Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the second quarter ended June 30, 2026, highlighting revenue growth, profitability, and deleveraging. The company, a global operator and licensor of online and retail sports betting, gaming and casino platforms, reported revenue of $50.2 million, a 16% increase year-over-year, driven by record new customer registrations and double-digit growth in wagering and deposit volumes in core Meridianbet operations. Net income attributable to MRDN was $2.2 million, or $0.17 per diluted share, compared to a net loss of $3.6 million in the prior-year period, marking the second consecutive quarter of GAAP profitability.
Adjusted EBITDA increased 43% year-over-year to $5.9 million, with margin expansion of approximately 222 basis points to 11.8%. The company also strengthened its balance sheet, with cash and cash equivalents of $17.3 million, total debt of $26.7 million, and net debt of $9.4 million, down 65% year-over-year. Net debt leverage was lowered to 0.39x, marking the sixth consecutive quarter of deleveraging, while interest expense declined approximately 80%. Operating cash flow improved to $7.8 million from $2.4 million in the prior-year period, supporting continued deleveraging and reinvestment.
William Scott, interim CEO, 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, representing 71% of total 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%. The company noted that customer-acquisition investment associated with the World Cup was expensed during the quarter, with contributions from new customers expected to become clearer in subsequent quarters.
Expanse Studios, the company's proprietary game studio, grew revenue 138% and gross gaming revenue 90% year-over-year, expanding distribution with new operator partners including Maxbet Serbia, part of Flutter Entertainment, Synottip and Joker.lv. The studio 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 reported combined revenue of $10.8 million, up 4% year-over-year, with RKings revenue of $7.0 million increasing approximately 5% and Classics for a Cause new users growing approximately 28% year-over-year, with active VIP subscriptions above 10,000. GMAG revenue was $3.6 million, flat year-over-year, but its Mexico-facing online casino MexPlay saw revenue up 31%, new customer registrations up 50% 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. A full visual presentation and earnings call replay are available at Meridian Holdings quarterly results page.
Meridian Holdings Inc. (NASDAQ: MRDN) is headquartered in Las Vegas, Nevada, and operates across over 20 regulated markets. The company's B2C division is led by Meridianbet Group, a leading online sports betting and gaming operator founded in 2001. The B2B division includes game developer Expanse Studios and iGaming platform GMAG. Additional subsidiaries include RKings Competitions, MexPlay, and Classics for a Cause. More information is available at www.meridian-holdings.com.
