EQS-News: Meridian Holdings Inc
/ Key word(s): Ent/Sports
Third-Quarter Revenue of $46.0 Million; Net Loss Attributable to Meridian Holdings of $13.3 Million Which Reflects $11.5 Million of Non-Cash Impairment Charges, Including Brazil Nine-Month Revenue Up 10% to $146.3 Million. Meridianbet Group Nine-Month Revenue Up 16% to $103.8 Million, Led by Online Casino Up 21% Nine-Month Operating Cash Flow of $17.7 Million; Total Debt Down 47% to $24.1 Million; Net Debt (Non-GAAP) Down 65% to $8.1 Million, a Seventh Consecutive Quarter of Deleveraging, Without Raising Additional Equity Capital LAS VEGAS, NV - November 10, 2026 (NEWMEDIAWIRE) -Meridian Holdings Inc. (NASDAQ: MRDN) ("Meridian Holdings" or the "Company"), a sports betting and gaming group, today announced financial results for the third quarter ended September 30, 2026. Zoran Milosevic, Chief Executive Officer of Meridian Holdings, commented, "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." 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
Segment Performance
Brazil On September 25, 2026, Brazil's Provisional Measure No. 1,394/2026 was issued, prohibiting fixed-odds betting, including online casinos, by all operators in the country. Operators were required to take their platforms offline and return player balances in early October 2026, and the measure terminated existing federal authorizations 30 days after publication, without reimbursement of the authorization fees already paid. The Company suspended its operations in Brazil in line with the measure and wrote off the Brazilian license and related intangible assets in full, a non-cash charge of $5.5 million during the three months ended September 30, 2026. Revenue from Brazil was not material to the Company. The Company does not expect to resume its gaming operations in Brazil during the remainder of 2026. The Company intends to keep a limited local presence in Brazil while Congress and the courts decide on the measure, with an office and minimal operating costs, and will decide its next steps in Brazil based on their outcome. Updated Full-Year 2026 Preliminary Outlook The Company is updating the second-half 2026 outlook it issued on July 29, 2026, with a full-year outlook, below. The second-half 2026 outlook should no longer be relied upon. The Company now expects full-year 2026 revenue of between $195 million and $198 million, assuming that the Company does not resume operations in Brazil in 2026. The revision reflects the suspension of the Company's operations in Brazil, lower expected revenue at RKings and Classics for a Cause, and third-quarter sports results that favored customers. The outlook assumes continued lower revenue at RKings and Classics for a Cause in the fourth quarter. However, supported by an expected increase in betting volume during the fourth quarter, which has historically been the strongest quarter of the year for revenue, the Company anticipates a modest increase in sports betting revenue compared with the third quarter, alongside continued growth in online casino revenue. William Scott, President, Chief Financial Officer, Treasurer and Chairman of the Board of Meridian Holdings, commented, "We ended the quarter with cash of $16.0 million, compared with $7.8 million of bank and other loans, and total debt of $24.1 million, down from $34.7 million at the start of the year. We reduced our debt using internally generated cash, without raising equity capital in 2026. In September 2026, we agreed with the former owners of Meridianbet Group to extend the repayment of the remaining $15.6 million we owe them to November 2031, with no interest. The extension allows us to keep investing where we are growing." Earnings Call & Investor Resources Meridian Holdings will host a conference call with pre-recorded remarks from management followed by a live question-and-answer session, today, November 10, 2026, at 8:00 a.m. ET to discuss the results. The audio webcast and the investor presentation are available in the investor relations section of the Company's website at https://meridian-holdings.com/investors/, and a replay will be available after the call. About Meridian Holdings Meridian Holdings Inc. (NASDAQ: MRDN) is a sports betting and gaming group headquartered in Las Vegas, Nevada. The Company operates online and retail sports betting and casino gaming in 19 jurisdictions across Europe, Africa and Central and South America. Its betting and casino brands include Meridianbet, founded in Serbia in 2001 and active in 18 jurisdictions, and MexPlay in Mexico. RKings runs pay-to-enter prize competitions in the United Kingdom, and Classics for a Cause runs trade promotions in Australia. The Company's B2B businesses include Expanse Studios, which develops and licenses casino games, and GMAG, which resells third-party gaming content, mainly in Asia-Pacific. For more information, visit www.meridian-holdings.com. Non-GAAP Financial Measures EBITDA, Adjusted EBITDA, Net Debt, Net Debt Leverage Ratio and Free Cash Flow are non-Generally Accepted Accounting Principles (GAAP) financial measures presented as supplemental indicators of the Company's performance and capital structure. EBITDA represents net income (loss) before interest expense, interest income, income taxes, and depreciation and amortization. Adjusted EBITDA represents EBITDA further adjusted to exclude stock-based compensation expense, unrealized foreign exchange gains or losses, severance costs related to the termination of executive officers and directors, impairment losses on goodwill and other intangible assets, and restructuring costs, which include charges or expenses attributable to acquisition-related costs. Beginning in the first quarter of 2026, the Company changed its definition of Adjusted EBITDA to exclude unrealized foreign exchange gains and losses. Management believes this adjustment facilitates period-to-period comparisons of operating performance because these non-cash gains and losses primarily reflect fluctuations in foreign currency exchange rates. The Company recast the prior-period Adjusted EBITDA amounts presented below to conform to the current definition. Adjusted EBITDA for the three and nine months ended September 30, 2025 was $4.8 million and $14.0 million, respectively, after excluding unrealized foreign exchange gains of $0.9 million and $0.8 million, respectively. The Company previously reported Adjusted EBITDA of $5.7 million and $14.8 million for those periods, respectively. Net Debt is defined as total debt, less cash and cash equivalents. Net Debt Leverage Ratio is defined as Net Debt at the balance sheet date divided by annualized Adjusted EBITDA for the period then ended, calculated for the third quarter of 2026 as Adjusted EBITDA for the nine months ended September 30, 2026, multiplied by four-thirds. Free Cash Flow is defined as net cash provided by operating activities less cash paid for intangible assets, cash paid for property, plant and equipment, and repayment of leases. Free Cash Flow does not represent cash available for discretionary spending, because it does not deduct required debt repayments. We present EBITDA and Adjusted EBITDA because we believe these measures provide investors with additional insight into our core operating performance by excluding the effects of financing costs, income taxes, depreciation and amortization, and, in the case of Adjusted EBITDA, certain non-cash and other specified items. We present Net Debt and the Net Debt Leverage Ratio to provide investors with a better understanding of our indebtedness, net of cash and cash equivalents, and our leverage relative to earnings. We present Free Cash Flow to provide insight into the cash generated from operating activities after investments in intangible assets and property, plant and equipment, and lease payments. We believe these non-GAAP financial measures, when considered together with our GAAP financial results, provide useful supplemental information for evaluating our operating performance, cash generation, liquidity and financial position. These measures are non-GAAP measures, are unaudited, and have inherent limitations as analytical tools. These measures should not be considered in isolation, or as substitutes for analysis of the Company's results as reported under GAAP. Some of these limitations include: they do not reflect cash expenditures or future capital requirements; they do not reflect working capital requirements or contractual commitments; they do not reflect significant interest expense, principal, or income tax payments; although depreciation and amortization are non-cash charges, the assets being depreciated or amortized may require replacement in the future; and other companies may calculate these measures differently, limiting comparability. The Company's presentation of these measures should not be construed as implying that future results will be unaffected by unusual or non-recurring items. For additional information regarding these non-GAAP financial measures, please refer to the sections titled "Reconciliation of U.S. GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA (Unaudited)" and "Reconciliation of Net Debt and Leverage Calculation (Unaudited)", included at the end of this release. Free Cash Flow is reconciled to net cash provided by operating activities in the table "Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)", also at the end of this release. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA to the most directly comparable GAAP financial measure because it is unable to do so without unreasonable effort due to the inherent uncertainty in forecasting certain items, including, but not limited to, stock-based compensation, transaction-related expenses, and other non-recurring or non-cash items; accordingly, a reconciliation is not available without unreasonable effort, and the unavailable information could have a material impact on the Company's future GAAP financial results. Forward-Looking Statements Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws, including within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 ("forward-looking statements"). Words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "would," "will," "estimates," "intends," "projects," "goals," "targets," "may," "should," "could," "potential" and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements. Important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation, (a) the Company's need for significant additional financing to grow and expand our operations, complete acquisitions and satisfy post-closing obligations, including in connection with the Meridianbet acquisition; (b) dilution resulting from the conversion of preferred stock and warrants, and from acquisitions; (c) the Company's ability to complete acquisitions, the availability of funding for such transactions, and disruptions and other risks associated therewith; (d) the Company's reliance on third-party suppliers of gaming content and the cost of such content; (e) the Company's ability to obtain and maintain required gaming licenses; (f) the Company's ability to maintain the listing of its common stock on the Nasdaq Capital Market; (g) the Company's ability to effectively manage growth; (h) the Company's expectations regarding future growth, revenues and profitability; (i) the Company's expectations regarding future plans and the timing thereof; (j) the Company's reliance on its management team; (k) the fact that Aleksandar Milovanovic has voting control over the Company; (l) related party relationships and potential conflicts of interest; (m) the effects of economic downturns, recessions, inflation, interest rate changes, global conflicts and other market conditions, including impacts on discretionary spending and the cost of capital; (n) the Company's ability to protect its proprietary information and intellectual property; (o) our ability to compete effectively in our markets; (p) the impact of current and future regulations, the Company's ability to comply with such regulations, potential penalties for non-compliance, and changes in the interpretation or enforcement of laws; (q) risks associated with gaming fraud, user cheating and cyber-attacks; (r) risks associated with system failures and disruptions to technology and infrastructure, including cybersecurity and hacking risks; (s) risks relating to inventory management; (t) foreign exchange and currency risks; (u) the outcome of contingencies, including legal proceedings; (v) competition from existing and new market participants; (w) the Company's ability to manage expenses related to sales and marketing and required general, administrative and technology investments; (x) general consumer sentiment and economic conditions affecting discretionary spending on the Company's products; (y) the risk of loss if customers or counterparties fail to meet contractual obligations, including with respect to receivables and financial institutions holding the Company's funds; (z) the risk that the Company may have difficulty meeting its financial liabilities as they come due; (aa) the risk that changes in market prices, including foreign exchange and interest rates, may affect the Company's income or the value of financial instruments; (bb) risks relating to the protection of players' deposits; (cc) risks that participants in sporting events may intentionally alter outcomes, resulting in higher than expected payouts; (dd) the impact of sporting results and payout variability on the Company's betting hold, revenue and margins, including outcomes that are unusually favorable to bettors; (ee) the outcome of legislative and judicial proceedings concerning Brazil's Provisional Measure No. 1,394/2026; (ff) the timing and outcome of pending regulatory approvals and certifications, including in New Jersey and Ontario; and (gg) changes in the taxation and regulation of prize competitions in the United Kingdom and of trade promotions in Australia. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this press release are reasonable, we provide no assurance that these plans, intentions or expectations will be achieved. Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in the Company's publicly-filed reports, including, but not limited to, under the "Special Note Regarding Forward-Looking Statements," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's periodic and current filings with the SEC, including the Form 10-Qs and Form 10-Ks, including, but not limited to, the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, and future periodic reports on Form 10-K and Form 10-Q. These reports are available at www.sec.gov. The Company cautions that the foregoing list of important factors is not complete and does not undertake to update any forward-looking statements except as required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on the Company's future results. The forward-looking statements included in this press release are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and takes no obligation to update or correct information prepared by third parties that is not paid for by the Company. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Preliminary Outlook The preliminary outlook for the full year 2026 (the "Preliminary Outlook") included herein was prepared by the Company in good faith using assumptions believed to be reasonable. A significant number of assumptions about the operations of the business of the Company were based, in part, on economic, competitive, and general business conditions prevailing at the time the Preliminary Outlook was developed. Any future changes in these conditions may materially impact the ability of the Company to achieve the financial results set forth in the Preliminary Outlook. The Preliminary Outlook is based on numerous assumptions, including realization of the operating strategy of the Company; industry performance; no material adverse changes in applicable legislation or regulations, or the administration thereof, or generally accepted accounting principles; general business and economic conditions; competition; retention of key management and other key employees; absence of material contingent or unliquidated litigation, indemnity, or other claims; minimal changes in current pricing; no significant increases in interest rates or inflation; and other matters, many of which will be beyond the control of the Company, and some or all of which may not materialize. Additionally, to the extent that the assumptions inherent in the Preliminary Outlook are based upon future business decisions and objectives, they are subject to change. Although the Preliminary Outlook is presented with numerical specificity and is based on reasonable expectations developed by the Company's management, the assumptions and estimates underlying the Preliminary Outlook are subject to significant business, economic, and competitive uncertainties and contingencies, many of which will be beyond the control of the Company. Accordingly, the Preliminary Outlook is only an estimate and is necessarily speculative in nature. It is expected that some or all of the assumptions in the Preliminary Outlook will not be realized and that actual results will vary from the Preliminary Outlook. Such variations may be material and may increase over time. In light of the foregoing, readers are cautioned not to place undue reliance on the Preliminary Outlook. The projected financial information contained herein should not be regarded as a representation or warranty by the Company, its management, advisors, or any other person that the Preliminary Outlook can or will be achieved. The Company cautions that the Preliminary Outlook is speculative in nature and based upon subjective decisions and assumptions. As a result, the Preliminary Outlook should not be relied on as necessarily predictive of actual future events. Contacts Investors & Press: ir@meridian-holdings.com Consolidated Balance Sheets
News Source: Meridian Holdings Inc 10.11.2026 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group. |
| Language: | English |
| Company: | Meridian Holdings Inc |
| United States | |
| ISIN: | US3810984092 |
| EQS News ID: | 2431824 |
| End of News | EQS News Service |
2431824 10.11.2026 CET/CEST
