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Evolution Interim / Quarterly Report 2026
2913_10-q_2026-04-22_455fc5fa-3dad-4866-9689-ed595bdea1e6.pdf
Interim / Quarterly Report
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Evolution
YEARS AHEAD OF THE GAME
Interim report | January–March 2026 | Evolution AB (publ)
First quarter of 2026 (Q1 2025)
- Net revenues declined 1.5% to EUR 513.0 million (520.9)
- EBITDA declined 1.9% to EUR 335.3 million (342.0), corresponding to a margin of 65.4% (65.6)
- Profit for the period amounted to EUR 251.9 million (254.7)
- Earnings per share before dilution amounted to EUR 1.26 (1.24)
Events during the first quarter of 2026
- Further progress in the battle against cybercrime in Asia
- Launch of second studio in Latvia
- Acquisition of a second studio in Argentina
Summary of the first quarter
| Group, EUR thousands | Jan-Mar 2026 | Jan-Mar 2025 | % | Apr 2025-Mar 2026 | Jan-Dec 2025 | % |
|---|---|---|---|---|---|---|
| Net revenues | 513,039 | 520,944 | -1.5% | 2,058,635 | 2,066,540 | -0.4% |
| Other operating revenues | - | - | - | 51,667 | 51,667 | 0.0% |
| Total operating revenues | 513,039 | 520,944 | -1.5% | 2,110,302 | 2,118,207 | -0.4% |
| EBITDA | 335,320 | 341,976 | -1.9% | 1,410,684 | 1,417,340 | -0.5% |
| EBITDA margin | 65.4% | 65.6% | - | 66.8% | 66.9% | - |
| Adjusted EBITDA excl. other operating revenues | 335,320 | 341,976 | -1.9% | 1,359,017 | 1,365,673 | -0.5% |
| Adjusted EBITDA margin excl. other operating revenues | 65.4% | 65.6% | - | 66.0% | 66.1% | - |
| Profit for the period | 251,932 | 254,669 | -1.1% | 1,059,359 | 1,062,096 | -0.3% |
| Profit margin | 49.1% | 48.9% | - | 50.2% | 50.1% | - |
| Earnings per share before dilution, EUR | 1.26 | 1.24 | 2.1% | 5.27 | 5.24 | 0.5% |
Evolution develops, produces, markets and licenses fully integrated B2B Online Casino solutions to gaming operators. Since its inception in 2006, Evolution has developed into a leading B2B provider with 870+ operators among its customers. The group currently employs more than 22,800 people in studios across Europe, Asia, North- and South America. The parent company is based in Sweden and listed on Nasdaq Stockholm with the ticker EVO. Visit www.evolution.com for more information. Evolution is licensed and regulated by the Malta Gaming Authority under license MGA/B2B/187/2010. Evolution is also licensed and regulated in many other jurisdictions such as the United Kingdom, Belgium, Canada, Romania, South Africa, and others.
Evolution
CEO's comments
For the first quarter of 2026, Evolution reported net revenues of EUR 513.0 million and EBITDA of EUR 335.3 million, corresponding to a year-on-year revenue decline of 1.5 percent and a margin of 65.4 percent. Net revenue growth at constant currency is estimated to be 6.8 percent.
In Asia, we made some further progress in the battle against cybercrime with a quarter-on-quarter growth of 2.2 percent. This marks a second consecutive quarter of growth. Even though the overall picture is better today than a year ago, volatility and uncertainty will persist for at least the remainder of the year.
LatAm delivered a strong 29.3 percent year-on-year growth, and on top of that we completed the acquisition of a Live Casino studio in Argentina from a competitor that has withdrawn from the market. To meet demand, we also see further expansion needs in Brazil and Colombia which will take place through both new studios and the addition of more studio space in existing premises.
Growth in North America improved compared to the fourth quarter but is impacted by the weak USD. In our reporting currency EUR, year-on-year growth was 10.1 percent, whereas growth in local currency was 21.4 percent. Our ambitions are, however, higher than what the current numbers suggest. In the quarter, we have completed the construction of our second studio in Michigan, with expected launch in the coming months. Additionally, there were some positive regulatory movements; in the US, the Maine governor has signed the iGaming bill into law. In Canada, Alberta will regulate its online casino market in July as the second province after Ontario.
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. We also continue to face a material disadvantage from our self-imposed ring-fencing measures, which, as stated several times before, is the right long-term path even though the short-term price is high. Overall, channelization in Europe is decreasing and it is bad for the impacted countries, the players and the industry as such.
2026 marks Evolution's 20th anniversary! When the company was founded back in 2006, we had a clear vision of taking the land-based casino experience online. Today, the vision is something much bigger: a methodical desire to create pure and authentic entertainment. We want our products to reach a level of excitement equivalent to a great streaming series or a movie. An important piece of this systematic shift, which will expand both the player and operator base over time, is our global, exclusive partnership with Hasbro and the amazing opportunity to integrate the MONOPOLY franchise into our content. I am truly excited about the product roadmap for 2026, and even more so about what we will be able to create over the next two decades. It will be a transition that extends beyond Evolution and the industry, reshaping the player experience and influencing areas we may not even envision today.
As a shareholder of Evolution, you are well aware that we have faced several ordeals over the past years, ranging from changing regulatory dynamics to cybercrime and deceitful attempts by competitors to harm our company. I want to reiterate two things: First, at Evolution, we never shy away. We stand up for what we believe in, we do what is right and we always push forward. While this can hurt a little in the short-term, our cost-efficient operations, discipline, and fantastic, hard-working talents give us the resilience to stay patient and focused on long-term value creation. Second, we never lose sight of what really matters: player satisfaction and entertainment! There is no way around that the one supplier with the content that players want is the one that will win in the end.
Martin Carlesund, CEO
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Quarterly results trend
Financial performance in the first quarter of 2026
Net revenues
Net revenues amounted to EUR 513.0 million (520.9) in the first quarter, equivalent to a decline of 1.5 percent compared with the corresponding period in 2025. Revenue growth adjusted for changes in foreign exchange rates is estimated to 6.8 percent compared with the same period the preceding year. EUR 434.9 million (448.7) of the revenue was derived from Live games and EUR 78.2 million (72.3) from RNG games. Revenue mainly derives from commission income from existing customers and, to a certain extent, from new customers. Demand for online casino games continues to grow, partly as a result of our continuous launch of new games and variations on traditional games.
Net revenues by game type
| Group, EUR million | Jan-Mar 2025 | Apr-Jun 2025 | Jul-Sep 2025 | Oct-Dec 2025 | Jan-Mar 2026 |
|---|---|---|---|---|---|
| Live | 448.7 | 453.7 | 431.7 | 438.6 | 434.9 |
| RNG | 72.3 | 70.6 | 75.5 | 75.7 | 78.2 |
| Net revenues | 520.9 | 524.3 | 507.1 | 514.2 | 513.0 |
Expenses
Operating expenses amounted to EUR 220.4 million (217.5). Expenses were mainly driven by higher costs for personnel, connected to the launch of new tables in the company's studios and the expansion in general. Other operating expenses have declined compared with Q1 2025. Changes in foreign exchange rates affected operating expenses positively with EUR 1.0 million compared with the same period the preceding year.
Profitability
Operating profit amounted to EUR 292.6 million (303.4), corresponding to a decline of 3.6 percent. The operating margin was 57.0 percent (58.2). The EBITDA margin was 65.4 percent (65.6).
Net financial items amounted to EUR 7.5 million (negative 1.2) related to interest income, leasing interest expenses and currency exchange differences. The Group's effective tax rate for the quarter amounted to 16.0 percent (15.7). The tax rate is affected by the estimated top-up tax related to Pillar II and by the
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
countries in which earnings are generated, which may vary between reported periods. Profit for the period amounted to EUR 251.9 million (254.7). Earnings per share before dilution was EUR 1.26 (1.24).
Investments
Investments in intangible assets amounted to EUR 15.0 million (16.6) during the quarter and were mainly attributable to development of new games and technical improvements of the platform, such as new functionality. See Note 5 for information about acquisition of group companies.
Investments in property, plant and equipment amounted to EUR 19.6 million (17.0) and comprised new studio space, new gaming tables, servers and other computer equipment to meet new technical requirements and maintain capacity and performance in connection with new platform launches.
Cash and cash equivalents, financing and financial position
Cash flow from operating activities amounted to EUR 345.8 million (361.3) during the quarter. Cash flow from investing activities was negative in the amount of EUR 62.2 million (negative 33.2) and included investment in group companies of EUR 27.6 million (-). Cash flow from financing activities was negative in the amount of EUR 5.5 million (negative 159.2), 2025 included repurchase of own shares of EUR 154.1 million. Cash and cash equivalents amounted to EUR 1,098.0 million (969.2) at the end of the quarter.
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Market development
Online Casino market
The global online casino market (Live & RNG) has grown strongly in recent years and is expected to continue to be among the fastest-growing gaming segments in the coming years. Evolution's growth target is to grow faster than the total global online casino market. Market growth is influenced by several underlying factors, such as technological advances with, among other things, improved hardware and increased bandwidth, the migration of land-based casinos to online environments and market regulations. Increased use of mobile devices has been a growth driver for many years, and in the first quarter 76 percent (72) of the operators' GGR via Evolution's platform was generated by mobile devices. RNG is the largest vertical of the online casino market. However, to a large extent, growth is driven by Live Casino having grown in importance for most gaming operators and has become an integrated and strategically important product for them.
As a B2B supplier, Evolution has customer relationships with gaming operators, who in turn own the relationships with the end users. Generally, the gaming operators are licensed in a limited number of jurisdictions while operating in a global market and allowing play from various geographic areas.
Net revenues by Customers' location per geographical region
| Group, EUR million | Jan-Mar 2025 | Apr-Jun 2025 | Jul-Sep 2025 | Oct-Dec 2025 | Jan-Mar 2026 |
|---|---|---|---|---|---|
| Europe | 385.2 | 384.0 | 357.6 | 366.7 | 345.3 |
| Asia | 0.5 | 1.3 | 13.4 | 16.3 | 16.9 |
| North America | 70.4 | 71.1 | 73.0 | 71.4 | 75.5 |
| LatAm | 56.5 | 59.5 | 55.0 | 50.3 | 64.4 |
| Other regions | 8.3 | 8.4 | 8.1 | 9.5 | 11.1 |
| Net revenues | 520.9 | 524.3 | 507.1 | 514.2 | 513.0 |
In the table below, the revenue allocation is based on the IP address that the customers' players are using when accessing the games through the customers' websites, while revenues not based on player activity are allocated to the customer's location.
Net revenues by Customers' players' IP addresses per geographical region
| Group, EUR million | Jan-Mar 2025 | Apr-Jun 2025 | Jul-Sep 2025 | Oct-Dec 2025 | Jan-Mar 2026 |
|---|---|---|---|---|---|
| Europe | 189.7 | 180.2 | 182.2 | 177.6 | 167.1 |
| Asia | 201.9 | 209.1 | 189.1 | 193.6 | 197.8 |
| North America | 71.5 | 74.0 | 74.2 | 77.1 | 78.7 |
| LatAm | 36.2 | 37.6 | 39.8 | 43.2 | 46.8 |
| Other regions | 21.6 | 23.4 | 21.9 | 22.6 | 22.6 |
| Net revenues | 520.9 | 524.3 | 507.1 | 514.2 | 513.0 |
| Share of regulated markets | 45% | 44% | 46% | 47% | 48% |
| Net revenues, regulated markets | 233.2 | 231.9 | 234.3 | 243.4 | 246.7 |
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Other
Parent Company
The Parent Company is a holding company. Net sales for the first quarter of 2026 amounted to EUR 4.0 million (4.2) and expenses to EUR 5.7 million (5.5). Operating profit amounted to negative EUR 1.6 million (negative 1.3). Profit for the period amounted to negative EUR 30.0 million (negative 28.4). The Parent Company's cash and cash equivalents amounted to EUR 7.3 million (10.3) at the end of the period and equity amounted to EUR 2,607.7 million (2,971.4). No significant investments were made in intangible or tangible assets.
Employees
As of 31 March 2026, Evolution had 22,867 (22,223) employees, corresponding to 16,714 (16,368) full-time positions. The average number of full-time equivalents for the quarter was 16,690 (15,617).
Significant risks and uncertainties
Evolution's operations are exposed to certain risks that could have a varying impact on earnings or financial position. These can be divided into industry, operational, and financial risks. When assessing the Group's future development, it is important to take into account the risk factors, alongside any opportunities for profit growth.
The development of laws and regulations relating to the supply of gaming services that Evolution provides is a central risk factor for the Group's future earnings. The legal situation in regulated markets is of particular interest and is continuously monitored and managed by the Group. Despite this, there remains a risk that, in the event of legislation being interpreted in an unfavourable or unanticipated way, Evolution's conditions for growth, profitability, and the games that may be supplied could be changed. Likewise, a favourable interpretation could have a positive impact on the Group.
One or more markets may be affected by events that may result in rapid changes in the business environment. Examples of this kind of events which could lead to production disruption are extreme weather events, social unrest, diseases (e.g. virus outbreaks) or other macroeconomic or geopolitical events affected by external influences.
For further information about Evolution's risk exposure and handling, please see the Group's Annual Report for 2025, which is available on the company's website.
Dividend
The Board of Directors has decided not to propose any dividend for the financial year 2025.
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Upcoming report dates
Annual General Meeting 24 April
Interim report January – June 2026 17 July
Interim report January – September 2026 23 October
Stockholm, 22 April 2026
Martin Carlesund
CEO
For further information, please contact CFO Joakim Andersson, +46 760 44 83 30 or Head of Investor Relations Carl Linton, +46 705 08 85 75, [email protected].
Evolution AB (publ) e-mail: [email protected]
Hamngatan 11 Website: www.evolution.com
SE-111 47 Stockholm, Sweden Corporate ID: 556994-5792
Presentation for investors, analysts and the media
CEO Martin Carlesund and CFO Joakim Andersson will present the report and answer questions on Wednesday, 22 April 2026 at 09:00 am CEST via a telephone conference. The presentation will be in English and can also be followed online.
Webcast: https://evolution.events.inderes.com/q1-report-2026/register
Teleconference: Dial-in number to the teleconference will be received by registering on the link below. After the registration you will be provided phone numbers and a conference/user ID to access the conference.
https://events.inderes.com/evolution/q1-report-2026/dial-in
This information is such that Evolution AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above on 22 April 2026, at 07.30 am CEST.
This report is published in Swedish and English. In case of any differences between the English version and the Swedish original text, the Swedish version shall apply. This report has not been subject to review by the company's independent auditor.
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Condensed consolidated income statement
| Group, EUR thousands | Jan-Mar 2026 | Jan-Mar 2025 | Apr 2025-Mar 2026 | Jan-Dec 2025 |
|---|---|---|---|---|
| Revenues - Live | 434,883 | 448,655 | 1,758,807 | 1,772,579 |
| Revenues - RNG | 78,156 | 72,289 | 299,828 | 293,961 |
| Net revenues | 513,039 | 520,944 | 2,058,635 | 2,066,540 |
| Other operating revenues* | - | - | 51,667 | 51,667 |
| Total operating revenues | 513,039 | 520,944 | 2,110,302 | 2,118,207 |
| Personnel expenses | -120,296 | -119,949 | -477,114 | -476,767 |
| Depreciation, amortisation and impairments | -42,708 | -38,541 | -164,201 | -160,034 |
| Other operating expenses | -57,423 | -59,019 | -222,504 | -224,100 |
| Total operating expenses | -220,427 | -217,509 | -863,819 | -860,901 |
| Operating profit | 292,612 | 303,435 | 1,246,483 | 1,257,306 |
| Financial items | 7,481 | -1,246 | -2,155 | -10,882 |
| Profit before tax | 300,093 | 302,189 | 1,244,328 | 1,246,424 |
| Tax on profit for the period | -48,161 | -47,520 | -184,969 | -184,328 |
| Profit for the period | 251,932 | 254,669 | 1,059,359 | 1,062,096 |
| Of which attributable to: | ||||
| Shareholders of the Parent Company | 251,932 | 254,669 | 1,059,359 | 1,062,096 |
| Average number of shares before dilution | 199,226,613 | 205,610,452 | 201,190,214 | 202,786,174 |
| Earnings per share before dilution, EUR | 1.26 | 1.24 | 5.27 | 5.24 |
| Average number of shares after dilution | 199,226,613 | 205,610,452 | 201,355,244 | 202,951,204 |
| Earnings per share after dilution, EUR | 1.26 | 1.24 | 5.26 | 5.23 |
| Operating margin | 57.0% | 58.2% | 59.1% | 59.4% |
| Effective tax rate | 16.0% | 15.7% | 14.9% | 14.8% |
*Other operating revenues was reduction of earn-out liability.
Condensed comprehensive income statement
| Group, EUR thousands | Jan-Mar 2026 | Jan-Mar 2025 | Apr 2025-Mar 2026 | Jan-Dec 2025 |
|---|---|---|---|---|
| Profit for the period | 251,932 | 254,669 | 1,059,359 | 1,062,096 |
| Other comprehensive income | ||||
| Items that may be reclassified to profit | ||||
| Exchange differences arising from the translation of foreign operations | -28,979 | 112,148 | -31,133 | 109,994 |
| Other comprehensive income | -28,979 | 112,148 | -31,133 | 109,994 |
| Total comprehensive income for the period | 222,953 | 366,817 | 1,028,226 | 1,172,090 |
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Condensed consolidated balance sheet
| Group, EUR thousands | 31/03/2026 | 31/03/2025 | 31/12/2025 |
|---|---|---|---|
| Assets | |||
| Goodwill | 2,351,843 | 2,366,168 | 2,370,154 |
| Other intangible assets | 662,472 | 709,808 | 682,268 |
| Buildings | 20,254 | 19,875 | 20,230 |
| Right of use assets | 76,544 | 83,451 | 79,705 |
| Property, plant and equipment | 176,311 | 151,793 | 163,099 |
| Bond portfolio | 104,837 | 101,604 | 104,050 |
| Other financial assets | 12,860 | 10,667 | 12,735 |
| Deferred tax assets | 15,350 | 8,756 | 13,919 |
| Total non-current assets | 3,420,471 | 3,452,122 | 3,446,160 |
| Accounts receivable | 439,829 | 390,735 | 447,011 |
| Current tax receivables | 832,426 | 820,287 | 740,643 |
| Other receivables | 29,295 | 26,535 | 37,259 |
| Prepaid expenses and accrued income | 27,971 | 35,872 | 32,763 |
| Cash and cash equivalents* | 1,097,951 | 969,208 | 817,951 |
| Total current assets | 2,427,472 | 2,242,637 | 2,075,627 |
| TOTAL ASSETS | 5,847,943 | 5,694,759 | 5,521,787 |
| Equity and liabilities | |||
| Share capital | 650 | 650 | 650 |
| Other capital contributed | 2,432,357 | 2,429,053 | 2,432,439 |
| Reserves | -186,286 | -155,153 | -157,307 |
| Retained earnings including profit for the period | 2,052,958 | 1,910,419 | 1,800,667 |
| Total equity | 4,299,679 | 4,184,969 | 4,076,449 |
| Deferred tax liabilities | 60,098 | 63,928 | 61,911 |
| Provision for pensions | 3,896 | 1,700 | 3,952 |
| Non-current lease liabilities | 70,618 | 76,289 | 72,830 |
| Other non-current liabilities | 39,599 | 129,799 | 55,251 |
| Total non-current liabilities | 174,211 | 271,716 | 193,944 |
| Accounts payable | 15,189 | 17,797 | 10,991 |
| Current tax liabilities | 1,226,035 | 1,094,257 | 1,088,894 |
| Current lease liabilities | 17,781 | 16,636 | 18,238 |
| Other current liabilities | 64,380 | 58,355 | 73,523 |
| Accrued expenses and prepaid income | 50,668 | 51,029 | 59,748 |
| Total current liabilities | 1,374,053 | 1,238,074 | 1,251,394 |
| TOTAL EQUITY AND LIABILITIES | 5,847,943 | 5,694,759 | 5,521,787 |
| *Including restricted cash for jackpot liabilities | 10,730 | 11,119 | 12,529 |
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Condensed consolidated changes in equity
| Group 2025, EUR thousands | Share capital | Other capital contributed | Reserves | Retained earnings | Total equity |
|---|---|---|---|---|---|
| Opening equity 01/01/2025 | 650 | 2,429,053 | -267,301 | 1,809,433 | 3,971,835 |
| Dividend | - | - | - | -572,494 | -572,494 |
| Warrants | - | 3,386 | - | 1,821 | 5,207 |
| Repurchase of own shares | - | - | - | -500,189 | -500,189 |
| Profit for the period | - | - | - | 1,062,096 | 1,062,096 |
| Other comprehensive income | - | - | 109,994 | - | 109,994 |
| Closing equity 31/12/2025 | 650 | 2,432,439 | -157,307 | 1,800,667 | 4,076,449 |
| Group 2026, EUR thousands | Share capital | Other capital contributed | Reserves | Retained earnings | Total equity |
| --- | --- | --- | --- | --- | --- |
| Opening equity 01/01/2026 | 650 | 2,432,439 | -157,307 | 1,800,667 | 4,076,449 |
| Warrants | - | -82 | - | 359 | 277 |
| Profit for the period | - | - | - | 251,932 | 251,932 |
| Other comprehensive income | - | - | -28,979 | - | -28,979 |
| Closing equity 31/03/2026 | 650 | 2,432,357 | -186,286 | 2,052,958 | 4,299,679 |
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Condensed consolidated statement of cash flow
| Group, EUR thousands | Jan-Mar 2026 | Jan-Mar 2025 | Apr 2025-Mar 2026 | Jan-Dec 2025 |
|---|---|---|---|---|
| Operating profit | 292,612 | 303,435 | 1,246,483 | 1,257,306 |
| Adjustment for items not included in cash flows: | ||||
| Depreciation, amortisation and impairments | 42,708 | 38,541 | 164,201 | 160,034 |
| Other* | 2,200 | -3,440 | -58,992 | -64,632 |
| Interest received | 4,159 | 4,763 | 11,065 | 11,669 |
| Interest paid | -1,899 | -104 | -2,266 | -471 |
| Tax paid | -4,870 | -4,110 | -75,738 | -74,978 |
| Cash flow from operating activities before changes in working capital | 334,910 | 339,085 | 1,284,753 | 1,288,928 |
| Increase/decrease accounts receivable | 8,752 | 18,042 | -48,538 | -39,248 |
| Increase/decrease accounts payable | 4,013 | 1,902 | -2,494 | -4,605 |
| Increase/decrease other working capital | -1,834 | 2,306 | 6,002 | 10,142 |
| Cash flow from operating activities | 345,841 | 361,335 | 1,239,723 | 1,255,217 |
| Acquisition of intangible assets | -14,964 | -16,635 | -68,560 | -70,231 |
| Acquisition of tangible assets | -19,629 | -16,974 | -67,254 | -64,599 |
| Acquisition of subsidiary | -27,575 | - | -38,766 | -11,191 |
| Investment in bond portfolio | -70 | -59 | -249 | -119 |
| Received return on bond portfolio | 857 | - | 2,293 | 1,317 |
| Increase/decrease other financial assets | -827 | 486 | -1,658 | -345 |
| Cash flow from investing activities | -62,208 | -33,182 | -174,194 | -145,168 |
| Repayment of lease liability | -5,401 | -5,088 | -19,765 | -19,452 |
| Repurchase of own shares | - | -154,074 | -346,115 | -500,189 |
| Warrants | -82 | - | 3,304 | 3,386 |
| Dividend | - | - | -572,494 | -572,494 |
| Cash flow from financing activities | -5,483 | -159,162 | -935,070 | -1,088,749 |
| Cash flow for the period | 278,150 | 168,991 | 130,459 | 21,300 |
| Cash and cash equivalents at start of period | 817,951 | 801,474 | 969,208 | 801,474 |
| Exchange rate differences | 1,850 | -1,257 | -1,716 | -4,823 |
| Cash and cash equivalents at end of period | 1,097,951 | 969,208 | 1,097,951 | 817,951 |
- Reduction of earn-out liability Q4 2025 EUR 51.7 million.
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
The company presents certain financial measures in the interim report that are not defined under IFRS. The company believes that these measures provide useful supplemental information to investors and the company's management as they permit the evaluation of the company's financial performance and position. Since not all companies calculate financial measures in the same way, these are not always comparable to the measures used by other companies. Consequently, these financial measures should not be seen as a substitute for measures defined under IFRS. The tables below include measurements that are not defined in accordance with IFRS, unless otherwise stated. For definitions and purposes, see also the last page of the report.
Consolidated key ratios
| Group, EUR thousands | Jan-Mar 2026 | Jan-Mar 2025 | Apr 2025-Mar 2026 | Jan-Dec 2025 |
|---|---|---|---|---|
| Net revenues | 513,039 | 520,944 | 2,058,635 | 2,066,540 |
| Adjusted EBITDA margin | 65.4% | 65.6% | 66.0% | 66.1% |
| EBITDA margin | 65.4% | 65.6% | 66.8% | 66.9% |
| Operating margin | 57.0% | 58.2% | 59.1% | 59.4% |
| Profit margin | 49.1% | 48.9% | 50.2% | 50.1% |
| Equity/assets ratio | 73.5% | 73.5% | 73.5% | 73.8% |
| Cash and cash equivalents | 1,097,951 | 969,208 | 1,097,951 | 817,951 |
| Average number of full-time equivalents | 16,690 | 15,617 | 16,266 | 15,961 |
| Number of full-time equivalents at end of period | 16,714 | 16,368 | 16,714 | 16,097 |
| Earnings per share before dilution, EUR (IFRS) | 1.26 | 1.24 | 5.27 | 5.24 |
| Equity per share, EUR | 21.58 | 20.47 | 21.58 | 20.46 |
| Operating cash flow per share before dilution, EUR | 1.74 | 1.76 | 6.16 | 6.19 |
| Average number of outstanding shares before dilution | 199,226,613 | 205,610,452 | 201,190,214 | 202,786,174 |
| Number of outstanding shares | 199,226,613 | 204,462,162 | 199,226,613 | 199,226,613 |
Consolidated key ratios by quarter
| Group, EUR thousands | Q1/26 | Q4/25 | Q3/25 | Q2/25 | Q1/25 | Q4/24 | Q3/24 | Q2/24 | Q1/24 |
|---|---|---|---|---|---|---|---|---|---|
| Net revenues | 513,039 | 514,204 | 507,123 | 524,269 | 520,944 | 533,845 | 519,379 | 508,410 | 501,451 |
| Adjusted EBITDA | 335,320 | 341,543 | 336,887 | 345,267 | 341,976 | 363,557 | 355,607 | 345,767 | 345,786 |
| Adjusted EBITDA margin | 65.4% | 66.4% | 66.4% | 65.9% | 65.6% | 68.1% | 68.5% | 68.0% | 69.0% |
| EBITDA | 335,320 | 393,210 | 336,887 | 345,267 | 341,976 | 454,965 | 415,257 | 345,767 | 345,786 |
| EBITDA margin | 65.4% | 69.5% | 66.4% | 65.9% | 65.6% | 72.8% | 71.7% | 68.0% | 69.0% |
| Operating profit | 292,612 | 350,873 | 296,615 | 306,383 | 303,435 | 417,634 | 379,179 | 311,129 | 311,611 |
| Operating margin | 57.0% | 62.0% | 58.5% | 58.4% | 58.2% | 66.8% | 65.5% | 61.2% | 62.1% |
| Revenue growth YoY | -1.5% | -3.7% | -2.4% | 3.1% | 3.9% | 12.3% | 14.7% | 15.3% | 16.7% |
| Revenue growth QoQ | -0.2% | 1.4% | -3.3% | 0.6% | -2.4% | 2.8% | 2.2% | 1.4% | 5.5% |
| Cash and cash equivalents | 1,097,951 | 817,951 | 656,378 | 505,255 | 969,208 | 801,474 | 663,730 | 688,687 | 974,125 |
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Reconciliation of selected key ratios not defined in accordance with IFRS
| Group, EUR thousands | Jan-Mar 2026 | Jan-Mar 2025 | Apr 2025-Mar 2026 | Jan-Dec 2025 |
|---|---|---|---|---|
| Net revenues | ||||
| Total operating revenues | 513,039 | 520,944 | 2,110,302 | 2,118,207 |
| Other operating revenues | - | - | -51,667 | -51,667 |
| Net revenues | 513,039 | 520,944 | 2,058,635 | 2,066,540 |
| Operating margin | ||||
| Profit before tax | 300,093 | 302,189 | 1,244,328 | 1,246,424 |
| Net financial items | -7,481 | 1,246 | 2,155 | 10,882 |
| Operating profit (EBIT) | 292,612 | 303,435 | 1,246,483 | 1,257,306 |
| Divided by Total operating revenues | 513,039 | 520,944 | 2,110,302 | 2,118,207 |
| Operating (EBIT) margin | 57.0% | 58.2% | 59.1% | 59.4% |
| Adjusted EBITDA and Adjusted EBITDA margin | ||||
| Profit before tax | 300,093 | 302,189 | 1,244,328 | 1,246,424 |
| Net financial items | -7,481 | 1,246 | 2,155 | 10,882 |
| Depreciation/amortisation | 42,708 | 38,541 | 164,201 | 160,034 |
| Other operating revenues | - | - | -51,667 | -51,667 |
| Adjusted EBITDA | 335,320 | 341,976 | 1,359,017 | 1,365,673 |
| Divided by Net revenues | 513,039 | 520,944 | 2,058,635 | 2,066,540 |
| Adjusted EBITDA margin | 65.4% | 65.6% | 66.0% | 66.1% |
| EBITDA and EBITDA margin | ||||
| Profit before tax | 300,093 | 302,189 | 1,244,328 | 1,246,424 |
| Net financial items | -7,481 | 1,246 | 2,155 | 10,882 |
| Depreciation/amortisation | 42,708 | 38,541 | 164,201 | 160,034 |
| EBITDA | 335,320 | 341,976 | 1,410,684 | 1,417,340 |
| Divided by Total operating revenues | 513,039 | 520,944 | 2,110,302 | 2,118,207 |
| EBITDA margin | 65.4% | 65.6% | 66.8% | 66.9% |
| Profit margin | ||||
| Profit for the period | 251,932 | 254,669 | 1,059,359 | 1,062,096 |
| Divided by Total operating revenues | 513,039 | 520,944 | 2,110,302 | 2,118,207 |
| Profit margin | 49.1% | 48.9% | 50.2% | 50.1% |
| Equity/Assets ratio | ||||
| Total equity | 4,299,679 | 4,184,969 | 4,299,679 | 4,076,449 |
| Divided by Total assets | 5,847,943 | 5,694,759 | 5,847,943 | 5,521,787 |
| Equity/Assets ratio | 73.5% | 73.5% | 73.5% | 73.8% |
Revenue growth at constant currency is estimated by applying the GGR-to-Revenue ratio in the current quarter to the Gross Gaming Revenue ("GGR") converted to EUR using the exchange rates of the corresponding quarter of the previous year.
Operating expenses at constant currency are calculated by applying the exchange rates used in consolidation of the corresponding quarter of the previous year.
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Condensed Parent Company income statement and other comprehensive income
| Parent company, EUR thousands | Jan-Mar 2026 | Jan-Mar 2025 | Apr 2025-Mar 2026 | Jan-Dec 2025 |
|---|---|---|---|---|
| Net sales | 4,045 | 4,207 | 20,751 | 20,913 |
| Other external expenses | -5,673 | -5,546 | -25,440 | -25,313 |
| Operating profit | -1,628 | -1,339 | -4,689 | -4,400 |
| Financial income and expenses | 144 | 1,760 | 665,032 | 666,648 |
| Profit before tax | -1,484 | 421 | 660,343 | 662,248 |
| Tax on profit for the period | -28,507 | -28,791 | -108,745 | -109,029 |
| Profit for the period* | -29,991 | -28,370 | 551,598 | 553,219 |
*Profit for the period coincides with comprehensive income for the period.
Condensed Parent Company balance sheet
| Parent company, EUR thousands | 31/03/2026 | 31/03/2025 | 31/12/2025 |
|---|---|---|---|
| Assets | |||
| Intangible assets | 102 | 51 | 94 |
| Property, plant and equipment | 188 | 247 | 195 |
| Participating interest in Group companies | 2,630,780 | 2,630,780 | 2,630,780 |
| Deferred tax assets | 815 | 554 | 537 |
| Other financial assets | 2,801 | 518 | 2,836 |
| Total non-current assets | 2,634,686 | 2,632,150 | 2,634,442 |
| Receivables from Group companies | 235,834 | 482,207 | 228,091 |
| Other current receivables | 1,385 | 1,508 | 1,549 |
| Prepaid expenses and accrued income | 4,963 | 6,264 | 8,233 |
| Cash and cash equivalents | 7,327 | 10,258 | 13,841 |
| Total current assets | 249,509 | 500,237 | 251,714 |
| TOTAL ASSETS | 2,884,195 | 3,132,387 | 2,886,156 |
| Equity and liabilities | |||
| Share capital | 650 | 650 | 650 |
| Retained earnings including profit for the period | 2,607,057 | 2,970,764 | 2,637,130 |
| Total equity | 2,607,707 | 2,971,414 | 2,637,780 |
| Provision for pensions | 2,277 | - | 2,310 |
| Total non-current liabilities | 2,277 | - | 2,310 |
| Accounts payable | 107 | 560 | 357 |
| Current tax liabilities | 269,833 | 158,016 | 240,953 |
| Liabilities to Group companies | - | - | 4 |
| Other current liabilities | 1,319 | 425 | 497 |
| Accrued expenses and prepaid income | 2,952 | 1,972 | 4,255 |
| Total current liabilities | 274,211 | 160,973 | 246,066 |
| TOTAL EQUITY AND LIABILITIES | 2,884,195 | 3,132,387 | 2,886,156 |
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Notes to the financial statements
Note 1. Accounting principles
Evolution prepares its financial statements in accordance with the International Financial Reporting Standards (IFRS) as approved by the European Union. The Group's interim report has been prepared in accordance with IAS 34, Interim Financial Reporting. The Parent Company uses the same accounting principles as the Group, with the addition of the Swedish Financial Reporting Board's recommendation; RFR 2, Accounting for Legal Entities. The accounting policies are unchanged from the 2025 annual report. There are no amendments to IFRS standards in 2026 that have had material impact on the Group's results of operations and financial position. Amounts are expressed in thousands of Euro (EUR) unless otherwise indicated. Amounts or figures in parentheses indicate comparative figures for the corresponding period last year.
Note 2. Events following the balance sheet date
No significant events.
Note 3. Incentive programmes
The company has two incentive programmes. Upon full exercise of the warrants within the programme 2023/2026 (adopted by the Extra General Meeting on 9 November 2023, exercise price SEK 1,296.60), the dilution effect will be approximately 0.9 percent. Upon full exercise of the warrants within the programme 2025/2028 (adopted by the Annual General Meeting on 9 May 2025, exercise price SEK 871.10), the dilution effect will be approximately 0.9 percent.
Note 4. Seasonality
Evolution's operations are, to a certain extent, influenced by seasonal patterns in end-user activity. The Group's customers generally notice increased end-user activity and an increased volume of operations in the fourth quarter of each year, which is consistent with the Group's experience of increased online casino traffic and commission income earned in the fourth quarter.
Note 5. Acquisition of group companies
Evolution has during Q1 made investments in group companies, including earn-out payments and an acquisition of a studio operation in Argentina, amounting to EUR 27.6 million in total.
In 2024, Evolution entered into an agreement to acquire Galaxy Gaming, Inc. for a total equity value of approximately USD 85 million, payable in cash. Closing is still pending and Galaxy Gaming Inc. is therefore not yet included in the consolidated accounts.
Note 6. Update on various legal proceedings
In December 2021, Evolution filed a lawsuit against Calcagni & Kanefsky LLP and the then-anonymous parties behind the defamatory report now known to be Black Cube and Playtech, for defamation, trade libel, tortious interference with prospective economic advantage, fraud, and other illegal conduct, in the Superior Court of New Jersey. Now that the identities of the parties responsible for commissioning and producing the defamatory report is known, the litigation can proceed in earnest and is expected to extend through 2026.
In December 2024, Evolution announced that the UK Gambling Commission had commenced a review of Evolution Malta Holding Limited's operating license under Section 116 of the Gambling Act 2005. Evolution is cooperating fully with the Commission and has taken immediate actions to remedy the situation. The outcome of the review is still unknown to Evolution but might include sanctions or penalties.
Evolution is exposed to risks relating to other legal proceedings that could have a varying impact on earnings or financial position. For more information about risk factors in general, please refer to the Annual Report 2025.
Interim report | January-March 2026 | Evolution AB (publ)
Evolution
Definitions of key ratios
| Key ratios | Definition | Purpose |
|---|---|---|
| Net revenues | Total operating revenues less other operating revenues. | Key ratio used by management to monitor the revenue trend in the Group. |
| Operating profit (EBIT) | Profit before tax excluding net financial items. | Key ratio used by management to monitor the earnings trend in the Group. |
| Operating margin (EBIT) margin | Operating profit in relation to total operating revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| EBITDA | Operating profit less depreciation. | Key ratio used by management to monitor the earnings trend in the Group. |
| EBITDA margin | EBITDA in relation to total operating revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| Adjusted EBITDA | EBITDA less other operating revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| Adjusted EBITDA margin | Adjusted EBITDA in relation to net revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| Profit margin | Profit for the period in relation to total operating revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| Equity/assets ratio | Equity at the end of period in relation to total assets at the end of period. | Key ratio indicates the Group's long-term payment capacity. |
| Cash and cash equivalents | Cash and bank assets. | Used by management to monitor the Group's short-term payment capacity. |
| Revenue growth compared with the previous year | Net revenues for the period divided by net revenues in the same period last year. | Key ratio used by management to monitor the Group's revenue growth. |
| Revenue growth compared with the preceding quarter | Net revenues for the period divided by net revenues for the preceding quarter. | Key ratio used by management to monitor the Group's revenue growth. |
| Average number of full-time equivalents | The average number of full-time equivalents during the period. Full-time equivalents include part-time positions. | Key ratio used by management to monitor the Group's number of employees' growth. |
| Per share | ||
| Earnings per share before dilution | Profit for the period in relation to the average number of shares outstanding before dilution during the period. | Key ratio used by management to monitor the earnings trend in the Group. |
| Equity per share | Shareholders' equity divided by the number of shares outstanding at the end of the period. | Key ratio used by management to monitor the earnings trend in the Group. |
| Operational cash flow per share before dilution | Cash flow from operating activities in relation to the average number of shares outstanding before dilution during the period. | Key ratio used by management to monitor the cash flow trend in the Group. |
| Average number of shares outstanding | The average number of shares outstanding before dilution during the period. | Used to calculate key ratios in relation to the number of shares during the period. |
| Number of shares outstanding | Number of shares outstanding at the end of the period less shares in own custody. | Used to calculate key ratios in relation to the number of shares at the end of the period. |
Interim report | January-March 2026 | Evolution AB (publ)