Meridian Holdings Inc. (NASDAQ: MRDN) announced its financial results for the second quarter ended June 30, 2026, showcasing a 16% year-over-year increase in revenue to $50.2 million and a second consecutive quarter of GAAP profitability with net income attributable to MRDN of $2.2 million, or $0.17 per diluted share. The company also reported a 43% rise in Adjusted EBITDA to $5.9 million and a significant 65% reduction in net debt to $9.4 million, underscoring its focus on operational discipline and deleveraging.
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 the company's history, reaching $100.3 million, up 17% year-over-year. Gross profit increased 10% to $26.9 million, although gross margin slightly declined to 53.5% from 56.4% due to lower sportsbook and casino hold during the quarter.
Adjusted EBITDA margin expanded approximately 222 basis points to 11.8%, while operating cash flow improved to $7.8 million from $2.4 million in the prior-year period, supporting continued deleveraging and reinvestment. The company's balance sheet strengthened further, with cash of $17.3 million, total debt of $26.7 million, and net debt leverage reduced to 0.39x. Interest expense declined approximately 80%, marking the sixth consecutive quarter of deleveraging.
Segment performance highlighted strong momentum. Meridianbet Group revenue grew 23% year-over-year to $35.8 million, representing 71% of total revenue, with segment operating income surging 91% to $6.1 million. New customer registrations increased 37% year-over-year, and betting gross gaming revenue rose 37%. Expanse Studios within Meridianbet Group saw revenue jump 138% and gross gaming revenue 90% year-over-year, securing new partnerships and market certifications. RKings Competitions and Classics for a Cause combined revenue increased 4% to $10.8 million, while GMAG segment revenue remained flat at $3.6 million, with its Mexico-facing online casino MexPlay growing revenue 31% and new customer registrations up 50%.
William Scott, interim CEO of Meridian Holdings, commented on the results, stating, '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.'
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 anticipated to be the strongest due to major sporting events and holiday wagering activity. The company's full financial presentation and earnings call replay are available at Meridian Holdings quarterly results page.
