Meridian Holdings Inc. (NASDAQ: MRDN) reported record revenue for both the fourth quarter and full year ended December 31, 2025, marking the company's first earnings release under its new unified brand. The global operator and licensor of online sports betting and gaming platforms posted fourth-quarter revenue of $49.6 million, an 8% increase year-over-year, and full-year revenue of $182.9 million, up 21% from 2024.
Despite the revenue growth, the company recorded a net loss of $88.4 million for the fourth quarter and $92 million for the full year, primarily due to a $91.8 million non-cash goodwill and intangible asset impairment charge. This impairment was triggered by a sustained decline in the company's share price. Adjusted EBITDA, a non-GAAP measure that excludes the impairment and other items, was $4.6 million for the quarter and $19.4 million for the year, compared to $6.5 million and $22.2 million in the prior-year periods, respectively. The decline in adjusted EBITDA was attributed to increased selling and marketing investments aimed at driving customer growth.
William Scott, Interim CEO of Meridian, commented, "FY2025 was a year of significant progress. We delivered record revenue, reduced debt by more than half, and completed our rebrand to Meridian Holdings." The company reduced total debt by 51% to $34.7 million and ended the year with $18.1 million in cash, resulting in a net debt leverage ratio of less than 0.9x.
Operationally, the Meridianbet Group segment, which accounts for 68% of total revenue, grew 17% year-over-year to $124.6 million, with a gross margin of approximately 70%. New customer registrations surged 72% to 1.2 million, active users increased 35%, and depositors rose 40%. Expanse Studios, part of the Meridianbet segment, expanded its operator network from 184 to 1,344 active sites, representing 630% year-over-year growth, and filed for system certification in Ontario, Canada.
The RKings & Classics for a Cause segment delivered revenue of $43.8 million, up 35% year-over-year, while the GMAG segment posted $14.5 million, up 16%. MexPlay, within GMAG, saw registrations grow 256% year-over-year in Q4.
For the first quarter of 2026, Meridian provided preliminary guidance of approximately $50 million in revenue, representing roughly 17% growth, and adjusted EBITDA of approximately $6.1 million, up about 9% year-over-year. CFO Rich Christensen noted, "In FY2025, we delivered strong performance, with revenue up 21%, gross profit up 17%, and net debt reduced by 59%. The reported GAAP net loss was driven primarily by non-cash, non-recurring accounting charges that did not affect cash flow or operational performance."
More details are available on the Meridian Holdings IR website at meridian-holdings.com/quarterly-results.
