Market reacts positively to Evolution’s Q2 results despite Trump’s tariffs
Shares of Evolution AB surged 6.5% following the release of its Q2 earnings, with the Swedish gaming giant reporting net revenues of €524.3 million. Markets reacted positively to the results, despite recent turmoil in European stock exchanges triggered by Trump’s new tariffs.
While this revenue represents a 3.1% year-on-year increase, CEO Martin Carlesund (pictured above) was candid about the pace of expansion: “We are not satisfied with this quarter’s growth, and we are working hard to increase the pace.”
Carlesund argued that while the results were “more in line with our expectations given the challenges we face in Asia,” he acknowledged the subdued performance. “Operationally speaking we are where we set out to be at the beginning of the year,” he said, underscoring the company’s long-term strategy.
According to the Q2 2025 report, EBITDA came in at EUR 345.3 million, translating to a margin of 65.9%, down slightly from 68.0% a year earlier. Profit for the period dropped to EUR 248.3 million from EUR 269.1 million.
Tackling headwinds in Asia and Europe
Much of the drag came from ongoing issues in Asia. “We continue to address the ongoing issues with cybercrime and the hijacking of our video streams,” Carlesund noted. “We are in the absolute technological forefront in defending our intellectual property and our products.” He added that “as we deploy new measures constantly, we are starting to reap some benefits,” and revenue in the region is “back to growth.”
Europe remained a sore spot, where Evolution reported “another quarter with negative growth compared both year-on-year and quarter-on-quarter.” Carlesund attributed this to regulatory interventions: “Although the ring-fencing measures may have had a larger financial impact than anticipated outside of the UK, we maintain that regulation is positive over time.”
He issued a cautionary note to policymakers: “A too heavily regulated market will cause a decrease in player protection and a reduced market for regulated companies, while a balanced regulatory environment will serve both player protection requirements and sustain a healthy market.”
Betting big on expansion
Despite the hurdles, Evolution is betting on global growth. “In June we launched our first ever Asian studio, in the Philippines,” said Carlesund, calling it “a significant milestone.” He also announced the opening of another “state-of-the-art studio” in São Paulo, Brazil. “It is a perfectly timed launch considering Brazil’s transition to regulation earlier this year,” he added.
The North American market remains strong. “We continue to expand our offerings as well as our US studio network with the planning of a new studio in Grand Rapids, Michigan.” And Evolution is now present in all seven U.S. states with legal online casino gaming following a partnership with Bally’s Corporation.
Carlesund also revealed a significant licensing deal: “We’ve expanded our partnership with Hasbro to become their exclusive global provider for online casino games based on Hasbro’s iconic brands, including Monopoly.”
He hinted at big product moves ahead: “We are now preparing to launch Monopoly Live in the U.S. In addition we are developing three completely new live casino Hasbro-based titles.”
Eye on the second half
“Our belief that the second half of the year will be stronger remains,” Carlesund said, reiterating full-year EBITDA margin guidance of 66–68%.
Evolution is also leaning into innovation. “For 2025, we have the strongest product roadmap ever with more than 110 new releases,” Carlesund said. This includes 24 game releases in Q2 alone, four live casino titles, and 20 slot games.
Even with the softer numbers, the company’s founder remains bullish: “We take action, continue to make Evolution stronger every day, continue a worldwide expansion at the same time that we systematically and methodically handle each challenge.”
