Evolution posts flat full-year 2025 revenue, European instability hits Q4 performance

Evolution Group AB reported flat revenue for the full-year 2025, with CEO Martin Carlesund expressing dissatisfaction with the company’s fourth quarter performance in Europe.

“There is instability in the market, and some countries are not developing as we want,” Carlesund told analysts during the game developer’s full-year earnings call on Thursday.

He attributed the weakness to low channelisation, which he said had declined sequentially across the continent. Carlesund noted that in some European countries, channelisation fell to 50%, meaning Evolution only reached half of the available market.

European revenues for Q4 2025 dropped 8% year-on-year to €366.7 million (US$432.3 million), though the company did not provide a regional breakdown for the full year.

The chief executive highlighted the company’s regulatory safeguards, saying Evolution has “the strongest ring-fencing measures in place among all suppliers,” but added that losses were partly due to “regulated markets losing ground.”

The company began exiting unregulated European markets in Q1 2025, deploying geolocation blocking technology to ensure its games were available only in licensed territories. This followed a UK Gambling Commission investigation into Evolution supplying games to unlicensed operators. Carlesund noted in July 2025 that these ring-fencing measures had cost more than expected.

On the UK Gambling Commission probe, Carlesund said the company is still awaiting an update from the regulator, originally expected in December 2025.

For the full year, Evolution’s net revenue remained largely flat at €2.07 billion (US$2.44 billion), a 0.2% increase from 2024. Live games contributed 86% of the group’s total revenue. 

Operating expenses rose 8.34% to €860.9 million (US$1.01 billion), primarily due to personnel costs linked to new tables and studio launches. Operating profit fell to €1.26 billion (US$1.49 billion) from €1.42 billion (US$1.67 billion) in 2025, with the operating margin declining to 59.4% from 64.1%.

Carlesund highlighted the stability and growth potential of the North and South American markets, describing them as “a more stable environment.” In Asia, the company returned to growth in Q4 after implementing measures to combat cybercrime, which had affected earnings since early 2025. “The progress is slow, methodical, and very important,” he said.

Addressing the acquisition of Las Vegas-based Galaxy Gaming, a table games and casino technology provider purchased in 2024, Carlesund said the deal is “progressing” despite delays due to Nevada regulatory requirements. He added that the acquisition is “not large enough to affect [Evolution’s] business model.”

The CEO also commented on potential licensing in Russia if online gambling is legalized. “There are a lot of rumours, and Putin says one thing,” Carlesund said. “I would see it as very difficult to apply for a licence there, but let’s see what happens.”