A 12% rise in Evolution AB's third-quarter operating expenses coincided with a 3.6% fall in profit for the period, even as revenue recovered from four quarters of annual declines.
In results released Oct. 23 for the nine months through Sept. 30, the Sweden-based supplier reported third-quarter revenue of €526.1 million, compared with €507.1 million a year earlier. Profit for the period was €243.3 million versus €252.3 million. Revenue had declined year over year for four successive quarters before the latest increase.
Quarterly operating expenses totaled €235.9 million, 12% above the €210.5 million recorded a year before. Evolution said personnel costs for adding studio tables and expanding operations accounted for most of the rise. Foreign-exchange changes lifted the expense total by €1.2 million compared with the year-earlier quarter.
Costs included €5.6 million related to a U.K. Gambling Commission settlement and €6.5 million in termination and legal expenses tied to the ended Galaxy Gaming merger agreement. Evolution excludes both amounts from adjusted EBITDA. Adjusted EBITDA reached €345.9 million, up 2.7%; its margin slipped from 66.4% to 65.8%. Operating profit decreased 2.1% to €290.3 million, and the profit margin narrowed to 46.2% from 49.8%.
Basic earnings per share were €1.31, compared with €1.25 a year earlier. The average basic share count fell to 186 million from 201.8 million. CEO Martin Carlesund said each region expanded from the previous quarter, a pattern he said had not occurred since 2024.
Evolution supplies online casino solutions to gaming operators. During the quarter, it introduced Spinning Whale, a slots brand focused on the U.S. market. A North American rollout for Ice Fishing is planned in the fourth quarter of 2026.
