Meridian Holdings Reports Q1 2026 Profitability and Strong Balance Sheet Improvement

Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the first quarter ended March 31, 2026, marking its first GAAP-profitable quarter under the Meridian Holdings brand. The company achieved revenue of $50.1 million, a 17% increase year-over-year, in line with prior guidance, and net income of $2.2 million, compared to a net loss of $0.3 million in the prior-year period. Adjusted EBITDA rose 26% to $6.3 million, exceeding the company's guidance of $6.1 million.

The company's balance sheet strengthened significantly, with cash of $16.2 million, total debt of $29.7 million (down 54% year-over-year), and net debt of $13.4 million (down 62% year-over-year). Net debt leverage improved to 0.53x, the strongest capital structure in company history. Operating cash flow of $5.2 million supported ongoing deleveraging and reinvestment in technology and regulated-market expansion.

William Scott, Interim CEO of Meridian, stated, "Q1 2026 marks our first GAAP-profitable quarter under the Meridian Holdings brand and reflects the disciplined execution of our growth plan. We delivered revenue in line with guidance, exceeded our Adjusted EBITDA target, and continued to strengthen the balance sheet."

The Meridianbet Group, the company's B2C sports betting and online casino segment, posted revenue of $34.9 million, up 26% year-over-year, representing 69.6% of company revenue. Segment operating income grew 37% to $6.6 million. New customer registrations reached 428,400, up 41% year-over-year, with depositors up 27% to 283,000 and active users up 21% to 333,700.

Expanse Studios, part of the Meridianbet Group, expanded its operator network to 1,519 active sites, adding 175 new sites in the quarter, and launched six new proprietary game titles, bringing the total to 77. The subsidiary filed for system certification in Ontario, Canada, and secured new certifications in Latvia, Estonia, Sweden, and Portugal during the quarter.

The RKings & Classics for a Cause segment generated combined revenue of $12.1 million, up 9% year-over-year. RKings revenue reached $7.7 million, up 12% year-over-year, with average order value up 29% to $16.91. Classics for a Cause saw new users rise 18% to 9,813, and VIP subscriptions surpassed 10,000 for the first time in 12 months.

The GMAG segment, including MexPlay, reported revenue of $3.1 million, down from $3.8 million in the prior-year period. However, the segment onboarded 12 new providers in Q1 2026, compared to 2 in Q1 2025, and deployed 1,382 new games, up 65% year-over-year. MexPlay's registrations reached 74,000 (up 271% year-over-year) and first-time depositors climbed to 6,101 (up 198% year-over-year).

For the second quarter of 2026, the company issued revenue guidance of $51 million to $53 million, representing 18% to 23% growth over Q2 2025 revenue of $43.2 million. CFO Rich Christensen noted, "With $16.2 million of cash, a clean deleveraging trajectory, and accelerating growth, we have meaningful financial flexibility to invest behind the growth plan."

A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.

Non-GAAP financial measures such as Adjusted EBITDA, Net Debt, and Net Debt Leverage Ratio are provided as supplemental indicators. Adjusted EBITDA excludes stock-based compensation, restructuring costs, and unrealized foreign exchange gain or loss. Net Debt is defined as total debt less cash and cash equivalents. The company does not provide a reconciliation of forward-looking Adjusted EBITDA due to inherent uncertainty in forecasting certain items.