Meridian Holdings Inc. (NASDAQ: MRDN) announced record revenue for the fourth quarter and full year ended December 31, 2025, marking its first earnings release under the new corporate name following a strategic rebrand. Fourth-quarter revenue rose 8% year-over-year to $49.6 million, while full-year revenue increased 21% to $182.9 million. Gross profit for the quarter improved 6% to $28.5 million, and full-year gross profit grew 17% to $103.5 million. However, the company reported a net loss of $88.4 million for the quarter, or $7.09 per diluted share, compared to a net loss of $2.1 million in the prior year. The full-year net loss widened to $92 million, or $7.76 per diluted share, from $1.4 million in 2024.
The significant net loss was primarily driven by a $91.8 million non-cash goodwill and intangible asset impairment charge triggered by a sustained decline in the company's share price. Adjusted EBITDA, a non-GAAP measure, declined to $4.6 million for the quarter from $6.5 million in the prior year, and to $19.4 million for the full year from $22.2 million, due to increased selling and marketing expenses aimed at driving customer growth. Despite the losses, the company reduced total debt by 51% to $34.7 million and ended the year with $18.1 million in cash, resulting in a net debt leverage ratio of less than 0.9x.
William Scott, Interim CEO of Meridian, commented, "FY2025 was a year of significant progress. We delivered record revenue, reduced debt by more than half, and completed our rebrand to Meridian Holdings." Looking ahead, the company provided a preliminary outlook for Q1 2026, expecting revenue of approximately $50 million, representing about 17% growth year-over-year, and Adjusted EBITDA of approximately $6.1 million, representing about 9% growth.
Operationally, the Meridianbet Group segment, which contributed 68% of total company revenue, saw a 17% year-over-year revenue increase to $124.6 million, with a gross margin of approximately 70%. New customer registrations surged 72% to 1.2 million, active users grew 35%, and depositors increased 40%. Expanse Studios, a subsidiary within the Meridianbet segment, expanded its operator network from 184 to 1,344 active sites, representing 630% growth, and delivered Q4 revenue growth of 435% year-over-year. The subsidiary has filed for system certification in Ontario, Canada.
The RKings & Classics for a Cause segment delivered full-year revenue of $43.8 million, up 35% year-over-year, representing 24% of total revenue. Raffle ticket volumes at RKings scaled 137% to 25.2 million, driven by higher-value customer acquisition. The GMAG segment reported full-year revenue of $14.5 million, up 16%, representing 8% of total revenue. MexPlay, the Mexico-facing online casino within GMAG, saw registrations grow 256% year-over-year in Q4, with total active users reaching 32,308 in the quarter.
Rich Christensen, CFO, noted, "The reported GAAP net loss was driven primarily by non‑cash, non‑recurring accounting charges that did not affect cash flow or operational performance." The company emphasized that its business continues to generate strong cash flow and remains focused on translating operational execution into consistent financial results. For more information, visit https://meridian-holdings.com/.
