Third quarter of 2025 (Q3 2024)

• Net revenues decreased by 2.4% to EUR 507.1 million (519.4)
• Adjusted EBITDA decreased by 5.3% to EUR 336.9 million (355.6), corresponding to a margin of 66.4% (68.5)
• Profit for the period amounted to EUR 252.3 million (328.6)
• Earnings per share amounted to EUR 1.25 (1.57)

January-September 2025 (9M 2024)

• Net revenues increased by 1.5% to EUR 1,552.3 million (1,529.2)
• Adjusted EBITDA decreased by 2.2% to EUR 1,024.1 million (1,047.2), corresponding to a margin of 66.0% (68.5)
• Profit for the period amounted to EUR 755.3 million (866.9)
• Earnings per share amounted to EUR 3.71 (4.12)

CEO comments

For the third quarter of 2025, Evolution reports net revenues of EUR 507.1 million and EBITDA of EUR 336.9 million, corresponding to a year-on-year revenue decline of 2.4 percent and an EBITDA margin of 66.4 percent. Revenue growth at constant currency is estimated to be 3.9 percent.

As I have pointed out before, we have not been satisfied with the growth so far this year and that sentiment has not changed in this quarter. However, a difference compared to the first half of the year is that performance in Europe, North America and Latin America is decent to good.

Unfortunately, revenue development in Asia is still very far from satisfactory. We continue to fight the cyber criminality that has affected our business there for too long, and during the quarter we didn't progress as much as we would have wanted. The fight is a constant balancing act between taking countermeasures that are too stringent - which create issues for legitimate end-users - and too light, which don't yield the desired effects. During the third quarter, we over-extended our countermeasures and our revenue was affected negatively.

Asia is also affected by the newly regulated market Philippines which initially has been very volatile, as well as other markets such as for example India that in our view show signs of moving towards regulation, creating a higher level of uncertainty than before. Despite the volatility, our newly opened studio in the Philippines has been off to a great start, showcasing our commitment to the region.

Turning to a clear positive: Europe is back to growth quarter-on-quarter. In the second quarter, we saw the full effects from our ring-fencing measures which provided a new baseline to grow from. Despite a summer without any major sports events, we saw good momentum even in the more mature regulated markets compared to the first part of the year.

North America continues to deliver two-digit growth year-on-year but a more modest increase quarter-on-quarter. We saw strong investments from our customers in the quarter, with several larger dedicated studio environments going live across both the USA and Canada. We have also seen some exciting commercial milestones over these months, such as the deal with Gaming Arts where we will explore the potential to move some of our most popular online slot titles to land-based casinos, and the re-launch of Ezugi as our second Live Casino brand in the USA.

Following a slower than expected start to the year, growth in Latin America is once again picking up as operators and players are getting accustomed to the new regulation in Brazil. As highlighted already in the Q2 report, we opened our first Live Casino studio in São Paulo in July, and we are already looking to expand it.

Despite a material revenue shortfall in Asia, we have increased our EBITDA margin in the quarter thanks to the progress in the rest of the world combined with a disciplined approach to our cost base. We are now within our full-year estimate of 66-68 percent, and we expect to stay in this range in the fourth quarter.

In Live, we report a 3.4 percent decline year-on-year which is held back by the development in Asia. For the first time ever, our RNG offering is outperforming Live in terms of growth, a great achievement from our slots studios, primarily Nolimit City, which did very well in the quarter. To further leverage all the RNG expertise that we possess, in the third quarter we launched the new Sneaky Slots brand, which was developed from scratch and will fill a gap in game style between NLC and NetEnt.

We have continued to deliver on the full-year roadmap of more than 110 new releases. Within Live, during the third quarter, we launched the highly anticipated Ice Fishing, which is our first-ever speed game show. Reception has been excellent across our markets. On the RNG side, a total of 22 new titles were launched including Gator Hunters, a direct sequel to the massively successful Duck Hunters. With only two months to go in 2025, there are still a few exciting games that we will launch. Then it is once again time for ICE in January 2026, which will mark another year of great innovation, coinciding with the celebration of Evolution's 20th anniversary.

As there are currently a lot of regulatory movements across our markets, I would like to take the opportunity to explain Evolution's general approach to regulation. Our market leadership is not only dependent on having the most innovative products and the best talent, but it is also dependent on our robust compliance framework. We always want to do what is right, and we do that by closely following legal developments, collaborating with regulatory experts and adapting accordingly. In essence, our goal is to stay ahead of regulatory developments while maximizing business potential. Let's take sweepstakes in the US as a good example. We offer sweepstakes in states where it is not prohibited or where there are no legal uncertainties based on our regular dialogue with regulators and policy makers. If conditions change, as they did in California during the quarter when a city attorney made a personal interpretation of the law, we adapt, whether we agree with the interpretation or not.

Four years ago, a defamatory and false report on Evolution was published and disseminated that caused substantial harm to the company and its shareholders. As a result of a lengthy legal process to identify the source of this report, we now know that Playtech, a competitor of ours, paid Black Cube, a controversial intelligence firm, to produce the report. At Evolution, we will always go to all lengths to protect our company, our brand, our colleagues and our shareholders. Whether it is our efforts to fight cyber criminals in Asia, the resolution of the Georgian strike, or the action we are taking against Playtech and their associates who sought to harm Evolution, we will deploy whatever time, effort and money necessary to defend our firm and its exciting future. We are dedicated to setting a strong course for our company and our industry, and you can count on us to continue doing so.

By now, you know the Evolution spirit - we never shy away from a challenge, we continue to focus on expansion and innovation, and we make sure to become a little bit better every day. That will always be our way forward!

Presentation for investors, analysts and the media
CEO Martin Carlesund and CFO Joakim Andersson will present the report and answer questions on Thursday 23 October 2025 at 09:00 a.m. CEST via a telephone conference. The presentation will be in English and can also be followed online.

Webcast: https://evolution.events.inderes.com/q3-report-2025/register
Teleconference: https://events.inderes.com/evolution/q3-report-2025/dial-in

Dial-in number to the teleconference will be received by registering on the link above. After the registration you will be provided phone numbers and a conference/user ID to access the conference.

For further information, please contact:
CFO Joakim Andersson, ir@evolution.com

This information is such that Evolution AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above on 23 October 2025, at 07:30 am CET.