Meridian Holdings Inc. (NASDAQ: MRDN) reported financial results for the second quarter ended June 30, 2026, demonstrating robust growth and improved profitability. Revenue increased 16% year-over-year to $50.2 million, driven by record new customer registrations and double-digit growth in wagering and deposit volumes in core Meridianbet operations. The company achieved net income attributable to MRDN of $2.2 million, or $0.17 per diluted share, marking its second consecutive quarter of GAAP profitability, compared to a net loss of $3.6 million in the prior-year period.
Adjusted EBITDA rose 43% year-over-year to $5.9 million, with margins expanding 222 basis points to 11.8%. Operating cash flow improved to $7.8 million, up from $2.4 million, supporting continued deleveraging. Total debt was reduced 45% year-over-year to $26.7 million, while cash and cash equivalents stood at $17.3 million. Net debt decreased 65% to $9.4 million, resulting in a net debt leverage ratio of 0.39x, the company's sixth consecutive quarter of deleveraging.
William Scott, interim CEO, 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.' First-half 2026 revenue surpassed $100 million for the first time in company history, reaching $100.3 million.
Meridianbet Group revenue grew 23% to $35.8 million, representing 71% of total revenue, with segment operating income up 91% to $6.1 million. New customer registrations surged 37% year-over-year, and betting gross gaming revenue rose 37%. Expanse Studios, the company's proprietary game studio, increased revenue 138% and gross gaming revenue 90%, expanding distribution through partnerships with Bragg Gaming and others, and securing new market certifications in Latvia, Colombia, Portugal, and Slovenia. RKings and Classics for a Cause combined revenue increased 4% to $10.8 million, while GMAG revenue held steady at $3.6 million, with MexPlay's online casino revenue up 31% and new customer registrations up 50%.
Customer-acquisition investment associated with the World Cup was expensed in the second quarter, with many new customers joining late in June; their retention and revenue contribution 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, with the fourth quarter anticipated to be the strongest due to major sporting events.
A full visual presentation and earnings call replay are available at Meridian Holdings investor relations website.
