Q1 Revenue for Evolution Surges to €520.9 million, yet Profit drops to €254.7 million
A Raw, Unfiltered Peek into Evolution's Q1 2025 Financials
Evolution, ever the trailblazer, kicked off 2025 with a steady uptick in earnings, but a dip in profits signaled a strategic focus on long-term investments and internal restructuring. CEO Martin Carlesund didn't shy away from addressing these hurdles, highlighting decisions made during the quarter that he believes will reinforce Evolution's standing in the industry.
What's Worth Knowing
- Evolution planted roots in new territories, setting up shop in New Jersey and Romania during Q1 2025.
- Live gaming dominated Evolution's income streams, accounting for over 85% of total revenue.
- Despite an uptick in overall revenue, profits took a hit, plummeting by 5.4% year-over-year.
The company reported a gaming revenue of €520.9 million for the first quarter, representing a 3.9% increase from the same period in 2024. However, profit for the quarter plunged to €254.7 million, down 5.4% year-over-year. EBITDA saw a slight dip to €345.8 million, decreasing by 1.1%.
Martin Carlesund addressed the slowdown candidly. "The decelerated growth rate in the quarter isn't just a product of currency fluctuations, but is linked to deliberate decisions we've made that will benefit the business in the long run," he stated.
He conceded the financial slump but qualified it as part of a broader strategy. "It goes without saying that I'm not thrilled with the financial performance in the quarter. However, it's crucial to consider that the results are impacted by necessary moves that drive our mission to continually outpace the competition. The path never runs straight, but what truly matters is that we learn from the obstacles we face and relentlessly evolve, striving to make Evolution a little bit better each day."
Sink Your Teeth into 7Bit Casino (177% up to 5BTC + 77 Free Spins!) Visit SiteDuring the quarter, Evolution laid claim to a third live casino studio in New Jersey and inaugurated a second facility in Romania. The company also fortified compliance by strengthening market controls in parts of Europe.
Live gaming remained the company's cash cow, contributing €448.7 million to the coffers. This figure marked a €17.4 million increase year-over-year, though it dipped by €10.7 million compared to the prior quarter. Revenue from random number generator (RNG) games amounted to €72.3 million, boosting by €2.2 million year-over-year, but sliding slightly from the preceding quarter.
In terms of geography, Asia reigned supreme with €201.9 million in revenue, increasing 2.2% year-over-year. Europe chipped in €189.7 million, demonstrating a negligible 0.7% decline. The remaining €129.3 million came from North America, Latin America, and other regions-all seeing year-over-year growth.
[1] Market Analytics Report (2025).[2] Evolution AB Quarterly Report (Q1 2025).[3] Currency Rates Analysis (2025).[4] Evolution AB Press Release (Q1 2025).
- The company's financial report for Q1 2025 indicates a profit decline of 5.4% compared to the same period in 2024, despite a €520.9 million gaming revenue.
- In alignment with this strategic focus, Evolution established two new studios in New Jersey and Romania during Q1 2025, and they also reinforced compliance by strengthening market controls in certain European regions.
- The financial slump is anticipated to be temporary, as CEO Martin Carlesund outlined that the decisions made during Q1 2025 are intended to reinforce Evolution's standing in the industry and outpace the competition in the long run.
