Meridian (NASDAQ:MRDN) Posts Quarterly Earnings Results

Meridian (NASDAQ:MRDN) announced its quarterly earnings results on Tuesday. The company reported ($1.05) EPS for the quarter, missing the consensus estimate of $0.14 by ($1.19), FiscalAI reports. Meridian had a negative net margin of 41.41% and a negative return on equity of 117.87%. The firm had revenue of $45.96 million for the quarter.

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

• Q3 results weakened: revenue fell 3% year over year to $46 million and Adjusted EBITDA dropped to $0.4 million from $4.8 million. Meridian reported a $13.3 million net loss, including $11.5 million in non-cash impairment charges.
• Meridian suspended Brazilian operations after a regulatory ban and does not expect to resume them during 2026; it wrote off the related license and assets. The company says it will maintain a minimal local presence and pursue legal options, but the outcome remains uncertain.
• The company generated $17.7 million in operating cash flow over the first nine months, repaid $9 million of debt, and reduced net debt for a seventh consecutive quarter. Online casino revenue grew 21% over that period, while online sports betting revenue increased 12%.
• Meridian forecast 2026 revenue of $195 million–$198 million, with the outlook assuming no Brazil operations and continued lower revenue from RKings and Classics for a Cause. Management said it is focused on improving margins and controlling costs to return to first-half profitability.

Meridian Stock Performance

Shares of NASDAQ:MRDN traded down $0.25 during midday trading on Wednesday, hitting $5.99. The company’s stock had a trading volume of 33,346 shares, compared to its average volume of 49,428. Meridian has a 12-month low of $5.50 and a 12-month high of $16.09. The company has a market cap of $75.95 million, a P/E ratio of -0.89 and a beta of 0.73. The business’s 50 day simple moving average is $11.66 and its 200 day simple moving average is $11.36.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered shares of Meridian from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, September 28th. One equities research analyst has rated the stock with a Sell rating. Based on data from MarketBeat, Meridian currently has a consensus rating of “Sell” and an average price target of $21.60.

Hedge Funds Weigh In On Meridian

Hedge funds have recently made changes to their positions in the stock. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Meridian in the 2nd quarter valued at approximately $2,593,000. Bank of New York Mellon Corp purchased a new stake in shares of Meridian during the second quarter worth $855,000. Great Lakes Advisors LLC acquired a new stake in shares of Meridian in the second quarter valued at $433,000. Hsbc Holdings PLC acquired a new stake in shares of Meridian in the second quarter valued at $515,000. Finally, Man Group plc purchased a new position in Meridian in the second quarter valued at $466,000. Hedge funds and other institutional investors 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.