Evolution Q4 2025: If It Feels Like a Struggle, Get Out
Full-year profit hit €1.06 billion. Margins held at 66%. But revenue growth has gone from 14.7% to essentially zero.
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Evolution just reported Q4 2025 earnings. The headline numbers:
Q4 net revenues of €514.2 million, down 3.7% year-on-year
Full-year revenues of €2.07 billion, up just 0.2%
Adjusted EBITDA margin of 66.1%
Full-year profit of €1.06 billion
Let’s be clear about what this is: a growth company that stopped growing.
In 2024, Evolution delivered 14.7% revenue growth. In 2025, they delivered 0.2%. That’s not a “tough comp.” That’s not a “transition year.” That’s a company hitting a wall.
Yes, margins held. Yes, cash flow is strong. Yes, they expanded to ~870 customers and launched four new studios. But none of that changes the core issue: the growth engine has stalled, and management is no longer pretending otherwise.
The Tone Shift
Go back and read Evolution’s 2024 communications. CEO Martin Carlesund was bullish. Confident. The company was delivering 14.7% revenue growth with 68%+ EBITDA margins. New studios were opening everywhere. “Product Leap” was the mantra - over 100 new games launched that year. Cyberattacks and regulatory headwinds? Short-term noise within a “strong long-term growth trajectory.”
Now read Q4 2025.
Management described the year as one in which they were “proud but not happy.” Revenue declined 3.7% year-on-year. The outlook? “Full-speed expansion” in the U.S. and Latin America, but “slightly less aggressive” investment in Europe. Margins are guided “in line with 2025” - meaning flat, not expanding. The word “stabilization” has replaced “growth.”
The segment breakdown tells the story:
Europe Q4 revenue: €177.6 million, down 12% YoY. Regulatory challenges and “channelization decline” are pushing players to unregulated operators.
Asia Q4 revenue: €193.6 million, down 4.3% YoY. Cybercrime remains a structural challenge, not a temporary one.
North America Q4 revenue: €77.1 million, up 9.2% YoY. The bright spot.
Latin America Q4 revenue: €43.2 million, up 12.2% YoY. Small base, but growing.
North America and Latin America combined are still less than half of Europe alone. The growth markets can’t offset the declines in the mature ones - at least not yet.
There’s also pending litigation with Playtech, an ongoing UK Gambling Commission review, and continued exposure to macroeconomic and geopolitical risk. None of this is new. But the confidence to brush it aside is gone.
The following is my personal take on the company and what I'm doing with my position.