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Evolution Gaming (EVVTY)
:EVVTY
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Evolution Gaming Group AB
(OTC:EVVTY)
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Rating:71Outperform
Price Target:
$85.00
▲(11.29% Upside)
Evolution Gaming Group AB's strong financial performance is a key strength, supported by solid profitability and a robust balance sheet. However, technical analysis indicates bearish momentum, and the earnings call highlighted challenges in Asia impacting revenue. The stock's valuation is attractive, offering potential upside for investors.
Evolution Gaming Group AB (EVVTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.60B
Dividend Yield4.72%
Average Volume (3M)2.22K
Price to Earnings (P/E)10.9
Beta (1Y)0.49
Revenue Growth6.06%
EPS Growth3.19%
CountryUS
Employees16,368
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.45
Shares Outstanding204,462,160
10 Day Avg. Volume0
30 Day Avg. Volume2,220
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)3.92
Price to Sales (P/S)7.54
P/FCF Ratio13.36
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue7.62
Enterprise Value/Gross Profit7.62
Enterprise Value/Ebitda11.36
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.9
Revenue Forecast (FY)$2.42B
Evolution Gaming Group AB Business Overview & Revenue Model
Company DescriptionEvolution Gaming Group AB (EVVTY) is a leading provider of live casino solutions for online gaming operators. Founded in 2006 and headquartered in Sweden, the company specializes in providing high-quality live dealer games, including traditional casino offerings such as blackjack, roulette, and baccarat, as well as innovative game show-style formats. Evolution Gaming operates in the online gambling sector, catering to a global clientele of licensed operators, and is known for its cutting-edge technology and immersive gaming experiences.
How the Company Makes MoneyEvolution Gaming generates revenue primarily through a business-to-business (B2B) model, charging online gaming operators for access to its live casino games and services. The company typically operates on a revenue-sharing model, where it takes a percentage of the wagers placed by players using its games. Additionally, Evolution may charge operators a fixed fee for its services, which can include licensing, game integration, and ongoing support. Significant partnerships with major online casinos and gaming platforms enhance its reach and revenue potential. The company's focus on innovative technology, such as streaming high-quality video feeds and interactive features, also contributes to attracting and retaining operators, further solidifying its earnings.
Evolution Gaming Group AB Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented mixed results with significant challenges in Asia impacting overall revenue decline. However, there were positive developments in Europe and Latin America, as well as strong financial metrics. The sentiment is balanced with areas of concern and areas of growth.Q3-2025 Updates
Positive Updates
Positive Performance in Europe
Europe returned to growth quarter-on-quarter with revenue amounting to EUR 182.2 million. Recognized for ring fencing by a major European regulator as one of the best B2B suppliers.
Growth in Latin America
Latin America showed year-on-year growth of 6.4% and quarter-on-quarter growth of 5.9%, with positive developments in Brazil.
RNG Outperforms Live
RNG revenue increased by 4.2% to EUR 75.5 million, marking the first time RNG outperformed Live in terms of growth.
Successful Launch of New Brand
Launched a new brand, Sneaky Slots, which is expected to strengthen the portfolio.
Strong Cash Flow and Financial Position
Operating cash flow after investments was EUR 342.1 million with a cash conversion of 83%. Total cash balance of EUR 656.4 million and equity position of EUR 3.8 billion.
Negative Updates
Decline in Asia
Revenue in Asia declined by 9.6% quarter-on-quarter due to cybercrime activity and regulatory uncertainties in markets like India and the Philippines.
Overall Revenue Decline
Net revenue decreased by 2.4% year-on-year to EUR 507.1 million. Live revenue declined by 3.4% to EUR 431.7 million.
Challenges in North America
Despite modest growth, North America is still behind market expectations. Sweepstakes product was pulled from California due to regulatory concerns.
Negative Growth Trend
Growth has tapered off and become negative, with a quarter-on-quarter revenue decline of 3.3%.
Company Guidance
During the third quarter of 2025, Evolution reported net revenue of EUR 507.1 million, marking a year-on-year decline of 2.4%. The company's EBITDA stood at EUR 336.9 million, with an EBITDA margin of 66.4%, aligning with their full-year margin target of 66%-68%. The decline was primarily attributed to weak performance in Asia, with a 9.6% quarter-on-quarter revenue drop, exacerbated by cybercrime and regulatory volatility in markets like India and the Philippines. Conversely, Europe showed positive growth, contributing EUR 182.2 million in revenue, while North America and Latin America also demonstrated decent performance. The company's RNG segment increased by 4.2% to EUR 75.5 million, surpassing Live revenue growth, which declined by 3.4% to EUR 431.7 million. Evolution also launched the Sneaky Slots brand and new games like Ice Fishing, which were well-received. The company's headcount grew 4.2% year-on-year but decreased by 2.7% quarter-on-quarter, reflecting a temporary slowdown in hiring. Evolution remains focused on cost efficiency and is optimistic about future growth, despite the current challenges in Asia.Evolution Gaming Group AB Financial Statement Overview
Summary
Evolution Gaming Group AB exhibits strong financial health with high growth and profitability. The income statement shows robust revenue growth and high profit margins. The balance sheet is solid with low leverage and strong equity, while cash flow remains healthy despite a slight decline in free cash flow growth.Income Statement
Evolution Gaming Group AB demonstrates impressive financial performance with strong revenue growth and high profitability margins. The TTM data shows a revenue growth rate of 54.5%, indicating robust expansion. Gross profit margin remains at 100%, and net profit margin is a healthy 57.6%. EBIT and EBITDA margins are also strong at 59.8% and 67.0%, respectively. These metrics highlight the company's efficient operations and strong market position.92
Very Positive
Balance Sheet
The company's balance sheet is solid, characterized by low leverage and strong equity. The debt-to-equity ratio is minimal at 0.024, indicating low financial risk. Return on equity is impressive at 30.9%, reflecting efficient use of equity to generate profits. The equity ratio stands at 75.3%, showcasing a strong capital structure. Overall, the balance sheet reflects financial stability and prudent management.85
Very Positive
Cash Flow
Cash flow analysis reveals a slight decline in free cash flow growth at -7.3% TTM, which may warrant attention. However, the operating cash flow to net income ratio is strong at 1.31, indicating good cash generation relative to net income. The free cash flow to net income ratio is also robust at 89.4%, suggesting effective cash management. Despite the recent dip in free cash flow growth, the company maintains healthy cash flow metrics.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.10B | 2.06B | 1.80B | 1.46B | 1.07B | 561.13M |
| Gross Profit | 2.10B | 2.11B | 1.80B | 936.13M | 1.09B | 308.37M |
| EBITDA | 1.41B | 1.59B | 1.28B | 1.01B | 730.94M | 332.26M |
| Net Income | 1.21B | 1.24B | 1.07B | 843.36M | 605.43M | 284.62M |
Balance Sheet | ||||||
| Total Assets | 4.95B | 5.35B | 4.97B | 4.37B | 3.90B | 3.17B |
| Cash, Cash Equivalents and Short-Term Investments | 494.89M | 787.07M | 985.76M | 532.55M | 421.43M | 221.68M |
| Total Debt | 89.88M | 93.66M | 79.46M | 79.55M | 67.81M | 49.97M |
| Total Liabilities | 1.22B | 1.37B | 967.27M | 909.09M | 712.12M | 442.94M |
| Stockholders Equity | 3.73B | 3.97B | 4.01B | 3.46B | 3.19B | 2.73B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 1.16B | 1.07B | 780.53M | 537.30M | 279.17M |
| Operating Cash Flow | 1.27B | 1.30B | 1.17B | 877.47M | 598.89M | 316.05M |
| Investing Cash Flow | -248.39M | -247.97M | -139.36M | -371.60M | -154.95M | 6.82M |
| Financing Cash Flow | -1.20B | -1.24B | -574.50M | -394.20M | -248.52M | -279.91M |
Evolution Gaming Group AB Technical Analysis
Negative
76.38
Price Trends
79.04
Negative
81.98
Negative
77.47
Negative
Market Momentum
-3.94
Positive
25.58
Positive
6.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVVTY, the sentiment is Negative. The current price of 76.38 is above the 20-day moving average (MA) of 71.71, below the 50-day MA of 79.04, and below the 200-day MA of 77.47, indicating a bearish trend. The MACD of -3.94 indicates Positive momentum. The RSI at 25.58 is Positive, neither overbought nor oversold. The STOCH value of 6.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVVTY.
Evolution Gaming Group AB Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $13.60B | 10.90 | 28.68% | 4.72% | 6.06% | 3.19% | |
69 Neutral | $236.76M | 16.33 | 10.86% | ― | 27.57% | -40.98% | |
65 Neutral | $6.57B | 17.56 | 50.47% | ― | 1.87% | 42.43% | |
64 Neutral | $218.92M | 4.08 | ― | ― | 4.03% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $258.33M | 413.14 | 2.77% | ― | ― | ― | |
45 Neutral | $1.93B | ― | -35.97% | ― | 8.24% | -77.54% |
* Consumer Cyclical Sector Average
EVVTY
Evolution Gaming Group AB
66.42
-20.11
-23.24%
PENN
PENN Entertainment
14.54
-5.92
-28.93%
LNW
Light & Wonder
80.56
-22.99
-22.20%
INSE
Inspired Entertainment
8.13
-2.44
-23.08%
CDRO
Codere Online
5.66
-1.84
-24.53%
GAMB
Gambling.com
6.65
-3.68
-35.62%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.