Meridian Holdings Inc. has reported nine-month revenue growth of 10% to $146.3 million, supported by a 16% increase in Meridianbet Group revenue and a 21% rise in online casino revenue.
The sports betting and gaming group released results for the third quarter ended 30 September 2026, a period it described as challenging because of customer-favourable sports results, regulatory developments in Brazil and higher operating costs. Brazil suspended fixed-odds betting, including online casinos, by all operators during the quarter.
Chief executive Zoran Milosevic said the core business remained healthy and, outside one-off adjustments, continued to generate cash. He said Meridian Holdings generated $17.7 million in operating cash flow at the consolidated level, which was sufficient to fund investments while continuing to reduce debt for a seventh straight quarter.
Third-quarter revenue was $46.0 million, down 3% from a year earlier, while net loss attributable to Meridian Holdings widened to $13.3 million. The company recorded $11.5 million of non-cash impairment charges in the quarter, which contributed significantly to the reported loss.
Net loss for the quarter was $14.7 million and adjusted EBITDA was $0.4 million. For the first nine months of 2026, net loss attributable to Meridian Holdings was $8.8 million, compared with a net loss of $3.2 million in the prior-year period.
Online casino leads growth
Meridianbet Group generated revenue of $33.1 million in the third quarter, up 2% year on year. Online casino revenue rose 17% to $17.1 million in the quarter, while new registrations increased 25% to 458,680 and customer deposits climbed 9% to $101.1 million.
For the nine months ended 30 September 2026, Meridianbet Group revenue rose 16% to $103.8 million. Online casino revenue increased 21% to $46.9 million over the same period.
Average deposit levels at Meridianbet Group rose 18% in the third quarter compared with the same period in 2025. Expanse Studios increased revenue from third-party operators by 114%, while MexPlay in Mexico grew revenue 55% and first-time depositors rose 35%, both on a third-quarter year-on-year basis.
Brazil licence write-off and goodwill impairment
Of the quarter’s impairment charges, $5.5 million related to the full write-off of the Brazilian gaming licence and related intangible assets after Brazil prohibited fixed-odds betting during the third quarter. A further $5.9 million related to goodwill impairment in the reporting unit that holds RKingsCompetitions Ltd. and Meridian Holdings’ 80% interest in Classics Holdings Co. Pty Ltd., which owns Classics For a Cause Pty Ltd and GMAG, after continued operating losses.
Following the impairment, goodwill on the balance sheet was $3.0 million as of 30 September 2026. Third-quarter results also reflected lower revenue at RKings and Classics for a Cause, higher operating costs, marketing around the FIFA World Cup at Meridianbet Group and bad-debt expense at GMAG.
Cash flow, debt reduction and balance sheet
Operating cash flow for the first nine months of 2026 rose 3% to $17.7 million from $17.1 million a year earlier. That cash flow fully funded investment activity and $9.0 million of debt repayment. Free cash flow increased to $10.9 million from $2.5 million in the prior-year period, helped by lower capital expenditure and lease repayments than a year earlier.
Gross profit for the quarter was $24.8 million, down from $26.4 million a year earlier, with gross margin at 54.0% compared with 55.8% in the third quarter of 2025. For the nine months ended 30 September 2026, gross profit rose 6% to $79.8 million.
As at 30 September 2026, Meridian Holdings had cash and cash equivalents of $16.0 million and bank and other loans of $7.8 million. Total debt stood at $24.1 million, down 47% from 30 September 2025, while net debt was $8.1 million, down 65% over the same period. The company said the quarter marked its seventh consecutive quarter of deleveraging.
Bank and other loans fell 55% from 31 December 2025, and interest expense for the first nine months of 2026 declined 74% to $0.9 million. Meridian Holdings said its cash on hand is sufficient to meet current working capital and capital expenditure requirements for at least 12 months.
Debt settlement extended
In September 2026, the company extended the remaining $15.6 million of acquisition consideration owed to former owners of Meridianbet Group, who are related parties, to 1 November 2031, with no interest. The company may settle it earlier at its discretion.
Shares outstanding at 30 September 2026 totalled 12,681,533, up 0.10% in the quarter and 0.32% since 31 December 2025. Meridian Holdings raised no equity capital in 2026 and made no share repurchases during the quarter.
