Meridian Holdings Q2 2026: What happens when the bettors win, but the company still grows?

Meridian Holdings reported a strong second quarter of 2026, despite favorable conditions for bettors. The company's revenue increased by 16% year-over-year, reaching $50.2 million, while adjusted EBITDA grew by 43% to $5.9 million. The company achieved its second consecutive quarter of GAAP profitability with net income of $2.2 million and diluted earnings per share of $0.17.

This growth is particularly noteworthy as it occurred during an unusually favorable period for bettors, with major tournament outcomes lining up with popular bets and sportsbook margins under pressure.

The company's core business, Meridianbet, grew by approximately 23% to $35.8 million, with new registrations increasing by 37% and first-time depositors rising by 24%. Total deposit volume also grew by 24%, and betting gross gaming revenue increased by 37% on record wagering activity. Zoran Milosevic, CEO of Meridian Holdings, emphasized the importance of the underlying growth in the customer base and handle, suggesting it is a clear measure of the business's momentum.

Meridian Holdings has also diversified its operations beyond traditional sports betting. The company's proprietary game-development business, Expanse Studios, saw a 138% increase in revenue and 90% growth in gross gaming revenue year-over-year. Expanse Studios now distributes its content across 1,881 operator sites with 95 proprietary titles. Additionally, the company has expanded into B2B aggregation, online casino, prize competitions, and subscription-based digital membership businesses.

The financial performance of Meridian Holdings also demonstrates its ability to manage risk. Operating cash flow reached $7.8 million, up from $2.4 million a year earlier, and net debt fell by 65% to $9.4 million, with leverage decreasing to 0.39 times annualized Adjusted EBITDA. This is the sixth consecutive quarter of deleveraging, with interest expense falling by approximately 80%.

The company's recent partnership with UFC in Belgrade further strengthens its position in the gaming industry. This collaboration, which connects the company's local roots with a globally recognized sports platform, adds a recognizable global identity to Meridian Holdings' performance.