Evolution Q2 2026 Results: Revenue Slips as Galaxy Gaming Deal Nears Collapse

Evolution reported net revenue of 517.8m euros for the second quarter of 2026, down 1.2% year on year, and used the same results statement to signal that its 85m dollar acquisition of US table games supplier Galaxy Gaming is likely to fall apart. CEO Martin Carlesund confirmed that the agreed closing period on the deal expired on 17 July 2026, meaning either party can now walk away, and described the transaction as too small to be "significant for Evolution".

It is a rare double signal from the world's largest live casino supplier: a quarter of softening top-line growth paired with the near-collapse of the deal that was supposed to anchor its push into US land-based and proprietary table games. Below we break down every key number, the regional split, why Asia keeps dragging, and what the Galaxy exit says about Evolution's US strategy.

What did Evolution report in Q2 2026?

Evolution posted Q2 2026 net revenue of 517.8m euros, a decline of 1.2% year on year but a rise of 2.4% at constant currency, showing that most of the reported drop came from foreign exchange rather than underlying demand. EBITDA came in at 341m euros for a margin of 65.9%, and net profit actually edged up to 251.4m euros from 248.3m euros a year earlier, with earnings per share of 1.27 euros.

For the first half of 2026, the group reported revenue of roughly 1.03bn euros and EBITDA of 676.3m euros. The headline picture is a business still throwing off enormous cash margins, but one whose growth engine has clearly cooled from the 20%-plus expansion rates investors grew used to in prior years.

• Q2 net revenue: 517.8m euros, down 1.2% year on year, up 2.4% in constant currency (Evolution, Q2 2026 interim report).
• Q2 EBITDA: 341m euros at a 65.9% margin (Evolution, 2026).
• Q2 net profit: 251.4m euros, up from 248.3m euros in Q2 2025, with EPS of 1.27 euros.
• Share buyback: 5.14 million shares, about 2.58% of capital, repurchased for 303.2m euros in the quarter.

How did the two product lines perform?

Live Casino generated 437.3m euros and RNG (random number generator slots) contributed 80.5m euros in the quarter. Live Casino remains the core of the business and the segment Evolution effectively defined, but the RNG side, built out through acquisitions of NetEnt, Red Tiger, Big Time Gaming and others, is the part management has repeatedly flagged as needing to reaccelerate.

Which regions grew and which fell?

Growth in Q2 2026 was carried by the Americas while Asia and Europe weighed on the group. North America and Latin America both expanded strongly, Europe was broadly flat, and Asia contracted again on both a yearly and quarterly basis.

Region	Q2 2026 revenue	Year on year
Asia	190.5m euros	-8.9%
Europe	173m euros	-4%
North America	81m euros	+9.5%
Latin America	47.5m euros	+26.3%
Other (mainly Africa)	25.8m euros	+10.3%

Latin America was the standout at 26.3% growth, helped by the reopening of Evolution's Argentine studio and a localized Ice Fishing launch in Brazil. North America grew 9.5% on the back of a Monopoly Live rollout across four US states and a second studio in Michigan. The concern remains Asia, still the single largest region at 190.5m euros but down 8.9% year on year.

Why is Asia still falling for Evolution?

Evolution again blamed the Asian decline on cybercrime and organised black-market activity targeting its operators and studios, which Carlesund said pushed regional revenue down 3.7% quarter on quarter. The company has spent more than a year describing a coordinated campaign of DDoS attacks, video piracy and stream scraping aimed at illegal sites that free-ride on its content, and has been investing in tighter distribution controls and anti-fraud technology in response.

The Asia softness matters because it is still Evolution's biggest single market, so even mid-single-digit declines there can offset strong percentage gains in smaller regulated regions like Latin America and North America.

What is happening with the Galaxy Gaming deal?

The most consequential news in the report was not a number but a deadline. Evolution announced in July 2024 that it would acquire Las Vegas-based Galaxy Gaming, a supplier of proprietary casino table games and side bets, in an all-cash deal worth about 85m dollars in equity value, or roughly 124m dollars including net debt. The offer of 3.20 dollars per share represented a 124% premium to Galaxy's closing price the day before the announcement.

Two years on, the deal has still not closed. After an extension granted in November 2025, the agreed closing period lapsed on 17 July 2026. In the results statement, Carlesund made clear the company is now comfortable letting it lapse.

"Today, the currently agreed closing period under our agreement to acquire Galaxy Gaming expires. After today, either party may choose to terminate the agreement. Galaxy is a great company; however, due to its size, the transaction is not significant for Evolution. The outcome has no material impact on our existing business, our US operations or our long-term ambitions." Martin Carlesund, CEO, Evolution

Carlesund also pointed to the administrative cost of chasing the transaction, noting that "two years have passed, and Evolution has spent significant time, effort and resources handling the rather large amount of administration required to close this acquisition". He characterised himself as "relaxed" about whether it completes.

Why did the Galaxy Gaming acquisition stall?

The Galaxy transaction required a long chain of US state gaming regulatory approvals, the same licensing gauntlet that makes land-based casino M&A far slower than software deals. Where Evolution's core live casino business scales through jurisdictional content licences, buying a company embedded in physical US casino floors meant clearing suitability reviews across many states. The repeated extensions, first into 2026 and then to the mid-year deadline, reflected how drawn out that process became for a deal that, at 85m dollars, is a rounding error against Evolution's multi-billion-euro annual revenue.

What did Galaxy Gaming say about the deal?

When the acquisition was announced in July 2024, Galaxy framed it as a way to keep operating independently under a larger, well-capitalised owner. "This acquisition by Evolution empowers Galaxy to sustain and maintain its independence while continuing to focus on growth," Galaxy CEO Matt Reback said at the time. That vision now looks unlikely to materialise as originally structured, with both sides free to terminate.

Was there any regulatory news in the report?

Yes. Evolution disclosed a 4.75m pound settlement with the UK Gambling Commission during the period, part of the wider compliance pressure that has swept across suppliers and operators serving the British market. It is a reminder that even a supplier that does not hold direct player relationships is exposed to the tightening regulatory environment through its licensed distribution.

How does Q2 2026 compare with Evolution's recent trajectory?

The 1.2% reported decline is a marked change from Evolution's history of consistent double-digit revenue growth. Management framed the quarter as a sequential improvement, with Carlesund saying "revenue and margin are moving in the right direction compared to the first quarter". Constant-currency growth of 2.4% suggests the underlying business is still expanding modestly once currency swings are stripped out, but the era of effortless 20%-plus growth is clearly over as the group laps a larger base and battles the Asian black market.

"Overall, I am happy with the performance in the quarter. Revenue and margin are moving in the right direction compared to the first quarter." Martin Carlesund, CEO, Evolution

What does Evolution's capital return say about its confidence?

Evolution repurchased 5.14 million shares, about 2.58% of its capital, for 303.2m euros during the quarter, a substantial buyback that signals management sees its own equity as undervalued after a weak share-price run. For a company generating 65.9% EBITDA margins and quarterly net profit above 250m euros, aggressive buybacks are also a way of returning cash when large accretive acquisitions, such as the now-stalled Galaxy deal, are not moving the needle.

What does the Galaxy exit mean for Evolution's US strategy?

The likely collapse does not derail Evolution's US ambitions, but it does confirm that the company's American growth will come from what it already does best: live casino studios feeding regulated online markets. North America's 9.5% growth, a second Michigan studio and the Monopoly Live rollout are the real US story. Galaxy would have added a foothold in physical table games and proprietary side bets, a genuinely different business, and letting it go suggests Evolution has decided that diversification is not worth the regulatory drag at this price.

What happens next?

With the closing window expired, attention turns to whether either Evolution or Galaxy formally terminates the agreement or attempts one more extension. Carlesund's language points strongly toward a walk-away. For investors, the more important questions are whether Asia can stabilise, whether RNG growth reaccelerates, and whether the strong Latin American and North American momentum can offset a maturing European market through the back half of 2026.

Key facts: Evolution Q2 2026 at a glance

• Net revenue: 517.8m euros, down 1.2% (up 2.4% constant currency).
• EBITDA: 341m euros, 65.9% margin.
• Net profit: 251.4m euros, EPS 1.27 euros.
• Biggest region: Asia at 190.5m euros, down 8.9%.
• Fastest growth: Latin America, up 26.3%.
• Galaxy Gaming deal: 85m dollar acquisition, closing window expired 17 July 2026, expected to terminate.

Frequently asked questions

How much revenue did Evolution make in Q2 2026?

Evolution reported net revenue of 517.8m euros in Q2 2026, down 1.2% year on year but up 2.4% at constant currency, with EBITDA of 341m euros and net profit of 251.4m euros.

Is the Evolution Galaxy Gaming deal dead?

Not formally, but it is close. The agreed closing period expired on 17 July 2026, so either party can now terminate. CEO Martin Carlesund said the deal is not significant for Evolution and that its outcome has no material impact on the business.

How much was the Galaxy Gaming acquisition worth?

Evolution agreed in July 2024 to buy Galaxy Gaming for about 85m dollars in equity, or roughly 124m dollars including net debt, at 3.20 dollars per share, a 124% premium to the prior close.

Why is Evolution's Asia revenue falling?

Evolution attributes the Asian decline, down 8.9% year on year and 3.7% quarter on quarter, to cybercrime and illegal black-market operators that scrape and pirate its content, prompting heavier investment in anti-fraud measures.

Who is the CEO of Evolution?

Martin Carlesund is the CEO of Evolution, the Stockholm-listed live casino and slots supplier behind brands including Evolution Live Casino, NetEnt, Red Tiger and Big Time Gaming.

Updated July 2026. Figures are drawn from Evolution's Q2 2026 interim report and contemporaneous industry coverage, including SBC News and G3 Newswire. This is trade news for readers aged 18 and over; please gamble responsibly.