Meridian Holdings Inc. (NASDAQ: MRDN), a global operator and licensor of online and retail sports betting, gaming and casino platforms, announced its financial results for the second quarter ended June 30, 2026, demonstrating significant operational and financial progress. The company achieved revenue growth of 16% year-over-year to $50.2 million and reported net income attributable to Meridian Holdings of $2.2 million, marking its second consecutive quarter of GAAP profitability. Adjusted EBITDA increased 43% year-over-year to $5.9 million, while the company continued to strengthen its balance sheet by reducing total debt by 45% to $26.7 million and net debt by 65% to $9.4 million. First-half 2026 revenue surpassed $100 million for the first time in the company's history, reaching $100.3 million.
The second quarter results reflect the discipline built into the business, according to William Scott, interim CEO of Meridian Holdings. The company grew revenue 16%, expanded adjusted EBITDA 43%, and delivered its second consecutive quarter of GAAP profitability, all against a backdrop of sporting results that were unusually favorable to bettors across the industry. The company also crossed the milestone of $100 million in first-half revenue for the first time, indicating the scale it has reached. Scott emphasized the company's focus on operational execution across its markets, continued technology integration, and disciplined capital allocation as it builds toward sustained, profitable growth.
Segment performance showed strength across the board. The Meridianbet Group, which contributed 71% of total company revenue, posted revenue of $35.8 million, up 23% year-over-year, 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%. The company's proprietary game studio, Expanse Studios, continued to expand its distribution and content pipeline, growing revenue 138% and gross gaming revenue 90% year-over-year. The studio went live with new operator partners including Maxbet Serbia, part of Flutter Entertainment, Synottip and Joker.lv, and entered a North American distribution partnership with Bragg Gaming. RKings Competitions Ltd. and Classics For A Cause Pty Ltd combined revenue was $10.8 million, up 4% year-over-year, representing 22% of company revenue. GMAG segment revenue was $3.6 million, flat year-over-year, with its Mexico-facing online casino MexPlay showing strong growth: revenue up 31%, new customer registrations up 50% year-over-year, and first-time depositors up 53%.
The company's balance sheet continued to strengthen. Cash and cash equivalents stood at $17.3 million, total debt was $26.7 million, and net debt leverage was lowered to 0.39x. This marks the sixth consecutive quarter of deleveraging, while interest expense declined approximately 80%. Operating cash flow was $7.8 million, compared to $2.4 million in the prior-year period, supporting continued deleveraging and disciplined reinvestment in core operations. The company's share count remained essentially flat, with shares outstanding up only 0.23% in the quarter, entirely from the vesting and settlement of previously granted employee awards. No new equity awards were granted.
Looking ahead, Meridian Holdings provided preliminary outlook for the second half of 2026, expecting constant currency revenue growth of approximately 8% to 10% year-over-year. Consistent with historical seasonality, the fourth quarter is expected to be the strongest of the year, reflecting the concentration of major sporting events and holiday-period wagering activity. The company also noted that customer-acquisition investment associated with the World Cup was expensed during the second quarter, while many newly acquired customers joined late in June and contributed only modestly to the period. The retention and revenue contribution of this cohort, including potential casino cross-sell, are expected to become clearer in subsequent quarters.
For more details, a full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
