Evolution Q3 Revenue Returns to Growth at €526.1m

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Tenstar Team

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Evolution AB has returned to year-on-year revenue growth, reporting net revenues of €526.1 million for the third quarter of 2026, up 3.7% on the prior year, even as the live casino supplier closed its Brazilian studio following the country’s abrupt gambling ban. The result marks the group’s first growth in five quarters, though chief executive Martin Carlesund described the period as deliberately uneventful.

The headline figures show a business holding its margins steady while absorbing a significant regulatory shock in one of its growth markets, a combination that will interest both suppliers and operators tracking Latin America’s shifting rules.

What happened

Evolution
reported net revenues rising 3.7% year-on-year to EUR 526.1 million, as the B2B live casino and RNG supplier recorded growth across all of its operating regions for the first time since 2024
.
Adjusted EBITDA for the quarter increased 2.7% to EUR 345.9 million, representing a margin of 65.8%, down slightly from 66.4% a year earlier
.

Profit told a slightly different story.
Evolution’s Q3 profits experienced a slight decrease, falling to EUR 243.3 million versus EUR 252.3 million in the prior-year period, though earnings per share improved to EUR 1.31 versus EUR 1.25
. The gap was driven by one-off items:
adjustments included the UK Gambling Commission settlement of EUR 5.6 million and the Galaxy Gaming termination fee of EUR 6.5 million
.

Regional performance diverged sharply.
The strongest momentum came from North America and Latin America, both of which posted record revenues, with North America rising 13.6% from a year earlier and Latin America climbing 23.1%, while Africa delivered 23.7% growth. Europe, by contrast, declined 4.7% year on year
. By product line,
Evolution’s live casino revenue rose by 2.6%, while RNG revenue climbed by 10.1%
.

The quarter’s most consequential development came after the reporting period closed.
Brazil’s ban on fixed-odds betting and online casino games was signed on 25 September, licensed sites went offline from 6 October, and Evolution closed its Brazilian studio on 5 October, citing uncertain regulatory conditions
.
Carlesund said Brazil accounts for “well below half” of LatAm revenues, adding that momentum in the rest of the region would offset part of the impact, with LatAm generating €49.0 million by player IP in the third quarter
.

Why it matters

For suppliers with distributed content operations, the episode is a reminder of how quickly a regulated market can be switched off. Carlesund did not hide his frustration on the earnings call, saying
“everyone is flabbergasted about the situation in Brazil, that it is a total negative for anyone in this business that it happens in this way”
. He added that the company
remains ready to reopen quickly if the market changes
.

Management was careful to frame the Brazilian closure as reversible rather than terminal.
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
, Carlesund told investors. Analysts pressed for more detail on the knock-on effects, and
management said the country is not ring-fenced, so some revenue may still flow through operators even after the studio closure, though the scale is unclear
.

For operators and affiliates with Brazilian exposure, Evolution’s results add to a growing body of evidence that the market’s regulatory reversal is already reshaping supplier investment decisions. Content providers retreating from a market inevitably affects the game catalogues operators can offer local players, which in turn narrows what affiliates can promote to Brazilian audiences until clarity returns.

The bigger picture

The quarter also closed out a weaker stretch for Evolution’s historically dominant European business. Carlesund suggested the region’s underperformance is tied to ongoing policy instability, noting in the earnings call that
Europe would likely improve if it gets a few stable quarters without constant regulatory and tax changes
– a comment that echoes concerns raised by operators across the UK and Nordic markets over tax hikes this year.

Despite the Brazilian disruption, Evolution struck an upbeat tone about its product pipeline. Carlesund described the company’s upcoming slate as
“spectacular” and including some of the biggest and most complex games the company has ever made
, while also confirming the group is
exploring AI dealers as a complement to live games, not a replacement for them
. The results arrive in the same week as Brazil’s ban featured prominently in other operators’ and suppliers’ updates, as detailed in Tenstar Media’s recent coverage of Stake’s legal challenge to the court reversal.

Sources

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