Evolution, a leading B2B provider of online casino solutions, has reported a mixed financial performance for the year ended December 31, 2025. The company faced a decline in key revenue and profit figures during the fourth quarter, signaling challenges in the gaming industry’s evolving landscape. Evolution’s fourth-quarter net revenues dropped 3.7% year-on-year, amounting to EUR 514.2 million, with total operating revenues falling by 9.5% to EUR 565.9 million. Despite these declines, the company continued to demonstrate strong cash flow generation and solid EBITDA margins.

Live Casino Growth and Expansion in Emerging Markets

CEO Martin Carlesund acknowledged the challenges, particularly in Europe, where regulatory changes and rising customer friction are hindering growth. Despite the adverse conditions, Evolution’s business remains resilient, with adjusted EBITDA for the quarter at EUR 341.5 million, reflecting a 6.1% decrease, and a margin of 66.4%. The company’s adjusted EBITDA for the full year saw a more modest decline of 3.2%, reaching EUR 1.37 billion.

Carlesund noted that Evolution had successfully navigated several difficulties during 2025, including issues surrounding cybercrime and regulatory ring-fencing, and despite facing an overall decline in profits, Evolution maintained its commitment to growth and operational efficiency. Profit for Q4 2025 also saw a significant decrease of 18.6%, falling to EUR 306.8 million, with earnings per share down by 15.9% to EUR 1.54.

A key driver of Evolution’s business is its Live Casino segment, which remains the primary source of revenue, contributing EUR 438.6 million in Q4 2025. However, this figure represents a 6% drop compared to the same period in 2024. Meanwhile, the RNG (Random Number Generator) games segment saw slight growth, with revenues rising 1.7% to EUR 75.7 million.

Evolution’s global expansion efforts continue to focus on emerging markets, particularly North America, Latin America, and Asia. Carlesund expressed optimism about the company’s growth trajectory in these regions, despite challenges in Europe. He highlighted the company’s ongoing investments in the U.S., with plans to accelerate the presence of its second live brand, Ezugi, especially in Michigan and New Jersey. Carlesund also pointed to the strong performance of the Latin American market, notably Brazil, which continues to develop positively in line with new regulations.

Regulatory Pressures and Future Outlook

While Evolution remains confident in its ability to grow in key regions, the company acknowledged the regulatory hurdles facing its business, particularly in Europe and Asia. The company’s executives cited the decline in channelization, which refers to the ability to direct players to regulated markets, as a major concern. “We believe that we currently have the strongest, most strict ring-fencing measures among all providers in Europe,” said Carlesund in the report [pdf]. However, he noted that the decline in channelization has pushed players toward unregulated markets, which poses risks to both operators and players.

In Asia, Evolution highlighted the ongoing battle against cybercrime and regulatory friction but noted some stabilization, particularly in the Philippines. Despite these challenges, Carlesund emphasized the company’s commitment to providing high-quality gaming experiences in regulated markets.

Looking ahead, Evolution plans to maintain its focus on innovation and expansion, with an emphasis on new games and enhancing studio capabilities. Carlesund confirmed that the company’s product roadmap for the upcoming year includes exciting new releases, including game shows in partnership with Hasbro, such as MONOPOLY Filthy Rich and Game Night. Evolution is also planning the expansion of its studios, particularly in North America, to meet the growing demand for live casino content.

As the company heads into its 20th year of operations, Evolution’s leadership is focused on its next phase of growth. “Looking at the market over the two decades gone by and the extreme pace of online technology and overall digitalization of society, the majority of gaming is still land-based. In other words, opportunities are immense!” said Carlesund, expressing optimism for the future. With a strong portfolio of live gaming content, studio innovations, and expansion in high-potential regions, Evolution is positioning itself to capitalize on the growing global demand for interactive gaming experiences.

The company’s management has set its sights on maintaining steady growth, particularly in North America and Latin America, where online gaming is expected to continue its upward trajectory. Evolution’s continued investment in infrastructure and technology, along with its strategic partnerships, will be pivotal in realizing its growth ambitions for 2026 and beyond.