Meridian Holdings Posts $50.1M Q1 Revenue, Cuts Net Debt to $13.4M
Meridian Holdings generated $50.1 million in Q1 revenue, up 17% year-over-year, and achieved net income of $2.3 million, or $0.18 per diluted share, reversing prior-year losses. Adjusted EBITDA rose 26% to $6.3 million with a 12.6% margin while net debt dropped to $13.4 million, pushing leverage to 0.53x.
1. Q1 Financial Performance
Meridian Holdings delivered $50.1 million in first-quarter revenue, a 17% rise from the prior-year period, and produced net income of $2.3 million, or $0.18 per diluted share, compared with a loss last year. Adjusted EBITDA climbed 26% to $6.3 million, achieving a 12.6% margin, and operating cash flow reached $5.2 million.
2. Balance Sheet Improvement
Cash and cash equivalents totaled $16.2 million at March 31, while total debt declined to $29.7 million from $64.4 million a year earlier. Net debt was reduced to $13.4 million, resulting in an annualized net leverage ratio of 0.53x and reflecting marked deleveraging and enhanced financial flexibility.
3. Segment Highlights
The Meridianbet segment led with $34.9 million in revenue, up 26% year-over-year, and delivered a 69.3% gross margin and $6.6 million in operating income. The RKings and Classics for a Cause unit posted $12.1 million in combined revenue with growing VIP subscriptions, while the GMAG segment generated $3.1 million despite a slight revenue decline amid user and provider onboarding.
4. Outlook and Guidance
The company projects Q2 revenue of $51 million to $53 million, pointing to continued year-over-year growth. No adjusted EBITDA guidance was provided, leaving margin visibility dependent on upcoming operating trends and cost dynamics.