Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the first quarter ended March 31, 2026, marking its first GAAP-profitable quarter under the Meridian Holdings brand. The company delivered revenue of $50.1 million, a 17% increase year-over-year, and net income of $2.2 million, or $0.18 per diluted share, compared with a net loss of $0.3 million in the prior-year period. Adjusted EBITDA rose 26% to $6.3 million, exceeding the company's guidance of $6.1 million.
The results reflect disciplined execution across the company's segments, particularly within the Meridianbet Group, which saw revenue increase 26% to $34.9 million, representing 69.6% of total company revenue. Segment operating income grew 37% year-over-year to $6.6 million. New customer registrations at Meridianbet reached 428,400, up 41% from the prior year, while depositors increased 27% to 283,000 and active users rose 21% to 333,700.
William Scott, Interim CEO of Meridian, said, "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 improved significantly, with cash of $16.2 million, total debt of $29.7 million (down 54% year-over-year), and net debt of $13.4 million (down 62% year-over-year). Net debt leverage stood at 0.53x, the strongest capital structure in company history. Operating cash flow totaled $5.2 million, supporting ongoing deleveraging and reinvestment.
Rich Christensen, CFO of Meridian, commented, "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."
Expanse Studios, part of the Meridianbet Group, expanded its operator network to 1,519 active sites, adding 175 new sites. The subsidiary launched six new proprietary game titles and filed for system certification in Ontario, Canada, while securing new certifications in Latvia, Estonia, Sweden, and Portugal.
RKings & Classics for a Cause combined revenue of $12.1 million grew 9% year-over-year. RKings revenue reached $7.7 million, up 12%, with average order value up 29% to $16.91. Classics for a Cause saw new users rise 18% to 9,813 and VIP subscriptions surpass 10,000 for the first time in 12 months.
GMAG, the B2B iGaming aggregation segment, reported revenue of $3.1 million, down from $3.8 million in the prior year. However, the segment onboarded 12 new providers, up from two in Q1 2025, and deployed 1,382 new games, a 65% increase. MexPlay, its Mexico-facing online casino, saw registrations surge 271% to 74,000.
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. The outlook reflects continued momentum in core Meridianbet operations, incremental contribution from newly certified Expanse markets, and seasonal uplift.
A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
