Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the first quarter ended March 31, 2026, marking its first GAAP-profitable quarter under the Meridian Holdings brand. The company posted 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. Revenue increased 17% year-over-year to $50.1 million, in line with guidance, while Adjusted EBITDA rose 26% to $6.3 million, exceeding the company's target of $6.1 million. The results underscore the effectiveness of Meridian's growth strategy, which focuses on scaling its core B2C operations, expanding its licensed footprint, and strengthening its balance sheet.
"Q1 2026 marks our first GAAP-profitable quarter under the Meridian Holdings brand and reflects the disciplined execution of our growth plan," said William Scott, Interim CEO of Meridian. "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."
The company's B2C segment, Meridianbet Group, generated revenue of $34.9 million, up 26% year-over-year, representing nearly 70% of total company revenue. Segment operating income grew 37% to $6.6 million. Key operational metrics showed strong customer acquisition: new 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, commented, "The first quarter of 2026 demonstrates the scalability of our platform across multiple regulated markets."
Within Meridianbet Group, Expanse Studios expanded its operator network to 1,519 active sites, adding 175 new sites in the quarter. It launched six new proprietary game titles, bringing its total to 77, and secured new certifications in Latvia, Estonia, Sweden, and Portugal. The subsidiary has also filed for system certification in Ontario, Canada, pending regulatory approval.
The RKings & Classics for a Cause segment reported combined revenue of $12.1 million, up 9% year-over-year. RKings revenue reached $7.7 million, with average order value up 29% to $16.91. Classics for a Cause saw new users rise 18% to 9,813, and VIP subscriptions surpassed 10,000 for the first time in 12 months, ending the quarter at 10,750.
The GMAG segment, which includes B2B iGaming aggregation and MexPlay, reported revenue of $3.1 million, compared to $3.8 million in the prior year. However, the segment onboarded 12 new providers in Q1 2026, versus just two in Q1 2025, and deployed 1,382 new games, up 65% year-over-year. MexPlay's registrations surged 271% to 74,000, with first-time depositors up 198% to 6,101.
Meridian's balance sheet showed significant improvement. Cash stood at $16.2 million, total debt declined 54% year-over-year to $29.7 million, and net debt fell 62% to $13.4 million. The net debt leverage ratio improved to 0.53x, the strongest in company history. Operating cash flow was $5.2 million, supporting ongoing deleveraging and reinvestment.
For the second quarter of 2026, the company issued revenue guidance of $51 million to $53 million, representing 18% to 23% growth over Q2 2025 revenue of $43.2 million. CFO Rich Christensen noted, "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."
A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
