Meridian Holdings reported first-quarter 2026 results that marked its first GAAP-profitable quarter under the Meridian Holdings brand, driven by double-digit revenue growth, expanded profitability, and continued debt reduction.
First-quarter results: revenue up 17%, return to GAAP profitability
Interim Chief Executive Officer William Scott said the quarter represented a milestone for the company, calling it “the first quarter in which we reported GAAP profitability under Meridian Holdings brand.”
Meridian reported net income of $2.2 million, or $0.18 per diluted share, compared with a net loss of $300,000, or $0.02 per diluted share, in Q1 2025. Christensen said income from operations was $3.2 million, a $3.3 million improvement from a small operating loss in the year-ago period, attributing the change to operating leverage as revenue scaled alongside cost discipline.
Gross profit was $28.1 million, with a 56.2% gross margin, compared with 56.6% in Q1 2025. Christensen said margins were “consistent with the prior period,” with the mix shift reflecting high-margin Meridianbet contributions partially offset by early-stage economics in smaller markets.
Meridianbet led growth and profitability, Brazil ramps
Christensen said revenue growth was “broad-based across our portfolio,” but led by Meridianbet, which delivered $34.9 million in Q1 revenue, up approximately 26% year over year and representing about 70% of total company revenue.
Zoran Milosevic, CEO of Meridianbet Group, said the performance reflected execution across “our 25 regulated markets” and scaling of growth initiatives. He highlighted customer growth metrics, including:
- 428,400 registrations, up 41% year over year
- 333,000 active users, up 21%
- 283,000 depositors, up 27%
Milosevic said the conversion from registration to activity and depositing indicates the company is “not only acquiring customers at an accelerating pace, we are converting and retaining them.” He also pointed to Brazil as an important growth market following its 2025 launch, saying the company has built local partnerships and invested in locally relevant content and user experience while positioning Meridianbet as a “credible, compliant operator.”
On Brazil’s regulatory environment, Milosevic described it as “by far most regulated country in the world when it comes to KYC, AML and regulatory, and … customer protection,” and said the heavy regulatory burden has affected short-term scaling across the industry. He added that Meridianbet is focused on investing “with discipline,” targeting sustainable market share rather than “short-term promotional volume.”
Expanse Studios expands distribution; AI investments continue
Milosevic also highlighted progress at Expanse Studios, Meridianbet Group’s B2B gaming content subsidiary. He said the operator network expanded to 1,519 active distribution sites in Q1, adding 175 new sites during the quarter, and the proprietary game portfolio grew to 77 titles with six new games launched.
He described the content business as generating recurring B2B revenue with attractive margins and operating leverage, noting that new titles can be distributed across the operator network “with minimal incremental cost.”
On the technology front, Milosevic said the company continues investing in AI-powered capabilities to enhance personalization, improve risk management and pricing accuracy in sportsbook operations, and drive efficiencies such as customer service automation and trading floor optimization.
During Q&A, Milosevic addressed the status of Expanse Studios’ pending approvals in New Jersey and Ontario, saying the company had done everything on its side and was awaiting regulatory decisions. “We have never been closer to that, both relative to New Jersey and Ontario, and it’s really big news for us,” he said, while adding he could not predict timing.
Other segments: RKings and Classics for a Cause grew; GMAG declined as mix shifts to MexPlay
Christensen reported that RKings and Classics for a Cause delivered $12.1 million in combined revenue, up 9% year over year and representing 24% of total company revenue.
At RKings, the U.K.-based pay-to-enter prize competition business, revenue was $7.7 million, up 12%. Christensen said average order value increased 29% to $16.91, and value per new registration rose 15% to $17.72.
At Classics for a Cause, the Australia-based subscription and trade promotion lottery platform, Christensen said new users rose 18% to 9,813, total transactions increased 12% sequentially, and VIP subscriptions ended the quarter at 10,750, surpassing 10,000 “for the first time in 12 months.”
GMAG, the company’s B2B iGaming aggregation segment that includes MexPlay, contributed $3.1 million in revenue, down 18% from $3.8 million a year ago, representing about 6% of total company revenue. Christensen said MexPlay, a Mexico-facing regulated online casino, grew 28% year over year, with registrations reaching 74,000 (up 271%) and first-time depositors rising to 6,101 (up nearly 200%). He added that shifting mix away from the competitive B2B aggregation business toward MexPlay improved gross margin by “over 5 percentage points over last year.”
In discussing Mexico during Q&A, Scott said he did not have specific market size figures but called it “a very robust market” and “a regulated regime, which is where we like to play.” Milosevic added Mexico is “one in top like five countries when it comes to new customer registration,” and said the company is “really, really positive about Mexico as well.”
Balance sheet, cash flow, and Q2 guidance; World Cup seen as catalyst
Scott and Christensen emphasized continued balance sheet improvement. Christensen said cash and cash equivalents were $16.2 million at quarter end, total debt was $29.7 million (down from $34.7 million at year-end 2025 and down 54% year over year), and net debt was $13.4 million, a 62% reduction from the prior year. The net debt leverage ratio was 0.53x annualized adjusted EBITDA. Operating cash flow was $5.2 million.
For Q2 2026, Christensen issued revenue guidance of $51 million to $53 million, implying 18% to 23% growth over Q2 2025 revenue of $43.2 million. He cited continued growth in Meridianbet, seasonal uplift in retail and online wagering, and confidence in business fundamentals.
Management and analysts focused heavily on the upcoming World Cup as a potential catalyst. Scott said the World Cup can be a strong acquisition driver, though outcomes can be unpredictable. Milosevic said four of Meridianbet’s operating countries—Belgium, Brazil, Mexico, and Bosnia—have national teams participating, which he said can drive “maximum growth,” particularly in Brazil. However, he cautioned that profitability around the event can be “tricky” due to emotional betting patterns, saying company simulations suggest outcomes can range “from neutral to mild positive” for profit.
Milosevic also described how increased regulatory requirements have added friction to customer onboarding in many markets, particularly Brazil. Separately, he said retention efforts could reactivate the existing customer database “40%-50% more” than periods without the World Cup.
On capital deployment, Scott said the company is maintaining a disciplined approach focused on returns, with continued investment in technology and regulated market expansion. He said Meridian previously declared dividends when it was private and suggested shareholder returns could be considered in the future, stating the company may “announce something in the future” regarding shareholder returns, while emphasizing that the company does not feel pressure to deploy capital “recklessly.”
About Golden Matrix Group (NASDAQ:GMGI)
Golden Matrix Group Inc is a technology-driven gaming entertainment company that develops and delivers digital real-money gaming solutions. Incorporated in Nevada with principal operating offices in Malta, the company focuses on providing a comprehensive online gaming platform to licensed operators. Golden Matrix Group’s core mission is to enable its clients to launch and scale casino, sports betting, lottery and other interactive gaming offerings—backed by proprietary technology and a portfolio of third-party content integrations.
The company’s flagship product, the KaFe Rocks platform, combines player account management, risk and fraud monitoring, payment processing, and back-office reporting into a single, modular system.
