Evolution Reports 3% Revenue Growth in Q2

Despite a modest revenue uptick, the company faced headwinds, including a 7.7% drop in profit to €248.3 million and a slight 0.1% dip in EBITDA to €345.3 million, with an EBITDA margin of 65.9%.

CEO Martin Carlesund expressed tempered satisfaction, noting, “The second quarter is more in line with our expectations… [but] we are not satisfied with this quarter’s growth, and we are working hard to increase the pace.” With strategic expansions and a robust product roadmap, Evolution is navigating challenges while positioning for a stronger second half.

Financial Performance and Operational Challenges

For the first half of 2025, Evolution’s net revenues grew 3.5% to €1,045.2 million, driven by live casino revenues of €902.4 million, up 3.8%, fueled by higher commissions from existing and new clients.

RNG revenues edged up 1.7% to €142.9 million, though a large RNG payout tempered growth. Operating costs rose to €435.4 million, a 12.5% increase, due to higher personnel expenses from new table launches and studio expansions.

This contributed to a 2.1% decline in operating profit to €609.8 million and a 6.6% drop in profit for the period to €503.0 million. Cash flow from operations fell to €586.7 million, and cash reserves stood at €505.3 million.

Carlesund highlighted proactive measures, including tackling cybercrime in Asia, where video stream hijacking has been a hurdle. “We are in the absolute technological forefront in defending our intellectual property… we are starting to reap some benefits,” he said, noting revenue growth resuming in the region.

Strategic Expansions and Regulatory Adaptations

Evolution’s global footprint expanded significantly in Q2 2025. The company launched its first Asian live casino studio in the Philippines, a milestone in the region’s first licensed iGaming jurisdiction.

A new studio in São Paulo, Brazil, opened post-quarter to capitalize on the country’s shift to regulated gaming. In the U.S., Evolution entered Rhode Island, marking its presence in all seven states offering online casino gaming, and plans a new studio in Grand Rapids, Michigan.

In Europe, proactive “ring-fencing” measures to comply with regulations led to negative growth, particularly outside the UK, but Carlesund emphasized, “A balanced regulatory environment will serve both player protection requirements and sustain a healthy market.”

North America maintained strong momentum, and Latin America showed long-term promise despite regulatory adjustment periods.

Robust Product Pipeline and Partnerships

Evolution’s 2025 product roadmap is its most ambitious yet, with over 110 new releases planned. Q2 saw four new live casino games: Super Color Game, Lightning Bac Bo, War, and First Person Bac Bo, alongside 20 new slot titles.

The upcoming Q3 release of “Ice Fishing” has operators buzzing. The RNG portfolio, led by Nolimit City, remains a growth driver despite a modest 0.3% revenue increase in Q2.

Strategic partnerships bolstered Evolution’s position, including an expanded deal with Hasbro to become the exclusive global provider for online casino games based on brands like MONOPOLY, with a U.S. launch planned.

A new partnership with Bally’s Corporation in Rhode Island further strengthens its U.S. presence. “This agreement reinforces our position as the leader in online casino entertainment,” Carlesund noted.

Despite financial dips, Evolution maintains its full-year EBITDA margin forecast of 66-68%. Carlesund remains optimistic: “Our belief that the second half of the year will be stronger remains.” With 22,248 employees as of June 30, up from 21,141, the company is investing in talent to support its growth.