The revenue decline and weak operating cash flow are the primary negatives, partially offset by the net income improvement from non-operating items. The upcoming $600 million note redemption will reduce leverage but also consume cash. Monitor Q3 for City of Dreams recovery and the impact of the REM hotel opening; the stock has historically underperformed following similar reports.
Price Chart
Executive Summary
Melco Resorts & Entertainment reported Q2 2026 total operating revenues of $1.07 billion, down 8.3% YoY from $1.17 billion, driven by softer rolling chip and mass market table games performance at City of Dreams and the closure of Grand Dragon Casino and three Mocha Clubs. Net income rose to $29.5 million from $14.1 million, aided by lower impairment charges and higher interest income, but operating cash flow fell sharply to $60.9 million from $136.4 million. The company also drew down $416.7 million on its revolving credit facility and announced the full redemption of its $600 million 2027 senior notes, signaling active balance sheet management amid revenue headwinds.
Key Facts
- Q2 2026 total operating revenues of $1.07 billion, down 8.3% YoY from $1.17 billion.
- Net income was $29.5 million vs $14.1 million in Q2 2025, but operating cash flow dropped to $60.9 million from $136.4 million.
- City of Dreams revenue fell to $667.9 million from $750.4 million; rolling chip volume decreased to $5.16 billion from $5.49 billion.
- Mocha segment revenue fell to $15.1 million from $28.0 million due to closures of three Mocha Clubs and Grand Dragon Casino.
- Total debt stood at $5.09 billion as of June 30, 2026; the company drew down $416.7 million on the MN1 2020 Revolving Facilities.
- The company announced full redemption of the $600 million 2027 MRF Senior Notes on September 23, 2026.
- Cash and cash equivalents were $454.3 million, down from $493.1 million at year-end 2025.
Financial Impact
Q2 revenue declined $96.9 million YoY (-8.3%); net income improved $15.4 million but operating cash flow fell $75.5 million. Total debt $5.09 billion.
Risk Factors
- Continued softness in Macau gaming volumes, particularly rolling chip and mass market at City of Dreams.
- Cash burn from capital expenditures ($59M in Q2) and debt service could pressure liquidity if revenue does not recover.
- The full redemption of the 2027 notes will reduce cash by $600 million, tightening the balance sheet.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-372032 |
| Document: 0001193125-26-372032-index-headers.html | 0001193125-26-372032 |
| Document: 0001193125-26-372032-index.html | 0001193125-26-372032 |
| Document: 0001193125-26-372032.txt | 0001193125-26-372032 |
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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