Meridian (NASDAQ:MRDN) Releases Quarterly Earnings Results

Meridian (NASDAQ:MRDN) released its quarterly earnings data on Wednesday. The company reported $0.17 EPS for the quarter, FiscalAI reports. Meridian had a negative net margin of 45.94% and a negative return on equity of 99.65%. The company had revenue of $50.19 million during the quarter.

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 Price Performance

MRDN stock traded down $3.13 during midday trading on Wednesday, reaching $10.97. 71,668 shares of the stock were exchanged, compared to its average volume of 45,112. Meridian has a 52 week low of $5.80 and a 52 week high of $19.68. 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 company has a market cap of $138.99 million, a PE ratio of -1.51 and a beta of 0.63. The firm has a fifty day moving average of $13.01.

Insiders Place Their Bets

In related news, CEO Anthony Brian Goodman sold 5,500 shares of the firm’s stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $13.73, for a total transaction of $75,515.00. Following the completion of the transaction, the chief executive officer directly owned 429,313 shares of the company’s stock, valued at $5,894,467.49. This trade represents a 1.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders sold 67,346 shares of company stock valued at $855,122 in the last three months. Corporate insiders own 24.00% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in MRDN. Whetstone Capital Advisors LLC bought a new position in Meridian during the fourth quarter worth $331,000. Citadel Advisors LLC lifted its holdings in shares of Meridian by 1,603.2% in the 3rd quarter. Citadel Advisors LLC now owns 206,082 shares of the company’s stock worth $233,000 after purchasing an additional 193,982 shares in the last quarter. Squarepoint Ops LLC grew its holdings in shares of Meridian by 115.2% during the third quarter. Squarepoint Ops LLC now owns 148,302 shares of the company’s stock valued at $168,000 after buying an additional 79,382 shares during the last quarter. Deutsche Bank AG increased its holdings in Meridian by 224.4% during the 4th quarter. Deutsche Bank AG now owns 94,695 shares of the company’s stock worth $76,000 after purchasing an additional 65,501 shares in the last quarter. Finally, Millennium Management LLC raised its position in Meridian by 68.8% in the 3rd quarter. Millennium Management LLC now owns 131,812 shares of the company’s stock valued at $149,000 after buying an additional 53,703 shares during the last quarter. Institutional investors own 2.74% of the company’s stock.

Wall Street Analysts Forecast Growth

MRDN has been the subject of a number of analyst reports. Wall Street Zen raised Meridian to a “strong-buy” rating in a research note on Saturday, May 9th. Weiss Ratings reissued a “sell (e+)” rating on shares of Meridian in a report on Monday, July 6th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock has a consensus rating of “Sell” and an average target price of $21.60.

About Meridian

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.