Swedish gambling giant Evolution has reported a mixed set of results for Q2 2026, with revenue dipping slightly year-on-year despite a return to growth in Europe.
The live casino supplier generated €517.8m (£440.8m) in net revenue, down 1.2% from Q2 2025, although revenue increased 2.4% at constant currency.
EBITDA came in at €341m (Q2 2025: €345.3m), while profit for the quarter increased slightly YoY to €251.4m (€248.3m).
For the first half of 2026, Evolution reported €1.03bn in revenue and €676.3m in EBITDA.
Live casino remained the core driver of the business, generating €437.3m during the quarter, while random number generator (RNG) games contributed €80.5m.
Deal or no deal?
This steady performance may have contributed to what looks like the company’s decision to bail on its acquisition of US-based casino table games developer and technology provider Galaxy Gaming.
The two businesses entered into an $85m acquisition agreement way back in July 2024, and the proposed closing period has been continuously pushed back.
A revised date has a deadline of today, though Evolution’s Chief Executive Officer, Martin Carlesund, did not sound hopeful of a deal being completed when commenting on his firm’s Q2 2026 results.
“Today, the currently agreed closing period under our agreement to acquire Galaxy Gaming expires,” he noted.
“After today, either party may choose to terminate the agreement. Two years have passed, and Evolution has spent significant time, effort and resources handling the rather large amount of administration required to close this acquisition.
“Galaxy is a great company; however, due to its size, the transaction is not significant for Evolution. The outcome has no material impact on our existing business, our US operations, or our long-term ambitions.”
Despite the perceived no deal for Galaxy Gaming, the Stockholm-listed company continued to expand its content portfolio in Q2 2026.
It launched Monopoly Roulette and Monopoly Roll’em under its exclusive partnership with Hasbro, while Ice Fishing continued to rank among Evolution’s strongest-performing recent releases.
Evolution’s performance market by market
Regional performance was mixed, as the global gambling landscape continues to shift – generally to the chagrin of iGaming companies.
Europe returned to growth on a sequential basis, with revenue rising 3.5% quarter-on-quarter to €173m, ending several quarters of decline.
Management attributed the improvement to strong demand for game shows and native-language tables, although European revenue remained 4% below the same period last year.
This may be a sign of the times, as the industry’s businesses – from gambling conglomerates to SMEs – continue to carry the burden of tax rises and wider wholesale regulatory changes.
North America continued its steady expansion, with revenue increasing 9.5% year-on-year to €81m, supported by the rollout of Monopoly Live across four US states, the opening of a second Michigan studio and Evolution’s expansion into the new iGaming hub of Alberta, Canada.
Latin America remained the fastest-growing region, with revenue climbing 26.3% to €47.5m, helped by the relaunch of its newly acquired Argentine studio and the localisation of Ice Fishing for Brazil.
By contrast, Asia remained Evolution’s weakest-performing region, with revenue falling 8.9% year-on-year and 3.7% quarter-on-quarter to €190.5m.
“Asia was the exception to the otherwise positive progress, with a quarter-on-quarter decline of 3.7%,” said Carlesund.
“The region remains volatile as earlier stated, and increased cybercrime activity could not be fully offset by otherwise relatively favorable development. The volatility is something we continue to work through.”
Revenue from other markets, primarily Africa, increased 10.3% year-on-year to €25.8m, with quarter-on-quarter growth of 14.2%.
Operationally, Evolution continued investing in capacity, opening second studios in both Michigan and Argentina, with the Argentine facility following the €6m acquisition completed earlier this year to strengthen its Latin American footprint.
UK weight lifted off Evolution’s shoulders
The quarter also saw Evolution bring an 18-month UK Gambling Commission licence review to a close, as reported earlier this week by SBC News.
Evolution agreed to pay £4.75m after the regulator found its content had appeared via two operators on six unlicensed websites accessible to British consumers.
The company stressed that no broader pattern of unlicensed access was identified and reiterated that it had terminated the relevant commercial relationships immediately while continuing to strengthen its ring-fencing and compliance measures.
Separately, Evolution continued returning capital to shareholders, repurchasing 5.14 million shares – equivalent to 2.58% of its outstanding share capital – for €303.2m during the quarter.
Carlesund concluded: “The road is almost never straight, but what matters is that we are moving forward. Some curves are harder than others, but they can also be fun. And the same goes for Evolution.
“It is great, fun work, and we are always moving forward. I am pleased with the progress we are making across the business, and this is above all thanks to the great work, energy and commitment of everyone at Evolution.
“With that, I look forward to the remainder of the year.”