Meridian Holdings Inc. (NASDAQ: MRDN) announced financial results for the first quarter ended March 31, 2026, marking a return to GAAP profitability for the first time under the Meridian Holdings brand. The company reported revenue of $50.1 million, a 17% increase year-over-year, and net income of $2.2 million, or $0.18 per diluted share, 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, while adjusted EBITDA margin expanded to 12.6%.
The company also significantly strengthened its balance sheet, ending the quarter with $16.2 million in cash and total debt of $29.7 million, a 54% reduction year-over-year. Net debt fell 62% to $13.4 million, resulting in a net debt leverage ratio of 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, said the results reflect disciplined execution of the company’s growth plan. He noted that the company delivered revenue in line with guidance, exceeded its Adjusted EBITDA target, and continued to strengthen the balance sheet while expanding its licensed footprint and investing in proprietary technology. Scott emphasized the focus on scaled execution across more than 25 markets, continued technology integration, and disciplined capital allocation for sustained, profitable growth.
Segment performance showed strength across the board. The Meridianbet Group, which includes B2C sports betting and online casino operations, generated revenue of $34.9 million, up 26% year-over-year, with segment operating income growing 37% to $6.6 million. New customer registrations reached 428,400, a 41% increase, while depositors rose 27% to 283,000 and active users increased 21% to 333,700. Zoran Milosevic, CEO of Meridianbet Group, attributed the results to the scalability of the platform across multiple regulated markets.
Expanse Studios, part of the Meridianbet Group, expanded its operator network to 1,519 active sites, adding 175 new sites in the quarter. The subsidiary launched six new proprietary game titles, bringing its total to 77, and secured new certifications in Latvia, Estonia, Sweden, and Portugal. It has also filed for system certification in Ontario, Canada, pending regulatory approval.
The RKings & Classics for a Cause segment reported combined revenue of $12.1 million, up 9% year-over-year. RKings revenue grew 12% to $7.7 million, 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, which includes B2B iGaming aggregation and 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 the quarter, compared to two in Q1 2025, and deployed 1,382 new games, a 65% increase. MexPlay’s registrations surged 271% to 74,000, and first-time depositors rose 198% to 6,101.
For the second quarter of 2026, the company issued preliminary revenue guidance of $51 million to $53 million, representing 18% to 23% growth over Q2 2025 revenue of $43.2 million. The outlook reflects continued momentum in core Meridianbet operations, incremental contributions from newly certified Expanse markets, and seasonal uplift in retail and online wagering activity.
Rich Christensen, CFO of Meridian, said the company delivered revenue at guidance and exceeded its Adjusted EBITDA target while materially strengthening the balance sheet. He highlighted the 54% reduction in total debt and 62% reduction in net debt, bringing leverage to 0.53x, and noted that with $16.2 million of cash and a clean deleveraging trajectory, the company has meaningful financial flexibility to invest behind its growth plan.
A full visual presentation and the earnings call replay are available at Meridian Holdings investor relations website.
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