Meridian Holdings Inc. (NASDAQ: MRDN) reported first-quarter 2026 financial results on April 28, 2026, marking a significant milestone as the company achieved its first GAAP-profitable quarter 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 from $42.7 million in the prior-year period, in line with guidance. Gross profit rose 16% to $28.1 million, maintaining a gross margin of 56.2%.
Net income attributable to Meridian reached $2.2 million, or $0.18 per diluted share, compared with a net loss of $0.3 million, or $0.02 per diluted share, in Q1 2025. Adjusted EBITDA grew 26% year over year to $6.3 million, exceeding the company's previously issued guidance of $6.1 million, with Adjusted EBITDA margin expanding approximately 86 basis points to 12.6%. The company also strengthened its balance sheet, reporting cash of $16.2 million, total debt of $29.7 million (down 54% year over year), net debt of $13.4 million (down 62%), and a net debt leverage ratio of 0.53x, the strongest capital structure in company history. Operating cash flow was $5.2 million, supporting 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 highlights included Meridianbet Group (B2C sports betting and online casino) 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. 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 expanded its operator network to 1,519 active sites, adding 175 new sites in Q1, and launched six new proprietary game titles, bringing the total to 77. The subsidiary secured new certifications in Latvia, Estonia, Sweden, and Portugal and filed for system certification in Ontario, Canada. RKings & Classics for a Cause combined revenue was $12.1 million, up 9% year over year, with RKings revenue of $7.7 million (up 12%) and Classics for a Cause VIP subscriptions surpassing 10,000 for the first time in 12 months. GMAG (B2B iGaming aggregation) revenue was $3.1 million, down from $3.8 million in the prior year, but the segment onboarded 12 new providers and deployed 1,382 new games, up 65% year over year. MexPlay registrations soared 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, reflecting continued momentum in core Meridianbet operations, incremental contribution from newly certified Expanse markets, and seasonal uplift. CFO Rich Christensen 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 earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/. For more information about the company, visit www.meridian-holdings.com.
