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, up 17% year-over-year, and net income of $2.2 million, compared with a net loss of $0.3 million in the prior-year period. Adjusted EBITDA reached $6.3 million, a 26% increase, exceeding the company's guidance of $6.1 million.
William Scott, Interim CEO of Meridian, said, "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."
The company's balance sheet improved significantly, with cash of $16.2 million and net debt reduced 62% year-over-year to $13.4 million. Net debt leverage stood at 0.53x, the strongest capital structure in company history. Operating cash flow was $5.2 million, supporting ongoing deleveraging and reinvestment.
The Meridianbet Group B2C segment generated revenue of $34.9 million, up 26% year-over-year, representing 69.6% of total revenue. Segment operating income grew 37% to $6.6 million. 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. Zoran Milosevic, CEO of Meridianbet Group, commented, "The first quarter of 2026 demonstrates the scalability of our platform across multiple regulated markets."
Expanse Studios, part of the Meridianbet Group, expanded its operator network to 1,519 active sites, adding 175 new sites during the quarter. It launched six new proprietary game titles and secured certifications in Latvia, Estonia, Sweden, and Portugal. The subsidiary has also filed for system certification in Ontario, Canada.
RKings & Classics for a Cause combined revenue was $12.1 million, up 9% year-over-year. RKings revenue reached $7.7 million, with average order value up 29% to $16.91. At Classics for a Cause, new users rose 18% to 9,813, and VIP subscriptions surpassed 10,000 for the first time in 12 months.
GMAG, the B2B iGaming aggregation segment, reported revenue of $3.1 million, compared with $3.8 million in the prior-year period. The segment onboarded 12 new providers in Q1 2026, up from two in Q1 2025, and deployed 1,382 new games, a 65% increase. MexPlay, the Mexico-facing online casino, saw registrations reach 74,000 (up 271% year-over-year) and first-time depositors climb to 6,101 (up 198%).
For the second quarter of 2026, the company issued revenue guidance of $51 million to $53 million, representing 18% to 23% growth over Q2 2025. CFO Rich Christensen noted, "With $16.2 million of cash, a clean deleveraging trajectory, and accelerating growth, we have meaningful financial flexibility to invest behind the growth plan."
A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website.
