Evolution Revenue Flat at €2.07B as European Channelisation Hits 50%
Evolution posted full-year 2025 revenue of €2.07 billion, a 0.2% increase that amounts to a standstill for a company that had been growing double digits. The year-end report published February 5 showed operating profit dropping to €1.26 billion from €1.42 billion, with margins contracting to 59.4% from 64.1%. Operating expenses climbed 8.3% to €860.9 million, driven by personnel costs for new tables and studio launches.
Q4 revenue from the region fell 8% year-on-year to €366.7 million. CEO Martin Carlesund said channelisation in some European markets has dropped to 50%, meaning Evolution can only reach half the available player base through regulated channels. “There is instability in the market, and some countries are not developing as we want,” he said.
The company exited unregulated European markets in Q1 2025 by deploying geolocation blocking after a UK Gambling Commission investigation into Evolution’s supply of games to unlicensed operators. Carlesund said the ring-fencing measures cost more than expected.
North and South America offered a brighter picture. Carlesund called those regions “a more stable environment” and flagged them alongside innovative game formats as the company’s primary 2026 focus. Asia returned to growth in Q4 after cybercrime countermeasures that had weighed on revenue since early 2025.
For operators sourcing live casino content in Europe, the channelisation squeeze directly limits what Evolution can deliver. Suppliers competing with Evolution in the Americas should expect a more aggressive push in 2026. Affiliates working with European-facing operators need to factor in that ring-fencing is shrinking the addressable market for Evolution-powered content.
TGJ Take
European channelisation at 50% is a structural issue that won’t reverse unless regulators fix the gap between licensed and unlicensed supply. Evolution’s pivot toward the Americas is the rational response, but it also means the company’s European growth engine, which powered years of double-digit expansion, is effectively stalled. The open UKGC investigation adds another layer of uncertainty. Margin guidance for 2026 is flat, which tells you management doesn’t see a quick fix.
