Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the second quarter ended June 30, 2026, showing revenue growth of 16% year-over-year to $50.2 million and net income attributable to the company of $2.2 million, or $0.17 per diluted share. This marks the second consecutive quarter of GAAP profitability for the global operator and licensor of online and retail sports betting and gaming platforms.
Adjusted EBITDA increased 43% year-over-year to $5.9 million, with adjusted EBITDA 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. Cash and cash equivalents stood at $17.3 million, resulting in a net debt leverage ratio of 0.39x.
First-half 2026 revenue surpassed $100 million for the first time in the company's history, reaching $100.3 million, up 17% 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."
The Meridianbet Group segment, which contributed 71% of total revenue, saw revenue increase 23% year-over-year to $35.8 million, with segment operating income growing 91% to $6.1 million. New customer registrations surged 37% year-over-year, and betting gross gaming revenue grew 37% on record wagering activity. Zoran Milosevic, CEO of Meridianbet Group, noted that a high-scoring World Cup group stage and two major casino wins totaling over $1.2 million affected results, but the underlying growth in customer base and handle remains strong.
Expanse Studios, the company's proprietary game studio, grew revenue 138% and gross gaming revenue 90% year-over-year, expanding distribution through new partnerships 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, representing 22% of company revenue. Active VIP subscriptions at Classics for a Cause remained above 10,000. The GMAG segment reported revenue of $3.6 million, flat year-over-year, with its Mexico-facing online casino MexPlay showing 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 activity.
A full visual presentation and earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
