Meridian (NASDAQ:MRDN) Posts Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Meridian (NASDAQ:MRDN) announced its quarterly earnings data on Wednesday. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.07 by $0.10, FiscalAI reports. The company had revenue of $50.19 million for the quarter. Meridian had a negative net margin of 45.94% and a negative return on equity of 99.65%.

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 Stock Down 21.9%

NASDAQ:MRDN opened at $11.01 on Thursday. Meridian has a 12-month low of $5.80 and a 12-month high of $19.68. The firm has a market capitalization of $139.50 million, a price-to-earnings ratio of -1.51 and a beta of 0.63. The business has a 50-day simple moving average of $13.02. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.57 and a quick ratio of 0.48.

Insider Activity at Meridian

In related news, CEO Anthony Brian Goodman sold 5,500 shares of the business’s stock in a transaction that occurred on Tuesday, June 23rd. The shares were 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 owned 429,313 shares in the company, valued at approximately $5,894,467.49. The trade was a 1.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders sold 67,346 shares of company stock worth $855,122 over the last ninety days. 9.37% of the stock is owned by insiders.

Hedge Funds Weigh In On Meridian

Large investors have recently modified their holdings of the business. Marex Group plc acquired a new position in shares of Meridian during the 2nd quarter worth about $26,000. State Street Corp lifted its stake in Meridian by 25.6% in the 4th quarter. State Street Corp now owns 99,899 shares of the company’s stock valued at $80,000 after purchasing an additional 20,343 shares during the last quarter. Susquehanna International Group LLP lifted its stake in Meridian by 33.7% in the 3rd quarter. Susquehanna International Group LLP now owns 114,409 shares of the company’s stock valued at $129,000 after purchasing an additional 28,819 shares during the last quarter. Virtu Financial LLC bought a new position in Meridian during the third quarter worth about $33,000. Finally, Marshall Wace LLP bought a new position in Meridian during the second quarter worth about $57,000. 2.74% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research analysts recently weighed in on the company. Wall Street Zen raised Meridian to a “strong-buy” rating in a research report on Saturday, May 9th. Weiss Ratings raised Meridian from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company presently has an average rating of “Sell” and an average price target 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.