Meridian Holdings Inc. reported financial results for the fourth quarter and full-year ended December 31, 2025, marking its first earnings release under the unified Meridian Holdings name following a strategic rebrand. The company achieved record full-year revenue of $182.9 million, representing a 21% increase compared to 2024, with fourth quarter revenue reaching $49.6 million, an 8% year-over-year increase. Gross profit for the year increased 17% to $103.5 million, while fourth quarter gross profit rose 6% to $28.5 million.
The company reported a net loss of $92 million for 2025, or $7.76 per diluted share, compared with a net loss of $1.4 million, or $0.16 per diluted share, in 2024. For the fourth quarter, the net loss was $88.4 million, or $7.09 per diluted share, compared with a net loss of $2.1 million, or $0.20 per diluted share, in the prior year. Management attributed the net loss primarily to a $91.8 million non-cash goodwill and intangible asset impairment charge triggered by a sustained decline in share price, which did not affect cash flow or operational performance.
Adjusted EBITDA, a non-GAAP financial measure, was $19.4 million for the full year compared to $22.2 million in the prior year period, while fourth quarter Adjusted EBITDA was $4.6 million compared to $6.5 million in the prior year. The company's balance sheet showed cash of $18.1 million as of December 31, 2025, with total debt declining 51% to $34.7 million and a net debt leverage ratio of less than 0.9x.
William Scott, Interim CEO of Meridian, commented on the company's progress, stating that FY2025 was a year of significant achievement with record revenue, reduced debt by more than half, and completion of the rebrand to Meridian Holdings. The company's operational highlights reveal strong segment performance across its business units. The Meridianbet Group Segment delivered FY 2025 revenue of $124.6 million, up 17% year-over-year, representing 68% of total company revenue at approximately 70% gross margin. New customer registrations at Meridianbet increased 72% year-over-year to 1.2 million, with active users up 35% and depositors up 40%.
Within the Meridianbet Group, Expanse Studios expanded its operator network from 184 to 1,344 active sites during FY 2025, representing 630% year-over-year growth, and delivered Q4 revenue growth of 435% year-over-year. The subsidiary has filed for system certification in Ontario, Canada, pending regulatory approval. The RKings & Classics for a Cause Segment delivered FY 2025 revenue of $43.8 million, up 35% year-over-year, representing 24% of total company revenue. Raffle ticket volumes at RKings scaled 137% year-over-year to 25.2 million, driven by higher-value customer acquisition.
The GMAG Segment delivered FY 2025 revenue of $14.5 million, up 16% year-over-year compared to $12.5 million in FY 2024, representing 8% of total company revenue. MexPlay, the segment's Mexico-facing online casino operating within the GMAG segment, continued to scale with registrations growing 256% year-over-year in Q4 2025 and total active users reaching 32,308 in the quarter.
For the first quarter of 2026, Meridian provided a preliminary outlook expecting revenue of approximately $50 million, representing approximately 17% growth over last year, plus or minus 1%. Adjusted EBITDA is expected to be approximately $6.1 million, representing approximately 9% growth year-over-year, plus or minus 2%. Rich Christensen, CFO, emphasized the company's strong performance in FY2025 with revenue up 21%, gross profit up 17%, and net debt reduced by 59%, noting the business continues to generate strong cash flow.
The full visual presentation and earnings call can be accessed at 8:00am ET on the Meridian Holdings IR website at https://meridian-holdings.com/quarterly-results/. For more information, please visit https://meridian-holdings.com/. The company cautions that forward-looking statements are subject to numerous risks and uncertainties, and actual results may differ materially from those projected.
