By M. Marin
NASDAQ: MRDN
READ THE FULL MRDN RESEARCH REPORT
With initiatives, positive 2025 trends & upcoming FIFA games, MRDN optimistic about outlook
Meridian Holdings Inc. (NASDAQ: MRDN) reported 4Q25 / 2025 results last week and provided 1Q26 preliminary revenue guidance. The company recently implemented rebranding to align the public company name, Meridian, which management has indicated has significant brand awareness among gaming operators. Meridian continues to advance its B2B and B2C expansion strategy and is optimistic about the outlook, adding new gaming licenses, expanding its geographic footprint, and growing its gaming content library, among other growth initiatives. The company is also optimistic about the benefits of its AI-driven technology and cites this as a key factor contributing to lowering its acquisition costs and extending customer lifetime value.
Year-over-year revenue increases of 8% and 21%, respectively, in 4Q25 and full year 2025 to $49.6 million and $182.9 million would seem to support Meridian’s optimism. MRDN’s 4Q25 gross profit improved 6% to $28.5 million. Reflecting higher selling and marketing expenses designed to drive customer growth, 4Q25 adjusted EBITDA came in at $4.6 million compared to $6.5 million in 4Q24. Full year 2025 gross profit improved 17% year-over-year to $103.5 million.
However, primarily reflecting a $91.8 million non-cash goodwill and intangible asset impairment charge, the company recorded a 4Q25 net loss of $88.4 million, or $7.09 per share, compared with a net loss of $2.1 million, or $0.20 per share, in 4Q24. Largely reflecting the non-recurring charge, which was the result of a decline in the company’s share price, 4Q25 results mask the positive revenue and operating trends, we believe. Specifically, Meridianbet new customer registrations grew 72% year‑over‑year to 1.2 million, and active users and depositors advanced 35% and 40% respectively.
Meridianbet Group segment an engine for growth
Initiatives include debt reduction & stronger balance sheet, leadership change, technology upgrade
MRDN has strengthened its balance sheet, reducing net debt by 59% with total debt down 51% and cash up, and enacted a leadership transition expected to support the execution of its growth strategy. The company has upgraded its technology platform to a next-gen system that leverages AI to ‘learn’ player behavior and preferences in order to deliver targeted game recommendations in the iGaming segment, as well as personalized bet suggestions. The company’s AI technology enables MRDN to learn about players and their preferences, and thereby is expected to boost customer retention. Meridian leverages an omni-channel approach to markets, with its scalable technology systems enabling the company to operate in multiple countries and currencies.
With these initiatives, the tailwind of positive 2025 trends including growth in new customer registrations, active users, and depositors noted above, and the 2026 expected benefits of the FIFA games, the company is optimistic about its outlook. For 1Q26, MRDN expects revenue of about $50 million, representing about 17% annual growth, and adjusted EBITDA of about $6.1, equating to roughly 9% annual growth.
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. For example, MRDN’s Expanse subsidiary recently acquired Fairbet Ltd., a licensed retail gaming operator in Malta. Malta’s retail gaming sector operates under one of Europe’s most stringent regulatory frameworks, according to the company. Only three licenses have been granted, and with the Fairbet acquisition, Meridianbet now holds two of the three. The other license is held by Izibet, the National Lottery operator.
The Fairbet acquisition is consistent with a core MRDN objective 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 2025 revenue up 17% y/y
Meridianbet Group segment revenue grew 17% year-over-year in 2025 to $124.6 million, representing 68% of total revenue. The segment gross margin was roughly 70%. In the Meridianbet Group segment. Expanse Studios develops proprietary gaming content for 1,344 operators across North America, Europe, Latin America, Africa, and Asia. Its operator network grew 630% year-over-year in 2025, contributing to 4Q25 year-over-year revenue growth of 435%.
Among recent network expansion measures, Expanse Studios recently secured a Romanian gaming license, signed a distribution deal with MerkurXtip and one with Admiral Bet, completed multiple U.S. integrations, secured Brazilian iGaming certification, and a U.S. and EU distribution deal with Bragg Gaming, among other measures. Expanse has also filed for system regulatory certification in Ontario, Canada. Expanse recently launched Bonus Bet, a proprietary promotional feature addressing operator retention challenges and promotional spend efficiency. Bonus Bet is designed to improve operator ROI on retention spend and lower player friction points. According to the company, early deployments show improvements in engagement patterns compared to standard bonus mechanics. The company believes the Bonus Bet feature strengthens Expanse’s market position and creates a competitive advantage. MRDN’s other segments also recorded solid 2025 revenue growth.
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