Evolution Gaming (EVVTY)
OTHER OTC:EVVTY
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Evolution Gaming Group AB
(OTC:EVVTY)
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Rating:82Outperform
Price Target:
$79.00
▲(17.33% Upside)
Action:ReiteratedDate:04/23/26
The score is led by strong financial strength and profitability (very high margins, low leverage, solid cash generation) and supported by favorable valuation (low P/E and high yield). The main constraints are deteriorating recent growth/FCF momentum and earnings-call risks around Europe/regulatory uncertainty and the cancelled dividend, while technicals are supportive but not fully in a long-term uptrend (below the 200-day average).
Positive Factors
High Profitability & Margins
Exceptionally high EBITDA and net margins reflect strong pricing power and operational scalability in live and RNG offerings. Durable margin levels translate into robust cash generation that funds studio expansion, product development and regional investment without heavy reliance on debt.
Negative Factors
Revenue Contraction & FCF Momentum
A marked TTM revenue decline and weakening free cash flow growth erode scale benefits and reduce reinvestment capacity. Persistent top-line contraction pressures studio utilization and margins over time, limiting ability to fund growth initiatives or return capital while maintaining current investment plans.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Exceptionally high EBITDA and net margins reflect strong pricing power and operational scalability in live and RNG offerings. Durable margin levels translate into robust cash generation that funds studio expansion, product development and regional investment without heavy reliance on debt.
Read all positive factors
Evolution Gaming Group AB (EVVTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.72B
Dividend Yield4.64%
Average Volume (3M)10.19K
Price to Earnings (P/E)10.6
Beta (1Y)0.60
Revenue Growth6.71%
EPS Growth-3.79%
CountryUS
Employees16,368
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)5.27
Shares Outstanding199,226,610
10 Day Avg. Volume11,093
30 Day Avg. Volume10,191
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 Cap0.78
Enterprise Value/Revenue5.06
Enterprise Value/Gross Profit5.06
Enterprise Value/Ebitda7.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6.22
Revenue Forecast (FY)$2.48B
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 primarily makes money by supplying casino game content and live-dealer gaming services to online gambling operators under B2B commercial agreements. Its core revenue stream is recurring fees tied to operator usage of Evolution’s game por...
Evolution Gaming Group AB Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 17, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture driven by strong margins, robust cash generation, RNG momentum, and notable outperformance in North America and Latin America, supported by active studio expansion and an ambitious product roadmap. Key challenges are concentrated in Europe—regulatory volatility, channelization to unregulated operators, and a YoY dip in live revenue—plus some elevated costs and receivables and a cancelled dividend. Management conveys confidence and a clear focus on product innovation and regional investment to offset European weakness.Positive Updates
Strong Profitability and Margin
EBITDA of EUR 335.3 million with an EBITDA margin of 65.4% in Q1, demonstrating high profitability and operational scalability despite regional headwinds.
Negative Updates
Weak Performance in Europe
Europe underperformed and was the main drag on live revenue, driven by regulatory volatility and subjective enforcement; channelization to unregulated operators has decreased player activity and harmed revenue.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and Margin
EBITDA of EUR 335.3 million with an EBITDA margin of 65.4% in Q1, demonstrating high profitability and operational scalability despite regional headwinds.
Read all positive updates
Company Guidance
Guidance from the call emphasized continued investment and studio expansion (notably in the U.S. and LatAm), delivery of the 2026 product roadmap with major releases concentrated in H2 (including multiple Monopoly titles and SciPlay), and ongoing optimization of distribution and cost mix through 2026; management expects margins to remain strong after Q1 results of EUR 513m net revenue (-1.5% YoY), EUR 335.3m EBITDA (65.4% margin), profit EUR 251.9m and EPS EUR 1.26, while operating cash flow after investments was EUR 311m, 12‑month cash conversion ~81%, cash EUR 1.2bn and total equity EUR 4.3bn; other operating metrics to monitor include Live revenue down 3.1% YoY, RNG up 8.1% YoY, headcount +2.9% YoY (+1.7% QoQ), total Opex EUR 220m (+1.3% YoY, +2.5% QoQ) with personnel costs +4% QoQ, CapEx EUR 34.6m in Q1, a July 17 deadline for Galaxy approvals, and the Board’s proposal of no dividend for 2025 while capital allocation for 2026 is pending.Evolution Gaming Group AB Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.11B | 2.07B | 2.06B | 1.80B | 1.46B | 1.07B |
| Gross Profit | 2.11B | 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 | 5.85B | 5.52B | 5.35B | 4.97B | 4.37B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 817.60M | 787.07M | 985.76M | 532.55M | 421.43M |
| Total Debt | 88.40M | 91.07M | 93.66M | 79.46M | 79.55M | 67.81M |
| Total Liabilities | 1.55B | 1.45B | 1.37B | 967.27M | 909.09M | 712.12M |
| Stockholders Equity | 4.30B | 4.08B | 3.97B | 4.01B | 3.46B | 3.19B |
Cash Flow | ||||||
| Free Cash Flow | 1.12B | 1.12B | 1.16B | 1.07B | 780.53M | 537.30M |
| Operating Cash Flow | 1.24B | 1.21B | 1.30B | 1.17B | 877.47M | 598.89M |
| Investing Cash Flow | -174.19M | -139.44M | -247.97M | -139.36M | -371.60M | -154.95M |
| Financing Cash Flow | -935.07M | -1.05B | -1.24B | -574.50M | -394.20M | -248.52M |
Evolution Gaming Group AB Technical Analysis
Positive
67.33
Price Trends
62.29
Positive
64.56
Positive
72.87
Negative
Market Momentum
1.95
Negative
73.33
Negative
100.07
Negative
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 64.16, above the 50-day MA of 62.29, and below the 200-day MA of 72.87, indicating a neutral trend. The MACD of 1.95 indicates Negative momentum. The RSI at 73.33 is Negative, neither overbought nor oversold. The STOCH value of 100.07 is Negative, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $13.72B | 10.65 | 26.63% | 4.64% | 6.71% | -3.79% | |
72 Outperform | $412.27M | ― | 7.85% | ― | 6.33% | -150.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $2.24B | -217.94 | -44.48% | ― | 6.38% | -1099.20% | |
56 Neutral | $194.83M | -9.44 | 184.28% | ― | 1.47% | -124.61% | |
52 Neutral | $144.60M | -1.78 | -24.91% | ― | 30.09% | -209.61% |
* Consumer Cyclical Sector Average
EVVTY
Evolution Gaming Group AB
69.04
3.91
6.00%
PENN
PENN Entertainment
16.75
1.04
6.62%
INSE
Inspired Entertainment
7.20
-0.27
-3.61%
CDRO
Codere Online
9.05
0.92
11.32%
GAMB
Gambling.com
4.12
-9.24
-69.16%
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.