Meridian Holdings Inc. (Nasdaq: MRDN) is continuing to expand its international gaming operations, with Meridianbet taking an increasingly important role in the group’s growth and profitability, according to the latest research note from Argus Research.
The Las Vegas-based business, formerly known as Golden Matrix Group Inc., provides business-to-business and business-to-consumer gaming technology and services across more than 25 international markets. Its activities cover sports betting, online casino gaming, prize competitions and software platforms for gaming operators.
Argus Research analyst Steve Silver highlights Meridianbet as a central part of the investment case. The subsidiary now represents more than 70% of group revenue and operates across 18 markets.
Silver wrote: “We expect MRDN to continue to produce solid revenue growth over the coming years, as it expands its product offerings and geographic footprint.”
Meridianbet drives second-quarter growth
Meridian Holdings reported second-quarter 2026 revenue of $50.2 million, representing year-on-year growth of 16%. Meridianbet revenue increased by 23% and accounted for 71% of total group revenue.
Argus noted that Meridianbet achieved record results across several operating measures during the quarter, including new registrations, initial deposits and wagering volumes.
Reported revenue was modestly affected by unusually favourable results for bettors during the early stages of the World Cup, alongside two large casino wins. Argus views these factors as unusual rather than representative of the underlying business and expects margins to normalise.
Second-quarter 2026 highlights
- Group revenue increased 16% to $50.2 million.
- Meridianbet revenue increased 23% and represented 71% of total revenue.
- R Kings and Classics for a Cause revenue increased 4% to $10.8 million and represented 22% of group revenue.
- Adjusted EBITDA increased 43% year on year to $5.9 million.
- Adjusted EBITDA margin reached 11.8%.
- Operating income was $2.4 million, compared with an operating loss of $2.3 million in the second quarter of 2025.
- Diluted earnings per share were $0.17, compared with a loss of $0.31 per share a year earlier.
- Cash and equivalents stood at $17.3 million at 30 June 2026.
- Total debt was $26.5 million, down 62% from the end of 2024.
International expansion remains a key focus
Argus expects Meridian Holdings to increase its presence from more than 25 markets to at least 30 over the coming years.
One of the more significant opportunities identified in the research is Brazil. Meridianbet secured a full online betting licence in the country in March 2025, providing access to what Argus describes as one of the world’s largest regulated gaming markets.
Meridian Holdings estimates that Brazil represents a gross gaming revenue market of more than $5 billion. Argus expects the country’s contribution to the group to increase through 2026, although the research also notes that effective enforcement against unlicensed operators will be important to the development of the regulated market.
The company is also continuing to expand Expanse Studios, its proprietary gaming content operation. Expanse had signed more than 1,800 B2B partners by the second quarter of 2026, compared with fewer than 200 at the end of 2024, while its portfolio has grown to around 90 titles.
Recent certifications have included Latvia, Colombia, Portugal and Slovenia. Argus also sees potential for regulatory approvals in New Jersey and Ontario.
Proprietary technology could support operating leverage
Another aspect highlighted in the latest research note from Argus Research is Meridian Holdings’ ownership of proprietary gaming software.
The company uses artificial intelligence within its platform to analyse player behaviour and preferences, including personalised casino game recommendations and real-time sports betting suggestions. According to the report, Meridian Holdings has cited a 10% increase in engagement and a 9% increase in interactions with new gaming titles following the introduction of these capabilities.
Argus believes the existing technology investment could help the business achieve greater scalability as revenue grows, particularly because Meridianbet carries a significantly higher gross margin than the group’s other operations.
Argus estimates Meridianbet’s gross margin at approximately 70%, compared with around 20% to 25% for the company’s other businesses.
Debt reduction strengthens the financial position
The balance sheet is another area where Argus sees progress.
Total debt fell to $26.5 million at the end of June 2026 from $29.7 million at the end of the first quarter. Since the end of 2024, total debt has been reduced by 62%.
Net debt stood at $9.7 million, while the net debt-to-adjusted EBITDA ratio improved to 0.4 times, compared with 0.9 times at the end of 2025 and 2.1 times at the end of 2024.
Cash flow from operations was $13.0 million during the first half of 2026, up from $10.1 million in the comparable period of 2025. Argus expects operational cash generation to support both future growth and continued debt repayment.
Argus forecasts further revenue and EBITDA growth
For the full 2026 financial year, Argus forecasts revenue of $206 million, representing growth of approximately 13%. Revenue is forecast to rise to $230 million in 2027, an increase of around 12%.
Adjusted EBITDA is forecast at $28 million for 2026 and $38.5 million for 2027, representing projected growth of 45% and 37% respectively.
Argus also forecasts earnings per share of $0.86 in 2026 and $1.45 in 2027.
For the second half of 2026, Meridian Holdings has guided for constant-currency revenue growth of approximately 8% to 10% year on year, with the fourth quarter expected to be the strongest period of the year.
Argus sees $20 fair value
Argus Research has placed a fair value estimate of $20 per Meridian Holdings share, compared with the $13.99 recent share price stated in the report on 11 August 2026.
The research argues that Meridian Holdings continues to trade at a discount to a selection of gaming industry peers. Argus calculates the company’s forward enterprise value-to-revenue multiple at around 0.9 times its 2026 revenue forecast, compared with more than 2 times for peers.
Its valuation approach combines a 1.4 times enterprise value multiple applied to forecast 2026 revenue with an 8.5 times multiple applied to forecast adjusted EBITDA.
