Meridian Holdings Inc. (NASDAQ: MRDN) on July 29, 2026, reported financial results for the second quarter ended June 30, 2026, highlighting a 16% year-over-year increase in revenue to $50.2 million and net income attributable to MRDN of $2.2 million, or $0.17 per diluted share. This marks the company's second consecutive quarter of GAAP profitability, a significant turnaround from a net loss of $3.6 million in the same period last year.
Adjusted EBITDA rose 43% year-over-year to $5.9 million, with margin expansion of 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 and net debt by 65% to $9.4 million. Net debt leverage stood at 0.39x, reflecting six consecutive quarters of deleveraging. Cash and cash equivalents totaled $17.3 million, while operating cash flow improved to $7.8 million from $2.4 million in the prior-year period.
First-half 2026 revenue surpassed $100 million for the first time in company history, reaching $100.3 million, up 17% year-over-year. The growth was driven by record new customer registrations and double-digit increases in wagering and deposit volumes in core Meridianbet operations, partially offset by an unusually bettor-favorable run of World Cup results during the early stages of the tournament.
Segment performance showed Meridianbet Group revenue of $35.8 million, up 23% year-over-year, representing 71% of total company revenue. Segment operating income grew 91% to $6.1 million. New customer registrations surged 37% year-over-year, with first-time depositors up 24% and total deposit volume up 24%. Betting gross gaming revenue grew 37% on record wagering activity.
Expanse Studios, part of Meridianbet Group, grew revenue 138% and gross gaming revenue 90% year-over-year. The studio went live with new operator partners including Maxbet Serbia, part of Flutter Entertainment, Synottip and Joker.lv, and entered a North American distribution partnership with Bragg Gaming. New market certifications were secured in Latvia, Colombia, Portugal and Slovenia.
RKings Competitions Ltd. and Classics For A Cause Pty Ltd combined revenue of $10.8 million, up 4% year-over-year. At RKings, revenue of $7.0 million increased approximately 5% year-over-year. Classics for a Cause saw new users grow approximately 28% year-over-year, with active VIP subscriptions remaining above 10,000.
GMAG segment revenue was flat at $3.6 million. The segment deployed 2,382 new games in the quarter, up 13% year-over-year. MexPlay, the Mexico-facing online casino, expanded 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 due to major sporting events and holiday wagering.
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."
A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
