By M. Marin
NASDAQ: MRDN
READ THE FULL MRDN RESEARCH REPORT
MRDN optimistic about outlook
Meridian Holdings Inc. (NASDAQ: MRDN), which licenses and operates online sports betting and gaming platforms globally, reported 1Q26 results yesterday and provided a business update. 1Q26 revenue came in at $50.1 million, which represented a 17% year-over-year advance as Meridian continues to advance its B2B and B2C expansion strategy and core Meridianbet operations continue to scale. During the quarter, Meridianbet new customer registrations grew 41% compared to 1Q25. Aggregate company gross profit of $28.1 million represented a 16% year-over-year improvement. Adjusted EBITDA came in at $6.3 million compared to about $5.0 million in 1Q25.
Meridian remains focused on growth, organically and using strategic M&A that prioritizes acquisitions in high-barrier markets with limited licensing to complement organic growth and further its goal to diversify its revenue base across geographic markets, by operating segment, and by channel. MRDN views the diversification of its operations across both B2B and B2C channels and geographic markets as a competitive advantage that protects the company from contractions in any single market or channel. As it continues to expand its global footprint, MRDN intends to prioritize expansion into new regulated markets, including in Latin America and Europe, enhance AI-driven gaming innovation, and boost operational efficiencies.
Meridianbet Group segment showed strong growth in key financial and operating metrics
The Meridianbet Group B2C sports betting and online casino segment was the key driver of aggregate revenue growth. Meridianbet new customer registrations grew 41% year‑over‑year, as noted. Converting new registrations to active users can vary market to market, depending on regulatory backdrop. Active users advanced 21%, and depositors advanced 27%.
Meridianbet Group segment revenue grew 26% year-over-year to $34.9 million, representing ~70% of total revenue. The segment gross margin was roughly 69%. Within the Meridianbet Group segment, the company continues to expand Expanse Studios’ content library and operator network. Expanse Studios is MRDN’s B2B gaming content provider, developing proprietary gaming content for 1,344 operators across North America, Europe, Latin America, Africa, and Asia. Expanse added 175 new sites in 1Q26, expanding its operator network to 1,519 active sites. Expanse secured new certifications in Latvia, Estonia, Sweden, and Portugal during 1Q26 and is pending regulatory approval of its application for system certification in Ontario, Canada.
RKings & Classics for a Cause segment recorded solid growth
Revenue of the RKings & Classics for a Cause segment advanced 8.5% year-over-year to $12.1 million. RKings generated ~64% of segment revenue. RKings’ unit economics improved, as average order value increased 29% to $16.91 and value per new registration increased 15% to $17.72. New Classics for a Cause users advanced 18% year-over-year to 9,813, and total transactions advanced 12% sequentially. At 10,750 at the end of the quarter, VIP subscriptions exceeded 10k for the first time in a year.
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