Evolution has posted its financial results for the second quarter, showing a slight increase in revenue but a year-over-year decline in profits, as its continued global expansion faces mounting challenges. The gaming technology giant has been moving deeper into Asian and Latin American territories, but stricter regulations in Europe and cyber-related issues in Asia have weighed down performance.
In Q2, Evolution reported a 3.1% rise in net revenue, while EBITDA came in at €345.3 million. However, the company saw profits fall to €248.3 million, down from €269.1 million during the same period in 2023.
Chief Executive Officer Martin Carlesund addressed the mixed results, saying the company’s position is generally on track despite softer-than-hoped growth. “To be clear though, we are not satisfied with this quarter’s growth, and we are working hard to increase the pace. However, operationally speaking we are where we set out to be at the beginning of the year.”
Compliance Measures and Regional Complexity Impact Results
As Evolution broadens its reach, the varying levels of regulation in each region are becoming more prominent in shaping its outcomes. The company noted that recent decisions aimed at tightening compliance—particularly in response to an inquiry by the UK Gambling Commission —have had an impact on European operations.
The UKGC had identified instances where Evolution’s games could be accessed through unlicensed platforms. In response, the company moved to block those identified websites. While the long-term view remains positive, Carlesund stressed the importance of striking the right regulatory balance. “That the structure of the regulatory parameters is vital. A too heavily regulated market will cause a decrease in player protection and a reduced market for regulated companies.”
At the same time, security issues in parts of Asia have also added to operational complexity, with cybercrime cited as a growing concern in that market.
2025 Product Plans Signal Confidence in Recovery
Even with a decline in quarterly profit, Evolution is maintaining its full-year expectations. The company reaffirmed its EBITDA margin forecast for the year at 66–68%, signaling that it remains confident in its underlying business strategy.
Earlier in the year, when news of the UKGC’s probe first surfaced, Evolution’s stock took an 11.8% hit. Since then, the company has worked to reinforce its internal controls and build out in markets where it sees long-term potential.
Part of that strategy includes an ambitious release plan, with 110 new titles slated for 2025. Among them are three new live casino games expected to roll out in the third quarter, aimed at driving engagement and revenue growth moving forward.
International Expansion Marks Long-Term Vision
The company is also expanding its physical presence in key regions. In June, Evolution launched its first Asian studio, while a new Brazilian facility highlights its investment in Latin American growth.
These initiatives are already being supported by strategic partnerships and market entries. Since the Q2 reporting period closed, Evolution has finalized a licensing deal with Hasbro, opened a new studio in São Paulo, and confirmed its entry into the Rhode Island market.
Carlesund views these developments as pivotal for the company’s next phase of growth. The CEO pointed to the Brazil and Asia expansions as clear indicators that Evolution is preparing for a stronger second half of the year and a more robust presence globally.
Source:
‘’Evolution Q2 results: Net revenue up 3.1% despite dip in profits’’, gamblinginsider.com, July 17,2025.
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