Meridian Holdings Inc. (NASDAQ: MRDN) announced financial results for the first quarter ended March 31, 2026, marking the company's first GAAP-profitable quarter under the Meridian Holdings brand. Revenue increased 17% year-over-year to $50.1 million, driven by strong performance in the Meridianbet B2C segment and disciplined execution of the growth plan.
The company reported net income of $2.2 million, or $0.18 per diluted share, compared to a net loss of $0.3 million in the prior-year period. Adjusted EBITDA rose 26% to $6.3 million, exceeding the previously issued guidance of $6.1 million, with margin expanding approximately 86 basis points to 12.6%.
Balance sheet strength improved significantly, with cash of $16.2 million and net debt reduced 62% year-over-year to $13.4 million. Net debt leverage stood at 0.53x, the strongest capital structure in company history. Operating cash flow of $5.2 million supported ongoing deleveraging and reinvestment in technology and regulated-market expansion.
William Scott, Interim CEO of Meridian, commented, "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 B2C sports betting and online casino segment, generated revenue of $34.9 million, up 26% year-over-year, representing 69.6% of company revenue at a 69.3% gross margin. 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. It launched six new proprietary game titles and secured certifications in Latvia, Estonia, Sweden, and Portugal. The subsidiary has filed for system certification in Ontario, Canada, pending regulatory approval.
The RKings & Classics for a Cause segment combined revenue of $12.1 million, up 9% year-over-year, representing 24% of company revenue. RKings revenue reached $7.7 million, up 12%, 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, ending Q1 at 10,750.
GMAG, the B2B iGaming aggregation segment including MexPlay, reported revenue of $3.1 million compared to $3.8 million in the prior year. The segment onboarded 12 new providers in Q1 2026, up from 2 in Q1 2025, and deployed 1,382 new games, a 65% increase. MexPlay registrations reached 74,000, up 271% year-over-year, with first-time depositors climbing to 6,101, up 198%.
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.
Rich Christensen, CFO of Meridian, stated, "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/.
