Meridian Holdings Reports Q1 2026 Financial Results
Meridian Holdings Reports Q1 2026 Financial Results
- Revenue Up 17% Year-Over-Year to $50.1 Million
- Returns to Profitability with Net Income of $2.2 Million
- Adjusted EBITDA Up 26% Year-Over-Year to $6.3 Million, Exceeding Guidance
- Strengthened Balance Sheet With Cash of $16.2 Million and Net Debt Reduced 62% Year-Over-Year
Meridian Holdings Inc. (NASDAQ: MRDN), a global B2B/B2C operator and licensor of online sports betting and gaming platforms across 25+ regulated markets, today announced financial results for the first quarter ended March 31, 2026. The Company delivered revenue in line with guidance, exceeded its Adjusted EBITDA target, and returned to GAAP profitability — the first such quarter under the Meridian Holdings brand — while materially strengthening its balance sheet.
First Quarter 2026 Financial Highlights
- Revenue of $50.1 million, an increase of $7.4 million or 17% year over year, in line with prior guidance and reflecting continued scale in core Meridianbet operations.
- Gross profit of $28.1 million, up 16% year over year, with gross margin of 56.2% broadly consistent with the prior-year period.
- Returned to GAAP profitability with net income of $2.2 million, or $0.18 per diluted share, compared with a net loss of $(0.3) million, or $(0.02) per diluted share, in the prior-year period.
- Adjusted EBITDA1 of $6.3 million, up 26% year over year, exceeding previously-issued guidance of $6.1 million. Adjusted EBITDA margin expanded approximately 86 bps to 12.6%.
- Balance sheet strength: cash of $16.2 million, total debt of $29.7 million (-54% YoY), net debt of $13.4 million (-62% YoY), and net debt leverage of 0.53x — the strongest capital structure in Company history.
- Operating cash flow of $5.2 million, supporting ongoing deleveraging and disciplined reinvestment in technology and regulated-market expansion.
“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 — all while expanding our licensed footprint and investing in proprietary technology. We remain focused on scaled execution across our 25+ markets, continued technology integration, and disciplined capital allocation as we position the Company for sustained, profitable growth through 2026 and beyond.”
William Scott · Chief Executive Officer, Meridian Holdings
Q2 2026 Preliminary Outlook
Preliminary Guidance — Q2 2026
+ New Expanse Markets
All forward-looking financial measures are preliminary, unaudited and subject to change. Adjusted EBITDA is a non-GAAP financial measure; a reconciliation to the nearest GAAP measure will be provided in the Company’s quarterly filing.
“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 to invest behind the growth plan we have laid out for 2026.”
Rich Christensen · Chief Financial Officer, Meridian Holdings
Q1 2026 Operational Highlights
Meridianbet Group, the Company’s core operating segment, delivered Q1 2026 revenue of $34.9 million, up 26% year over year, at a 69.3% gross margin. Segment operating income grew 37% YoY to $6.6 million.
“The first quarter of 2026 demonstrates the scalability of our platform across multiple regulated markets. At Meridianbet, 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. Our operational foundation is stronger than ever, and we continue to see substantial pipeline across market and product expansion opportunities.”
Zoran Milosevic · Chief Executive Officer, Meridianbet Group
Expanse Studios expanded its operator network to 1,519 active sites during Q1 2026, adding 175 new sites in the quarter on a cumulative basis, with 77 proprietary game titles, including six new titles launched during the quarter. The subsidiary has filed for system certification in Ontario, Canada, pending regulatory approval, and secured new certifications in Latvia, Estonia, Sweden, and Portugal during the quarter.
Combined revenue of $12.1 million, up 9% year over year. RKings revenue reached $7.7 million, up 12% YoY on improving unit economics, with average order value up 29% to $16.91 and value per new registration up 15% to $17.72. At Classics for a Cause, new users rose 18% YoY to 9,813, total transactions grew 12% sequentially, and VIP subscriptions surpassed 10,000 for the first time in 12 months, ending Q1 at 10,750.
Revenue of $3.1 million in Q1 2026 compared with $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 from 836. MexPlay, the segment’s Mexico-facing online casino, continued to expand its customer base, with registrations reaching 74,000 (up 271% year over year) and first-time depositors climbing to 6,101 (up 198% year over year).
Financial Tables
Consolidated Balance Sheets
| Assets | Mar 31, 2026 (Unaudited) | Dec 31, 2025 (Audited) |
|---|---|---|
| Cash and cash equivalents | $16,234,441 | $18,078,300 |
| Accounts receivable, net | $5,498,687 | $7,954,116 |
| Accounts receivable – related parties | $476,710 | $465,691 |
| Taxes receivable | $468,208 | $595,434 |
| Inventory | $4,863,081 | $5,524,570 |
| Prepaid expenses | $665,289 | $652,224 |
| Other current assets | $2,276,108 | $2,167,818 |
| Total Current Assets | $30,482,524 | $35,438,153 |
| Goodwill & intangible assets, net | $35,070,728 | $34,914,920 |
| Property, plant & equipment, net | $27,360,672 | $28,963,866 |
| Investments | $3,569,647 | $3,650,526 |
| Deposits | $6,319,264 | $6,315,584 |
| Operating lease right-of-use assets | $6,090,193 | $6,296,336 |
| Other non-current assets | $2,974,242 | $2,499,415 |
| Total Non-Current Assets | $81,384,746 | $82,640,647 |
| Total Assets | $111,867,270 | $118,078,800 |
| Liabilities & Equity | Mar 31, 2026 (Unaudited) | Dec 31, 2025 (Audited) |
|---|---|---|
| Accounts payable and accrued liabilities | $18,374,031 | $20,572,774 |
| Accounts payable – related parties | $438,458 | $295,165 |
| Current portion of operating lease liability | $2,698,136 | $2,656,508 |
| Current portion of long-term loan | $8,032,261 | $10,581,035 |
| Taxes payable | $4,481,640 | $5,011,261 |
| Other current liabilities | $1,136,603 | $1,592,958 |
| Deferred revenues | $1,076,788 | $1,111,332 |
| Contingent liability | $233,988 | $228,667 |
| Current portion of consideration payable – related parties | $15,905,672 | $16,199,672 |
| Current portion of consideration payable | $881,947 | $1,317,526 |
| Total Current Liabilities | $53,259,524 | $59,566,898 |
| Non-current portion of operating lease liability | $3,304,088 | $3,562,859 |
| Non-current portion of long-term loan | $4,854,214 | $6,590,907 |
| Other non-current liabilities | $19,044 | $19,510 |
| Total Non-Current Liabilities | $8,177,346 | $10,173,276 |
| Total Liabilities | $61,436,870 | $69,740,174 |
| Total Equity | $50,430,400 | $48,338,626 |
| Total Liabilities and Equity | $111,867,270 | $118,078,800 |
Consolidated Statements of Operations
| Q1 2026 | Q1 2025 | |
|---|---|---|
| Revenues | $50,103,870 | $42,723,053 |
| Cost of goods sold | ($21,959,630) | ($18,527,092) |
| Gross Profit | $28,144,240 | $24,195,961 |
| SG&A expenses | ($24,987,116) | ($24,301,978) |
| Income (Loss) from Operations | $3,157,124 | ($106,017) |
| Interest expense | ($353,726) | ($1,471,360) |
| Interest earned | $5,999 | $43,936 |
| Foreign exchange gain (loss) | ($412,194) | $433,668 |
| Other income | $467,088 | $505,503 |
| Provision for income taxes | $696,134 | ($336,053) |
| Net Income (Loss) | $2,168,157 | ($258,217) |
| Net Income (Loss) attributable to MRDN | $2,260,795 | ($231,608) |
| EPS – Basic & Diluted (attributable to MRDN) | $0.18 | ($0.02) |
| Weighted avg. shares – Basic | 12,640,999 | 10,977,405 |
| Weighted avg. shares – Diluted | 12,785,352 | 10,977,405 |
Reconciliation of GAAP Net Income to Adjusted EBITDA
| Q1 2026 | Q1 2025 | |
|---|---|---|
| Net income (loss) | $2,168,157 | ($258,217) |
| + Interest expense | $353,726 | $1,471,360 |
| − Interest income | ($5,999) | ($43,936) |
| + Taxes | $696,134 | ($336,053) |
| + Depreciation | $1,435,955 | $1,436,247 |
| + Amortization | $1,025,175 | $2,152,640 |
| EBITDA | $5,673,148 | $4,422,041 |
| + Stock-based compensation | $248,057 | $1,040,325 |
| + Restructuring costs | — | $149,934 |
| − Unrealized foreign exchange gain or loss | $368,174 | ($617,913) |
| Adjusted EBITDA | $6,289,379 | $4,994,387 |
Net Debt & Leverage Reconciliation
| Item | March 31, 2026 |
|---|---|
| Total debt | $29,674,094 |
| Less: cash and cash equivalents | ($16,234,441) |
| Net debt | $13,439,653 |
| Divided by: annualized Q1 2026 Adjusted EBITDA | $25,157,516 |
| Net debt leverage ratio | 0.53x |
About Meridian Holdings
Meridian Holdings Inc. (NASDAQ: MRDN), headquartered in Las Vegas, Nevada, is an established B2B and B2C gaming technology group operating across 25+ international regulated markets. The Company’s B2C division is led by Meridianbet Group, a leading online sports betting and gaming operator founded in 2001 and licensed across Europe, Africa, and South America. Meridian’s B2B division — comprising game developer Expanse Studios and iGaming platform GMAG — develops, licenses, and distributes proprietary gaming technology to a global client base. Additional subsidiaries include RKings Competitions (pay-to-enter prize competitions in the UK), MexPlay (regulated online casino in Mexico), and Classics for a Cause (Australia’s leading subscription-based digital memberships and trade-promotion lottery). The Company’s software automatically declines gaming or redemption requests originating in the United States, in strict compliance with U.S. law.
Adjusted EBITDA, Net Debt, and Net Debt Leverage Ratio are non-GAAP financial measures presented as supplemental indicators of the Company’s performance and capital structure. Adjusted EBITDA represents net income before interest expense, interest income, income taxes, depreciation and amortization, and further excludes stock-based compensation expense, restructuring costs, and unrealized foreign exchange gain or loss. Net Debt is defined as total debt less cash and cash equivalents. Net Debt Leverage Ratio is defined as Net Debt as of the balance sheet date divided by annualized Adjusted EBITDA for the period then ended. These non-GAAP measures are unaudited and have inherent limitations as analytical tools and should not be considered in isolation, or as substitutes for analysis of the Company’s results as reported under GAAP.
Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws, including within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements. Actual results may differ materially from those contained in such forward-looking statements. For a full discussion of risk factors, please refer to the Company’s filings with the SEC available at www.sec.gov.
The preliminary outlook for Q2 2026 was prepared by Meridian in good faith using assumptions believed to be reasonable. The Preliminary Outlook is based on numerous assumptions and is subject to significant business, economic, and competitive uncertainties. Accordingly, the Preliminary Outlook is only an estimate and is necessarily speculative in nature. Readers are cautioned not to place undue reliance on the Preliminary Outlook.
Investor & Media Contact
Investors & Press: ir@meridian-holdings.com
Brett Milotte (ICR): Brett.milotte@icrinc.com
1 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and the accompanying reconciliation tables above.
