Meridian Holdings Reports First GAAP-Profitable Quarter, Revenue Up 17%
Meridian Holdings achieved its first GAAP-profitable quarter under the Meridian Holdings brand, with net income of $2.2 million and revenue of $50.1 million, while strengthening its balance sheet and exceeding Adjusted EBITDA guidance.
Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the first quarter ended March 31, 2026, marking a significant milestone as the company achieved its first GAAP-profitable quarter under the Meridian Holdings brand. The global B2B/B2C operator and licensor of online sports betting and gaming platforms posted revenue of $50.1 million, up 17% 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.
The company also exceeded its Adjusted EBITDA guidance, reporting $6.3 million, a 26% increase year-over-year, with margins expanding to 12.6%. This performance reflects disciplined execution of the company's growth plan, according to Interim CEO William Scott. "We delivered revenue in line with guidance, exceeded our Adjusted EBITDA target, and continued to strengthen the balance sheet — all while expanding our licensed footprint and investing in proprietary technology," Scott said in a statement.
Meridian's balance sheet saw notable improvement, with cash of $16.2 million and net debt reduced by 62% year-over-year to $13.4 million, resulting in a net debt leverage ratio of 0.53x, the strongest capital structure in company history. Total debt declined 54% year-over-year to $29.7 million. CFO Rich Christensen highlighted the company's financial flexibility, stating, "With $16.2 million of cash, a clean deleveraging trajectory, and accelerating growth, we have meaningful financial flexibility to invest behind the growth plan we have laid out for 2026."
The Meridianbet Group, the company's B2C sports betting and online casino segment, drove much of the growth, with 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. CEO Zoran Milosevic noted strong operational metrics, including new customer registrations of 428,400, up 41% year-over-year, and active users of 333,700, up 21%.
Expanse Studios, part of the Meridianbet Group, expanded its operator network to 1,519 active sites during the quarter, adding 175 new sites. The subsidiary filed for system certification in Ontario, Canada, and secured new certifications in Latvia, Estonia, Sweden, and Portugal. The RKings & Classics for a Cause segment reported combined revenue of $12.1 million, up 9% year-over-year, with RKings revenue reaching $7.7 million and average order value up 29% to $16.91. Classics for a Cause saw VIP subscriptions surpass 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, but onboarded 12 new providers compared to two in the prior year. MexPlay's registrations surged 271% year-over-year to 74,000.
For the second quarter of 2026, Meridian issued preliminary revenue guidance of $51 million to $53 million, representing 18% to 23% growth over the prior-year period, driven by momentum in core operations and seasonal uplift. A full visual presentation and earnings call replay are available at Meridian Holdings' investor relations website.