Meridian Holdings Inc. (NASDAQ: MRDN) reported 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% to $5.9 million, with 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, resulting in a net debt leverage ratio of 0.39x. Cash and cash equivalents stood at $17.3 million. First-half 2026 revenue surpassed $100 million for the first time in company history, reaching $100.3 million, a 17% increase year-over-year.
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."
Segment performance showed Meridianbet Group revenue of $35.8 million, up 23% year-over-year, with operating income growing 91% to $6.1 million. Zoran Milosevic, CEO of Meridianbet Group, noted that new customer registrations surged 37% year-over-year, with first-time depositors up 24% and total deposit volume up 24%. Expanse Studios, part of the Meridianbet Group, grew revenue 138% year-over-year and entered a North American distribution partnership with Bragg Gaming.
RKings Competitions Ltd. and Classics For A Cause Pty Ltd reported combined revenue of $10.8 million, up 4% year-over-year. GMAG segment revenue was $3.6 million, flat compared to the prior year, but its Mexico-facing online casino MexPlay saw revenue up 31% and new customer registrations up 50%.
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 wagering. A full visual presentation and earnings call replay are available at https://meridian-holdings.com/quarterly-results/.
