Evolution Q2 Revenue Dips as Galaxy Gaming Deal Hangs in the Balance

Dr. Annelies De Vos · 2026-07-17

Evolution, the leading live casino supplier, just released its Q2 2026 earnings, and the numbers tell a story of mixed fortunes. For the second quarter in a row, revenue took a slight dip, coming in at $563.2 million (converted from €517.8 million at a rate of 1.0875 USD/EUR). That's down 1.2% from $570.1 million in the same period last year. But before you hit the panic button, there's more to unpack here. EBITDA held strong at $371.0 million, keeping a healthy margin of 65.9%, and net profit actually ticked up a bit to $273.5 million. Earnings per share rose to $1.38. So, what's really going on? ### A Closer Look at the Numbers Let's break down the key financial metrics. Revenue might be down, but profitability is holding up. Here's what stood out: - **Revenue:** $563.2 million (down 1.2% year-over-year) - **EBITDA:** $371.0 million (margin of 65.9%) - **Net Profit:** $273.5 million (slight increase from last year) - **Earnings Per Share:** $1.38 (up from $1.34) CEO Martin Carlesund pointed to improvements compared to Q1, like better cost control and stronger cash flow. He also noted growth in key markets, which suggests the company isn't just sitting still. The decline seems more like a bump in the road than a full-blown crisis. ### The Galaxy Gaming Acquisition: What's the Hold-Up? The big question hanging over Evolution right now is its planned acquisition of Galaxy Gaming. This deal has been in the works for a while, but it's still uncertain. Galaxy Gaming is known for its table game side bets and proprietary content, so snapping them up could give Evolution a bigger footprint in the U.S. market. But regulatory hurdles and market conditions have slowed things down. Analysts are watching closely, because if this deal goes through, it could reshape Evolution's growth trajectory. If it falls through, well, the company will need to pivot. ### What This Means for the U.S. Market For professionals in the U.S. online casino space, Evolution's results are a mixed bag. The company is still the dominant player in live dealer games, but the dip in revenue raises questions about market saturation. On the flip side, the strong EBITDA margin shows they're running a tight ship. And with the Galaxy Gaming acquisition potentially expanding their reach into table games, there's room for optimism. The key takeaway? Evolution is managing the short-term turbulence while betting on long-term growth. ### Final Thoughts Evolution's Q2 report is a reminder that even industry giants have off quarters. But the fundamentals look solid, and the company's focus on cost control and market expansion is encouraging. The Galaxy Gaming deal remains the wild card. If it closes, expect a new chapter for Evolution in the U.S. If not, they'll likely find another way to keep growing. Either way, this is a story worth following. *This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research before making any investment decisions.*