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, compared to a net loss of $0.3 million in the prior-year period. Adjusted EBITDA reached $6.3 million, up 26% year-over-year and exceeding guidance of $6.1 million, while Adjusted EBITDA margin expanded 86 basis points to 12.6%.
The company attributed the results to disciplined execution of its growth plan, with strong performance across its segments. The Meridianbet Group, which includes B2C sports betting and online casino operations, generated revenue of $34.9 million, up 26% year-over-year, representing 69.6% of company revenue at a 69.3% gross margin. Segment operating income grew 37% year-over-year to $6.6 million, driven by a 41% increase in new customer registrations to 428,400 and a 27% rise in depositors to 283,000.
Expanse Studios, a subsidiary within Meridianbet Group, expanded its operator network to 1,519 active sites, adding 175 new sites in the quarter. The subsidiary launched six new proprietary game titles, bringing its total to 77, and secured new certifications in Latvia, Estonia, Sweden, and Portugal. Expanse also filed for system certification in Ontario, Canada, pending regulatory approval.
Revenue from RKings and Classics for a Cause, which together account for 24% of company revenue, rose 9% year-over-year to $12.1 million. RKings revenue increased 12% to $7.7 million, with average order value up 29% to $16.91. Classics for a Cause saw VIP subscriptions surpass 10,000 for the first time in 12 months, ending the quarter at 10,750.
The GMAG segment, which provides B2B iGaming aggregation and includes MexPlay, reported revenue of $3.1 million, down from $3.8 million in the prior year. However, the segment onboarded 12 new providers in the quarter, up from two in Q1 2025, and deployed 1,382 new games, a 65% year-over-year increase. MexPlay's registrations surged 271% to 74,000, and first-time depositors rose 198% to 6,101.
Meridian Holdings 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. Net debt leverage improved to 0.53x, the strongest in company history. Operating cash flow of $5.2 million supported ongoing deleveraging and reinvestment in technology and regulated-market expansion.
William Scott, Interim CEO of Meridian Holdings, stated, "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."
Rich Christensen, CFO, added, "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."
For the second quarter of 2026, Meridian Holdings issued revenue guidance of $51 million to $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 in retail and online 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/.
