Meridian Holdings Inc. (NASDAQ: MRDN) reported its first GAAP-profitable quarter under the Meridian Holdings brand, with net income of $2.2 million for the three months ended March 31, 2026, compared with a net loss of $0.3 million in the prior-year period. The company, a global operator and licensor of online sports betting and gaming platforms across 25+ regulated markets, posted revenue of $50.1 million, up 17% year over year from $42.7 million, in line with its guidance.
Adjusted EBITDA rose 26% to $6.3 million, exceeding the company's previously issued guidance of $6.1 million. Adjusted EBITDA margin expanded approximately 86 basis points to 12.6%. The company also materially strengthened its balance sheet: 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.
“Q1 2026 marks our first GAAP-profitable quarter under the Meridian Holdings brand and reflects the disciplined execution of our growth plan,” said William Scott, Interim CEO of Meridian. “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 B2C segment, Meridianbet Group, 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. Zoran Milosevic, CEO of Meridianbet Group, noted that new 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.
Expanse Studios, part of 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. It has also filed for system certification in Ontario, Canada, pending regulatory approval.
The RKings & Classics for a Cause segment posted combined revenue of $12.1 million, up 9% year over year, representing 24% of company revenue. RKings revenue reached $7.7 million, up 12%, 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, ending Q1 at 10,750.
GMAG, the B2B iGaming aggregation segment including MexPlay, reported revenue of $3.1 million, down from $3.8 million in the prior-year period, representing 6% of total revenue. However, the segment onboarded 12 new providers in Q1 2026, compared with 2 in Q1 2025, and deployed 1,382 new games, up 65% year over year. MexPlay's registrations surged 271% to 74,000, and first-time depositors climbed 198% to 6,101.
For the second quarter of 2026, Meridian 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.
Rich Christensen, CFO of Meridian, commented, “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.”
A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
