Meridian Holdings Inc. (NASDAQ: MRDN) reported record fourth-quarter revenue of $49.6 million and full-year 2025 revenue of $182.9 million, marking increases of 8% and 21% respectively over the prior year. However, the company also posted a net loss of $88.4 million for the fourth quarter and $92 million for the full year, primarily driven by a $91.8 million non-cash goodwill and intangible asset impairment charge triggered by a sustained decline in its share price.
The impairment charge, while significant on a GAAP basis, did not affect cash flow or operational performance, according to the company. Adjusted EBITDA, a non-GAAP measure that excludes the impairment and other items, was $4.6 million for the fourth quarter and $19.4 million for the full year, compared to $6.5 million and $22.2 million respectively in the prior year. The decline in adjusted EBITDA was attributed to increased selling and marketing expenses aimed at driving customer growth.
Meridian also reported a 51% reduction in total debt to $34.7 million and a net debt leverage ratio of less than 0.9x as of December 31, 2025. Cash and cash equivalents stood at $18.1 million. The company noted that its GAAP net loss was primarily non-recurring and non-cash, and that it continues to generate strong cash flow from operations.
Operationally, the Meridianbet Group segment, which represents 68% of total revenue, delivered full-year 2025 revenue of $124.6 million, up 17% year-over-year, with a gross margin of approximately 70%. New customer registrations at Meridianbet increased 72% to 1.2 million, active users rose 35%, and depositors grew 40%. The Expanse Studios subsidiary expanded its operator network from 184 to 1,344 active sites, representing 630% year-over-year growth, and has filed for system certification in Ontario, Canada, pending regulatory approval.
The RKings & Classics for a Cause segment delivered full-year revenue of $43.8 million, up 35% year-over-year, representing 24% of total revenue. Raffle ticket volumes at RKings scaled 137% to 25.2 million, driven by higher-value customer acquisition. The GMAG segment reported full-year revenue of $14.5 million, up 16% year-over-year, with MexPlay, its Mexico-facing online casino, seeing registrations grow 256% year-over-year in Q4 2025.
Looking ahead, Meridian provided preliminary guidance for the first quarter of 2026, expecting revenue of approximately $50 million, representing about 17% growth over the prior year, and adjusted EBITDA of approximately $6.1 million, representing about 9% growth. The company believes its business fundamentals are robust and its opportunity pipeline across core and emerging markets continues to grow.
The full visual presentation and earnings call can be accessed at https://meridian-holdings.com/quarterly-results/. For more information, visit https://meridian-holdings.com/.
