Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the second quarter ended June 30, 2026, posting revenue of $50.2 million, a 16% increase year-over-year. The company achieved net income attributable to MRDN of $2.2 million, or $0.17 per diluted share, marking its second consecutive quarter of GAAP profitability. Adjusted EBITDA rose 43% to $5.9 million, with margin expansion of 222 basis points to 11.8%. The company also strengthened its balance sheet, reducing total debt by 45% to $26.7 million and net debt by 65% to $9.4 million, with a net debt leverage ratio of 0.39x.
The results reflect strong operational execution across key segments. The Meridianbet Group, which accounts for 71% of total revenue, saw a 23% increase in revenue to $35.8 million, driven by a 37% surge in new customer registrations and a 24% rise in first-time depositors. Despite an unusually bettor-favorable World Cup group stage and two major casino wins exceeding $1.2 million, the segment's operating income grew 91% to $6.1 million. Expanse Studios, the company's proprietary game studio, reported a 138% revenue increase and expanded its distribution through partnerships with Bragg Gaming and operators like Maxbet Serbia, part of Flutter Entertainment. The studio also secured new market certifications in Latvia, Colombia, Portugal, and Slovenia.
RKings Competitions and Classics for a Cause generated combined revenue of $10.8 million, up 4% year-over-year. Classics for a Cause saw a 28% increase in new users, with active VIP subscriptions remaining above 10,000. The GMAG segment, including the MexPlay online casino in Mexico, reported flat revenue of $3.6 million but deployed 2,382 new games, a 13% increase. MexPlay's revenue grew 31%, with new customer registrations up 50% and first-time depositors up 53%.
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." He added that crossing $100 million in first-half revenue for the first time is a milestone demonstrating the company's scale.
The company's balance sheet continues to strengthen, with cash and cash equivalents of $17.3 million and total debt of $26.7 million. Operating cash flow improved to $7.8 million from $2.4 million in the prior-year period. Interest expense declined approximately 80%, and the company has deleveraged for six consecutive quarters. Share count remained essentially flat, with no new equity awards granted.
For the second half of 2026, Meridian Holdings expects constant currency revenue growth of approximately 8% to 10% year-over-year, with the fourth quarter anticipated to be the strongest due to major sporting events and holiday wagering. The company's preliminary outlook reflects its focus on operational execution, technology integration, and disciplined capital allocation to drive sustained, profitable growth.
