Meridian Holdings Inc. (NASDAQ: MRDN) reported first-quarter 2026 financial results that marked its first GAAP-profitable quarter since rebranding, with revenue increasing 17% year-over-year to $50.1 million and net income of $2.2 million, or $0.18 per diluted share, compared with a net loss of $0.3 million in the prior-year period. The company also exceeded its Adjusted EBITDA guidance, posting $6.3 million, up 26% year-over-year, with margin expansion of approximately 86 basis points to 12.6%.
William Scott, Interim CEO of Meridian, attributed the performance to disciplined execution of the company's growth plan. "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 — all while expanding our licensed footprint and investing in proprietary technology," he said in a statement.
The company's balance sheet saw significant improvement, with cash of $16.2 million, total debt of $29.7 million (down 54% year-over-year), net debt of $13.4 million (down 62%), and a net debt leverage ratio of 0.53x — described by management as the strongest capital structure in company history. Operating cash flow was $5.2 million, supporting ongoing deleveraging and reinvestment.
Segment performance varied. The Meridianbet Group, the B2C sports betting and online casino division, generated 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. Key operational metrics showed strong momentum: new customer registrations reached 428,400, up 41% year-over-year; depositors increased 27% to 283,000; and active users rose 21% to 333,700. Zoran Milosevic, CEO of Meridianbet Group, said the quarter "demonstrates the scalability of our platform across multiple regulated markets."
Expanse Studios, part of Meridianbet Group, expanded its operator network to 1,519 active sites, adding 175 new sites during the quarter. The subsidiary filed for system certification in Ontario, Canada, and secured new certifications in Latvia, Estonia, Sweden, and Portugal. It launched six new proprietary game titles, bringing its total to 77.
RKings & Classics for a Cause combined revenue grew 9% to $12.1 million, representing 24% of company revenue. RKings revenue rose 12% to $7.7 million, with average order value up 29% to $16.91. Classics for a Cause saw new users increase 18% year-over-year 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, representing 6% of company revenue. However, the segment onboarded 12 new providers in Q1 2026, compared with two in Q1 2025, and deployed 1,382 new games, up 65% year-over-year. MexPlay, the Mexico-facing online casino, saw registrations surge 271% to 74,000 and first-time depositors climb 198% to 6,101.
For the second quarter of 2026, Meridian issued revenue guidance of $51 million to $53 million, representing 18% to 23% growth over Q2 2025 revenue of $43.2 million. Rich Christensen, CFO of Meridian, said the outlook reflects "continued momentum in core Meridianbet operations, incremental contribution from newly certified Expanse markets, and seasonal uplift."
A full visual presentation and earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
