Evolution CEO Martin Carlesund pointed to “several tough and sometimes unexpected situations” over the past 12 months as the company posted a 3.7% year-on-year (YoY) decrease in revenue for Q4 2025.
Revenue for the period between October to December 2025 stood at €514.2m (£446.9m), down from the €533.8m recorded the year prior.
EBITDA dropped by 13.6% YoY to €393.2m, with an EBITDA margin of 69.5%, while adjusted EBITDA fell 6.1% YoY to €341.5m.
Evolution said profit for the period fell 18.6% YoY to €306.8m, down from €377.1m the year prior.
RNG revenue stood at €75.7m, a slight increase from the €74.4m reported 12 months ago.
However, live casino revenue fell to €438.6m, having stood at €459.4m in Q4 2024.
Breaking down revenue by region, group revenue in Europe fell 8.1% YoY to €366.7m, with Carlesund citing “unfavourable regulatory movements” for the decline.
There was also a 4.3% YoY drop in Asia revenue to €193.6m, although Evolution did record 9.2% YoY growth in North America revenue to €77.1m.
Carlesund said the company was growing “decently” in North America, although he conceded management would like growth to be faster.
“It is still early days for the online gaming industry, and we believe the region will see an increasing share of live,” he added.
“To increase penetration and options, we re-launched our second brand, Ezugi, during the quarter, starting in New Jersey, with a clear goal to become the number two live casino provider in the US.
“As a next step, we will establish a new studio in Grand Rapids to support Ezugi’s expansion to Michigan.”
Latam revenue also increased 12.2% YoY to €43.2m, while there was a 9.2% YoY increase in other market revenue to €22.6m.
Carlesund continued: “To sum up the above, Asia, North America, Latin America and Africa all did well in the quarter; however, development in Europe was not good, burdened by unfavourable regulatory movements.
“We believe Evolution currently has the strongest ring-fencing measures in place among all suppliers, but we also recognise the regulated markets are losing ground.
“The regulatory scale is not in balance, and this development is bad for the most vulnerable players.
“However, the scale tends to swing over time, and we remain as committed as ever to providing European operators and players with the most entertaining experiences.”
For the full calendar year of 2025, Evolution recorded a 0.2% YoY increase in revenue to €2.07bn.
However, EBITDA fell 9.2% from €1.6bn YoY to €1.4bn, with an EBITDA margin of 66.9%.
Adjusted EBITDA also dropped 3.2% YoY to €1.37bn.
Profit for January to December 2025 amounted to €1.06bn, down 14.6% YoY from €1.24bn.
Reflecting on the full year, Carlesund alluded to rival Playtech being named the company behind the controversial 2021 report that claimed Evolution games were available in several black markets including Iran, Syria and Sudan.
He said: “Looking at 2025 as a whole from an operational perspective, it might have been one of our strongest years ever, with amazing new games and studio expansions in all parts of the world.
“On top of that, we have handled several tough and sometimes unexpected situations: ring-fencing, extremely questionable or even criminal activities from competitors and cyber criminality.
“Despite these challenges, we still delivered a solid margin of 66.1% and a fantastic cash flow. The financial performance was not as strong as we would have wanted when entering the year, but I am happy with the way the company has stood up for what is right and lived up to our ambition to become a little bit better every day.
“So with that said, overall, we are proud but not happy with 2025. Our amazing people look forward to doing more in 2026 by expanding with full speed.
“Our primary focus will be on the USA, Latin America and new innovative games. We will also invest in Europe, but slightly less aggressively. With this expansion in mind, we estimate to deliver a margin in line with 2025.”
The post Evolution CEO says firm handled “unexpected situations” in 2025 as Q4 revenue falls 3.7% YoY first appeared on EGR Intel.
Martin Carlesund says supplier did well in several regions but had to endure “criminal activities from competitors”
The post Evolution CEO says firm handled “unexpected situations” in 2025 as Q4 revenue falls 3.7% YoY first appeared on EGR Intel.