Evolution’s steady Q3 performance fails to excite CEO

Evolution AB has reported slight revenue growth in Q3 with Chief Executive Officer, Martin Carlesund, describing the period as “uneventful”. The Sweden-headquartered and -listed business saw net revenue increase 3.7% year-on-year to €526.1m (£440m), driven by 10% growth from RNG games. Adjusted EBITDA rose 2.7% YoY to €345.9m from €336.9m, though the margin dropped from 66.4% to 65.8%. Carlesund on “regulatory fickleness” in Brazil Operating profit fell by €6.3m to €290.3m in a steady quarter which closed on the major news of the Brazilian government abolishing its regulated market. Evolution temporarily closed its Brazilian studio earlier this month following the developments, but the market is not a major one for the business and growth via other Latin American markets is set to offset this negative impact later down the line. Carlesund was animated on the ongoings in Evolution’s investor call, however. “It’s highly unfortunate that a populist agenda can overthrow a regulatory framework that has only been in place for one and a half years,” he said. “However, Evolution has the advantage of our global scale and size, and it’s not the first time we had to handle the regulatory fickleness of the market. “For now, we have closed the studio, but we are ready to reopen on short notice… If Brazil reopens its market, we are ready to accelerate.” Evolution sees sequential growth in all markets Net revenues for Evolution in Europe and Asia increased very slightly sequentially, but European revenue declined 4.7% YoY from €182.3m to €173.7m. North America saw growth of 13.6% YoY to €84.3m (Q3 2025: €74.2m). Latin American revenue rose 23.1% YoY from €39.8m to €49m. Revenue from Africa and other areas contributed €27.1m towards the total revenue figure – up from €21.9m in Q3 2025. A “spectacular” 2027? “This was an uneventful quarter, which I believe is something good,” Carlesund said. “On a quarter-on-quarter basis, all regions contributed to growth for the first time since 2024. “Q3 2026 has been uneventful, maybe even a little boring, and business as usual. It’s a state that I like. It helps us to focus on things that matter.” Evolution remains locked in a long-standing legal battle with rival provider Playtech. The business confirmed that litigation is expected to extend at least through 2026. The business has not changed its full-year outlook, but Carlesund assured investors that it will have a “spectacular roadmap” for a “spectacular year” in 2027. Evolution’s share price is up 2.64% today to SEK 833.40 (£62.09), representing a rise of 33.5% so far this year.