pointed to tighter compliance rules and lower market channelization as reasons behind the earlier weakness.
Asia also declined, with revenue down 9% year-on-year and 3.7% from the prior quarter. The company blamed ongoing illegal streaming of its content, an issue it has faced since 2024.
UK Regulator Settlement Closes Long Running Probe
Two days before the earnings release, Evolution settled with the UK Gambling Commission for £4.75 million. The settlement ends a review that began in December 2024 and lasted 18 months.
The company keeps its operating license in the UK market without new restrictions on its business. CEO Martin Carlesund called the quarter’s results a step in the right direction.
“Revenue and EBITDA both move in the right direction,” Carlesund told analysts on the earnings call. “The margin is in line with our guidance, and cash flow is strong.”
One bright spot in the report was the Random Number Generator segment. RNG revenue rose 14% year-on-year to €80.5 million, its first double digit growth quarter in about three years.
New game launches tied to Hasbro’s Monopoly brand helped drive the RNG gain. The company released Monopoly Roll ’em and Monopoly Roulette during the quarter.
Evolution also continued its share buyback program, spending €303 million in the quarter to repurchase about 5.1 million shares. The total program is set at €2 billion, the largest ever launched on Nasdaq Stockholm.
A separate development created new uncertainty for investors. The deadline on Evolution’s deal to acquire US supplier Galaxy Gaming passed on the day of the earnings report, meaning either side can now walk away from the agreement.
Carlesund said the deal is not material to Evolution’s overall business. The company first announced plans to buy Galaxy Gaming back in 2024, with the deal pending US regulatory approval since then.
Looking ahead, Evolution kept its full year EBITDA margin target in line with last year’s 66.1%. The company said more product launches are planned for the second half of the year, including a new game show and more Hasbro branded titles.
A new studio is also set to open in Vilnius, Lithuania later this year. First half 2026 net revenue totaled €1,030.8 million, down 1.4% from a year earlier.
