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Evolution Gaming Group AB (E3G) AI Stock Analysis

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DE:E3G

Evolution Gaming Group AB

(Frankfurt:E3G)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Profitability and Revenue GrowthExceptional trailing revenue growth combined with very high net and EBIT margins indicates strong operating economics and substantial earnings power. If these economics remain durable, they can fund continued product investment, market expansion, and shareholder returns while supporting resilience through normal demand fluctuations.
Negative Factors
Brazil Regulatory ExposureThe Brazilian ban creates an unresolved regulatory and operating setback in an important growth region. Uncertainty over reopening and the effect on players and revenue can disrupt studio utilization, delay expansion plans, and make near-term regional earnings less predictable until policy clarity improves.

Evolution Gaming Group AB (E3G) vs. iShares MSCI Germany ETF (EWG)

-20%-10%0%10%20%30%40%DE:E3G+35.40%EWG+4.43%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
EUR 15.18B
Dividend Yield
―
Average Volume (3M)
90
Price to Earnings (P/E)
13.9
Beta (1Y)
0.29
Revenue Growth
-0.72%
EPS Growth
-2.70%
Country
Germany
Employees
16,243
Sector
Consumer Cyclical
Sector Strength
61
Industry
Gambling, Resorts & Casinos

Evolution Gaming Group AB Business Overview & Revenue Model

Company Description

Evolution AB (publ) develops, produces, markets, and licenses innovative live casino and slot gaming solutions for online operators, primarily in the European and United States markets. The company's signature offering involves streaming live game pl...

Evolution Gaming Group AB Earnings Call Summary

Earnings Call Date:Oct 22, 2026(Q3-2026)|% Change Since:8.51%|Next Earnings Date:Feb 03, 2027
Earnings Call SentimentPositive

The call was predominantly positive, with revenue returning to year-on-year growth, strong EBITDA margins, robust cash flow and cash conversion, growth in North America, LatAm and Africa, continued studio and product expansion, and maintained margin guidance. The main negative topics were the uncertain Brazilian ban and studio closure, Europe's year-on-year decline, ongoing cybercrime issues in Asia, higher personnel cost growth, and continuing litigation.

Positive Updates

Positive Revenue and EBITDA Performance
Q3 net revenues were EUR 526.1 million, up 3.7% year-on-year and 1.6% quarter-on-quarter. Adjusted EBITDA was EUR 345.9 million, with a 65.8% margin.

Negative Updates

Brazilian Gaming Ban and Studio Closure
A potentially temporary ban on gaming in Brazil came into force after the quarter ended. Evolution closed its Brazilian studio while remaining ready to reopen on short notice, and management described the situation as highly unfortunate and negative for the business.

Company Guidance

For the full year, the EBITDA margin target remains 66%, and margin guidance remains “in line with last year”; buybacks will continue through Q4 and Q1, “although at a somewhat lower pace than in Q3” and aligned more closely with cash generation, while the company aims to remain in a net cash position with no debt. Evolution expects to open a fourth studio in New Jersey during Q4, also serving Delaware, taking its U.S. footprint to 8 operative hubs, with a “good ramp-up in medium term”; Spinning Whale’s first game will be available in November, Game Night will launch “very soon,” and management expects a “spectacular road map” and a “spectacular year” in 2027. In Brazil, the company is ready to reopen the studio on short notice if the market reopens and is planning further expansion in Colombia and building momentum in Argentina with its 2 studios there.

Evolution Gaming Group AB Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

DE:E3G against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
SGHCSGHC81Outperform$5.43B14.6445.70%4.12%17.33%176.52%
CDROCDRO70Outperform$393.31M60.2631.40%―6.33%-150.96%
RSIRSI70Outperform$2.81B35.2821.96%―38.66%9.55%
DKNGDKNG64Neutral$18.60B-62.08-26.30%―15.03%46.89%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
MGMMGM52Neutral$7.58B11.3028.11%―2.57%1487.04%

* Consumer Cyclical Sector Average

Performance Comparison

0%50%100%DE:E3GMGMDKNGRSISGHCCDRODec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
DE:E3G and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
DE:E3GEvolution Gaming76.5020.0035.40%
MGMMgm Resorts International29.96-2.17-6.75%
DKNGDraftkings Inc20.91-9.66-31.60%
RSIRush Street Interactive, Inc.12.12-4.81-28.41%
SGHCSuper Group (Sghc) Limited10.690.575.64%
CDROCodere Online8.652.5341.34%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.