Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the first quarter ended March 31, 2026, marking a significant milestone as the company returned to GAAP profitability for the first time under the Meridian Holdings brand. The global B2B/B2C operator and licensor of online sports betting and gaming platforms posted revenue of $50.1 million, a 17% increase 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%. The company also strengthened its balance sheet, ending the quarter with $16.2 million in cash and reducing net debt by 62% year-over-year to $13.4 million, resulting in a net debt leverage ratio of 0.53x—the strongest capital structure in company history.
William Scott, Interim CEO of Meridian, commented, “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 Meridianbet Group, the company's B2C segment, generated revenue of $34.9 million, up 26% year-over-year, representing 69.6% of total company revenue with a 69.3% gross margin. Segment operating income grew 37% to $6.6 million. Zoran Milosevic, CEO of Meridianbet Group, highlighted operational metrics: new customer registrations reached 428,400, up 41% year-over-year; depositors increased 27% to 283,000; and active users rose 21% to 333,700.
Expanse Studios, a game developer within Meridianbet, expanded its operator network to 1,519 active sites, adding 175 new sites during the quarter. It launched six new proprietary game titles and secured 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, up 12%, with average order value increasing 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.
The GMAG segment, which includes B2B iGaming aggregation and the MexPlay online casino, reported revenue of $3.1 million, down from $3.8 million in the prior-year period. However, the segment onboarded 12 new providers, up from two, and deployed 1,382 new games, a 65% increase. MexPlay registrations surged 271% to 74,000, and first-time depositors climbed 198% to 6,101.
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. The outlook reflects continued momentum in core Meridianbet operations, incremental contributions from newly certified Expanse markets, and seasonal uplift.
Rich Christensen, CFO of Meridian, noted, “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 the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
