Meridian Holdings Inc. (NASDAQ: MRDN) announced financial results for the first quarter ended March 31, 2026, marking its first GAAP-profitable quarter under the Meridian Holdings brand. The company reported revenue of $50.1 million, an increase of 17% year-over-year, 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. Adjusted EBITDA rose 26% to $6.3 million, exceeding the company's guidance of $6.1 million, while adjusted EBITDA margin expanded approximately 86 basis points to 12.6%.
William Scott, Interim CEO, stated, "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." The company's balance sheet showed cash of $16.2 million, total debt of $29.7 million (down 54% year-over-year), and net debt of $13.4 million (down 62% year-over-year), resulting in a net debt leverage ratio of 0.53x, the strongest capital structure in company history.
Segment performance showed strong growth in the Meridianbet Group (B2C sports betting and online casino), which generated revenue of $34.9 million, up 26% year-over-year, representing 69.6% of company revenue at a 69.3% gross margin. Segment operating income grew 37% to $6.6 million. New customer registrations reached 428,400, up 41% year-over-year, with depositors up 27% to 283,000 and active users up 21% to 333,700. Zoran Milosevic, CEO of Meridianbet Group, said, "The first quarter of 2026 demonstrates the scalability of our platform across multiple regulated markets."
Expanse Studios, part of the Meridianbet Group, expanded its operator network to 1,519 active sites, adding 175 new sites in the quarter, and launched six new proprietary game titles. The subsidiary filed for system certification in Ontario, Canada, and secured new certifications in Latvia, Estonia, Sweden, and Portugal. RKings & Classics for a Cause combined revenue reached $12.1 million, up 9% year-over-year, with RKings revenue up 12% to $7.7 million and average order value up 29% to $16.91. Classics for a Cause saw VIP subscriptions surpass 10,000 for the first time in 12 months. GMAG (B2B iGaming aggregation) reported revenue of $3.1 million, down from $3.8 million in the prior year, but 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, its Mexico-facing online casino, saw registrations reach 74,000 (up 271%) and first-time depositors climb to 6,101 (up 198%).
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. Rich Christensen, CFO, commented, "In the first quarter of 2026 we delivered revenue at guidance and exceeded our Adjusted EBITDA target while materially strengthening the balance sheet. Total debt declined 54% year over year and net debt fell 62%, taking leverage to 0.53x. 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 Meridian Holdings investor relations website. Additional information about the company can be found at www.meridian-holdings.com.
