Meridian Holdings Inc. (NASDAQ: MRDN), a sports betting and gaming group, has announced financial results for the third quarter ended September 30, 2026.
“This was a challenging quarter, impacted by customer-favorable sports results, regulatory developments in Brazil and higher operating costs. Brazil suspended fixed-odds betting, including online casinos, by all operators. Our core business remains healthy and outside one-off adjustments continues to generate cash to drive its own growth. Meridianbet Group grew revenue 16% for the nine months ended September 30, 2026, compared to the prior year’s nine-month period, led by online casino, up 21%, period over period. At the consolidated level, Meridian Holdings generated $17.7 million in operating cash flow, sufficient to fund all of our investments while continuing to reduce debt for a seventh straight quarter. Our full-year outlook reflects the challenges faced during the third quarter. In the fourth quarter, historically our strongest, we expect higher betting volume and continued momentum in online casino. We remain focused on improving margins and driving operational efficiency through more targeted marketing and promotional costs, continued optimization of our retail footprint and expected growth in higher-margin online casino, with a goal of returning to the profitability we demonstrated in the first half of 2026.”
Zoran Milosevic · Chief Executive Officer, Meridian Holdings
Third-quarter revenue was $46.0 million, down 3% year-over-year, and the net loss attributable to Meridian Holdings was $13.3 million. The Company recorded $11.5 million of non-cash impairment charges during the quarter, contributing significantly to the reported loss. Net loss was $14.7 million and Adjusted EBITDA (non-GAAP, see “Non-GAAP Financial Measures”, below) was $0.4 million for the three months ended September 30, 2026. For the first nine months of 2026, revenue grew 10% year-over-year to $146.3 million, and the Company repaid $9.0 million of debt.
Of the impairment charges, $5.5 million related to the full write-off of the Brazilian gaming license and the related intangible assets after Brazil prohibited fixed-odds betting during the third quarter of 2026. A further $5.9 million related to a goodwill impairment in the reporting unit that holds RKingsCompetitions Ltd., (“RKings”), our 80% interest in Classics Holdings Co. Pty Ltd., which owns Classics For A Cause Pty Ltd (“Classics For a Cause”) and GMAG, after continued operating losses. After the $5.9 million goodwill impairment in the third quarter of 2026, goodwill on the balance sheet was $3.0 million as of September 30, 2026. Third-quarter results also reflect customer-favorable sports results, lower revenue at RKings and Classics for a Cause, and higher operating costs, including marketing around the FIFA World Cup at Meridianbet Group and bad-debt expense at GMAG.
Third Quarter and Nine-Month 2026 Financial Highlights
- Company revenue of $46.0 million for the three months ended September 30, 2026, a decrease of $1.4 million or 3% year-over-year, as revenue at RKings and Classics for a Cause fell $2.2 million, or 19%, to $9.1 million. Revenue for the nine months ended September 30, 2026, was $146.3 million, up 10% from $133.3 million for the nine months ended September 30, 2025.
- Meridianbet Group grew revenue 2% to $33.1 million for the three months ended September 30, led by online casino, up 17% to $17.1 million. Compared with the third quarter of 2025, new registrations rose 25% to 458,680 and customers deposited $101.1 million during the quarter, up 9%. For the nine months ended September 30, 2026, Meridianbet Group revenue rose 16% to $103.8 million, and online casino revenue rose 21% to $46.9 million.
- Average deposit levels at Meridianbet Group rose 18% in the third quarter of 2026 compared with the third quarter of 2025. Expanse Studios grew its revenue from third-party operators by 114%. In addition, MexPlay in Mexico grew revenue 55%, with first-time depositors up 35%, each in the third quarter of 2026 compared with the third quarter of 2025.
- Net loss attributable to Meridian Holdings for the three months ended September 30, 2026, was $13.3 million, or $(1.05) per basic and diluted share, including $11.5 million of non-cash impairment charges, compared with net income of $0.6 million, or $0.05 per basic and diluted share, in the third quarter of 2025. Net loss attributable to Meridian Holdings for the nine months ended September 30, 2026, was $8.8 million, or $(0.70) per basic and diluted share, compared with a net loss of $3.2 million, or $(0.29) per basic and diluted share.
- Operating cash flow of $17.7 million for the nine months ended September 30, 2026, up 3% year-over-year from $17.1 million, fully funded the Company’s investment activities and $9.0 million in debt repayment. Free cash flow (non-GAAP, see “Non-GAAP Financial Measures”, below), defined as operating cash flow less capital expenditure of $4.6 million and lease repayments of $2.2 million, increased to $10.9 million for the nine months ended September 30, 2026, from $2.5 million in the prior-year period, when capital expenditure totaled $12.7 million.
- Gross profit was $24.8 million for the three months ended September 30, 2026, compared with $26.4 million in the third quarter of 2025, with gross margin of 54.0%, compared with 55.8% in the prior year’s period, reflecting the lower sports betting margin after customer-favorable sports results. Gross profit for the nine months ended September 30, 2026, rose 6% to $79.8 million. Net loss was $14.7 million and Adjusted EBITDA (non-GAAP) was $0.4 million for the three months ended September 30, 2026, compared with net income of $0.4 million and Adjusted EBITDA of $4.8 million for the three months ended September 30, 2025 (on the current definition; see “Non-GAAP Financial Measures”, below). For the nine months ended September 30, 2026, net loss was $10.6 million and Adjusted EBITDA was $12.6 million, compared with a net loss of $3.6 million and Adjusted EBITDA of $14.0 million for the nine months ended September 30, 2025. The third-quarter decrease of $4.5 million in Adjusted EBITDA reflected $1.6 million of lower gross profit, mainly in online sports betting and at RKings and Classics for a Cause, partly offset by higher online casino gross profit; $0.9 million of higher bad-debt expense, primarily related to additional allowances for doubtful accounts and receivable write-offs in GMAG’s B2B gaming content resale business; $0.4 million of higher marketing expenses, primarily related to the FIFA World Cup; $0.4 million of higher rent and utilities, mainly due to new betting shops; $0.3 million of higher salaries; and approximately $0.9 million of higher other operating costs.
- The Company had cash and cash equivalents of $16.0 million as of September 30, 2026, compared with $7.8 million of bank and other loans. Total debt was $24.1 million as of September 30, 2026, down 47% from September 30, 2025, and net debt (non-GAAP, see “Non-GAAP Financial Measures”, below) was $8.1 million, down 65% from September 30, 2025. The quarter ended September 30, 2026 represented the Company’s seventh consecutive quarter of deleveraging. Bank and other loans fell 55% since December 31, 2025, and interest expense for the nine months ended September 30, 2026, fell 74% to $0.9 million. The Company believes its cash on hand is sufficient to meet its current working capital and capital expenditure requirements for a period of at least twelve months.
- In September 2026, the Company extended the remaining $15.6 million of acquisition consideration owed to the former owners of Meridianbet Group, who are related parties, to November 1, 2031, with no interest. The Company may settle it earlier at its discretion.
- Shares outstanding as of September 30, 2026, were 12,681,533, up 0.10% in the quarter and 0.32% since December 31, 2025. The Company raised no equity capital in 2026, made no share repurchases in the quarter and reports share-count figures every quarter.
