Meridian Holdings Inc. (NASDAQ: MRDN) reported its second quarter 2026 financial results, 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, gaming and casino platforms.
The company, which serves B2B and B2C customers across over 20 regulated markets, also reported adjusted EBITDA of $5.9 million, up 43% from $4.1 million in the prior-year period. Adjusted EBITDA margin expanded approximately 222 basis points to 11.8%. 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.
Meridian Holdings continued to strengthen its balance sheet, with cash and cash equivalents of $17.3 million and total debt reduced 45% year-over-year to $26.7 million. Net debt fell 65% to $9.4 million, and net debt leverage improved to 0.39x. The company has now deleveraged for six consecutive quarters, while interest expense declined approximately 80%.
William Scott, interim CEO, said, "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 company's Meridianbet Group segment generated revenue of $35.8 million, up 23% year-over-year, representing 71% of total company 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%. Zoran Milosevic, CEO of Meridianbet Group, noted that a high-scoring World Cup group stage and two major casino wins exceeding $1.2 million affected results, but the tournament brought a wave of new players onto the platform.
Expanse Studios, the company's proprietary game studio, grew revenue 138% and gross gaming revenue 90% year-over-year. The studio went live with new operator partners including Maxbet Serbia, part of Flutter Entertainment, and entered a North American distribution partnership with Bragg Gaming. It also secured new market certifications in Latvia, Colombia, Portugal and Slovenia.
The RKings Competitions and Classics for a Cause segment reported combined revenue of $10.8 million, up 4% year-over-year. GMAG segment 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, Meridian Holdings 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 the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
