Evolution Closes Its Brazil Studio as Q3 Revenue Grows.
Live casino and slots provider Evolution AB (Nasdaq Stockholm: EVO) has reported modest revenue growth for the third quarter of 2026, while regulatory uncertainty in Brazil has forced the temporary closure of its local studio. The company disclosed the development in its January–September interim report, published on 23 October 2026 at 07:30 CEST in accordance with the EU Market Abuse Regulation (MAR).
Although Evolution returned to year-on-year group revenue growth, the closure of its Brazilian studio on 5 October emerged as a key regulatory development following what CEO Martin Carlesund described as a rollback of Brazil’s regulatory framework after a presidential decision earlier in the month.
Evolution Q3 2026 Financial Performance
Evolution recorded net revenue of EUR 526.1 million in the third quarter of 2026, up 3.7% from EUR 507.1 million in the corresponding period of 2025. Revenue growth was approximately 4.0% when adjusted for foreign exchange movements.
Adjusted EBITDA increased by 2.7% to EUR 345.9 million, compared with EUR 336.9 million a year earlier. However, the adjusted EBITDA margin declined to 65.8% from 66.4%.
Profit for the period fell to EUR 243.3 million from EUR 252.3 million, while basic earnings per share rose to EUR 1.31 from EUR 1.25. Operating profit declined to EUR 290.3 million from EUR 296.6 million, with the operating margin decreasing to 55.2% from 58.5%.
The company’s Live Casino segment generated EUR 443.0 million in revenue, compared with EUR 431.7 million in the third quarter of 2025. Revenue from Random Number Generator (RNG) games increased to EUR 83.1 million from EUR 75.5 million.
For the first nine months of 2026, Evolution reported net revenue of EUR 1,557.0 million, representing a 0.3% increase from EUR 1,552.3 million in the same period last year. Adjusted EBITDA stood at EUR 1,022.2 million, slightly below the EUR 1,024.1 million reported in the first nine months of 2025.
As of 30 September 2026, Evolution employed 23,408 people, up from 21,652 a year earlier. The workforce represented 17,020 full-time positions.
Regional Revenue and Regulated Markets
Evolution’s third-quarter revenue distribution, based on players’ IP addresses, showed Asia as its largest regional market, contributing EUR 192.1 million. Europe followed with EUR 173.7 million, while North America generated EUR 84.3 million.
Latin America contributed EUR 49.0 million, while Africa and other markets accounted for EUR 27.1 million.
Revenue from regulated markets represented 49% of the group’s total, equivalent to EUR 258.5 million. Mobile devices accounted for 77.0% of operators’ gross gaming revenue (GGR) generated through Evolution’s platform, compared with 74.0% in the prior-year quarter.
According to Carlesund, the third quarter marked the first time since 2024 that every region recorded quarter-on-quarter growth. Europe increased by 0.4% sequentially, while Asia grew by 0.8%.
Year-on-year regional growth was particularly strong in North America, Latin America and Africa, which recorded increases of 13.6%, 23.1% and 23.7%, respectively.
Live Casino revenue rose by 2.6% year-on-year, while RNG revenue increased by 10.1%.
Evolution Temporarily Closes Brazilian Studio
One of the report’s most significant developments occurred after the reporting period. Evolution confirmed that its Brazilian studio closed on 5 October 2026 because of uncertain regulatory conditions.
In his statement accompanying the interim report, Carlesund said Brazil’s regulatory framework had been rolled back following a presidential decision at the beginning of October. He added that the final implications of the decision remained unclear and confirmed that the Brazilian studio was temporarily closed.
Evolution said Brazil accounts for well below half of its Latin American revenue, based on its estimates using players’ IP addresses. The company also noted that growth momentum across the rest of Latin America remained strong and was expected to offset part of the impact of the closure.
Carlesund said the company’s immediate priorities included supporting affected employees and addressing the practical consequences of the shutdown.
The interim report does not identify the specific presidential measure behind the regulatory change or disclose Brazil’s standalone contribution to Evolution’s revenue. The company also reiterated that changes in laws and regulations governing the gaming services it supplies remain a significant risk to its future financial performance.
UKGC Settlement and Galaxy Gaming Deal
Evolution’s adjusted EBITDA excludes EUR 12.1 million in specified items, comprising a EUR 5.6 million settlement fee relating to the UK Gambling Commission (UKGC) and EUR 6.5 million in termination and legal expenses associated with the Galaxy Gaming transaction.
The report confirms that the UKGC’s review of Evolution Malta Holding Limited’s operating licence, announced in December 2024, concluded with a GBP 4.75 million settlement announced on 15 July 2026. Evolution stated that the settlement had been paid in full.
Read More : Stake to Challenge Court Ruling Reinstating Brazil Betting Ban.
In July, Evolution also terminated its merger agreement with Galaxy Gaming and paid a USD 5.2 million termination fee. Despite ending the proposed transaction, the company said it expected to maintain its existing commercial relationship with Galaxy Gaming.
What Evolution’s Results Mean for the iGaming Industry
Evolution’s latest results highlight the continued importance of regulatory developments for live casino suppliers and operators with exposure to Latin America.
The closure of its Brazilian studio within days of the reported regulatory rollback demonstrates how changes in government policy can affect local gaming operations, even when a supplier continues to record growth across the wider region.
While Evolution described the closure as temporary and indicated that Brazil represents a minority of its Latin American revenue, the company has yet to establish the full implications of the regulatory decision.
Elsewhere, the third-quarter results point to modest overall revenue growth, continued expansion in several international markets and a growing contribution from regulated jurisdictions. Africa also stood out in the company’s regional commentary, recording 23.7% year-on-year growth.
For iGaming suppliers and operators, the coming months will be important in determining how Brazil’s regulatory position develops and whether Evolution can resume local studio operations.
