Evolution AB maintains position in Q1 2026 despite slight revenue decline
Swedish online casino solutions provider Evolution AB has published its first-quarter 2026 results. Despite a slight decline in revenue and profit, the company maintained stable margins, generated strong cash flow, and recorded positive momentum in Asia and Latin America as its global expansion continued.
Q1 2026 financial results
According to the report, Evolution held its EBITDA margin at 65.4 per cent despite the revenue decline, underlining the resilience of its operating model. Revenue growth at constant currency is estimated at 6.8 per cent, driven by strong performance in Asia and the Americas.
| Metric | Q1 2026 | Q1 2025 | Change | Full-year figure |
| Revenue | €513m | €520.9m | –1.5% | €2,058.6m |
| EBITDA | €335.3m | €342.0m | –1.9% | €1,410.7m |
| EBITDA margin | 65.4% | 65.6% | — | 66.8% |
| Net profit | €251.9m | €254.7m | –1.1% | €1,059.4m |
| Profit margin | 49.1% | 48.9% | — | 50.2% |
| Earnings per share | €1.26 | €1.24 | +2.1% | €5.27 |
Source: SiGMA News.
Revenue geography and trends
Evolution’s revenue mix shifted unevenly across regions in Q1 2026. The company strengthened its position in the Americas and recorded a moderate recovery in Asia, while Europe remained a constraint due to regulatory restrictions and transitional regulatory measures.
The share of revenue from regulated markets continued to grow. Nearly half of Evolution’s revenue now comes from licensed jurisdictions, reinforcing its stated strategic focus on transparent and sustainable operating environments.
| Region | Q1 2025 | Q1 2026 | Change | Trend |
| Europe | €189.7m | €167.1m | –€22.6m | Decline due to regulatory headwinds |
| Asia | €201.9m | €197.8m | –€4.1m | Recovery post-cyberattacks, +2.2% QoQ |
| North America | €71.5m | €78.7m | +€7.2m | Accelerating growth, notably US and Canada |
| Latin America | €36.2m | €46.8m | +€10.6m | Top performer, +29.3% YoY |
| Other regions | €21.6m | €22.6m | +€1m | Moderate growth |
Source: SiGMA News.
The share of revenue from regulated markets rose from 45 per cent to 48 per cent, reflecting stronger oversight and increased compliance with licensing requirements.
Key events of the quarter
Evolution made significant progress in geographic and technological development during the quarter. A second studio in Latvia was launched, and a studio in Argentina was acquired, marking Evolution’s first facility in South America. In Asia, recovery continued following large-scale cyber incidents, with a 2.2 per cent quarter-on-quarter growth. In North America, revenue growth in local currency reached 21.4 per cent.
Construction of a second studio in Michigan is already complete, with its launch expected in the coming months. Regulatory progress was also noted: the US state of Maine approved an iGaming bill, while the Canadian province of Alberta is expected to launch online gaming regulation.
In Europe, performance declined 5.9 per cent quarter-on-quarter due to regulatory changes and ring-fencing restrictions. CEO Martin Carlesund (pictured) stated that, despite the short-term costs, protecting its licensing position is the right long-term strategy. The board of directors does not plan to pay dividends for 2025, prioritising reinvestment and infrastructure development.
Segment dynamics
While live casino remains the company’s dominant segment, Evolution is actively developing other verticals. The RNG segment has grown for the third consecutive quarter and now accounts for more than 15 per cent of total revenue. Carlesund noted that a global partnership with Hasbro and the integration of the MONOPOLY brand into Evolution’s content will serve as a further catalyst for growth.
Source: SiGMA News.
Financial stability
At the end of March, the company held cash of €1.1bn, up from €969m a year earlier. Equity grew to €4.3bn, with an equity-to-assets ratio of 73.5 per cent.
Investment in intangible assets totalled €15m and in fixed assets €19.6m, of which €27.6m was allocated to the acquisition of the Argentine studio. The effective tax rate increased to 16 per cent following the introduction of the Pillar II global minimum tax.
Asia and the Americas represent the primary growth drivers by geography. In Europe, the market is adapting to new regulatory frameworks, with the share of activity in the licensed segment declining. The company is also continuing to defend its reputation in court against Playtech and Black Cube in a defamation case.
B2B market leader holds its ground
“2026 is a special year – Evolution is celebrating its 20th anniversary,” said Carlesund. He added that the company continues to build long-term shareholder value based on integrity and player engagement with its content: “We turned the idea of bringing the casino online into a global entertainment industry. Our goal is to create content comparable in engagement to the best TV series.”
Despite a 1.5 per cent year-on-year revenue decline, Evolution maintains strong margin levels, is growing its share of mobile and regulated business, and is reinforcing its position in the Americas. The company remains a highly profitable B2B leader in the online casino market and continues on a clear trajectory of global expansion and innovation.
This article was first published in Russian on 22 April 2026.
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