Meridian Holdings Inc. (NASDAQ: MRDN), a global operator and licensor of online sports betting and gaming platforms across more than 25 regulated markets, announced financial results for the first quarter ended March 31, 2026. The company reported revenue of $50.1 million, a 17% increase year-over-year, and returned to GAAP profitability with 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, with margin expansion of approximately 86 basis points to 12.6%. The company also strengthened its balance sheet, ending the quarter with 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%). Net debt leverage improved to 0.53x, the strongest capital structure in company history. Operating cash flow was $5.2 million, supporting ongoing deleveraging and reinvestment.
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.'
Segment performance showed strong results across the board. The Meridianbet Group (B2C sports betting and online casino) 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. Zoran Milosevic, CEO of Meridianbet Group, noted that 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.
Expanse Studios, part of 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 and Classics for a Cause combined for revenue of $12.1 million, up 9% year-over-year. RKings revenue reached $7.7 million, up 12%, with average order value up 29% to $16.91. At Classics for a Cause, new users rose 18% to 9,813, and VIP subscriptions surpassed 10,000 for the first time in 12 months, ending Q1 at 10,750.
GMAG, the B2B iGaming aggregation segment, reported revenue of $3.1 million compared with $3.8 million in the prior year. The segment onboarded 12 new providers in Q1 2026, up from 2 in Q1 2025, and deployed 1,382 new games, up 65% year-over-year. MexPlay, the Mexico-facing online casino, saw registrations surge 271% to 74,000 and first-time depositors increase 198% to 6,101.
For the second quarter of 2026, Meridian issued preliminary 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 contribution from newly certified Expanse markets, and seasonal uplift.
Rich Christensen, CFO of Meridian, stated, '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/.
