Meridian Holdings Inc. (NASDAQ: MRDN) reported second-quarter 2026 financial results on July 29, 2026, demonstrating continued momentum with revenue increasing 16% year-over-year to $50.2 million and a second consecutive quarter of GAAP profitability. Net income attributable to MRDN reached $2.2 million, or $0.17 per diluted share, compared to a net loss of $3.6 million in the prior-year period. Adjusted EBITDA rose 43% to $5.9 million, with margin expansion of 222 basis points to 11.8%. The company also significantly strengthened its balance sheet, reducing total debt by 45% to $26.7 million and net debt by 65% to $9.4 million, resulting in a net debt leverage ratio of just 0.39x.
Revenue 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. First-half 2026 revenue surpassed $100 million for the first time in company history, reaching $100.3 million, up 17% year-over-year. Gross profit increased 10% to $26.9 million, while gross margin was 53.5%, compared to 56.4% in the prior-year period, reflecting lower sportsbook and casino hold during the quarter.
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.'
Segment performance highlighted strong growth in the Meridianbet Group, which generated $35.8 million in revenue, up 23% year-over-year, representing 71% of total company revenue. Segment operating income grew 91% to $6.1 million. Zoran Milosevic, CEO of Meridianbet Group, noted that 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 the Meridianbet Group, grew revenue 138% year-over-year and entered a North American distribution partnership with Bragg Gaming (https://bragg.gg). RKings Competitions Ltd. and Classics for a Cause combined revenue of $10.8 million, up 4% year-over-year, with Classics for a Cause seeing new user growth of 28% and active VIP subscriptions exceeding 10,000. GMAG segment revenue was flat at $3.6 million, but MexPlay, its Mexico-facing online casino, saw revenue up 31%, new customer registrations up 50%, and first-time depositors up 53%.
The company provided a preliminary outlook for the second half of 2026, expecting 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. A full visual presentation and earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/. The company continues to focus on operational execution, technology integration, and disciplined capital allocation to build toward sustained, profitable growth.
