Meridian Holdings reported record revenue for the fourth quarter and full-year 2025, while posting a sharply wider GAAP net loss in the quarter driven largely by a non-cash impairment tied to a sustained decline in its share price.
Fourth-quarter revenue rises; net loss widens on impairment
William Scott, Interim Chief Executive Officer and President of Meridian Holdings, said the company generated fourth-quarter revenue of $49.6 million, up 8% year-over-year, and full-year 2025 revenue of $182.9 million, up 21% from the prior year.
On a non-GAAP basis, the business produced $4.6 million of adjusted EBITDA in the fourth quarter, equal to a 9.3% margin. Scott said adjusted EBITDA was below the company’s “near-term expectation of 12%” due to lower sports betting margins in November and higher marketing and administrative costs.
Revenue came in below expectations; margins pressured in late November and December
Chief Financial Officer Rich Christensen said total fourth-quarter revenue was about $3 million behind the company’s expectations. He attributed roughly $1 million of the shortfall to foreign exchange, while weaker-than-expected sports betting and casino margins in late November and December reduced revenue and profitability by about $1.5 million. Christensen added that the company has seen those businesses “return to their longer-term trends” in the first quarter of 2026.
Gross profit in the fourth quarter was $28.5 million, representing a 57.5% margin compared with 58.4% a year earlier. Christensen said the 90-basis-point decline reflected the lower revenue along with a mix shift toward “earlier-stage markets” where the company is investing for growth.
Impairment tied to stock price decline; company emphasizes non-cash impact
Operating expenses increased by $95 million year-over-year in the fourth quarter, which Christensen said was primarily due to non-cash impairment charges of $63.4 million for goodwill and $28.4 million for intangible assets. The company also recorded $1.1 million in executive transition costs related to Brian Goodman’s departure, plus roughly $2 million of additional investment in selling and marketing aimed at retention and growth.
Christensen said the triggering event for the impairment was a sustained decline in the company’s share price during the fourth quarter, which reduced market capitalization “significantly below its carrying value” and required an interim quantitative impairment test under ASC 350 and ASC 360. Management’s updated valuation incorporated “current market inputs, revised discount rate assumptions, and updated long-term financial projections,” concluding that fair value was below carrying value.
Christensen emphasized that the impairment was “non-cash in nature” and “does not affect the company’s liquidity, cash flows from operations, or compliance with financial covenants.”
Debt reduction and 2026 priorities
Scott highlighted balance sheet progress, saying the company reduced debt by $36.3 million during 2025. Christensen provided additional details:
- Cash at December 31, 2025: $18.1 million
- Total debt: $34.7 million, down 51% from $71.0 million at the end of 2024
- Net debt: $16.7 million, down 59% from $40.9 million
- Net debt leverage: below 0.9x trailing twelve months adjusted EBITDA, compared with approximately 2.1x at the close of 2024
Looking ahead, Christensen said the company’s 2026 capital allocation priorities include organic growth investments (technology, compliance infrastructure, and market growth), continued debt management, and potential strategic M&A where targets meet goals around fit, valuation, synergies with proprietary technology, and a “clear path to value creation.”
Meridianbet growth, product updates, and segment performance
Zoran Milosevic, CEO of Meridianbet Group, said the company strengthened its product suite in 2025, including the launch of Meridian Missions, a three-tier engagement system, and Flash Bet, an “instant sports simulation feature” built around real scheduled events. He also noted more than 10 new sportsbook content partnerships during the year.
Milosevic said Meridianbet extended its title sponsorship with Crvena zvezda through 2030, completed an acquisition in Malta that positions it as the dominant retail operator in that market, and secured a Belgian B+ online casino license.
For 2026, Milosevic outlined Meridianbet priorities including scaling operations in Brazil following a fourth-quarter launch, expanding AI-driven capabilities (machine learning, personalization, and predictive analytics), deepening presence in existing jurisdictions, and pursuing strategic licensing opportunities in Latin America and select European markets.
Christensen reported that for full-year 2025:
- Meridianbet revenue was $124.6 million, up 17%, representing 68% of total company revenue and roughly a 70% gross margin. Registrations grew 72% to 1.2 million, active users rose 35%, and depositors increased 40%. Christensen said Meridianbet’s revenue is expected to climb approximately 25% in the first quarter of 2026 versus the first quarter of 2025.
- Expanse Studios posted its “strongest year on record,” with fourth-quarter revenue up 435% year-over-year. The operator network expanded from 184 to 1,344 sites during 2025, and the game portfolio reached 71 proprietary titles. New B2B licenses were secured in Romania and Sweden, with RGS certifications active across nine jurisdictions including Brazil, Romania, Peru, and Croatia.
- RKings and Classics for a Cause revenue was $43.8 million, up 35% year-over-year and up 20% organically (with Classics acquired in the third quarter of 2024). Ticket volume scaled 137% to 25.2 million. Segment revenue declined 8% in the fourth quarter to $10.9 million, which Christensen said reflected a deliberate shift toward higher-value users even as new registrations declined. He said the company expects the segment to return to growth of 5% to 10% in the first quarter of 2026.
- GMAG revenue was $14.5 million, up 16% year-over-year and representing 8% of total revenue, though fourth-quarter revenue declined 3% to $3.5 million. Christensen said the segment is focusing on higher-margin client relationships. Within GMAG, MexPlay registrations grew 256% year-over-year in the fourth quarter, and active users reached 32,308.
Scott said the company is entering 2026 with a “strong balance sheet” and provided first-quarter guidance of approximately $50 million in revenue (about 17% growth from 2025) and $6.1 million in adjusted EBITDA (about 9% growth). He also said the company’s rebrand to Meridian Holdings is complete and intended to align the corporate identity with its most recognized and operationally significant brand.
In closing remarks, Scott said the company is “three months into Q1 2026” and that the business is “performing in line with the preliminary guidance” shared on the call.
About Golden Matrix Group (NASDAQ:GMGI)
Golden Matrix Group Inc is a technology-driven gaming entertainment company that develops and delivers digital real-money gaming solutions. Incorporated in Nevada with principal operating offices in Malta, the company focuses on providing a comprehensive online gaming platform to licensed operators. Golden Matrix Group’s core mission is to enable its clients to launch and scale casino, sports betting, lottery and other interactive gaming offerings—backed by proprietary technology and a portfolio of third-party content integrations.
The company’s flagship product, the KaFe Rocks platform, combines player account management, risk and fraud monitoring, payment processing, and back-office reporting into a single, modular system.
