The Synopsis Dialogue. Evolution 3Q25, Negative Revenue Growth, More Asia Issues
Oct 24, 2025
The podcast dives into Evolution's recent 3Q25 updates, highlighting a significant stock drop following a short report. There's an intriguing discussion on the impact of Asia's gray markets and ongoing regulatory shifts in the Philippines and India. The hosts explore the challenges of illegal streams affecting revenue and the balance needed in anti-piracy actions. Additionally, the dynamics of competition in Asia are examined, alongside product innovation and conservative growth forecasts, revealing both opportunities and persistent issues.
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Playtech Funded A Short Report
- A prior short report attacking Evolution was funded by competitor Playtech, which undermined the report's credibility.
- The hosts found this revelation amusing and noted it was better for Evolution than a hedge-fund-sponsored short.
Valuation Collapsed As Growth Slowed
- Evolution's multiple collapsed from ~60x to ~11x as revenues slowed while earnings rose, signaling much lower growth expectations.
- Negative 2% total revenue growth this quarter marked the company's first-ever decline, highlighting a major shift in investor sentiment.
Asia Revenue Reversal Drove Overall Decline
- Asia revenues swung from +4% last quarter to -6% this quarter, driving a 10 percentage-point sequential deceleration.
- The Asia decline pulled total company revenue into negative territory for the first time in Evolution's history.