Meridian Holdings Inc. (NASDAQ: MRDN) announced its second quarter 2026 financial results, reporting revenue of $50.2 million, a 16% increase year-over-year, and net income attributable to MRDN of $2.2 million, marking the company's second consecutive quarter of GAAP profitability. The results reflect strong operational execution and customer acquisition momentum, despite an unusually bettor-favorable run of World Cup results during the early stages of the tournament.
Adjusted EBITDA rose 43% year-over-year to $5.9 million, with margin expansion of 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. Net debt leverage improved to 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. New customer registrations surged 37% year-over-year, with first-time depositors up 24% and total deposit volume up 24%. Betting gross gaming revenue grew 37% year-over-year on record wagering activity. Zoran Milosevic, CEO of Meridianbet Group, stated, 'The underlying growth in our customer base and handle is the clearest measure of the momentum in this business.'
Expanse Studios, the company's proprietary game studio, grew revenue 138% year-over-year and expanded its distribution through new partnerships, including a North American distribution agreement with Bragg Gaming and new market certifications. The studio also launched player-engagement tools such as jackpots, tournaments, and the Achievo gamification product.
RKings Competitions Ltd. and Classics for a Cause combined revenue totaled $10.8 million, up 4% year-over-year, representing 22% of company revenue. At Classics for a Cause, new users grew approximately 28% year-over-year, and active VIP subscriptions remained above 10,000.
GMAG segment revenue was flat at $3.6 million, but the Mexico-facing online casino MexPlay saw revenue increase 31% year-over-year, with new customer registrations up 50% and first-time depositors up 53%.
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 anticipated to be the strongest due to major sporting events and holiday wagering activity.
Meridian Holdings' focus on operational execution, technology integration, and disciplined capital allocation positions it for sustained profitable growth. The company's ability to achieve GAAP profitability while investing in customer acquisition and deleveraging demonstrates a mature business model in the competitive gaming industry. A full visual presentation and earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
