Evolution Q3: revenue up 3.7%, Brazil studio closed after presidential regulatory rollback

Live-casino and slots supplier Evolution AB (Nasdaq Stockholm: EVO) published its January–September 2026 interim report on 23 October 2026 (07:30 CEST), under the EU Market Abuse Regulation. Beside a return to year-on-year group growth, the report’s clearest regulatory signal is in events after the reporting period: the Brazilian studio shut on 5 October amid what CEO Martin Carlesund described as a rollback of Brazil’s regulatory framework following a presidential decision early in the month.

What the company reported

Third quarter of 2026 versus Q3 2025 (company figures):

• Net revenues: EUR 526.1 million (507.1), +3.7%; FX-adjusted growth about 4.0%
• Adjusted EBITDA: EUR 345.9 million (336.9), +2.7%; margin 65.8% (66.4)
• Profit for the period: EUR 243.3 million (252.3)
• Basic EPS: EUR 1.31 (1.25)
• Operating profit: EUR 290.3 million (296.6); operating margin 55.2% (58.5)

Live contributed EUR 443.0 million (431.7); RNG EUR 83.1 million (75.5). By players’ IP addresses, Asia EUR 192.1 million, Europe EUR 173.7 million, North America EUR 84.3 million, Latin America EUR 49.0 million, Africa and other EUR 27.1 million. Regulated markets accounted for 49% of revenue, or EUR 258.5 million. Mobile devices generated 77.0% (74.0) of operators’ GGR via Evolution’s platform.

For January–September 2026, net revenues were EUR 1,557.0 million (1,552.3), +0.3%; adjusted EBITDA EUR 1,022.2 million (1,024.1), −0.2%. As of 30 September the group had 23,408 employees (21,652), or 17,020 full-time positions.

Carlesund said it was the first quarter since 2024 in which every region grew quarter-on-quarter, with Europe +0.4% and Asia +0.8% sequentially, and year-on-year rises of 13.6% in North America, 23.1% in LatAm and 23.7% in Africa. Live grew 2.6% and RNG 10.1% year-on-year.

Brazil studio: closed 5 October, “temporarily”

A highlighted post-balance-sheet item states: “On 5 October 2026, the studio in Brazil closed due to uncertain regulatory conditions.”

In the CEO letter, Carlesund wrote that at the beginning of October “Brazil’s regulatory framework was rolled back following a decision by the president,” that “the final outcome of this regulatory decision remains unclear,” and that “our Brazilian studio is temporarily closed.” By Evolution’s estimated revenue split by player IP, “Brazil accounts for well below half of LatAm revenues,” while “momentum in the rest of LatAm remains strong and will offset part of the impact.” Immediate focus, he said, is supporting employees and managing practical consequences on the ground.

The interim report does not name the presidential instrument or quantify Brazil-only revenue. Separately, Evolution’s own risk section restates that laws and regulations for the gaming services it supplies are a central risk to future earnings.

Other compliance and deal notes in the numbers

Adjusted EBITDA strips out EUR 12.1 million of items: a EUR 5.6 million UK Gambling Commission settlement fee and EUR 6.5 million of termination and legal fees tied to the Galaxy Gaming deal. The report says the UKGC review of Evolution Malta Holding Limited’s operating licence, announced in December 2024, ended with a GBP 4.75 million settlement announced on 15 July 2026, now fully paid. In July Evolution terminated the Galaxy Gaming merger agreement and paid a USD 5.2 million termination fee, while saying it expects to keep working with Galaxy under the existing commercial relationship.

Why it matters

For suppliers and operators with Brazilian live production or LatAm exposure, Evolution is stating on the record—under MAR disclosure timing—that a presidential rollback early October was enough to idle a local studio within days, even while LatAm revenue by IP was still growing in Q3. The company frames the shut as temporary and Brazil as a minority of LatAm, but leaves the legal end-state open. Elsewhere the quarter shows modest group growth, a higher share of regulated-market revenue (49%), and Africa among the fastest-growing regions by the company’s regional commentary.