Evolution Posts 3.7% Q3 Revenue Growth as Brazil Ban Forces Studio Closure

27/10/2026
Evolution Posts 3.7% Q3 Revenue Growth as Brazil Ban Forces Studio Closure

Live casino supplier Evolution has reported third-quarter revenue of €526.1 million (about US$590 million), an increase of 3.7% from a year earlier. CEO Martin Carlesund described the period as a return to stability, even as a regulatory change in Brazil created new uncertainty for the company.

Key financial figures

  • Adjusted EBITDA increased 2.7% to €345.9 million, with the margin slipping slightly from 66.4% to 65.8%.
  • Net profit dropped 3.6% to €243.3 million.
  • Live casino revenue grew 2.6% to €443 million.
  • RNG (random number generator) revenue, which covers its slot-style digital games, rose 10.1% to €83.1 million.

Speaking to analysts on the earnings call, Carlesund called it an uneventful quarter and said he saw that as a positive sign.

Regional picture

North America posted growth of 13.6%, while Latin America and Africa grew 23.1% and 23.7% respectively. Europe was the weak spot, with revenue from European players falling 4.7% year-on-year. Carlesund said the company should perform better there regardless of regulatory conditions or low channelisation rates.

Brazil studio closed

Brazil dominated discussion on the call after the government moved to ban regulated online gambling. Evolution shut its Brazilian studio on October 5 and said it does not know when it might reopen. Carlesund criticised the decision, saying a populist agenda had overturned a regulatory framework that had existed for only around a year and a half. He added that Evolution is ready to restart operations quickly if the government changes course.

Brazil makes up well under half of Evolution's Latin American revenue. The region brought in €49 million in the third quarter, which was not affected by the ban. Carlesund declined to estimate the impact on fourth-quarter revenue, but confirmed that full-year margin guidance is unchanged.

Buybacks and US expansion

By the end of September, Evolution had bought back roughly €1.13 billion of shares under its €2 billion programme. CFO Joakim Andersson said repurchases would slow in Q4 and Q1 2027 to better match cash generation.

In the United States, a fourth New Jersey studio is due to open in Q4 and will also serve Delaware, taking Evolution's US hubs to eight. The company is also preparing to launch Spinning Whale, a new RNG brand aimed specifically at American players.

Source: Casino.org