Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the second quarter ended June 30, 2026, showing revenue growth of 16% year-over-year to $50.2 million and net income attributable to MRDN of $2.2 million, marking the company's second consecutive quarter of GAAP profitability. Adjusted EBITDA increased 43% to $5.9 million, while the company continued to strengthen its balance sheet by reducing total debt by 45% year-over-year to $26.7 million and net debt by 65% to $9.4 million. Cash and cash equivalents stood at $17.3 million.
The company's first-half 2026 revenue surpassed $100 million for the first time in its history, reaching $100.3 million, up 17% year-over-year. This milestone reflects record new customer registrations and double-digit growth in wagering and deposit volumes in core Meridianbet operations, partially offset by an unusually bettor-favorable run of World Cup results during the early stages of the tournament. Gross profit rose 10% to $26.9 million, with gross margin of 53.5% compared to 56.4% in the prior-year period, reflecting lower sportsbook and casino hold during the quarter.
William Scott, interim CEO of Meridian Holdings, commented, 'Our second quarter reflects the discipline we have built into this business. We grew revenue 16%, expanded adjusted EBITDA 43%, delivered our second consecutive quarter of GAAP profitability and reduced net debt by 65% year-over-year, all against a sporting-results backdrop that was unusually favorable to bettors across the industry during the quarter.'
Segment performance showed Meridianbet Group 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. Zoran Milosevic, CEO of Meridianbet Group, noted that new customer registrations surged 37% year-over-year, with first-time depositors up 24% and total deposit volume up 24%. Expanse Studios, the company's proprietary game studio, grew revenue 138% and gross gaming revenue 90% year-over-year, and entered a North American distribution partnership with Bragg Gaming. RKings Competitions Ltd. and Classics For A Cause Pty Ltd reported combined revenue of $10.8 million, up 4% year-over-year, while GMAG segment revenue was flat at $3.6 million, with MexPlay revenue up 31% and new customer registrations up 50%.
The company expects constant currency revenue growth of approximately 8% to 10% year-over-year in the second half of 2026, 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 https://meridian-holdings.com/quarterly-results/.
