Meridian Holdings Inc. Common Stock (MRDN)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with what is known. Meridian is a small gambling-technology company. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $182.9M and a net loss of $92.0M, or diluted EPS of $-7.76. That followed fiscal 2024 revenue of $151.1M and a net loss of $1.4M. So the headline loss is alarming. Yet the latest quarters are better: in fiscal Q1 2026, quarter ended 2026-03-31, revenue was $50.1M and net income was $2.2M, or diluted EPS of $0.18; in fiscal Q2 2026, quarter ended 2026-06-30, revenue was $50.2M and net income was $2.0M, or diluted EPS of $0.17. Trailing free cash flow is $20.9M, which against a $142.5M market cap gives a FairStock-calculated FCF yield of 14.7%. At the close on 2026-10-13, the price was $11.25; FairStock shows a negative P/E of -1.59 and a P/B of 2.86. Debt/equity is 0.32, but ROE is -95.18%, ROCE is 1.40%, Piotroski is 5/9, and Altman Z is 1.24. The Lynch category is TURNAROUND because of a loss in the latest year after earlier profits. I see no proved moat in these numbers. Gambling technology is competitive and regulated, and the company’s profits are tiny relative to its past losses. The cash flow yield is attractive only if it is durable. Until earnings and cash generation are consistently positive, I see this as a speculative turnaround, not a sure bargain.

In plain English: Meridian Holdings provides casino, sportsbook, and online gaming technology to businesses and consumers, mainly in Central and South America, Europe, and Africa. Revenue is growing and the company has positive free cash flow, but it reported a large loss in fiscal 2025 and only small profits in the latest quarters. At $11.25, the shares look cheap against cash flow but expensive against the company’s accounting value, and the uneven earnings make the price hard to judge.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2022 10-K (period ended 2022-10-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer