Meridian Holdings (MRDN) Q2 2026 earnings summary

Executive summary

• Revenue grew 16% year-over-year to $50.2 million in Q2 2026, with net income of $2.2 million versus a $3.6 million loss in Q2 2025, driven by strong online casino and sports betting growth and improved operational efficiency.

• Adjusted EBITDA rose 43% year-over-year to $5.9 million, with margin expanding to 11.8%.

• First-half 2026 revenue surpassed $100 million for the first time, with six-month net income of $4.4 million compared to a $3.8 million loss in the prior year.

• Net debt reduced by 65% year-over-year to $9.4 million, marking six consecutive quarters of deleveraging and net debt leverage at 0.39x.

• Record customer registrations and deposits, with registrations up 37% year-over-year in the core segment, driven by World Cup activity.

Financial highlights

• Q2 2026 revenue: $50.2 million (+16% YoY); gross profit: $26.9 million (+10% YoY); gross margin: 53.5% (down from 56.4% YoY).

• Q2 2026 net income: $2.2 million (vs. $3.6 million loss in Q2 2025); diluted EPS: $0.17 (vs. $(0.31) YoY).

• Adjusted EBITDA: $5.9 million (+43% YoY); operating cash flow: $7.8 million, more than triple the prior year.

• Total debt reduced 45% year-over-year to $26.7 million; net debt down 65% to $9.4 million.

• Share count remained essentially flat, with a 0.23% increase due to vesting of employee awards.

Outlook and guidance

• Second half of 2026 revenue expected to grow 8–10% year-over-year on a constant currency basis.

• Fourth quarter anticipated to be the strongest due to major sporting events and holiday wagering.

• Management expects continued revenue growth from expanded online casino offerings, new sports betting features, and retail network optimization.

• Continued focus on operational discipline, customer conversion, and balance sheet strength.

• Cash on hand of $17.3 million is considered sufficient for at least 12 months of operations.