Evolution Gaming Group AB (SE:EVO)
:EVO
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Evolution Gaming Group AB
(EVO)
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Rating:83Outperform
Price Target:
kr732.00
▲(12.13% Upside)
Action:ReiteratedDate:04/23/26
The score is driven primarily by exceptional profitability, a very strong balance sheet, and solid cash conversion, supported by attractive valuation (low P/E and high yield). Technicals are moderately bullish (above key short/intermediate averages and positive MACD), but longer-term trend resistance (below the 200-day) and earnings-call risks—Europe regulatory headwinds, legal/M&A uncertainty, and the dividend pause—temper the overall rating.
Positive Factors
Exceptional profitability
Sustained ~50% TTM net margin and robust EBIT/EBITDA margins indicate a highly scalable B2B model with strong pricing power and low incremental costs. This margin runway supports durable free cash flow generation, reinvestment in studios/products, and resilience to cyclical revenue swings over 2–6 months.
Negative Factors
Declining revenue momentum
A sharp TTM revenue decline (~-37%) signals weakening top-line traction that can erode operating leverage and test margin sustainability if prolonged. Even with high margins today, persistent revenue contraction reduces cushion for investment and heightens sensitivity to rising costs or slower product uptake.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability
Sustained ~50% TTM net margin and robust EBIT/EBITDA margins indicate a highly scalable B2B model with strong pricing power and low incremental costs. This margin runway supports durable free cash flow generation, reinvestment in studios/products, and resilience to cyclical revenue swings over 2–6 months.
Read all positive factors
Evolution Gaming Group AB (EVO) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr131.35B
Dividend Yield5.04%
Average Volume (3M)518.86K
Price to Earnings (P/E)10.6
Beta (1Y)0.49
Revenue Growth-5.41%
EPS Growth-14.76%
CountrySE
Employees16,368
SectorGeneral
Sector StrengthN/A
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)13.61
Shares Outstanding204,462,160
10 Day Avg. Volume499,890
30 Day Avg. Volume518,856
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)2.89
Price to Sales (P/S)5.55
P/FCF Ratio9.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr620.35Price Target Upside-4.97% Downside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)5.32
Revenue Forecast (FY)kr2.12B
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 online casino game content and live casino services to gambling operators under B2B commercial agreements. Its core revenue stream is recurring revenue from operators based on the usage of Evolution’s g...
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 generally positive operational and financial picture driven by strong margins, excellent cash generation, RNG momentum and record revenues in North America and Latin America, supported by active studio expansion and a rich product roadmap. Material headwinds persist in Europe from regulatory volatility and channelization declines, alongside elevated receivables and ongoing legal/M&A uncertainty. On balance, the positive operational momentum and strong balance sheet outweigh the regional and legal challenges, but management remains cautious on Europe and legal timelines.Positive Updates
Strong Revenue and Margin
Net revenues of EUR 513 million (down 1.5% year‑on‑year, practically flat quarter‑on‑quarter) and EBITDA of EUR 335.3 million with a high EBITDA margin of 65.4%.
Negative Updates
Europe Performance Weakness
Europe underperformed: Live revenue declined 3.1% year‑on‑year; management attributes weakness to regulatory volatility, subjective enforcement, and falling channelization which has materially hurt player activity in several European markets.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue and Margin
Net revenues of EUR 513 million (down 1.5% year‑on‑year, practically flat quarter‑on‑quarter) and EBITDA of EUR 335.3 million with a high EBITDA margin of 65.4%.
Read all positive updates
Company Guidance
Guidance from the call was that Evolution expects to maintain strong profitability while prioritizing investment and growth in North America and Latin America: Q1 reported net revenues of EUR 513m (‑1.5% YoY), EBITDA EUR 335.3m (margin 65.4%), profit EUR 251.9m and EPS €1.26, with operating cash flow after investments of EUR 311m, LTM cash conversion ~81%, cash EUR 1.2bn and equity EUR 4.3bn; operating expenses were EUR 220m (+1.3% YoY, +2.5% QoQ) with personnel up 4% QoQ, CapEx EUR 34.6m, headcount +2.9% YoY / +1.7% QoQ, live revenues down 3.1% YoY while RNG grew 8.1% YoY, and North America grew ~21% YoY in USD (vs 19% in Q4). Management reiterated a cautious stance on further European expansion (channelization and regulatory headwinds), said the bulk of new product releases are planned for H2 2026 (including more Monopoly titles and SciPlay) to help pull players back, will continue to optimize distribution and cost mix through 2026, confirmed the Board has proposed no dividend for 2025 and will communicate capital allocation for 2026 later, and noted the Galaxy Gaming acquisition/approval process is ongoing with a July 17 deadline.Evolution Gaming Group AB Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.11B | 2.12B | 2.21B | 1.80B | 1.46B | 1.07B |
| Gross Profit | 2.11B | 2.12B | 2.21B | 1.80B | 1.46B | 1.07B |
| EBITDA | 1.41B | 1.42B | 1.48B | 1.20B | 954.58M | 694.86M |
| Net Income | 1.06B | 1.06B | 1.24B | 1.07B | 843.36M | 605.43M |
Balance Sheet | ||||||
| Total Assets | 5.85B | 5.50B | 5.35B | 4.97B | 4.37B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 815.10M | 787.07M | 972.46M | 511.95M | 404.79M |
| Total Debt | 88.40M | 163.33M | 93.66M | 79.46M | 79.55M | 67.81M |
| Total Liabilities | 1.55B | 1.44B | 1.37B | 967.27M | 909.09M | 712.12M |
| Stockholders Equity | 4.30B | 4.06B | 3.97B | 4.01B | 3.46B | 3.19B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 1.21B | 1.16B | 1.07B | 780.53M | 537.30M |
| Operating Cash Flow | 1.24B | 1.28B | 1.30B | 1.17B | 877.47M | 598.89M |
| Investing Cash Flow | -174.49M | -147.89M | -247.97M | -139.36M | -371.60M | -154.95M |
| Financing Cash Flow | -933.39M | -1.11B | -1.24B | -574.50M | -394.20M | -248.52M |
Evolution Gaming Group AB Technical Analysis
Positive
652.80
Price Trends
572.04
Positive
594.01
Positive
684.13
Negative
Market Momentum
16.83
Negative
72.06
Negative
86.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EVO, the sentiment is Positive. The current price of 652.8 is above the 20-day moving average (MA) of 597.95, above the 50-day MA of 572.04, and below the 200-day MA of 684.13, indicating a neutral trend. The MACD of 16.83 indicates Negative momentum. The RSI at 72.06 is Negative, neither overbought nor oversold. The STOCH value of 86.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:EVO.
Evolution Gaming Group AB Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | kr131.35B | 10.60 | ― | 5.04% | -5.41% | -14.76% | |
72 Outperform | kr12.71B | 12.71 | 23.20% | 5.03% | -1.24% | -21.32% | |
69 Neutral | kr4.21B | ― | 4.76% | ― | -11.15% | -53.91% | |
68 Neutral | kr8.35B | 27.41 | ― | ― | -12.34% | -30.95% | |
62 Neutral | kr214.17M | -0.99 | -19.82% | ― | -9.15% | 84.64% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
39 Underperform | kr176.53M | -3.44 | -74.31% | ― | 16.20% | 78.91% |
* General Sector Average
SE:EVO
Evolution Gaming Group AB
642.40
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-1.44%
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Evolution Gaming Group AB Corporate Events
Evolution Holds Profit Margins as Europe Drags on Q1 While Americas and Asia Advance
Apr 22, 2026
Evolution reported a marginally weaker first quarter of 2026, with net revenue down 1.5% to EUR 513.0 million and EBITDA slipping 1.9% to EUR 335.3 million, though constant-currency growth was estimated at 6.8% and earnings per share before diluti...
Evolution Seeks to Add Playtech as Defendant in U.S. Defamation Case Over Alleged Smear Campaign
Apr 9, 2026
Evolution AB has moved to add Playtech, Juda Engelmayer, and others as defendants in its ongoing U.S. defamation lawsuit, alleging they orchestrated a covert smear campaign to damage Evolution’s reputation and weaken its position in the Nort...
Evolution AB Sets April 2026 Date and Voting Procedures for Annual General Meeting
Mar 18, 2026
Evolution AB has called its annual general meeting for 24 April 2026 in central Stockholm, giving shareholders the option to attend in person, by proxy or via postal voting. The company has set a record date of 16 April 2026 for shareholders to be...
Evolution Halts 2025 Dividend to Rework Capital Allocation Strategy
Mar 18, 2026
Evolution AB, a leading Sweden-based B2B provider of fully integrated online casino solutions, supplies its technology and services to 870 gaming operators and employs 22,500 people across multiple continents. The company is licensed and regulated...
Evolution’s 2025 Profits Slide as Regulatory and Cyber Headwinds Bite, but Global Expansion and New Games Underpin Outlook
Feb 5, 2026
Evolution reported a softer 2025, with fourth-quarter net revenues down 3.7% to EUR 514.2 million and full-year net revenues essentially flat at EUR 2.07 billion, while adjusted EBITDA margins narrowed to about 66% and profit and earnings per shar...
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.