Meridian (NASDAQ:MRDN) Issues Earnings Results

Meridian (NASDAQ:MRDN) issued its quarterly earnings data on Wednesday. The company reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.10, FiscalAI reports. The business had revenue of $50.19 million for the quarter. Meridian had a negative net margin of 41.41% and a negative return on equity of 108.46%.

Here are the key takeaways from Meridian’s conference call:

• Profitability and cash generation improved substantially: Q2 revenue rose 16% to $50.2 million, GAAP net income reached $2.2 million, adjusted EBITDA increased 43% to $5.9 million, and operating cash flow more than tripled to $7.8 million.
• Balance-sheet risk continued to decline. Net debt fell 65% year over year to $9.4 million, leverage declined to 0.39 times adjusted EBITDA, and interest expense dropped approximately 80%; management said it expects to continue paying down debt while retaining capacity for opportunistic investments.
• Meridianbet reported record customer activity, including registrations up 37%, first-time depositors up 24%, deposits up 24%, and record wagering volume. Management expects to convert and retain the large World Cup-related customer cohort, though retention in newer markets remains a challenge.
• Gaming margins were pressured by favorable outcomes for bettors. World Cup sportsbook results and lower casino hold reduced gross margin to 53.5% from 56.4% a year earlier, leaving revenue modestly below the company’s prior guidance despite strong demand.
• Management forecast approximately 8%–10% constant-currency revenue growth for the second half of 2026, with Meridianbet expected to grow materially faster than the company average and the fourth quarter projected to be the strongest due to seasonality.

Meridian Trading Down 3.1%

NASDAQ MRDN traded down $0.35 during trading on Friday, reaching $10.80. 41,703 shares of the company’s stock were exchanged, compared to its average volume of 45,689. Meridian has a fifty-two week low of $5.80 and a fifty-two week high of $19.44. The company has a market capitalization of $136.83 million, a price-to-earnings ratio of -1.60 and a beta of 0.63. The company has a quick ratio of 0.48, a current ratio of 0.57 and a debt-to-equity ratio of 0.10. The stock has a fifty day moving average price of $13.04.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Wall Street Zen raised shares of Meridian to a “strong-buy” rating in a research note on Saturday, May 9th. Weiss Ratings upgraded Meridian from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Meridian presently has a consensus rating of “Sell” and an average target price of $21.60.

Insiders Place Their Bets

In other news, CEO Anthony Brian Goodman sold 12,196 shares of the company’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $10.37, for a total value of $126,472.52. Following the transaction, the chief executive officer owned 479,463 shares in the company, valued at $4,972,031.31. This represents a 2.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last 90 days, insiders sold 67,346 shares of company stock worth $855,122. Insiders own 9.37% of the company’s stock.

Institutional Trading of Meridian

A number of institutional investors have recently bought and sold shares of the company. Whetstone Capital Advisors LLC purchased a new stake in shares of Meridian during the 4th quarter worth about $331,000. State Street Corp grew its stake in shares of Meridian by 25.6% in the 4th quarter. State Street Corp now owns 99,899 shares of the company’s stock valued at $80,000 after buying an additional 20,343 shares in the last quarter. Deutsche Bank AG grew its position in Meridian by 224.4% in the fourth quarter. Deutsche Bank AG now owns 94,695 shares of the company’s stock worth $76,000 after acquiring an additional 65,501 shares in the last quarter. Continuum Advisory LLC increased its stake in shares of Meridian by 375.0% during the 4th quarter. Continuum Advisory LLC now owns 57,000 shares of the company’s stock worth $46,000 after purchasing an additional 45,000 shares during the last quarter. Finally, Susquehanna International Group LLP increased its stake in shares of Meridian by 33.7% during the 3rd quarter. Susquehanna International Group LLP now owns 114,409 shares of the company’s stock worth $129,000 after purchasing an additional 28,819 shares during the last quarter. Institutional investors and hedge funds own 2.74% of the company’s stock.

Meridian Company Profile

Meridian Holdings Inc is engaged in the online gaming and betting business, providing sports betting, online casino, and gaming operations across multiple jurisdictions in Europe, Africa, and Central and South America. The company has three reportable segments: MeridianBet Group, GMAG, and RKings & CFAC. The MeridianBet Group segment includes retail and online sports betting, casinos, and related gaming operations. The GMAG segment focuses on the resale of third-party gaming content, mainly serving customers in the Asia-Pacific region.