Evolution Gaming (EVVTY)
OTHER OTC:EVVTY
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Evolution Gaming Group AB
(OTC:EVVTY)
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Rating:76Outperform
Price Target:
$70.00
▲(3.97% Upside)
Action:ReiteratedDate:02/08/26
The score is driven primarily by strong financial fundamentals (high profitability, low leverage, solid cash generation) and supportive valuation (low P/E and high dividend yield). These positives are tempered by weak technicals (downtrend with negative momentum) and earnings-call risks around Europe/regulation, Live revenue softness, and other external uncertainties.
Positive Factors
High and Stable Margins
Sustained ~66% adjusted EBITDA margins imply structural operating leverage from scalable live-studio tech and content. High margins support persistent free cash generation, fund product/studio investment, and enable sizable shareholder returns even if top-line growth lags.
Negative Factors
Revenue Deceleration & Live Contraction
A meaningful slowdown in revenue and falling Live receipts signal structural demand pressure in core markets. Persistent top-line weakness undermines scale economics for studios and game investments, raising the bar for margin recovery if growth stays muted.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Margins
Sustained ~66% adjusted EBITDA margins imply structural operating leverage from scalable live-studio tech and content. High margins support persistent free cash generation, fund product/studio investment, and enable sizable shareholder returns even if top-line growth lags.
Read all positive factors
Evolution Gaming Group AB (EVVTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.10B
Dividend Yield4.64%
Average Volume (3M)7.82K
Price to Earnings (P/E)11.0
Beta (1Y)0.45
Revenue Growth6.06%
EPS Growth3.19%
CountryUS
Employees16,368
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.82
Shares Outstanding204,462,160
10 Day Avg. Volume8,278
30 Day Avg. Volume7,821
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)2.88
Price to Sales (P/S)5.76
P/FCF Ratio10.46
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue4.92
Enterprise Value/Gross Profit4.92
Enterprise Value/Ebitda7.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6.29
Revenue Forecast (FY)$2.50B
Evolution Gaming Group AB Business Overview & Revenue Model
Company Description
Evolution AB (publ) develops, produces, markets, and licenses live casino and slots solutions to gaming operators primarily in Europe and the United States. The company runs the game from a casino gaming table, which is streamed in real time and e...
How the Company Makes Money
Evolution Gaming makes money primarily through its B2B (business-to-business) model by providing live casino solutions to online gambling operators. The company charges its clients a fee based on a revenue share model, where it takes a percentage ...
Evolution Gaming Group AB Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call balanced notable operational and financial strengths — maintained high margins within guidance, strong cash generation, large shareholder returns, regional expansion (notably Latin America and North America) and an ambitious product pipeline (exclusive Hasbro deal and >110 games planned) — against several material headwinds: a weak Q4 in Europe driven by regulatory channelization issues, Live revenue decline, cybercrime challenges in Asia, elevated operating expenses and ongoing regulatory and litigation uncertainties. Overall, management presented confidence in operational execution and a path to growth in 2026 while acknowledging unresolved external risks.Positive Updates
Strong profitability and margins
Adjusted EBITDA of EUR 341.5m in Q4 with a 66.4% margin; full-year adjusted EBITDA EUR 1,366m (down 3.2% YoY) with a 66.1% margin, which is within the communicated 66–68% guidance. Profit for the period was EUR 306.8m in Q4 and full-year profit was EUR 1.06bn; EPS after dilution EUR 1.54.
Negative Updates
Weakness in Europe and channelization decline
Europe revenues declined both YoY and QoQ; Q4 was materially weaker than Q3 (an unusual seasonal shift). Management cites strict ring-fencing and regulatory measures pushing players to unregulated operators and causing a significant drop in channelization in some countries.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong profitability and margins
Adjusted EBITDA of EUR 341.5m in Q4 with a 66.4% margin; full-year adjusted EBITDA EUR 1,366m (down 3.2% YoY) with a 66.1% margin, which is within the communicated 66–68% guidance. Profit for the period was EUR 306.8m in Q4 and full-year profit was EUR 1.06bn; EPS after dilution EUR 1.54.
Read all positive updates
Company Guidance
Management reiterated that 2026 margins are expected to be in line with 2025 (around 66%), noting 2025 delivered a 66.1% adjusted EBITDA margin (adjusted EBITDA EUR1,366m) on net revenues of EUR2,067m and Q4 net revenues of EUR514m with Q4 adjusted EBITDA of EUR341.5m; they reiterated a target to maintain ~66% margin in 2026. Capital allocation decisions will be announced later this quarter (the group returned ~EUR1.1bn to shareholders in 2025 and >EUR3.5bn since 2020 via dividends and buybacks; 2025 buybacks totalled EUR500.2m for 7.3m shares, ~3.6% of shares outstanding, including EUR93.7m for 1.6m shares in Q4). They said CapEx for 2025 was EUR134.8m (Q4 CapEx EUR38.5m) and will provide further CapEx/capital allocation detail at the AGM; cash conversion was 82% in Q4, operating cash flow after investments was EUR262m in Q4, total cash was EUR818m, bond portfolio EUR104m and equity ~EUR4.1bn. The Galaxy acquisition remains on track to close before 17 July, subject to remaining regulatory approvals.Evolution Gaming Group AB Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.03B | 2.06B | 1.80B | 1.46B | 1.07B |
| Gross Profit | 1.21B | 2.11B | 1.80B | 936.13M | 1.09B |
| EBITDA | 1.36B | 1.59B | 1.28B | 1.01B | 730.94M |
| Net Income | 1.06B | 1.24B | 1.07B | 843.36M | 605.43M |
Balance Sheet | |||||
| Total Assets | 5.52B | 5.35B | 4.97B | 4.37B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 817.60M | 787.07M | 985.76M | 532.55M | 421.43M |
| Total Debt | 91.07M | 93.66M | 79.46M | 79.55M | 67.81M |
| Total Liabilities | 1.45B | 1.37B | 967.27M | 909.09M | 712.12M |
| Stockholders Equity | 4.08B | 3.97B | 4.01B | 3.46B | 3.19B |
Cash Flow | |||||
| Free Cash Flow | 1.12B | 1.16B | 1.07B | 780.53M | 537.30M |
| Operating Cash Flow | 1.21B | 1.30B | 1.17B | 877.47M | 598.89M |
| Investing Cash Flow | -139.44M | -247.97M | -139.36M | -371.60M | -154.95M |
| Financing Cash Flow | -1.05B | -1.24B | -574.50M | -394.20M | -248.52M |
Evolution Gaming Group AB Technical Analysis
Positive
67.33
Price Trends
62.02
Positive
64.60
Negative
73.39
Negative
Market Momentum
-0.07
Negative
58.73
Neutral
70.11
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 67.33 is above the 20-day moving average (MA) of 61.92, above the 50-day MA of 62.02, and below the 200-day MA of 73.39, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 70.11 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $13.10B | 11.04 | 26.90% | 4.64% | 6.06% | 3.19% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $187.25M | -9.44 | 184.28% | ― | 4.03% | ― | |
56 Neutral | $387.22M | ― | 16.40% | ― | 1.79% | ― | |
52 Neutral | $133.72M | -5.88 | -24.91% | ― | 24.21% | -92.49% | |
50 Neutral | $1.97B | -2.53 | -34.58% | ― | 8.24% | -77.54% |
* Consumer Cyclical Sector Average
EVVTY
Evolution Gaming Group AB
64.12
-9.24
-12.59%
PENN
PENN Entertainment
14.77
-0.68
-4.40%
INSE
Inspired Entertainment
6.92
-0.84
-10.82%
CDRO
Codere Online
8.50
1.51
21.60%
GAMB
Gambling.com
3.81
-8.44
-68.90%
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.