Meridian Holdings Inc.

What they do

Meridian Holdings operates online sports betting, online casino and gaming operations across over 20 jurisdictions in Europe, Africa and Central and South America under the Meridianbet brand, employing roughly 1,200 personnel. It runs both online (iOS, Android, mobile browser, desktop) and approximately 700 company-owned or franchised betting shops, of which about 260 are subsidiary-owned and about 440 are franchisee-owned. It also licenses enterprise SaaS to iGaming operators and offers pay-to-enter prize competitions in the UK and trade promotions in Australia.

Revenue drivers

• Meridianbet Group (sports betting and gaming) — Core B2C sportsbook, online casino, slots, eSports and virtual games across retail and digital channels; reported Q2 2026 revenue of $35.8 million, up 23% year-over-year, the largest single line disclosed.
• Online casino — Casino revenue has grown significantly over recent years and management cites potential casino cross-sell of newly acquired World Cup customers as a future revenue contributor.
• B2B SaaS licensing — Enterprise Software-as-a-Service for online casino and sports betting operators, a separate revenue line from the company's own B2C operations.
• UK prize competitions and Australian trade promotions — Pay-to-enter prize competitions in the UK and lead trade promotions in Australia that provide members with free prizes.

Recent performance

Second quarter 2026 revenue was $50.2 million, up 16% or $6.9 million year-over-year, with first-half 2026 revenue of $100.3 million (up 17%) surpassing $100 million for the first time. Gross profit was $26.9 million with gross margin of 53.5%, down from 56.4% on lower sportsbook and casino hold, partly due to an unusually bettor-favorable run of World Cup results. Net income attributable to MRDN was $2.2 million, or $0.17 per diluted share, versus a $3.6 million net loss, or $(0.31) per share, a year earlier and a second consecutive quarter of GAAP profitability. Adjusted EBITDA rose 43% to $5.9 million (11.8% margin), operating cash flow was $7.8 million versus $2.4 million, and the company reported cash of $17.3 million, total debt of $26.7 million and net debt of $9.4 million (0.39x leverage).

Strategy

Management emphasizes operational execution across markets, continued technology integration and disciplined capital allocation toward sustained, profitable growth. The company has delivered six consecutive quarters of deleveraging, with interest expense down approximately 80% year-over-year, funded by operating cash flow. Customer-acquisition spend tied to the World Cup was expensed in Q2 2026, and management is watching retention, repeat deposits and casino cross-sell from that cohort in later quarters. Share count is being managed tightly: shares outstanding rose only 0.23% in the quarter from vesting of previously granted awards, with no new equity awards granted.

Risks

• Sportsbook hold volatility — Q2 2026 gross margin fell to 53.5% from 56.4% because an unusually bettor-favorable World Cup run reduced sportsbook and casino hold, showing results are sensitive to sporting outcomes.
• Regulatory exposure across 20+ jurisdictions — Betting, casino and prize-competition operations span more than 20 markets in Europe, Africa and the Americas, each with its own gaming licensing and compliance regime.
• Leverage and debt service — The company carried $26.7 million of total debt and $9.4 million of net debt at June 30, 2026, at 0.39x net debt leverage.
• World Cup customer-cohort uncertainty — Acquisition costs for World Cup customers were expensed in Q2 2026 while those customers joined late in June and contributed only modestly, so retention, repeat deposits and casino cross-sell are not yet demonstrated.

Outlook

Management said it remains focused on operational execution across its markets, continued technology integration and disciplined capital allocation as it builds toward sustained, profitable growth. It expects the retention, repeat-deposit activity and revenue contribution of the World Cup customer cohort, including potential casino cross-sell, to become clearer in subsequent quarters. The company also said it expects to continue reporting share-count metrics with its quarterly results.