Sweden's Evolution AB Q1 revenue slightly misses estimates on regulatory volatility

Evolution AB (publ)

22/04/2026 06:41

Overview

Sweden B2B online casino provider's Q1 2026 revenue declined 1.5%, a slight miss versus analyst expectations

Q1 EBITDA fell 1.9% and missed analyst estimates

Company completed acquisition of Live Casino studio in Argentina, expanding LatAm presence

Outlook

Company expects volatility and uncertainty to persist for at least the remainder of 2026

Evolution plans further expansion in Brazil and Colombia to meet demand

Company expects to launch its second Michigan studio in the coming months

Result Drivers

REGULATORY VOLATILITY - Co said European revenue declined due to regulatory volatility and ring-fencing measures impacting player activity

LATAM EXPANSION - LatAm delivered strong growth, supported by acquisition of a Live Casino studio in Argentina and expansion plans in Brazil and Colombia

CURRENCY IMPACT - North America growth improved but was negatively affected by weak USD versus EUR

Company press release: ID:nWkr6zMw2K

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
EUR 513 mln
EUR 515.08 mln (6 Analysts)
Q1 Net Income
EUR 251.90 mln
Q1 EBITDA
Miss
EUR 335.30 mln
EUR 338.90 mln (5 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 9 "sell" or "strong sell"

The average consensus recommendation for the casinos & gaming peer group is "buy."

Wall Street's median 12-month price target for Evolution AB (publ) is SEK580.00, about 9.2% below its April 21 closing price of SEK638.80

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)