Evolution Posts Mixed Q2, Eyes Stronger 2025 After Setbacks

Evolution Reports Q2 Results: Optimism for 2025

Evolution, a leading provider of fully-integrated B2B solutions for online casinos, has released its second-quarter financial results. Despite facing regulatory challenges and cybersecurity issues, the company showed resilience and steady progress in key operational areas.

CEO Martin Carlesund Expresses Caution and Determination

CEO Martin Carlesund shared a cautiously optimistic view, acknowledging some obstacles while highlighting achievements. He emphasized the need to accelerate growth, stating that the current quarter’s performance did not fully meet expectations, although operational goals remain on track.

The company reported an EBITDA of
2345.3 million euros (equivalent to $401.8 million), maintaining a margin of 65.9%, slightly below the 68.0% margin recorded in the same period last year. Net profit declined by 7.7% to
2248.3 million euros ($289 million), with earnings per share also dipping from
228 euros ($1.49) to
222 euros ($1.42).

Revenue from the live casino segment showed steady growth, increasing 3.6% year-over-year and 1.6% compared to the first quarter. Meanwhile, revenue from the random number generator (RNG) segment only rose marginally by 0.3%, impacted by one of the largest RNG payouts in company history.

For the first half of 2025, Evolution generated revenue of
105 billion euros ($1.22 billion), marking a 3.5% increase year-over-year. However, EBITDA slightly decreased to
687.2 million euros ($799.8 million), and net profit dropped by 6.6% to
503 million euros ($585 million).

Mixed Regional Performances: Asia and North America Gain, Europe Faces Challenges

Geographically, results varied. Asia saw Q2 revenue climb 4.2% year-over-year to
209.1 million euros ($243.3 million), recovering after several flat quarters impacted by cyberattacks.

Carlesund noted that the company is starting to see positive momentum in Asia and remains cautiously hopeful about growth prospects for the rest of 2025. Efforts to combat stream hijacking continue, with the company positioned at the leading edge of IP protection technology.

In contrast, Europe experienced a 5.8% revenue decline to
180.2 million euros, largely due to new regulatory ring-fencing measures. Despite the financial impact, Carlesund defended the regulations as beneficial over the long term.

North America showed strong growth, with revenue rising nearly 23% to
74 million euros ($86 million). This growth was supported by a new studio in Michigan and a partnership with Bally’s in Rhode Island.

Latin America’s revenue increased by 2.7% to
37.6 million euros ($43.7 million), helped by the addition of a new studio in S�e3o Paulo.

Looking Forward: Positive Outlook for 2025

Carlesund reaffirmed the company’s guidance for a full-year EBITDA margin between 66% and 68%, praising the team’s ongoing efforts.

He expressed confidence that while 2025 may not be the most profitable year yet, it will be crucial for laying the groundwork to sustain future growth. Following the earnings report, Evolution’s shares rose by 7.5% in early trading.

The company announced plans to release 110 new products in the coming months, including three new live casino games slated for the third quarter.