Melco Posts $1.17 Billion in Third-Quarter Revenue as Profit Falls
Key Facts
Melco Resorts & Entertainment reported unaudited third-quarter results on November 4, 2026, posting operating revenue of $1.17 billion, down about 10% from the same period in 2025. The company attributed the decline to weaker performance in rolling-chip and mass-market table games, as well as non-gaming operations. Operating income fell to $100.2 million from $184.5 million a year earlier. Adjusted property EBITDA, a measure the company uses to track the performance of its properties, declined to $287.6 million from $380.4 million. The results show pressure on revenue and profitability during the quarter, with performance varying across the group’s properties.
Net income attributable to Melco approached breakeven, at $34,000, or $0.00009 per American depositary share, compared with net income of $74.7 million and $0.19124 per depositary share in the third quarter of 2025. The company recorded net non-operating expenses of $107.7 million during the quarter. The item mainly included net interest expense, excluding capitalized amounts, of $110.8 million. Interest costs were a leading source of pressure on results after operating metrics weakened. Available liquidity, including cash and undrawn revolving facilities, was about $1.95 billion on September 30, compared with total debt of $6.98 billion at quarter-end.
The sharpest decline was at City of Dreams, where revenue was $566.2 million in the third quarter, compared with $672.6 million in the same period of 2025. Adjusted EBITDA at the property fell to $130.3 million from $206.9 million. The company said weaker performance in rolling-chip and mass-market table games contributed to the decline in earnings. At Studio City, revenue fell to $346.2 million from $375.3 million. Adjusted EBITDA declined to $90.6 million from $104.7 million, with the company citing weaker mass-market performance as a key reason for the decrease.
City of Dreams Manila also posted a decline, with revenue falling to $99 million from $110.7 million and adjusted EBITDA declining to $32.9 million from $41.3 million. Melco attributed the performance to weakness across all gaming operations at the property. By contrast, revenue at City of Dreams Mediterranean and Other rose to $96.7 million from $85.8 million. Adjusted EBITDA for those operations increased to $25.7 million from $23.2 million, with the company saying improved mass-market performance was the main reason for the increase. Chief Executive Lawrence Ho said the property and its subsidiaries recorded their highest quarterly adjusted EBITDA on record, while expressing the company’s confidence in its long-term business prospects in Macau.
The year-over-year revenue decline extended a trend from the second quarter of 2026, when the company reported $1.25 billion, down about 6% from $1.33 billion in the second quarter of 2025. It also attributed that decline to weaker rolling-chip and mass-market table games and non-gaming activities. In that quarter, adjusted property EBITDA fell to $303.8 million from $377.7 million, despite operating income rising to $127.8 million from $124.7 million. First-quarter performance was different: group adjusted property EBITDA rose 12% year over year to about $381 million. The chief financial officer at the time estimated EBITDA at about $356 million after adjusting for the impact of premium-player hold. In its first-quarter results, the company said its properties in Cyprus had been affected by the Middle East conflict, which escalated in late February, before occupancy, visits and play levels improved during April.
On liquidity and capital allocation, Melco repurchased about 33.1 million American depositary shares between July 1 and November 3, for a total of about $160 million. The company had about $487 million remaining under its share repurchase authorization on November 3. It also announced a 10-year renewal of the land concession for Studio City, from October 17, 2026, to October 16, 2036. The special contribution associated with the renewal is 85.7 million patacas. The company is scheduled to discuss its results on a call on November 4, 2026, at 8:30 a.m. Eastern Time.
MLCO shares closed at $4.2 on November 3, 2026, according to EL7 data. This provides price context ahead of the earnings announcement, as the closing price is from the session before the statement was published. The company scheduled its earnings call for the morning of November 4, allowing management to discuss the published third-quarter financial and operating performance. The investor relations page also lists the second-quarter call on August 13, 2026, and the first-quarter call on April 30, 2026. The latest results follow a sequence of quarterly reports showing year-over-year declines in revenue and adjusted EBITDA in the second and third quarters, after adjusted EBITDA growth in the first quarter.