Meridian Holdings Inc. (NASDAQ: MRDN) on Tuesday reported financial results for the first quarter ended March 31, 2026, marking a return to GAAP profitability for the first time under the Meridian Holdings brand. The company, a global operator and licensor of online sports betting and gaming platforms across more than 25 regulated markets, delivered revenue of $50.1 million, up 17% year over year, in line with prior guidance.
Net income reached $2.2 million, or $0.18 per diluted share, compared with a net loss of $0.3 million, or $(0.02) per diluted share, in the same period last year. Adjusted EBITDA rose 26% to $6.3 million, exceeding the company's guidance of $6.1 million, with margin expanding approximately 86 basis points to 12.6%.
William Scott, Interim CEO of Meridian, said in a statement, "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 Meridianbet Group, its B2C sports betting and online casino segment, generated revenue of $34.9 million, up 26% year over year, representing 69.6% of total revenue at a 69.3% gross margin. Segment operating income grew 37% to $6.6 million. Customer registrations reached 428,400, up 41% year over year, with depositors up 27% to 283,000 and active users up 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. Our operational foundation is stronger than ever, and we continue to see substantial pipeline across market and product expansion opportunities."
Expanse Studios, part of Meridianbet Group, expanded its operator network to 1,519 active sites, adding 175 new sites in the quarter, with 77 proprietary game titles. The subsidiary filed for system certification in Ontario, Canada, and secured new certifications in Latvia, Estonia, Sweden, and Portugal.
The RKings & Classics for a Cause segment posted combined revenue of $12.1 million, up 9% year over year. RKings revenue rose 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, down from $3.8 million a year earlier, but onboarded 12 new providers in Q1 2026 compared with two in Q1 2025, and deployed 1,382 new games, up 65% year over year. MexPlay, its Mexico-facing online casino, saw registrations surge 271% to 74,000 and first-time depositors climb 198% to 6,101.
Meridian significantly strengthened its balance sheet during the quarter. Cash stood at $16.2 million, total debt declined 54% year over year to $29.7 million, and net debt fell 62% to $13.4 million, resulting in a net debt leverage ratio of 0.53x, the strongest capital structure in company history. Operating cash flow was $5.2 million.
Rich Christensen, CFO of Meridian, 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 we have laid out for 2026."
For the second quarter of 2026, the company expects revenue between $51 million and $53 million, representing 18% to 23% growth over Q2 2025 revenue of $43.2 million. 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/.
