The revenue miss and EBITDA compression in Macau core properties (City of Dreams, Studio City) signal ongoing operational weakness, partially offset by Cyprus growth and aggressive buybacks. Watch for Q3 trends in Macau visitation and the phased opening of the REM hotel; the extended credit facility and debt refinancing reduce near-term liquidity risk but leverage remains high at ~6.8x net debt/EBITDA.
Price Chart
Executive Summary
Melco Resorts reported Q2 2026 revenue of $1.25B, down 6% YoY, and GAAP EPS of $0.06 (vs consensus $0.08). Adjusted Property EBITDA fell 20% to $303.8M, driven by weaker rolling chip and mass market table games in Macau. The company repurchased ~$120.6M in stock and extended its revolving credit facility, but the core Macau operations continue to face headwinds, making this a mixed report with a bearish tilt on fundamentals.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $1.25B, down 6% YoY from $1.33B
- GAAP EPS $0.06 per ADS vs consensus $0.08 (miss)
- Adjusted Property EBITDA $303.8M, down 20% from $377.7M YoY
- City of Dreams Adjusted EBITDA fell 34% to $147.8M; rolling chip win rate 2.71% vs expected 2.85%-3.15%
- Repurchased ~22.4M ADS for ~$120.6M through Aug 12; $589.6M remaining authorization
- Extended MN1 revolving credit facility to June 2031, adding HK$6.44B in commitments
- Issued $300M 6.125% senior secured notes due 2031 to refinance $350M 7.000% notes due 2027
- Cash and restricted cash $1.04B; total debt $7.05B; available liquidity ~$2.80B
Financial Impact
Revenue decline of ~$76M YoY; Adjusted Property EBITDA decline of ~$74M YoY; $120.6M in share repurchases; $300M debt refinancing
Risk Factors
- Continued softness in Macau rolling chip and mass market volumes
- High net debt of $7.05B vs $1.04B cash; interest expense of $111M per quarter
- Negative rolling chip win rate at City of Dreams Mediterranean (-29.66%) due to low volumes
- Historical calibration shows 0% win rate on prior MLCO calls at T+20, suggesting market may not reward this narrative
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3344475 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 28, 2026 5w ago | 6-K | $5.32 $4.67 | ▲ +12.22% | ▲ +12.48% | $4.19 (+21.24%) |
Aug 14, 2026 7w ago | 6-K | $5.60 $4.81 | ▼ −14.11% | ▼ −12.12% | $4.19 (−25.18%) |
Aug 13, 2026 7w ago | Press Release | $5.50 $5.05 | ▼ −8.18% | ▼ −6.43% | $4.19 (−23.82%) |
Aug 7, 2026 8w ago | 6-K | $5.52 $5.21 | ▼ −5.62% | ▼ −5.22% | $4.19 (−24.09%) |
Jun 9, 2026 16w ago | 6-K | $5.62 $5.26 | ▼ −6.41% | ▼ −7.85% | $4.19 (−25.44%) |
May 29, 2026 18w ago | 6-K | $5.56 $5.38 | ▼ −3.24% | ▼ −1.44% | $4.19 (−24.64%) |
Apr 30, 2026 22w ago | 6-K | $5.77 $5.54 | ▼ −3.99% | ▼ −8.95% | $4.19 (−27.38%) |
Apr 30, 2026 22w ago | Press Release | $5.77 $5.54 | ▼ −3.99% | ▼ −8.95% | $4.19 (−27.38%) |
Apr 28, 2026 22w ago | 6-K | $5.55 $5.53 | ▼ −0.36% | ▼ −5.82% | $4.19 (−24.50%) |
Apr 28, 2026 22w ago | Press Release | $5.55 $5.53 | ▼ −0.36% | ▼ −5.82% | $4.19 (−24.50%) |
US Market Status
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