Meridian (NASDAQ:MRDN) Releases Quarterly Earnings Results, Misses Estimates By $1.19 EPS

Meridian (NASDAQ:MRDN) issued its quarterly earnings results on Tuesday. The company reported ($1.05) EPS for the quarter, missing analysts’ consensus estimates of $0.14 by ($1.19), FiscalAI reports. Meridian had a negative net margin of 48.75% and a negative return on equity of 172.72%. The business 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 Price Performance

Meridian stock traded down $0.09 during mid-day trading on Thursday, reaching $6.25. 4,903 shares of the company traded hands, compared to its average volume of 49,357. Meridian has a 52-week low of $5.50 and a 52-week high of $16.09. The firm has a market capitalization of $79.26 million, a price-to-earnings ratio of -0.80 and a beta of 0.73. The firm’s 50 day moving average price is $11.51 and its 200 day moving average price is $11.33.

Institutional Trading of Meridian

Institutional investors and hedge funds have recently bought and sold shares of the stock. Public Employees Retirement System of Ohio purchased a new position in shares of Meridian during the second quarter valued at approximately $255,000. Bank of America Corp DE bought a new stake in shares of Meridian during the second quarter valued at approximately $262,000. Man Group plc purchased a new stake in Meridian during the 2nd quarter valued at $466,000. Hsbc Holdings PLC purchased a new stake in shares of Meridian during the second quarter valued at $515,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in Meridian in the 2nd quarter worth about $2,593,000. 2.74% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

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

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.