Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the first quarter ended March 31, 2026, marking its first GAAP-profitable quarter under the Meridian Holdings brand. The company posted revenue of $50.1 million, up 17% year-over-year, 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 guidance of $6.1 million, with margin expansion to 12.6%.
William Scott, Interim CEO of Meridian, stated, "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 company strengthened its capital structure, with cash of $16.2 million, total debt down 54% year-over-year to $29.7 million, and net debt reduced 62% to $13.4 million, resulting in a net debt leverage ratio of 0.53x.
The Meridianbet Group, the company's B2C segment, generated revenue of $34.9 million, up 26% year-over-year, representing 69.6% of total revenue with a 69.3% gross margin. Segment operating income grew 37% to $6.6 million. Key operational metrics showed strong customer acquisition: new registrations reached 428,400, up 41% year-over-year, while depositors rose 27% to 283,000 and active users increased 21% to 333,700. Zoran Milosevic, CEO of Meridianbet Group, noted the scalability of the platform across multiple regulated markets.
Expanse Studios, part of Meridianbet, 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 also filed for system certification in Ontario, Canada, pending regulatory approval.
RKings & Classics for a Cause combined revenue was $12.1 million, up 9% year-over-year. RKings revenue reached $7.7 million, up 12%, with average order value up 29% to $16.91 and value per new registration up 15% to $17.72. Classics for a Cause saw new users rise 18% to 9,813, total transactions grow 12% sequentially, and VIP subscriptions surpass 10,000 for the first time in 12 months.
GMAG, the B2B iGaming aggregation segment including MexPlay, reported revenue of $3.1 million, down from $3.8 million in the prior year, representing 6% of company revenue. However, it onboarded 12 new providers in Q1 2026, compared to 2 in Q1 2025, and deployed 1,382 new games, up 65% year-over-year. MexPlay continued to expand, with registrations reaching 74,000 (up 271%) and first-time depositors climbing to 6,101 (up 198%).
For the second quarter of 2026, Meridian issued revenue guidance of $51 million to $53 million, representing 18% to 23% growth over Q2 2025 revenue of $43.2 million. CFO Rich Christensen highlighted the company's financial flexibility, noting "a clean deleveraging trajectory and accelerating growth." A full visual presentation and earnings call replay are available at Meridian Holdings investor relations website.
