Meridian Holdings Inc. (NASDAQ: MRDN) announced its financial results for the second quarter ended June 30, 2026, showcasing significant improvements in profitability and debt reduction. The company reported revenue of $50.2 million, a 16% increase year-over-year, and net income attributable to MRDN of $2.2 million, or $0.17 per diluted share, marking its second consecutive quarter of GAAP profitability. Adjusted EBITDA rose 43% to $5.9 million, while total debt was reduced by 45% to $26.7 million, and net debt decreased by 65% to $9.4 million, with a net debt leverage ratio of 0.39x.
The revenue growth was driven by record new customer registrations and double-digit increases in wagering and deposit volumes in core Meridianbet operations. Gross profit increased 10% to $26.9 million, with a gross margin of 53.5%, slightly down from 56.4% in the prior year due to lower sportsbook and casino hold during the quarter. 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, commented, "Our second quarter reflects the discipline we have built into this 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, all against a sporting-results backdrop that was unusually favorable to bettors across the industry during the quarter."
Segment performance showed Meridianbet Group revenue of $35.8 million, up 23% year-over-year, with operating income growing 91% to $6.1 million. New customer registrations surged 37%, and first-time depositors increased 24%. Expanse Studios, the company's proprietary game studio, grew revenue 138% year-over-year and entered a North American distribution partnership with Bragg Gaming. RKings Competitions and Classics for a Cause combined revenue was $10.8 million, up 4%, while GMAG segment revenue remained flat at $3.6 million, with MexPlay revenue up 31% and new customer registrations up 50%.
The company provided a preliminary outlook for the second half of 2026, expecting constant currency revenue growth of approximately 8% to 10% year-over-year, with the fourth quarter expected to be the strongest due to major sporting events and holiday wagering activity. Meridian Holdings continues to strengthen its balance sheet, with operating cash flow of $7.8 million in the quarter, supporting deleveraging and reinvestment. The company also highlighted that customer-acquisition investment associated with the World Cup was expensed in Q2, with revenue contribution from new customers expected to materialize in subsequent quarters.
For more details, the earnings call replay and presentation are available at Meridian Holdings investor relations.
