$Meridian Hldg(MRDN)$ just released a good Q2 earnings report, reaching GAAP net income profitability of $2.2M, the second strong profit quarter in a row.
Despite this, the stock tanked 22%.
In my opinion, here are the factors driving this harsh reaction:
- Slight revenue miss of $50M vs $51-53M guide.
- Gross margin decline from 56.4% to 53.5%.
- New CEO and CFO
- H2 2026 guide of 8-10% revenue growth, barely in line with the analyst consensus estimate of 9.6%.
The miss was tiny. While the gross margin decline and the earnings miss can mostly be explained by $1.2M in large casino win this quarter. The house always wins, and gamers won't be lucky for long, this will reverse.
Congratulations to Zoran Milošević as the new CEO of Meridian Holdings
Zoran Milošević holds a background in industrial engineering, joining Meridian in 2003, where he gained experience across marketing, risk management, and business development before becoming Meridianbet's CEO in 2008.
Under his leadership, he scaled Meridianbet into a global digital infrastructure and gaming enterprise, expanding operations across dozens of jurisdictions while building out proprietary, in-house tech platforms.
As the long-standing leader of Meridian’s core growth segment (which generates 71% of total revenue), his transition to Group CEO directly aligns overall strategy with proven operational execution.
He is an extremely competent manager with over 20 years of experience, Meridian shareholders and potential investors can be glad of his appointment.
The new CEO Zoran has 20+ years of experience under the Meridianbet core brand, he knows what he is doing and is a great appointment.
Overall, I think this is an overreaction.
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