Evolution’s Q1 Performance Impacted by Weak USD and European Decline

Modest Revenue and EBITDA Drop in Q1

Evolution released its interim report for the first quarter ending March 31, showing a slight decrease in both revenue and EBITDA. The company faced challenges primarily due to weaker market conditions in Europe, which affected overall performance.

Financial Overview: Revenues and Profits Dip

In Q1 2026, Evolution’s net revenues decreased by 1.5%, amounting to EUR 513 million (approximately $602.3 million). Although there was growth in the Asian and American markets, a 5.9% decline in Europe pulled down the overall figures.

This regional downturn also contributed to a 1.9% reduction in the company’s EBITDA, which stood at EUR 335.3 million ($393.6 million), representing a margin of 65.4%. Additionally, Evolution reported a profit of EUR 251.9 million ($295.7 million) for the quarter, marking a 1% fall compared to the same period last year.

Despite this, earnings per share before dilution saw a slight increase to EUR 1.26 ($1.48).

Growth in Latin America and North America Offset by Currency Challenges

Evolution highlighted notable progress in several areas during Q1. The company made strides in combating cybercrime in Asia and expanded its physical footprint by opening a second studio in Latvia and acquiring another studio in Argentina.

CEO Martin Carlesund shared that Latin America experienced robust growth of 29.3%, driven in part by the new Argentine studio, with plans underway for further expansion into markets like Brazil and Colombia.

While North America performed well, the impact of a weak US dollar and less favorable currency conversions tempered the gains. Canada presents potential growth opportunities, especially with Alberta preparing to launch iGaming services.

Carlesund cited Europe as the most disappointing region for the quarter, attributing the underperformance to regulatory uncertainties and shifting conditions.

Commitment to Long-Term Growth and Innovation

Looking ahead, CEO Carlesund expressed optimism for 2026, which marks Evolution’s 20th anniversary. He emphasized the team’s dedication to enhancing product quality and innovation.

The company plans to introduce an exciting lineup of new products throughout the year, with a clear focus on long-term value creation and maintaining strong player satisfaction.

Meanwhile, the board has decided not to propose any dividend distribution for the financial year 2025.