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Evolution Gaming Group AB (SE:EVO)
:EVO
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Evolution Gaming Group AB (EVO) AI Stock Analysis

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SE:EVO

Evolution Gaming Group AB

(EVO)

Rating:85Outperform
Price Target:
kr996.00
▲(21.46% Upside)
Evolution Gaming Group AB's overall stock score is driven by its strong financial performance and attractive valuation. The company's strategic expansions and growth in North America are significant positives. However, regulatory challenges in Europe and slow RNG growth present risks. Technical indicators suggest moderate bullish sentiment, supporting the stock's positive outlook.
Positive Factors
Market Expansion
Evolution Gaming has opened two new studios in the Philippines and Brazil, marking its first studio in Asia.
Regulatory Progress
44% of revenues are now from regulated markets, an increase from 39%.
Strategic Partnerships
The partnership with Hasbro has been extended to develop further MONOPOLY products and other Hasbro titles.
Negative Factors
Growth Slowdown
Revenue growth slowed in all regions globally, most notably in Europe and Asia.
Legal Challenges
Hacksaw and Evolution shares fell after a lawsuit alleged that they knowingly supplied content to an unlicensed casino in California.
Revenue Decline
Europe's revenue has declined by 6% following a full quarter of regulatory ring-fencing.

Evolution Gaming Group AB (EVO) vs. iShares MSCI Sweden ETF (EWD)

Evolution Gaming Group AB Business Overview & Revenue Model

Company DescriptionEvolution 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 end users make betting decisions on their devices, such as computers, smartphones, tablets, etc. Its portfolio of online live table games primarily includes Live Roulette, Blackjack, Baccarat, Super Sic Bo, Dragon Tiger, Craps, Live Casino Hold'em, Three Card Poker, and Ultimate Texas Hold'em; and operates approximately 1000 tables. The company was formerly known as Evolution Gaming Group AB (publ). Evolution AB (publ) was founded in 2006 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneyEvolution Gaming generates revenue primarily through its business-to-business (B2B) model, where it provides live casino services to online gaming operators. The company charges its clients a fee based on a revenue-sharing model, which typically involves taking a percentage of the operators' gaming revenue generated from games powered by Evolution. Additionally, Evolution may charge fixed fees for the integration and setup of its gaming solutions. Key revenue streams include licensing agreements, game development royalties, and customized gaming solutions for high-profile clients. The company's partnerships with major online gambling platforms and its expansion into new markets also contribute significantly to its growth and earnings.

Evolution Gaming Group AB Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there are strong growth signals from North America and significant strategic wins like the Hasbro agreement, challenges in Europe and Asia, along with slow RNG growth, temper the overall outlook. The company's proactive measures in regulation and cyber defense show promise but have yet to fully mitigate the current challenges.
Q2-2025 Updates
Positive Updates
Net Revenue Growth
Net revenue for Q2 2025 came in at EUR 524.3 million, showing a year-on-year growth of 3.1%.
EBITDA Performance
EBITDA amounted to EUR 345.3 million with a margin of 65.9%, aligning with the full-year guidance of 66% to 68%.
North America Growth
North America saw almost 23% year-on-year growth in revenue, totaling EUR 73.9 million.
Significant Licensing Agreement with Hasbro
Evolution signed an exclusive global licensing agreement with Hasbro, a major milestone for the company.
New Studio Launches
Launched first-ever studios in the Philippines and Brazil, marking significant expansion milestones.
Shareholder Returns
Almost EUR 800 million returned to shareholders through dividends and share buybacks in the first half of the year.
Negative Updates
Challenges from European Regulations
Ring-fencing measures in Europe have negatively impacted revenues, particularly with a 5% decrease in the second quarter.
Cybercrime Impact in Asia
Ongoing cybercrime activities in Asia have posed challenges, although the region showed a 4% growth quarter-on-quarter.
RNG Revenue Slowdown
RNG revenues grew only 0.3% year-on-year, affected by the largest payout ever in RNG.
Increased Operating Expenses
Total operating expenses grew by 10% year-over-year, outpacing revenue growth.
European Market Uncertainties
Revenue in Europe showed a negative growth of 5% compared to the first quarter, driven by regulatory challenges.
Company Guidance
In the Evolution Q2 2025 earnings call, CEO Martin Carlesund and CFO Joakim Andersson provided detailed guidance, highlighting several key metrics. The company reported net revenue of EUR 524.3 million, reflecting a year-on-year growth of 3.1%, while EBITDA reached EUR 345.3 million with a margin of 65.9%, aligning with their full-year guidance of 66-68%. The Life segment generated EUR 453.7 million, with 3.6% growth, and RNG revenues were EUR 70.6 million, showing a slight 0.3% increase. Europe saw a revenue decline of 5% due to ring-fencing measures, while Asia experienced a 4% quarter-on-quarter growth despite ongoing cybercrime challenges. North America continued its strong trajectory with a 23% year-on-year increase, and Latin America grew by 3%, aided by new regulations in Brazil. The call also emphasized strategic milestones, including a licensing agreement with Hasbro and new studio launches in the Philippines and Brazil, which are expected to bolster future growth. Total operating expenses increased by 10% year-over-year to EUR 217.9 million, and the company maintained a cash position of EUR 505.3 million after significant share buybacks and dividends. The management expressed cautious optimism for the second half of the year, anticipating stronger performance driven by improved efficiencies and strategic expansions.

Evolution Gaming Group AB Financial Statement Overview

Summary
Evolution Gaming Group AB's financials are robust, with excellent profitability, strong revenue growth, minimal leverage, and efficient cash flow generation. The income statement shows a high net profit margin and operational efficiency, while the balance sheet reflects a strong capital structure despite minor equity fluctuations.
Income Statement
95
Very Positive
Evolution Gaming Group AB demonstrates an exceptionally strong income statement with a very high gross profit margin of 100% and a net profit margin of approximately 57.6% for the TTM period. Revenue growth has been robust, with the latest TTM revenue representing a significant increase from prior periods. Margins such as EBIT and EBITDA are also very high, indicating excellent operational efficiency and profitability.
Balance Sheet
90
Very Positive
The company's balance sheet is very healthy, with a low debt-to-equity ratio of approximately 0.024, indicating minimal leverage. The equity ratio stands at a solid 75.3%, reflecting a strong capital structure. However, a slight decrease in stockholders' equity from the previous annual report suggests some caution.
Cash Flow
92
Very Positive
Cash flow performance is strong, with a high free cash flow and a favorable operating cash flow to net income ratio of approximately 1.05, indicating efficient cash generation. Free cash flow growth remains positive, supporting the company's ability to invest and return capital to shareholders.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.10B2.06B1.80B1.46B1.07B561.13M
Gross Profit2.10B2.11B1.80B1.46B1.09B561.13M
EBITDA1.41B1.59B1.20B1.01B730.94M332.26M
Net Income1.21B1.24B1.07B843.36M605.43M284.62M
Balance Sheet
Total Assets4.95B5.35B4.97B4.37B3.90B3.17B
Cash, Cash Equivalents and Short-Term Investments494.89M787.07M985.76M532.55M421.43M221.68M
Total Debt89.88M93.66M79.46M79.55M67.81M49.97M
Total Liabilities1.22B1.37B967.27M909.09M712.12M442.94M
Stockholders Equity3.73B3.97B4.01B3.46B3.19B2.73B
Cash Flow
Free Cash Flow1.14B1.16B1.07B780.53M537.30M279.17M
Operating Cash Flow1.27B1.30B1.17B877.47M598.89M316.05M
Investing Cash Flow-248.39M-247.97M-139.36M-371.60M-154.95M6.82M
Financing Cash Flow-1.20B-1.24B-574.50M-394.20M-248.52M-279.91M

Evolution Gaming Group AB Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price820.00
Price Trends
50DMA
817.90
Positive
100DMA
754.86
Positive
200DMA
788.31
Positive
Market Momentum
MACD
5.56
Positive
RSI
41.76
Neutral
STOCH
47.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EVO, the sentiment is Neutral. The current price of 820 is below the 20-day moving average (MA) of 853.67, above the 50-day MA of 817.90, and above the 200-day MA of 788.31, indicating a neutral trend. The MACD of 5.56 indicates Positive momentum. The RSI at 41.76 is Neutral, neither overbought nor oversold. The STOCH value of 47.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:EVO.

Evolution Gaming Group AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
85
Outperform
kr167.66B12.38
3.81%6.27%11.76%
56
Neutral
$13.94B13.6810.03%0.85%7.13%-12.93%
kr22.36B10.2623.10%4.52%
$18.81M-38.74%
$407.85M45.964.76%
€17.32M-71.93%
67
Neutral
kr7.32B25.92
-5.42%-17.95%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:EVO
Evolution Gaming Group AB
820.00
-187.92
-18.64%
GB:0A37
Betsson AB
161.01
38.74
31.68%
CTTMF
Catena Media
0.69
-0.03
-4.17%
KMBIF
Kambi Group
14.28
3.17
28.53%
DE:7NG
Acroud AB
0.01
-0.04
-80.00%
SE:BETCO
Better Collective A/S
118.20
-111.80
-48.61%

Evolution Gaming Group AB Corporate Events

Evolution AB Enhances Shareholder Value Through Share Repurchase
Aug 11, 2025

Evolution AB has repurchased 169,600 of its own shares between August 4 and August 8, 2025, as part of a board-approved program to enhance shareholder value by improving the company’s capital structure. The repurchase program, compliant with EU regulations, allows for a maximum acquisition of 20,446,216 shares, and aims to strengthen Evolution’s market position by reducing the total capital. As of August 8, 2025, Evolution holds 2,079,848 of its own shares, with Citibank executing the transactions independently on Nasdaq Stockholm.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1170.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Shareholder Value Through Share Repurchase
Aug 4, 2025

Evolution AB has repurchased 173,767 of its own shares between July 28 and August 1, 2025, as part of a board-approved program to improve capital structure and enhance shareholder value. The repurchase, conducted under EU regulations, brings Evolution’s total holdings to 1,910,248 shares, with a maximum of 20,446,216 shares allowed for acquisition, indicating a strategic move to strengthen its market position.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1170.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Shareholder Value Through Share Repurchase
Jul 28, 2025

Evolution AB has repurchased 171,000 of its own shares between July 21 and July 25, 2025, as part of a program to improve its capital structure and enhance shareholder value. This move aligns with EU regulations and aims to reduce the company’s capital, with Citibank executing the transactions independently on Nasdaq Stockholm.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1170.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Capital Structure Through Share Repurchase
Jul 21, 2025

Evolution AB has acquired 130,389 of its own shares between July 14 and July 16 as part of a repurchase program aimed at improving its capital structure and enhancing shareholder value. This program, compliant with EU regulations, allows for a maximum acquisition of 20,446,216 shares, with 1,565,481 shares acquired to date, reflecting Evolution’s strategic financial management and commitment to shareholder interests.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Capital Structure with Share Buyback
Jul 14, 2025

Evolution AB has repurchased 195,700 of its own shares between July 7 and July 11, 2025, as part of a board-approved program aimed at enhancing capital structure and increasing shareholder value. This buyback, conducted under EU regulations, brings Evolution’s total holding to 1,435,092 shares, with a maximum of 20,446,216 shares eligible for repurchase, reflecting the company’s strategic financial management efforts.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Capital Structure with Share Repurchase
Jul 7, 2025

Evolution AB has repurchased 145,000 of its own shares between June 30 and July 4, 2025, as part of a board-approved program aimed at improving its capital structure and enhancing shareholder value. The program, compliant with EU regulations, allows for the acquisition of up to 20,446,216 shares, with Citibank independently managing the transactions on Nasdaq Stockholm. This strategic move is expected to bolster Evolution’s financial positioning and potentially increase investor confidence.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution Expands US Presence with Bally’s Partnership
Jul 3, 2025

Evolution Gaming Group AB has announced a new partnership with Bally’s Corporation, marking its entry into Rhode Island and expanding its presence in the US online casino market. This partnership includes the introduction of Evolution’s slot games in Rhode Island and exclusive Bally’s branded live dealer Blackjack tables in New Jersey and Pennsylvania, enhancing the gaming experience for Bally’s players.

The most recent analyst rating on (SE:EVO) stock is a Buy with a SEK890.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution Gaming Secures Exclusive Partnership with Hasbro for Online Casino Games
Jul 1, 2025

Evolution Gaming Group AB has entered a multi-year exclusive partnership with Hasbro to develop online live casino and slot games based on popular Hasbro titles like MONOPOLY. This collaboration builds on their successful relationship and positions Evolution as the exclusive licensing partner for Hasbro’s online casino games, with new titles launching in 2026. This partnership is expected to enhance Evolution’s market position and expand its gaming portfolio, potentially increasing its influence in the online gaming industry.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Capital Structure Through Share Repurchase
Jun 30, 2025

Evolution AB has repurchased 133,000 of its own shares between June 23 and June 27, 2025, as part of a repurchase program aimed at improving its capital structure and enhancing shareholder value. The program, compliant with EU regulations, is executed by Citibank on Nasdaq Stockholm, and Evolution’s total holding of own shares now amounts to 1,094,392, with a maximum of 20,446,216 shares allowed for acquisition.

The most recent analyst rating on (SE:EVO) stock is a Buy with a SEK1100.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Shareholder Value Through Share Buyback Program
Jun 23, 2025

Evolution AB has repurchased 49,500 of its own shares from June 16 to June 19, 2025, as part of a share buyback program aimed at improving its capital structure and enhancing shareholder value. This program, compliant with EU regulations, allows for the acquisition of up to 20,446,216 shares, with Citibank independently handling the transactions on Nasdaq Stockholm.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Capital Structure with Share Repurchase
Jun 16, 2025

Evolution AB (publ) has acquired 98,045 of its own shares between June 9 and June 13, 2025, as part of a repurchase program aimed at improving its capital structure and enhancing shareholder value. The program, compliant with EU regulations, allows for a maximum acquisition of 20,446,216 shares, with Citibank managing the transactions independently. This move is expected to positively impact Evolution’s market positioning and shareholder interests.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Capital Structure with Share Repurchase
Jun 9, 2025

Evolution AB has repurchased 217,000 of its own shares between June 2 and June 5, 2025, as part of a board-approved repurchase program aimed at improving the company’s capital structure and enhancing shareholder value. This program, compliant with EU regulations, allows Evolution to acquire a maximum of 20,446,216 shares, with Citibank independently managing the timing of purchases on Nasdaq Stockholm.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Shareholder Value Through Share Repurchase
Jun 2, 2025

Evolution AB has repurchased 202,847 of its own shares between May 26 and May 30, 2025, as part of a board-approved repurchase program aimed at improving its capital structure and enhancing shareholder value. Conducted under the EU Market Abuse Regulation and Safe Harbour Regulation, these acquisitions were executed on Nasdaq Stockholm by Citibank, bringing Evolution’s total holding to 596,847 shares, with a maximum of 20,446,216 shares permitted for acquisition.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Reduces Share Count Following AGM Decision
May 30, 2025

Evolution AB (publ) announced a reduction in its number of shares following the cancellation of 7,371,042 shares, resulting in a total of 204,462,162 shares and votes as of May 30, 2025. This change, resolved during the Annual General Meeting, reflects the company’s ongoing strategic adjustments and may impact its market positioning and shareholder value.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Capital Structure with Share Repurchase
May 26, 2025

Evolution AB (publ) has repurchased 259,000 of its own shares between May 19 and May 23, 2025, as part of a board-approved program aimed at improving its capital structure and enhancing shareholder value. The repurchase was conducted under the EU Market Abuse Regulation and Safe Harbour Regulation, with Citibank executing the transactions independently. This move is expected to positively impact Evolution’s financial health and market positioning, reinforcing its commitment to shareholder interests.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Enhances Shareholder Value with Share Repurchase
May 19, 2025

Evolution AB has repurchased 135,000 of its own shares as part of a board-approved program aimed at improving its capital structure and enhancing shareholder value. The repurchase, conducted on Nasdaq Stockholm through Citibank, aligns with EU regulations and allows for a maximum acquisition of over 20 million shares, reflecting Evolution’s strategic financial management and commitment to its investors.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

Evolution AB Continues Share Repurchase Program to Optimize Capital Structure
May 14, 2025

Evolution AB (publ) has announced a continuation of its share repurchase program, authorized by the 2025 annual general meeting, to optimize its capital structure and enhance shareholder value. The company plans to repurchase shares worth up to EUR 346 million on Nasdaq Stockholm or another regulated market, following the EU Market Abuse Regulation and Safe Harbour Regulation, with the aim of reducing capital and potentially increasing the value for stakeholders.

The most recent analyst rating on (SE:EVO) stock is a Hold with a SEK1210.00 price target. To see the full list of analyst forecasts on Evolution Gaming Group AB stock, see the SE:EVO Stock Forecast page.

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.Date of analysis: Aug 19, 2025