Evolution AB has published its interim report for January to June 2025, revealing modest growth in igaming revenue during the second quarter, alongside a decline in profit and margins compared to the same period last year.
Net revenues for Q2 2025 reached EUR 524.3 million, a 3.1% increase from EUR 508.4 million in Q2 2024. Adjusted for currency effects, revenue growth is estimated at 8.8%. The majority of the revenue—EUR 453.7 million—was derived from live casino games, with the remainder, EUR 70.6 million, coming from RNG (random number generator) content. The live casino segment continued to benefit from increased commission income from both existing and new customers, supported by the release of new game formats.
EBITDA for the quarter came in at EUR 345.3 million, with an EBITDA margin of 65.9%, slightly lower than the 68.0% margin recorded in the same quarter the previous year. Profit for the period declined to EUR 248.3 million, down from EUR 269.1 million in Q2 2024, reflecting a 7.7% drop year-on-year. Earnings per share before dilution stood at EUR 1.22, compared to EUR 1.28 in the previous year.
Operating expenses increased to EUR 217.9 million from EUR 197.3 million, primarily driven by personnel expansion and new studio launches. The report also cited foreign exchange impacts, which contributed EUR 4.6 million in cost offsets. Operating profit for the quarter fell by 1.5% to EUR 306.4 million, resulting in an operating margin of 58.4%.
Investments in the quarter totalled EUR 33 million, including EUR 18.6 million in intangible assets focused on game development and platform enhancements. A further EUR 14.4 million was allocated to physical infrastructure such as gaming tables and studio space.
Cash flow from operating activities declined to EUR 225.3 million, down from EUR 312.8 million a year earlier. Financing outflows reached EUR 641.0 million, including EUR 572.5 million in shareholder dividends and EUR 65.4 million in share buybacks. Cash and cash equivalents at the end of the period totalled EUR 505.3 million.
For the first six months of 2025, total revenue grew by 3.5% to EUR 1,045.2 million. EBITDA stood at EUR 687.2 million, with a margin of 65.8%, and profit for the period declined to EUR 503.0 million, representing a 6.6% decrease compared to the first half of 2024.
The second quarter also saw the launch of Evolution’s first live casino studio in the Philippines, with further market expansion planned. After the reporting period, Evolution confirmed its entry into Rhode Island’s online slots market and signed a licensing agreement with Hasbro for exclusive use of its IP in live casino and slot games. The company also launched a new studio in São Paulo, Brazil.
While the company continues to expand its presence across regulated igaming markets, margin pressure and increased investment suggest a phase of operational recalibration.
Comments from CEO Martin Carlesund: “For the second quarter of 2025, Evolution reports net revenues of EUR 524.3 million and EBITDA of EUR 345.3 million, corresponding to a year-on-year revenue growth of 3.1 percent, a quarter-on-quarter growth of 0.6 percent, and an EBITDA margin of 65.9 percent. Revenue growth at constant currency is estimated to be 8.8 percent.
“In the first quarter Evolution reported a deceleration of the growth rate year-on year, mainly due to proactive and conscious actions that permit us to stay ahead of the curve in the regulatory landscape. The second quarter is more in line with our expectations given the challenges we face in Asia, and the proactive measures we are taking regarding ring-fencing in Europe. To be clear though, we are not satisfied with this quarter’s growth, and we are working hard to increase the pace. However, operationally speaking we are where we set out to be at the beginning of the year.
“We continue to address the ongoing issues with cybercrime and the hijacking of our video streams in Asia, where we are continuously moving forward. Other businesses, not only those in Online Gaming, are facing similar challenges, and we know that we are in the absolute technological forefront in defending our intellectual property and our products. As we have stated before it will take time, patience and resources but as we deploy new measures constantly, we are starting to reap some benefits. The revenue for the region is back to growth and we remain very cautiously optimistic for the remainder of 2025. We remain fully committed to ensuring that we receive payment for our innovations and our dedication to providing ground-breaking games to the market.
“In Europe we report another quarter with negative growth compared both year-on-year and quarter-on-quarter due to the ring-fencing we did earlier this year. 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, but that the structure of the regulatory parameters is vital. 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. These regulatory adaptations will affect the entire online gambling industry, but as we are leading by taking proactive initiatives, we are ahead of the curve and of the game.
“North America maintains very good momentum, and we continue to expand our offerings as well as our US studio network with the planning of a new studio in Grand Rapids, Michigan.
“In Latin America we remain highly optimistic in terms of market opportunities in the medium to long-term, but we also recognize that it will take time for operators as well as for players to get used to the new regulations in Brazil. On this journey we are very happy to announce that we today opened our Studio in São Paulo and look forward to it accelerating our growth in Brazil.
“In summary, we continue to see somewhat modest figures for the second quarter, however they are more in line with our expectations, as communicated in the first quarter. Our belief that the second half of the year will be stronger remains and therefore we keep our full-year estimate of an EBITDA margin of 66-68 percent.
“Our Live Casino offering reports a 3.6 percent growth rate year-on-year and a good 1.6 percent growth rate quarter-on-quarter, showcasing that the underlying growth remains intact as does our ability to seize these opportunities. In our RNG portfolio, Nolimit City continues to be one of the strongest brands, while we have the potential for future growth for our other brands in the RNG segment. For the quarter RNG revenues are up by a modest 0.3 percent, affected by one of the largest pay-outs ever for us in RNG.
“For 2025, we have the strongest product roadmap ever with more than 110 new releases that will further strengthen our world-leading portfolio. In the second quarter we released four new fantastic Live Casino games: Super Color Game, Lightning Bac Bo, the card game War and First Person Bac Bo. All are truly amazing games built on Evolutions trademark quality, all designed to provide an unmatched entertainment experience. We have also released 20 slot games during the quarter. During the third quarter we look forward to releasing three new Live Casino games, among those Ice Fishing, a truly unique game that operators are eagerly awaiting!
“Even though we are facing challenges, we meet them head on, and at the same time we continue to innovate, to develop new products, to initiate collaborations and to expand our network. We work hard to build our success and to shape our future, and the second quarter was a real testament to that.
“In June we launched our first ever Asian studio – in the Philippines. It is a state-of-the-art studio that marks a significant milestone in Evolution’s expansion. The Philippine Online Gaming market is very exciting, and it is the first licensed iGaming jurisdiction in Asia. The new Brazilian studio is also a state-of-the-art studio, a bit larger, and is aimed at serving a growing Brazilian market. It is a perfectly timed launch considering Brazil’s transition to regulation earlier this year. These two new studios symbolize our constant strive for growth, and we warmly welcome them into the Evolution studio network!
“We’ve expanded our partnership with Hasbro to become their exclusive global provider for onlinecasino-games based on Hasbro’s iconic brands, including MONOPOLY. We are now preparing to launch MONOPOLY Live in the US. In addition we are developing three completely new live casino Hasbro-based titles as well as a number of online slot titles. This agreement reinforces our position as the leader in online casino entertainment.
“We also announced yet another great new partnership agreement with Bally’s Corporation in Rhode Island. This is a landmark development in our US expansion and marks Evolution’s entry into the state and thus establishes a presence in all seven US states which currently offer online casino gaming.
“I am not satisfied with the financial development during the first half of 2025, but I am very satisfied with how we are addressing our challenges. We take action, continue to make Evolution stronger every day, continue a world-wide expansion at the same time that we systematically and methodically handle each challenge. All of this would not be possible without the hard-working, young and fantastic team that Evolution is built on.
“I look forward to the second half of 2025, and to applying our full focus toward growing our company, our footprint, and our excellence, while also raising the bar for each other – as well as for the industry.
“And finally, I want to wish partners, customers, shareholders and employees a great summer!”
