Evolution's Q2: Asia Lingers, Europe Recovers, and the Buyback Begins

RNG hits double-digit growth, Hasbro titles land, but cybercrime and the Galaxy fallout keep the story tempered.

EVO.ST · Earnings Call · 2026-07-17

The Quarter in Numbers

Evolution's Q2 report on July 17 had the classic mixed tone. Revenue came in at EUR 517.8 million, down 1.2% year-on-year but up 0.9% sequentially. EBITDA margin at 65.9% was in line with guidance, and cash flow remained strong. The CEO, Martin Carlesund, struck an upbeat note: “I'm overall happy with the results in the quarter. Revenue and EBITDA both move in the right direction.” — Martin Carlesund, CEO · 2026-07-17 But the underlying story is still dominated by the ongoing Asian cybercrime battle and the winding down of the Galaxy Gaming deal.

Asia's Unfinished Battle

The Asian region once again took a step back, and the explanation hasn't changed much from prior quarters. The cybercrime issue is a "cat and mouse game" that management insists they will eventually win. In the Q&A, Carlesund gave a stark description: “It's the same as we commented before. It's simply that they take our product, make a copy, and redistribute it.” — Martin Carlesund, CEO · 2026-07-17 This resonates with the prior quarter's commentary, where the same language was used. Back in April, Carlesund was already cautious: “It's a little bit of a cat and mouse game. And we methodically, systematically work on the situation.” — Martin Carlesund, CEO · 2026-04-22 The company continues to face cybercrime challenges that keep the region volatile, though the underlying markets in Philippines and other regulated areas are growing.

A Recovery in Europe and Momentum in RNG

Europe returned to sequential growth for the first time in several quarters, and the RNG segment finally hit double-digit growth at 14% year-on-year. The launch of the first Hasbro titles, starting with Monopoly Roulette, has been well received. Carlesund noted that “the game show category did really good, demand for localized content is on the rise.” — Martin Carlesund, CEO · 2026-07-17 The Game rounds index hit an all-time high, reflecting higher activity. The company also emphasized the strength of Hasbro partnership and its product roadmap. Meanwhile, the capital allocation decision finally came: a EUR 2 billion buyback program, the largest in Stockholm's history. As Carlesund put it:

We're confident that the EUR 2 billion program, which as far as I'm aware, is the largest ever in the history of Stockholm Stock Exchange, is the right thing to create additional shareholder value.
Martin Carlesund, CEO · 2026-07-17

Galaxy: A Deal That Never Closed

The long-drawn Galaxy Gaming acquisition hit its outside date on the day of the report. While Carlesund said the outcome has "no material impact" on the business, managing the administrative burden has been costly. He added: “Two years have passed. We have spent significant time, effort, and resources handling the administration needed to close the acquisition.” — Martin Carlesund, CEO · 2026-07-17 The Galaxy Gaming saga is a reminder that not all M&A works out, but the company is keeping its focus on organic growth. The prior quarter had already signaled the strain: “We are progressing with the Galaxy acquisition. The Galaxy acquisition is not large enough to affect our business model in general.” — Martin Carlesund, CEO · 2026-02-05 Now that the deal has lapsed, the question is whether the company will pivot to other opportunities or simply move on. Looking ahead, the key swings remain Asia, the pace of European regulation, and whether the new content cycle can sustain the RNG momentum. The buyback provides a floor for shareholders, but the operational story is still one of cautious optimism rather than a clear inflection.