Meridian Holdings Inc. (NASDAQ: MRDN) announced its financial results for the second quarter ended June 30, 2026, highlighting a 16% year-over-year increase in revenue to $50.2 million and net income attributable to MRDN of $2.2 million, or $0.17 per diluted share. This marks the company's second consecutive quarter of GAAP profitability, compared to a net loss of $3.6 million in the prior-year period.
Adjusted EBITDA rose 43% year-over-year to $5.9 million, with adjusted EBITDA margin expanding 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.
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 for the quarter was $26.9 million, up 10% year-over-year, though gross margin declined to 53.5% from 56.4% due to lower sportsbook and casino hold during the period, which included an unusually bettor-favorable run of World Cup results.
William Scott, interim CEO of Meridian Holdings, commented, "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 generated $35.8 million in revenue, up 23% year-over-year, representing 71% of total company 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, noted that the World Cup brought a wave of new players onto the platform, strengthening the 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.
RKings Competitions Ltd. and Classics For A Cause Pty Ltd combined for $10.8 million in revenue, up 4% year-over-year, representing 22% of total revenue. 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 flat at $3.6 million, representing 7% of total revenue. The segment deployed 2,382 new games in the quarter, up 13% year-over-year. MexPlay, the Mexico-facing online casino, grew revenue 31%, new customer registrations up 50% year-over-year 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 due to major sporting events and holiday-period wagering activity.
A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
