Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the second quarter ended June 30, 2026, marking its second consecutive quarter of GAAP profitability. The company posted net income attributable to Meridian Holdings of $2.2 million, or $0.17 per diluted share, compared to a net loss of $3.6 million, or $(0.31) per diluted share, in the prior-year period. Revenue increased 16% year-over-year to $50.2 million, driven by record new customer registrations and double-digit growth in wagering and deposit volumes in its core Meridianbet operations.
Adjusted EBITDA rose 43% year-over-year to $5.9 million, with adjusted EBITDA margin expanding approximately 222 basis points to 11.8%. The company also strengthened its balance sheet, reducing total debt by 45% year-over-year to $26.7 million, while cash and cash equivalents stood at $17.3 million. Net debt decreased 65% year-over-year to $9.4 million, and net debt leverage dropped to 0.39x. This marks the sixth consecutive quarter of deleveraging, while interest expense declined approximately 80%.
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.”
First-half 2026 revenue surpassed $100 million for the first time in the company’s history, reaching $100.3 million, up 17% year-over-year. Gross profit for the second quarter was $26.9 million, up 10% year-over-year, with gross margin of 53.5%, compared to 56.4% in the prior-year period, reflecting lower sportsbook and casino hold during the quarter.
Segment performance showed strong growth in the Meridianbet Group, which reported revenue of $35.8 million, up 23% year-over-year, representing 71% of total company revenue. Segment operating income grew 91% year-over-year to $6.1 million. Zoran Milosevic, CEO of Meridianbet Group, stated, “The second quarter demonstrated the strength of our customer engine. New customer registrations surged 37% year-over-year, with first-time depositors up 24% and total deposit volume up 24%.”
Expanse Studios, part of the Meridianbet Group, continued its 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.
RKings Competitions Ltd. and Classics For A Cause Pty Ltd combined revenue was $10.8 million, up 4% year-over-year, representing 22% of company revenue. 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 remained above 10,000.
GMAG segment revenue was $3.6 million, flat year-over-year, representing 7% of company revenue. The segment deployed 2,382 new games in the quarter, up 13% year-over-year. MexPlay, the segment’s 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%.
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 of the year due to major sporting events and holiday-period wagering activity.
Customer-acquisition investment associated with the World Cup was expensed during the second quarter, with many newly acquired customers joining late in June. The retention and revenue contribution of this cohort are expected to become clearer in subsequent quarters.
A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
