Melco Resorts Q3 2026 earnings reveal sharp profit drop
Melco Resorts & Entertainment reported a significant decline in third-quarter profitability, with lower casino revenue and weaker non-gaming performance weighing on its financial results for the three months ended September 30, 2026.
Total operating revenue reached US1.17billion,downapproximately10%fromUS1.31 billion in the same period last year. Operating income also dropped substantially, while net income attributable to the company almost disappeared.
The Melco Resorts Q3 2026 earnings report showed attributable net income of just US34,000,comparedwithUS74.7 million in the third quarter of 2025.
The results highlight mounting pressure across several of the group's major casino operations, particularly in Macau, where weaker rolling-chip and mass-market table game performance affected overall revenue.
Melco Resorts Q3 2026 earnings show weaker profitability
Operating income declined to US100.2millionfromUS184.5 million a year earlier, representing a decrease of approximately 45.7%.
Adjusted Property EBITDA, another measure of operating performance, fell to US287.6millionfromUS380.4 million, a reduction of approximately 24.4%.
The company's financial performance was affected by softer rolling-chip activity, lower mass-market table game results and weaker non-gaming operations.
Casino revenue accounted for US939.2millionoftotaloperatingrevenue,comparedwithUS1.06 billion in the third quarter of 2025. Meanwhile, room revenue increased to US122.5millionfromUS118.6 million.
Food and beverage revenue declined to US71.2millionfromUS73.3 million, while entertainment, retail and other revenue decreased to US40.6millionfromUS56.2 million.
The combination of weaker casino and non-gaming revenue contributed to the overall decline.
Macau properties face lower gaming revenue
City of Dreams remained Melco's largest revenue contributor, generating US566.2millionduringthequarter,comparedwithUS672.6 million a year earlier.
Its Adjusted EBITDA declined to US130.3millionfromUS206.9 million. Management attributed the weaker performance primarily to lower rolling-chip and mass-market table game results.
Rolling-chip volume fell to US4.63billionfromUS5.58 billion, while the win rate decreased to 2.49% from 3.68%.
Studio City also recorded weaker financial results. Operating revenue declined to US346.2millionfromUS375.3 million, while Adjusted EBITDA decreased to US90.6millionfromUS104.7 million.
Mass-market table game drop at the property fell to US846.3millionfromUS942.5 million.
Altira Macau provided a more mixed picture, with revenue increasing to US31.3millionfromUS25.6 million. However, the property continued to record negative Adjusted EBITDA, reaching US$300,000 during the quarter.
The Mocha segment also experienced lower revenue, falling to US15.3millionfromUS28.6 million in the comparable period. The comparison reflects the closure of three Mocha Clubs during 2025.
City of Dreams Manila reports lower earnings
Melco's Philippine operations also experienced weaker results.
City of Dreams Manila generated US99millioninthird-quarterrevenue,downfromUS110.7 million in the previous year's corresponding quarter.
Adjusted EBITDA decreased to US32.9millionfromUS41.3 million, reflecting softer performance across its gaming operations.
Rolling-chip volume declined to US484.5millionfromUS516.9 million, while mass-market table game drop decreased to US134.9millionfromUS144.1 million.
Non-gaming revenue also weakened slightly, reaching US22.8millioncomparedwithUS24.1 million a year earlier.
The Philippine results demonstrate that Melco's earnings pressure was not limited to its Macau portfolio.
Cyprus operations deliver a brighter performance
City of Dreams Mediterranean and its associated operations in Cyprus provided a more positive contribution.
Revenue increased to US96.7millionfromUS85.8 million, while Adjusted EBITDA improved to US25.7millionfromUS23.2 million.
The improvement was primarily supported by stronger mass-market performance.
Melco's other operations, which include its casino business and management services at City of Dreams Sri Lanka, also recorded higher revenue of US17.6million,comparedwithUS6.1 million in the third quarter of 2025.
Adjusted EBITDA improved to US4millionfromanegativeUS600,000.
These gains offered some support against weaker results from the company's larger casino properties.
Debt, liquidity and share repurchases
Melco reported total debt of approximately US 6.98 billion at September 30,2026. Cash and bank balances stood at US886.6 million, including restricted cash of US$124.2 million.
Available liquidity, including undrawn revolving credit facilities, reached approximately US$1.95 billion.
The company also reported US$83 million in capital expenditure during the quarter, primarily covering enhancement projects at its Macau and Cyprus properties and Studio City.
Between July 1 and November 3, Melco repurchased approximately 33.1 million American depositary shares for an aggregate purchase price of around US160million.ItretainedauthoritytorepurchaseuptoapproximatelyUS487 million in additional equity.
Separately, Studio City's land concession was renewed for another ten years, covering October 17, 2026, through October 16, 2036. The renewal involved a special contribution of MOP85.7 million, equivalent to approximately US$10.6 million.
Melco focuses on long-term resort growth
Despite the weaker quarterly results, management maintained confidence in the long-term prospects of its Macau operations.
The company highlighted the opening of its newly branded REM hotel and planned retail renovations at City of Dreams as part of its efforts to strengthen its resort offering.
Management also pointed to the performance of its Cyprus operations, which achieved their highest quarterly Adjusted EBITDA on record.
However, the latest financial results underline the challenge of maintaining profitability when gaming revenue weakens across major properties.
For Melco, the coming quarters will be important in determining whether improvements in resort offerings and non-gaming activities can help offset continued pressure on casino operations.
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Sources
Melco Resorts & Entertainment Limited (Official Announcement)
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