Evoke (EVOK) H2 2025 earnings summary

Executive summary

• Revenue grew 2% year-over-year to £1,782m, with Q4 as the strongest quarter, driven by International growth.

• Adjusted EBITDA rose 14% to £356m, with margins reaching 20%, reflecting improved operational efficiency.

• Strategic review ongoing, including discussions with Bally's Interactive regarding a possible offer for the group.

• Operational focus remains on disciplined execution, profitable growth, and balance sheet strength.

• Five consecutive quarters of growth up to Q4, with a return to growth in Q1 2026 and trading in line with expectations.

Financial highlights

• FY25 revenue: £1,781.9m (+2% YoY); Adjusted EBITDA: £356.2m (+14% YoY); margin: 20%.

• Adjusted EBITDA margin improved by 220 basis points year-over-year.

• Underlying free cash flow of £188m delivered.

• Leverage reduced from 5.7x to 5.2x, supported by earnings growth and disciplined capital allocation.

• Retail EBITDA declined 17% due to cost inflation and a 1% revenue drop.

Outlook and guidance

• No forward guidance provided due to the ongoing strategic review.

• Q1 2026 started in line with expectations, with strong U.K. Online performance and mixed international results.

• UK duty changes present a significant headwind, but actions taken to mitigate at least 50% of the impact.

• Focus for 2026 is on cash generation, cost discipline, and balance sheet strength.