Evolution CEO Martin Carlesund has pointed to “regulatory volatility” and “decreasing” channelisation in Europe as reasons why the supplier reported 1.5% year on year (YoY) fall in group net revenue for Q1 2026.
According to its result presentation, net revenue amounted to €513m (£445.6m), down from €520m the year prior, while adjusted EBITDA slid 1.9% to €334.3m. Adjusted EBITDA margin was 65.4%.
The Stockholm-listed supplier said profit for the period decreased YoY from €254.7m to €251.9m.
Revenue from RNG games totalled €78.2m, up from €72.3m 12 months prior, while live casino revenue fell to €434.9m from €448.7m in Q1 2025.
Yet Evolution said demand for online casino games continues to grow, “partly as a result of our continuous launch of new games and variations on traditional games”.
Breaking down revenue by region, Europe was the standout “disappointment”, as revenue slumped 10.4% YoY to 345.3m.
On that decline, Carlesund noted: “The clear disappointment this quarter was Europe. Following a lacklustre end to 2025, the region declined another 5.9% quarter-on-quarter.
“The main reasons are regulatory volatility and subjectivity, which have a clear impact on player activity. We also continue to face a material disadvantage from our self-imposed ring-fencing measures, which, as stated several times before, is the right long-term path even though the short-term price is high.
“Overall, channelisation in Europe is decreasing and it is bad for the impacted countries, the players and the industry as such.”
However, Evolution reported revenue increases in Asia, North America, Latam and in its other regions.
Asia reported growth of 3280% YoY to €16.9m, albeit from a low base, while North America revenue rose 7.2% YoY to €75.5m.
On its business in North America, Carlesund said: “In the quarter, we have completed the construction of our second studio in Michigan, with an expected launch in the coming months.
“Additionally, there were some positive regulatory movements; in the US, the Maine governor has signed the igaming bill into law. In Canada, Alberta will regulate its online casino market in July as the second province after Ontario.”
Latam revenue increased 14% YoY to €64.4m, with the CEO adding it will expand in Brazil and Colombia through new studios and adding more space to existing ones due to increased demand.
Commenting on the remainder of 2026 and beyond, as Evolution celebrates its 20th anniversary this year, Carlesund said: “I am truly excited about the product roadmap for 2026, and even more so about what we will be able to create over the next two decades.
“It will be a transition that extends beyond Evolution and the industry, reshaping the player experience and influencing areas we may not even envision today.”
Earlier this month, Evolution requested permission to add Playtech as a defendant in its defamation lawsuit against Black Cube.
The case against Black Cube stems from the Stockholm-listed supplier alleging Playtech commissioned an investigation by Israeli intelligence firm in 2021 that included “highly inflammatory and knowingly false claims” about Playtech.
At the time of writing, Evolution’s share price was down 4% to SEK612 (GBP)
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Martin Carlesund says leakage to the black market “bad for the impacted countries, the players and the industry”, while revealing the supplier’s revenue for the region tumbled 10.5%
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