Meridian Holdings Inc. (NASDAQ: MRDN) reported record financial results for the fourth quarter and full year ended December 31, 2025, with fourth-quarter revenue reaching $49.6 million, an 8% increase year-over-year, and full-year revenue climbing 21% to $182.9 million. The company, which recently rebranded to Meridian Holdings, also saw gross profit rise 6% to $28.5 million in Q4 and 17% to $103.5 million for the full year. However, the company reported a net loss of $88.4 million for the fourth quarter and $92 million for the full year, largely due to a $91.8 million non-cash goodwill and intangible asset impairment charge triggered by a sustained decline in its share price.
The impairment charge, which accounted for the majority of the net loss, reflects the company's market valuation challenges despite operational improvements. Adjusted EBITDA, a non-GAAP measure, was $4.6 million in Q4, down from $6.5 million in the prior year, due to increased selling and marketing expenses aimed at driving customer growth. For the full year, Adjusted EBITDA was $19.4 million, compared to $22.2 million in 2024. The company reduced its total debt by 51% to $34.7 million and ended the year with $18.1 million in cash, achieving a net debt leverage ratio of less than 0.9x.
William Scott, Interim CEO, stated, “FY2025 was a year of significant progress. We delivered record revenue, reduced debt by more than half, and completed our rebrand to Meridian Holdings. As we enter 2026, our priorities remain strong execution across markets, continued technology integration, and disciplined capital allocation.” The company provided a preliminary outlook for Q1 2026, expecting revenue of approximately $50 million, representing 17% growth year-over-year, and Adjusted EBITDA of approximately $6.1 million, up 9%.
Operationally, the Meridianbet Group segment, which accounts for 68% of total revenue, delivered $124.6 million in revenue, up 17% year-over-year, with new customer registrations increasing 72% to 1.2 million and active users up 35%. Expanse Studios, part of the Meridianbet segment, expanded its operator network from 184 to 1,344 active sites, a 630% increase, and delivered Q4 revenue growth of 435% year-over-year. The RKings & Classics for a Cause segment generated $43.8 million in revenue, up 35%, while the GMAG segment reported $14.5 million in revenue, up 16%.
CFO Rich Christensen commented, “In FY2025, we delivered strong performance, with revenue up 21%, gross profit up 17%, and net debt reduced by 59%. The reported GAAP net loss was driven primarily by non‑cash, non‑recurring accounting charges that did not affect cash flow or operational performance.” The company's full financial presentation and earnings call can be accessed at https://meridian-holdings.com/quarterly-results/. For more information, visit https://meridian-holdings.com/.
