Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the second quarter ended June 30, 2026, marking its second consecutive quarter of GAAP profitability. The company posted net income attributable to MRDN of $2.2 million, or $0.17 per diluted share, compared with a net loss of $3.6 million in the prior-year period. Revenue increased 16% year-over-year to $50.2 million, driven by record new customer registrations and double-digit growth in wagering and deposit volumes in core Meridianbet operations.
Adjusted EBITDA rose 43% to $5.9 million, with margin expansion of approximately 222 basis points to 11.8%. The company also strengthened its balance sheet, reducing total debt by 45% year-over-year to $26.7 million and net debt by 65% to $9.4 million. Cash and cash equivalents stood at $17.3 million, resulting in a net debt leverage ratio of 0.39x. Interest expense declined approximately 80% year-over-year.
First-half 2026 revenue surpassed $100 million for the first time in company history, reaching $100.3 million, up 17% year-over-year. Operating cash flow improved to $7.8 million from $2.4 million in the prior-year period.
William Scott, interim CEO of Meridian Holdings, stated, '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.'
The Meridianbet Group segment reported revenue of $35.8 million, up 23% year-over-year, representing 71% of total revenue. Segment operating income grew 91% to $6.1 million. New customer registrations surged 37% year-over-year, with first-time depositors up 24% and total deposit volume up 24%. Zoran Milosevic, CEO of Meridianbet Group, said, 'A high-scoring World Cup group stage made the period unfavorable to certain operators and markets across the industry, and our results were further affected by two major casino wins totaling over $1.2 million during the quarter. Just as importantly, the tournament brought a wave of new players onto our platform, strengthening our base for conversion and retention.'
Expanse Studios, part of the Meridianbet Group, grew revenue 138% and gross gaming revenue 90% year-over-year. The studio went live with new operator partners including Maxbet Serbia, part of Flutter Entertainment, Synottip and Joker.lv. It also entered a North American distribution partnership with Bragg Gaming and secured new market certifications in Latvia, Colombia, Portugal and Slovenia. During the quarter, Expanse launched new player-engagement tools, including jackpots, tournaments and its Achievo gamification product.
RKings Competitions Ltd. and Classics For A Cause Pty Ltd reported combined revenue of $10.8 million, up 4% year-over-year. At RKings, revenue of $7.0 million increased approximately 5% year-over-year. Classics for a Cause saw new users grow approximately 28% year-over-year, with active VIP subscriptions remaining above 10,000.
GMAG segment revenue was $3.6 million, flat year-over-year. The segment deployed 2,382 new games, up 13% year-over-year. MexPlay, the Mexico-facing online casino, grew revenue 31%, with new customer registrations up 50% and first-time depositors up 53%.
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 expected to be the strongest of the year due to major sporting events and holiday-period wagering activity. A full visual presentation and earnings call replay are available at Meridian Holdings investor relations website.
