Evolution Gaming Group AB (EVVTY) AI Stock Analysis

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Evolution Gaming Group AB

(Other OTC:EVVTY)

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Rating:81Outperform

Price Target:$98.00▲(13.31% Upside)

Action:reiterated

Date:10/24/26

Evolution scores well primarily on financial strength: best-in-class margins, a virtually debt-free balance sheet and consistently high free cash flow conversion give it a low-risk profile and ample capacity to fund buybacks and expansion. Valuation reinforces the case, with a P/E near 14 looking modest for this level of profitability. The key limiters are growth and near-term uncertainty — revenue has flattened, Europe is shrinking, Asia remains pressured by cybercrime, and the Brazilian ban clouds Q4 visibility. Technically, the longer-term trend remains positive with the stock above all major moving averages, though short-term indicators suggest the recent advance is extended.

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 (EVVTY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $15.76B
Dividend Yield: ―
Average Volume (3M): 11.84K
Price to Earnings (P/E): 14.6
Beta (1Y): 0.52
Revenue Growth: 4.40%
EPS Growth: 2.65%
Country: US
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...

How the Company Makes Money

Evolution primarily makes money by supplying casino game content and operating infrastructure to online gambling operators on a B2B basis. Its core revenue is generated when operators offer Evolution’s games to players: Evolution is typically compens...

Evolution Gaming Group AB Earnings Call Summary

Earnings Call Date:Oct 23, 2026(Q3-2026)|% Change Since:5.72%|Next Earnings Date:Feb 04, 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 Financial Statement Overview

Summary

Exceptional financial quality: roughly 59% operating and 51% net margins, an effectively debt-free balance sheet (debt-to-equity of 0.02), return on equity near 26%, and about $1.18 billion of free cash flow converting over 90% of net income into cash. Operating cash flow exceeds net income (1.22x), confirming high earnings quality. The offset is momentum: revenue was essentially flat in 2025 after years of rapid growth, margins compressed from 2024 peaks, and both net income and free cash flow have edged lower.

Income Statement

84Very Positive

Balance Sheet

92Very Positive

Cash Flow

87Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.12B	2.07B	2.06B	1.80B	1.46B	1.07B
Gross Profit	1.89B	2.12B	2.11B	1.80B	936.13M	1.09B
EBITDA	1.40B	1.37B	1.59B	1.28B	1.01B	730.94M
Net Income	1.05B	1.06B	1.24B	1.07B	843.36M	605.43M
Balance Sheet
Total Assets	5.08B	5.52B	5.35B	4.97B	4.37B	3.90B
Cash, Cash Equivalents and Short-Term Investments	667.52M	817.60M	787.07M	985.76M	532.55M	421.43M
Total Debt	111.16M	91.07M	93.66M	79.46M	79.55M	67.81M
Total Liabilities	1.41B	1.45B	1.37B	967.27M	909.09M	712.12M
Stockholders Equity	3.67B	4.08B	3.97B	4.01B	3.46B	3.19B
Cash Flow
Free Cash Flow	1.18B	1.12B	1.16B	1.07B	780.53M	537.30M
Operating Cash Flow	1.30B	1.21B	1.30B	1.17B	877.47M	598.89M
Investing Cash Flow	-67.05M	-139.44M	-247.97M	-139.36M	-371.60M	-154.95M
Financing Cash Flow	-1.24B	-1.05B	-1.24B	-574.50M	-394.20M	-248.52M

Evolution Gaming Group AB Technical Analysis

Technical Analysis SentimentPositive

Last Price86.49

Price Trends

50DMA84.55Positive

100DMA80.52Positive

200DMA73.66Positive

Market Momentum

MACD1.11Negative

RSI60.02Neutral

STOCH58.64Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVVTY, the sentiment is Positive. The current price of 86.49 is above the 20-day moving average (MA) of 84.44, above the 50-day MA of 84.55, and above the 200-day MA of 73.66, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 58.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVVTY.

Evolution Gaming Group AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

EVVTY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVVTY	81Outperform	$15.73B	14.55	26.01%	―	4.40%	2.65%
RSI	71Outperform	$2.72B	34.53	21.96%	―	38.66%	9.55%
SGHC	71Outperform	$5.80B	14.20	50.15%	3.78%	13.66%	88.22%
CDRO	64Neutral	$388.31M	59.02	31.40%	―	6.33%	-150.96%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MGM	52Neutral	$8.41B	12.64	28.11%	―	2.57%	1487.04%
DKNG	51Neutral	$17.01B	-24.96	-76.32%	―	17.40%	-39.97%

* Consumer Cyclical Sector Average

Performance Comparison

EVVTY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
EVVTY	Evolution Gaming	86.49	20.70	31.47%
MGM	Mgm Resorts International	33.49	2.10	6.69%
DKNG	Draftkings Inc	18.89	-9.93	-34.46%
RSI	Rush Street Interactive, Inc.	11.86	-4.98	-29.57%
SGHC	Super Group (Sghc) Limited	11.64	0.06	0.55%
CDRO	Codere Online	8.35	2.86	52.09%

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.

Date of analysis: Oct 24, 2026

Evolution Gaming Group AB AI Stock Analysis