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Evolution Gaming Group AB
(OTC:EVVTY)
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Rating:78Outperform
Price Target:
$89.00
▲(24.32% Upside)
Action:Reiterated
Date:07/23/26
EVVTY scores well on financial performance due to exceptional margins, strong cash generation, and a very low-debt balance sheet, but is held back by the sharp TTM revenue contraction. The earnings call supports a constructive outlook with reiterated margin guidance, strong cash conversion, and a sizable buyback, though regional volatility (Asia) and regulatory pressures in Europe/UK remain meaningful risks. Technicals are neutral and do not materially reinforce a bullish or bearish view, while valuation looks reasonable at an 11.85 P/E.
Positive Factors
Exceptional Profitability
Evolution's very high operating and net margins reflect a scalable B2B live-casino and RNG model with low incremental costs per game session. Sustained margin levels provide durable earnings power, enabling reinvestment, dividends/buybacks and resilience to revenue volatility over the next 2–6 months.
Negative Factors
Sharp Revenue Contraction
A roughly 31% TTM revenue decline materially weakens the top-line base underpinning margins and returns. Even with high margins, prolonged revenue erosion can reduce absolute cash generation, constrain reinvestment capacity and make sustaining historical ROEs and growth more difficult over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Profitability
Evolution's very high operating and net margins reflect a scalable B2B live-casino and RNG model with low incremental costs per game session. Sustained margin levels provide durable earnings power, enabling reinvestment, dividends/buybacks and resilience to revenue volatility over the next 2–6 months.
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Evolution Gaming Group AB (EVVTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.36B
Dividend YieldN/A
Average Volume (3M)5.43K
Price to Earnings (P/E)12.6
Beta (1Y)0.60
Revenue Growth4.86%
EPS Growth-2.29%
CountryUS
Employees16,243
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)5.32
Shares Outstanding199,226,610
10 Day Avg. Volume10,592
30 Day Avg. Volume5,427
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)2.88
Price to Sales (P/S)5.67
P/FCF Ratio10.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6.12
Revenue Forecast (FY)$2.39B
Evolution Gaming Group AB Business Overview & Revenue Model
Company Description
Evolution AB (publ) develops, produces, markets, and licenses innovative live casino and slot gaming solutions for online operators, primarily in the European and United States markets. The company's signature offering involves streaming live game...
How the Company Makes Money
Evolution primarily earns revenue by supplying online casino content and services to gambling operators (and, in some cases, platform aggregators) under long-term commercial agreements. Its core revenue stream is B2B game revenue generated when an...
Evolution Gaming Group AB Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call presents solid financial and operational strength—high EBITDA margin (65.9%), strong cash generation (EUR 258M operating cash flow, 86% cash conversion), robust RNG growth (+14% YoY), successful product and studio launches, and an active EUR 2 billion buyback program. These positives are tempered by notable challenges: continued cybercrime-driven volatility in Asia, a YoY decline in live revenue (-3.6%), regulatory/channelization headwinds in Europe (including a GBP 4.75M UK settlement), and uncertainty around the Galaxy Gaming deal. On balance, management portrays confidence in cost control, margin guidance, and product momentum while acknowledging regional volatility, leading to a net positive tone.Positive Updates
Revenue and EBITDA
Net revenues of EUR 517.8 million (down 1.2% YoY, up 0.9% QoQ) and EBITDA of EUR 341.0 million, producing an EBITDA margin of 65.9%—margin in line with guidance and described as stable.
Negative Updates
Asia Volatility and Cybercrime Impact
Asia performance weakened vs the previous quarter due to ongoing cybercrime issues—operators copying and redistributing product—creating persistent volatility in the region; management expects the problem to continue quarter to quarter.
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Q2-2026 Updates
Positive
Negative
Revenue and EBITDA
Net revenues of EUR 517.8 million (down 1.2% YoY, up 0.9% QoQ) and EBITDA of EUR 341.0 million, producing an EBITDA margin of 65.9%—margin in line with guidance and described as stable.
Read all positive updates
Company Guidance
Management reiterated margin and capital-allocation guidance while emphasising disciplined cost control: Q2 net revenues were EUR 517.8m (−1.2% y/y, +0.9% q/q), EBITDA EUR 341m with a 65.9% margin (reaffirming ~66% full‑year EBITDA margin target), profit EUR 251.4m and EPS EUR 1.27; operating cash flow after investments EUR 258m with LTM cash conversion 86%, CapEx EUR 34.7m, total operating expenses EUR 220m (+1% y/y, −0.2% q/q), cash EUR 1.2bn and equity EUR 4.2bn; operational metrics included RNG +14% y/y and Live +0.6% q/q (−3.6% y/y), headcount +2.8% y/y (flat q/q) and an estimated 49% share from regulated markets, and management confirmed a EUR 2bn share buyback programme (EUR 303m deployed this quarter; 5.1m shares repurchased) while focusing resources on revenue‑driving activities.Evolution Gaming Group AB Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.10B | 2.07B | 2.06B | 1.80B | 1.46B | 1.07B |
| Gross Profit | 2.10B | 2.12B | 2.11B | 1.80B | 936.13M | 1.09B |
| EBITDA | 1.41B | 1.36B | 1.59B | 1.28B | 1.01B | 730.94M |
| Net Income | 1.06B | 1.06B | 1.24B | 1.07B | 843.36M | 605.43M |
Balance Sheet | ||||||
| Total Assets | 5.47B | 5.52B | 5.35B | 4.97B | 4.37B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 817.60M | 787.07M | 985.76M | 532.55M | 421.43M |
| Total Debt | 90.20M | 91.07M | 93.66M | 79.46M | 79.55M | 67.81M |
| Total Liabilities | 1.24B | 1.45B | 1.37B | 967.27M | 909.09M | 712.12M |
| Stockholders Equity | 4.23B | 4.08B | 3.97B | 4.01B | 3.46B | 3.19B |
Cash Flow | ||||||
| Free Cash Flow | 1.19B | 1.12B | 1.16B | 1.07B | 780.53M | 537.30M |
| Operating Cash Flow | 1.31B | 1.21B | 1.30B | 1.17B | 877.47M | 598.89M |
| Investing Cash Flow | -62.59M | -139.44M | -247.97M | -139.36M | -371.60M | -154.95M |
| Financing Cash Flow | -598.45M | -1.05B | -1.24B | -574.50M | -394.20M | -248.52M |
Evolution Gaming Group AB Technical Analysis
Positive
71.59
Price Trends
73.46
Positive
70.94
Positive
68.05
Positive
Market Momentum
1.51
Negative
59.66
Neutral
60.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVVTY, the sentiment is Positive. The current price of 71.59 is below the 20-day moving average (MA) of 75.53, below the 50-day MA of 73.46, and above the 200-day MA of 68.05, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 59.66 is Neutral, neither overbought nor oversold. The STOCH value of 60.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.36B | 12.58 | 25.79% | ― | 4.86% | -2.29% | |
67 Neutral | $410.37M | 118.68 | 10.98% | ― | 6.33% | -150.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $162.89M | -19.67 | 70.68% | ― | -6.73% | -114.46% | |
52 Neutral | $2.57B | -2.97 | -48.48% | ― | 6.14% | -1168.84% |
* Consumer Cyclical Sector Average
EVVTY
Evolution Gaming Group AB
77.26
-8.68
-10.10%
PENN
PENN Entertainment
18.85
0.87
4.84%
INSE
Inspired Entertainment
6.23
-2.10
-25.21%
CDRO
Codere Online
9.08
0.90
11.00%
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.