Meridian Holdings Inc. (NASDAQ: MRDN) reported second-quarter 2026 financial results showing revenue growth of 16% year-over-year to $50.2 million and net income attributable to the company of $2.2 million, marking its second consecutive quarter of GAAP profitability. The company also reported adjusted EBITDA of $5.9 million, a 43% increase from the prior-year period, and reduced net debt by 65% year-over-year to $9.4 million.
The results reflect strong operational execution despite an unusually bettor-favorable run of World Cup results during the early stages of the tournament. Revenue growth was driven by record new customer registrations and double-digit increases in wagering and deposit volumes in core Meridianbet operations. First-half 2026 revenue surpassed $100 million for the first time in the company's history, reaching $100.3 million.
William Scott, interim CEO of Meridian Holdings, said the quarter reflects the discipline built into the 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," Scott said. "Crossing $100 million in first-half revenue for the first time is a milestone that speaks to the scale we have reached."
The company's Meridianbet Group segment reported revenue of $35.8 million, up 23% year-over-year, representing 71% of total company revenue. Segment operating income grew 91% year-over-year 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%. Betting gross gaming revenue grew 37% year-over-year on record wagering activity.
Expanse Studios, the company's proprietary game studio within Meridianbet Group, continued to expand its distribution and content pipeline, growing revenue 138% and gross gaming revenue 90% year-over-year. The studio went live with new operator partners including Maxbet Serbia, part of Flutter Entertainment, Synottip and Joker.lv, and entered a North American distribution partnership with Bragg Gaming. New market certifications were secured in Latvia, Colombia, Portugal and Slovenia.
The company strengthened its balance sheet during the quarter, with cash of $17.3 million, total debt of $26.7 million, and net debt leverage lowered to 0.39x. This is the company's sixth consecutive quarter of deleveraging, while interest expense declined approximately 80%. Share count remained essentially flat, with shares outstanding up 0.23% in the quarter entirely from vesting and settlement of previously granted employee awards. No new equity awards were granted.
Customer-acquisition investment associated with the World Cup was expensed during the second quarter, while many newly acquired customers joined late in June and contributed only modestly to the period. The retention, repeat-deposit activity and revenue contribution of this cohort, including potential casino cross-sell, are expected to become clearer in subsequent quarters.
For the second half of 2026, the company expects constant currency revenue growth of approximately 8% to 10% year-over-year. Consistent with historical seasonality, the fourth quarter is expected to be the strongest of the year, reflecting the concentration of major sporting events and holiday-period wagering activity. A full visual presentation and the earnings call replay are available at the Meridian Holdings investor relations website: https://meridian-holdings.com/quarterly-results/.
