Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the first quarter ended March 31, 2026, marking the first GAAP-profitable quarter under the Meridian Holdings brand. The company delivered revenue of $50.1 million, a 17% year-over-year increase, and net income of $2.2 million, compared to a net loss of $0.3 million in the prior-year period. Adjusted EBITDA rose 26% to $6.3 million, exceeding the company's guidance of $6.1 million.
The company's balance sheet strengthened materially, with cash of $16.2 million and total debt reduced 54% year-over-year to $29.7 million. Net debt fell 62% to $13.4 million, resulting in a net debt leverage ratio of 0.53x, the strongest capital structure in company history. Operating cash flow totaled $5.2 million, supporting ongoing deleveraging and reinvestment.
William Scott, Interim CEO, 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 Meridianbet Group, the company's B2C sports betting and online casino segment, generated revenue of $34.9 million, up 26% year-over-year, representing 69.6% of company 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.
Expanse Studios, part of the Meridianbet Group, expanded its operator network to 1,519 active sites, adding 175 new sites in the quarter. The subsidiary filed for system certification in Ontario, Canada, and secured new certifications in Latvia, Estonia, Sweden, and Portugal during the quarter.
RKings & Classics for a Cause combined revenue was $12.1 million, up 9% year-over-year, representing 24% of company revenue. RKings revenue reached $7.7 million, up 12% year-over-year, with average order value up 29% to $16.91. Classics for a Cause saw new users rise 18% to 9,813, and VIP subscriptions surpassed 10,000 for the first time in 12 months.
The GMAG segment, which includes iGaming aggregation and MexPlay, reported revenue of $3.1 million in Q1 2026 compared to $3.8 million in the prior year period. The segment onboarded 12 new providers in Q1 2026, compared with 2 in Q1 2025, and deployed 1,382 new games, up 65% year-over-year. MexPlay's registrations reached 74,000, up 271% year-over-year, and first-time depositors climbed to 6,101, up 198% year-over-year.
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 revenue of $43.2 million. The outlook reflects continued momentum in core Meridianbet operations, incremental contribution from newly certified Expanse markets, and seasonal uplift in retail and online wagering activity.
Rich Christensen, CFO, said, "In the first quarter of 2026 we delivered revenue at guidance and exceeded our Adjusted EBITDA target while materially strengthening the balance sheet. Total debt declined 54% year over year and net debt fell 62%, taking leverage to 0.53x. With $16.2 million of cash, a clean deleveraging trajectory, and accelerating growth, we have meaningful financial flexibility."
A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
