Meridian Holdings Reports Second Quarter 2026 Financial Results: Revenue Up 16% to $50.2 Million, Second Consecutive Quarter of GAAP Profitability

Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the second quarter ended June 30, 2026, demonstrating continued momentum with revenue growth of 16% year-over-year to $50.2 million and net income attributable to MRDN of $2.2 million, marking the second consecutive quarter of GAAP profitability. The company also reported adjusted EBITDA of $5.9 million, up 43% year-over-year, and reduced net debt by 65% to $9.4 million.

The company's B2C segment, Meridianbet Group, generated revenue of $35.8 million, up 23% year-over-year, driven by a 37% surge in new customer registrations and a 24% increase in first-time depositors. Despite an unfavorable sporting results backdrop during the World Cup group stage, the company capitalized on record wagering activity. Zoran Milosevic, CEO of Meridianbet Group, noted that the tournament brought a wave of new players onto the platform, strengthening the base for conversion and retention. The segment's operating income grew 91% year-over-year to $6.1 million.

Expanse Studios, the company's proprietary game studio, continued its rapid expansion with revenue growing 138% and gross gaming revenue up 90% year-over-year. The studio went live with new operator partners including Maxbet Serbia, part of Flutter Entertainment, Synottip and Joker.lv. It also entered a North American distribution partnership with Bragg Gaming and secured new market certifications in Latvia, Colombia, Portugal and Slovenia. During the quarter, Expanse launched new player-engagement tools, including jackpots, tournaments and its Achievo gamification product.

RKings Competitions Ltd. and Classics For A Cause Pty Ltd reported combined revenue of $10.8 million, up 4% year-over-year. At RKings, revenue of $7.0 million increased approximately 5% year-over-year. At Classics for a Cause, new users grew approximately 28% year-over-year and active VIP subscriptions ended the quarter at approximately 10,100.

GMAG segment revenue was $3.6 million, flat year-over-year, but the segment deployed 2,382 new games in the quarter, up 13% year-over-year. MexPlay, the Mexico-facing online casino, continued to expand with revenue up 31%, new customer registrations up 50% year-over-year and first-time depositors up 53%.

William Scott, interim CEO of Meridian Holdings, commented, "Our second quarter reflects the discipline we have built into this business. We grew revenue 16%, expanded adjusted EBITDA 43%, delivered our second consecutive quarter of GAAP profitability and reduced net debt by 65% year-over-year, all against a sporting-results backdrop that was unusually favorable to bettors across the industry during the quarter. Furthermore, crossing $100 million in first-half revenue for the first time is a milestone that speaks to the scale we have reached."

The company's balance sheet continued to strengthen with cash of $17.3 million, total debt of $26.7 million, and net debt leverage lowered to 0.39x. Interest expense declined approximately 80% year-over-year. Operating cash flow was $7.8 million, compared to $2.4 million in the prior-year period, supporting continued deleveraging and disciplined reinvestment.

For the second half of 2026, the company expects constant currency revenue growth of approximately 8% to 10% year-over-year, with the fourth quarter expected to be the strongest due to major sporting events and holiday-period wagering activity.

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