Evolution AB (publ)
STO:EVO
Evolution AB (publ)
In the intriguing world of digital gaming, Evolution AB (publ) stands out as a prime architect of live casino solutions, weaving technological prowess with the traditional allure of casino gaming. Founded in Sweden, Evolution carved its niche as a titan by pioneering the integration of live-streamed gaming experiences, enabling players across the globe to engage with real-life dealers from the comfort of their homes. The company operates by setting up state-of-the-art studios where professionally trained dealers facilitate live games such as roulette, blackjack, and baccarat. These games are then streamed with high-definition video and interactive features, creating an authentic casino experience for online users. By partnering with numerous online casino operators, Evolution provides a turnkey solution, enhancing their platforms with a rich array of live games that captivate and retain users.
Evolution's revenue model is crafted around its ability to deliver engaging and scalable live game services. It primarily earns from commission fees and fixed charges for the tables and services it provides to operators. As these partner casinos succeed in drawing players, Evolution benefits from increased usage and demand for its gaming tables, creating a mutually beneficial dynamic. The company's strategic acquisitions, such as that of NetEnt and Big Time Gaming, have further broadened its range, incorporating digital slots alongside live casino offerings. This diversification not only enhances its revenue streams but also cements its position as a comprehensive service provider in the competitive online gaming market. Through continuous innovation and a keen understanding of player preferences, Evolution sustains its growth and relevance in the ever-evolving landscape of digital gaming entertainment.
In the intriguing world of digital gaming, Evolution AB (publ) stands out as a prime architect of live casino solutions, weaving technological prowess with the traditional allure of casino gaming. Founded in Sweden, Evolution carved its niche as a titan by pioneering the integration of live-streamed gaming experiences, enabling players across the globe to engage with real-life dealers from the comfort of their homes. The company operates by setting up state-of-the-art studios where professionally trained dealers facilitate live games such as roulette, blackjack, and baccarat. These games are then streamed with high-definition video and interactive features, creating an authentic casino experience for online users. By partnering with numerous online casino operators, Evolution provides a turnkey solution, enhancing their platforms with a rich array of live games that captivate and retain users.
Evolution's revenue model is crafted around its ability to deliver engaging and scalable live game services. It primarily earns from commission fees and fixed charges for the tables and services it provides to operators. As these partner casinos succeed in drawing players, Evolution benefits from increased usage and demand for its gaming tables, creating a mutually beneficial dynamic. The company's strategic acquisitions, such as that of NetEnt and Big Time Gaming, have further broadened its range, incorporating digital slots alongside live casino offerings. This diversification not only enhances its revenue streams but also cements its position as a comprehensive service provider in the competitive online gaming market. Through continuous innovation and a keen understanding of player preferences, Evolution sustains its growth and relevance in the ever-evolving landscape of digital gaming entertainment.
Revenue: Q4 net revenue was EUR 540 million, up 1.4% quarter-on-quarter but down 3.7% year-on-year. Full-year 2025 revenue was nearly flat at EUR 2,067 million, up just 0.2%.
Margins: Adjusted EBITDA margin for Q4 was 66.4%; full-year margin landed at 66.1%, at the low end of guidance (66–68%) but in line with communicated goals.
Regional Trends: Asia returned to modest growth after cybercrime challenges, North and Latin America reached record revenues, while Europe declined both YoY and QoQ due to regulatory pressures and market instability.
Product Pipeline: A record year for new games is planned in 2026, driven by exclusive Hasbro partnerships (MONOPOLY, Connect 4, Hungry Hungry Hippos) and over 110 new titles, generating strong customer excitement.
Shareholder Returns: EUR 1.1 billion was returned to shareholders in 2025 (9.3% yield at year-end market cap) via dividends and buybacks.
Outlook: Management expects 2026 margin to be in line with 2025 (66%) and is focused on expansion in the U.S. and Latin America while continuing to invest in Europe, aiming for improved stability and growth.
