Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the first quarter ended March 31, 2026, achieving revenue of $50.1 million, a 17% increase year-over-year, and returning to GAAP profitability with net income of $2.2 million. The company also posted Adjusted EBITDA of $6.3 million, up 26% from the prior year and exceeding its guidance of $6.1 million. This marks the first GAAP-profitable quarter under the Meridian Holdings brand, highlighting the effectiveness of its disciplined growth strategy.
William Scott, Interim CEO of Meridian, stated, "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." The company's balance sheet showed significant improvement, with cash of $16.2 million, total debt reduced 54% year-over-year to $29.7 million, and net debt down 62% to $13.4 million. Net debt leverage improved to 0.53x, the strongest in company history.
The Meridianbet Group, the B2C segment, generated revenue of $34.9 million, up 26% year-over-year, representing 69.6% of total revenue. Segment operating income grew 37% to $6.6 million. Key operational metrics showed strong growth: new customer registrations reached 428,400 (up 41%), depositors increased 27% to 283,000, and active users rose 21% to 333,700. Zoran Milosevic, CEO of Meridianbet Group, commented, "The first quarter of 2026 demonstrates the scalability of our platform across multiple regulated markets." Expanse Studios, part of the 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 & Classics for a Cause combined revenue reached $12.1 million, up 9% year-over-year, representing 24% of company revenue. RKings revenue grew 12% to $7.7 million, with average order value up 29% to $16.91. Classics for a Cause saw new users rise 18% to 9,813, and VIP subscriptions surpassed 10,000 for the first time in 12 months. GMAG, the B2B iGaming aggregation segment, reported revenue of $3.1 million, compared to $3.8 million in the prior year, but onboarded 12 new providers (up from 2) and deployed 1,382 new games, a 65% increase. MexPlay, its Mexico-facing online casino, expanded its customer base with registrations up 271% to 74,000 and first-time depositors up 198% to 6,101.
For the second quarter of 2026, Meridian issued revenue guidance of $51 million to $53 million, representing 18% to 23% growth over the prior year. Rich Christensen, CFO, noted, "In the first quarter of 2026 we delivered revenue at guidance and exceeded our Adjusted EBITDA target while materially strengthening the balance sheet. With $16.2 million of cash, a clean deleveraging trajectory, and accelerating growth, we have meaningful financial flexibility to invest behind the growth plan." A full visual presentation and earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
