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

Meridian Holdings' second-quarter 2026 results showcase the company's ability to grow even when sporting events favor bettors. Despite a World Cup period that was favorable to bettors, Meridian reported $50.2 million in revenue, a 16% increase year-over-year. Adjusted EBITDA rose 43% to $5.9 million, and the company achieved its second consecutive quarter of GAAP profitability with $2.2 million in net income and $0.17 in diluted earnings per share. This growth is significant as it occurred despite not having an easy quarter in sports betting.

Meridian's core business, Meridianbet, increased revenue by 23% to $35.8 million, while new registrations rose 37% and first-time depositors grew by 24%, indicating strong customer acquisition. Total deposit volume also increased by 24%, and betting gross gaming revenue surged by 37% due to record wagering activity.

CEO Zoran Milosevic emphasized that the company's underlying growth in customer base and handle demonstrates the strength of the platform. The company's diversified portfolio, which includes proprietary game development, B2B aggregation, online casino, prize competitions, and subscription-based digital membership businesses, began to show its value.

Expanse Studios, Meridian's game development business, saw a 138% year-over-year revenue increase and a 90% growth in gross gaming revenue. The company has expanded partnerships, certifications in regulated markets, and introduced player-engagement products.

The balance sheet supports the growth narrative, with operating cash flow reaching $7.8 million, a significant increase from $2.4 million the prior year. Net debt fell by 65% to $9.4 million, and net debt leverage declined to 0.39 times annualized Adjusted EBITDA. The company has been deleveraging for six consecutive quarters, and interest expense fell by approximately 80%.

Meridian's expansion into new markets, such as the Meridian x UFC partnership in Belgrade, enhances the company's global identity while not solely relying on financial performance. The quarter's results demonstrate that Meridian can continue growing even when conditions are favorable, showcasing its ability to keep expanding revenue, profitability, and cash flow while reducing financial risk and diversifying its operations.