Meridian Holdings Inc. (NASDAQ: MRDN) delivered another period of revenue growth in the second quarter of 2026, supported by record new customer registrations and increased wagering and deposit activity across its core Meridianbet operations.

The latest research note from Zacks Small-Cap Research highlights second-quarter revenue of $50.2 million, an increase of 16% year on year. The performance was driven in part by heightened activity around the FIFA World Cup, which helped Meridianbet attract a substantial number of new users to its platform.

Importantly, many customers joined towards the end of June and therefore made only a limited contribution to the second-quarter figures. This gives Meridian Holdings an expanded customer base that management intends to convert into repeat deposits and further revenue over coming periods.

Research Analyst M. Marin writes:

“Nevertheless, they form part of the growing customer base that MRDN expects to further monetize in coming quarters.”

Second-Quarter 2026 Highlights

Revenue increased 16% year on year to $50.2 million.
First-half 2026 revenue rose 17% to a record $100.3 million, the first time Meridian Holdings has exceeded $100 million of first-half revenue.
Meridianbet generated revenue of $35.8 million, up 23% year on year, and accounted for more than 70% of total group revenue.
Meridianbet operating income increased 91% year on year to $6.1 million, representing a 17% net margin.
New Meridianbet customer registrations increased 37%, while first-time depositors rose 24%.
Total deposit volume increased 24%, while betting gross gaming revenue grew 37% on record wagering activity.
Adjusted EBITDA increased 43% year on year to $5.9 million.
Net income attributable to Meridian Holdings reached $2.2 million, or $0.17 per share, compared with a $3.6 million loss, or $0.31 per share, in the comparable period.
Operating cash flow increased to $7.8 million from $2.4 million a year earlier.

Meridianbet Remains the Main Growth Engine

Meridianbet was the largest contributor to Meridian Holdings during the quarter. Its 23% revenue growth was accompanied by a sharp improvement in operating income and strong customer acquisition metrics.

The World Cup provided an important opportunity to bring new players onto the platform, although the sporting event also created some short-term pressure. Zacks notes that bettor-friendly FIFA results, together with two large casino wins totalling more than $1.2 million, weighed on the quarter’s results.

Gross profit nevertheless increased 10% year on year to $26.9 million. Gross margin was 53.5%, compared with 56.4% in the same period last year, partly reflecting lower sportsbook and casino hold and customer-acquisition spending associated with the World Cup.

Expanse Studios Extends Its Distribution Footprint

Another area highlighted in the research note is Expanse Studios, Meridian Holdings’ proprietary gaming content business.

Expanse reported second-quarter revenue growth of 138% year on year, while gross gaming revenue increased 90%. The business has more than 70 proprietary titles and distribution across more than 1,500 casino brands in Europe, Latin America and North America.

During the period, Expanse continued to broaden its reach through distribution relationships including MaxBet Serbia, Synottip and Joker.lv, while also establishing a North American distribution partnership with Bragg Gaming.

The studio has also secured certifications in markets including Latvia, Colombia, Portugal and Slovenia.

Balance Sheet Continues to Strengthen

Meridian Holdings has also made progress on its balance sheet.

Net debt declined 65% year on year, helped by debt repayments and growth in the company’s cash position. At the end of the second quarter, Meridian held $17.3 million of cash and $9.4 million of net debt.

Net debt leverage stood at 0.39 times annual adjusted EBITDA, down from approximately 1.5 times at the end of the first half of 2025. Following six consecutive quarters of deleveraging, interest expense was also down by roughly 80% year on year.

This improvement gives the group greater financial flexibility as it continues investing in technology, customer retention and international growth initiatives.

Outlook for the Second Half of 2026

For the second half of 2026, Meridian Holdings expects constant-currency revenue growth of approximately 8% to 10% year on year.

Zacks expects growth to be supported primarily by continued momentum at Meridianbet, an expanded customer base and contributions from new markets for Expanse Studios. The research note also points out that the fourth quarter is generally the company’s strongest period because of the concentration of major sporting events and holiday wagering activity.

The company is placing particular emphasis on retaining recently acquired customers, encouraging repeat deposits and developing casino cross-selling opportunities. Its technology platform, including artificial intelligence capabilities, is expected to support these efforts.

Brand-building remains another part of the strategy. Meridianbet has been named the Official Partner of UFC Fight Night Serbia, giving the brand exposure both at the event and through international broadcasting and digital promotion.

Zacks Valuation

Zacks Small-Cap Research places a valuation of $16.20 on Meridian Holdings shares, compared with the $11.01 market price quoted in the research note as at 29 July 2026.

The valuation is based on approximately two times Zacks’ 2026 revenue forecast, together with a risk adjustment of around 50%. Zacks forecasts full-year 2026 revenue of approximately $204.7 million and earnings per share of $0.66.

The research house also classifies Meridian Holdings as a high-risk, small-growth stock and identifies risks including competition, regulation, foreign exchange exposure, technology developments and the possibility that expansion into new markets could progress more slowly than expected.

Final Thoughts

Meridian Holdings’ second-quarter results showed continued revenue growth, stronger profitability, expanding customer numbers and further improvement in the balance sheet. Particularly notable was the performance of Meridianbet, where customer registrations, deposits and wagering activity all increased at double-digit rates.

With many World Cup-related customer acquisitions occurring late in the quarter, management now has the task of retaining those users and converting increased registrations into recurring revenue. Alongside continued deleveraging and the expansion of Expanse Studios, this provides several measurable areas to watch during the remainder of 2026.

DirectorsTalk Interviews

Message History

Delivery option(s)