Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the second quarter ended June 30, 2026, highlighting a 16% year-over-year revenue increase to $50.2 million and net income attributable to MRDN of $2.2 million, or $0.17 per diluted share. This marks the company's second consecutive quarter of GAAP profitability, compared to a net loss of $3.6 million in the prior-year period. Adjusted EBITDA rose 43% to $5.9 million, with margin expansion of 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, resulting in a net debt leverage ratio of 0.39x.
First-half 2026 revenue surpassed $100 million for the first time in company history, reaching $100.3 million, up 17% year-over-year. Operating cash flow improved to $7.8 million from $2.4 million in the prior-year period, supporting continued deleveraging. Interest expense declined approximately 80% year-over-year. The company noted that customer-acquisition investment associated with the World Cup was expensed during the quarter, with many newly acquired customers joining late in June, and their revenue contribution expected to become clearer in subsequent quarters.
Segment performance showed strength across the board. The Meridianbet Group generated revenue of $35.8 million, up 23% year-over-year, representing 71% of total company revenue, with segment operating income growing 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%. Betting gross gaming revenue grew 37% on record wagering activity. Zoran Milosevic, CEO of Meridianbet Group, commented that the underlying growth in customer base and handle is the clearest measure of momentum. Expanse Studios, part of the Meridianbet Group, grew revenue 138% and gross gaming revenue 90% year-over-year, expanding distribution through partnerships including Maxbet Serbia (part of Flutter Entertainment) and Bragg Gaming, and securing new market certifications in Latvia, Colombia, Portugal, and Slovenia.
RKings Competitions and Classics for a Cause combined for revenue of $10.8 million, up 4% year-over-year, representing 22% of company revenue. RKings revenue increased 5% to $7.0 million, while Classics for a Cause saw new users grow approximately 28% year-over-year and active VIP subscriptions remaining above 10,000. GMAG segment revenue was flat at $3.6 million, representing 7% of company revenue, but deployed 2,382 new games in the quarter, up 13% year-over-year. MexPlay, the Mexico-facing online casino, saw revenue up 31%, new customer registrations up 50%, and first-time depositors up 53%.
William Scott, interim CEO of Meridian Holdings, stated that the second quarter reflects the discipline built into the business, with revenue growth, profitability, and debt reduction achieved against a backdrop of sporting results unusually favorable to bettors. He emphasized the milestone of crossing $100 million in first-half revenue and the focus on operational execution, technology integration, and disciplined capital allocation.
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 expected to be the strongest due to major sporting events and holiday wagering activity. A full visual presentation and earnings call replay are available at Meridian Holdings quarterly results page.
