Evolution’s third-quarter revenue rose 3.7% to €526.1 million, and the live-casino supplier kept its full-year margin guidance unchanged even after closing its Brazilian studio following the country’s online gambling ban.
The figures come from Evolution’s interim report for the first nine months of 2026, published October 23. Adjusted EBITDA rose 2.7% to €345.9 million, though the margin narrowed to 65.8% from 66.4%. Net profit fell 3.6% to €243.3 million. Live casino revenue rose 2.6% to €443 million, while RNG games grew 10.1% to €83.1 million.
The quarter closed before the shock arrived. President Luiz Inácio Lula da Silva signed Provisional Measure 1.394/2026 on September 25, banning online sports betting and casino in Brazil, and Evolution shut its Brazilian live casino studio on October 5, after the reporting period ended. The Q3 numbers are untouched by the ban; the impact lands from the fourth quarter on.
On the earnings call, CEO Martin Carlesund was blunt about the reversal of a market that launched barely 18 months ago. “It’s highly unfortunate that populistic agenda can overthrow a regulatory framework that has only been in place for one and a half year,” he said. Lula then won the October 25 run-off with 51.76% of valid votes, removing the likeliest near-term path to a reversal.
The numbers explain why Evolution kept its guidance anyway. Latin America generated €49 million in Q3, and the company said Brazil accounts for well below half of that regional revenue. Carlesund said the studio could reopen at short notice if the ban is reversed. “If Brazil reopens its market, we are ready to accelerate,” he said.
Growth is coming from elsewhere. By Evolution’s own estimate of player location, North American revenue grew 13.6%, Latin America 23.1% and Africa 23.7%, while European revenue fell 4.7%. A fourth New Jersey studio opens in the fourth quarter and will also serve Delaware, bringing the company’s US hubs to eight. CFO Joakim Andersson told analysts that share repurchases, roughly €1.13 billion of a €2 billion program through the end of September, will slow in the fourth quarter and the first quarter of 2027 to track cash generation.
Brazil’s Congress has until November 23 to vote on the measure, and Supreme Court Justice Luiz Fux is expected to rule on challenges from the industry associations ANJL and IBJR. How much the ban costs Evolution in the fourth quarter is not yet clear; Carlesund declined to put a number on it.
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