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Melco Resorts & Entertainment reported net income attributable to the company of US$22.7 million for the second quarter of 2026, up 32% from US$17.2 million a year earlier. Total operating revenues fell 6% over the same period, to US$1.25 billion from US$1.33 billion.
Adjusted Property EBITDA dropped to US$303.8 million from US$377.7 million, a decline of 20%. Operating income was broadly flat at US$127.8 million against US$124.7 million in Q2 2025. Earnings per American Depositary Share came in at US$0.06, up from US$0.04.
The two figures move in opposite directions because Melco reports Adjusted Property EBITDA before corporate expense, share-based compensation and non-operating items such as interest and foreign exchange. The net income line captures those items; the property measure does not.
Melco published the unaudited results on 13 August 2026 and held an investor call the same day.
Macau properties account for the decline
City of Dreams Macau, the group’s largest property, generated US$632.2 million in revenue, down 11% from US$710.5 million. Its Adjusted EBITDA fell 34% to US$147.8 million from US$225.6 million. Melco attributed the fall to weaker rolling chip and mass market table performance.
Studio City reported revenue of US$371.5 million against US$388.2 million, with Adjusted EBITDA of US$95.5 million compared with US$105.2 million. The company again pointed to weaker mass market table games.
Mocha recorded the steepest proportional drop. Revenue fell 46% to US$15.1 million from US$27.9 million, with Adjusted EBITDA down to US$4.0 million from US$5.2 million.
Altira Macau was the exception in the Macau portfolio. Revenue rose 20% to US$33.9 million from US$28.3 million, and Adjusted EBITDA reached US$2.2 million against US$0.8 million, which Melco linked to improved mass market performance.
Cyprus and Manila post gains
City of Dreams Mediterranean and other Cyprus operations delivered revenue of US$82.0 million, up from US$72.3 million, with Adjusted EBITDA of US$19.9 million against US$12.4 million. That is a 60% year-on-year increase in property EBITDA, the strongest growth rate in the group.
City of Dreams Manila held revenue close to flat at US$97.3 million against US$98.5 million, while Adjusted EBITDA rose 9% to US$30.9 million from US$28.4 million.
City of Dreams Sri Lanka, reported under other operations, contributed US$16.9 million in revenue and US$3.5 million in Adjusted EBITDA.
Lawrence Ho, Chairman and Chief Executive Officer, said of the non-Macau properties:
Outside of Macau, our diversified portfolio continued to demonstrate resilience and growth potential. In Cyprus, City of Dreams Mediterranean and our satellite casinos rebounded with considerable strength as disruptions in regional travel eased.
Debt, liquidity and buybacks
Melco closed the quarter with cash and bank balances of US$1.04 billion, including US$124.3 million in restricted cash, against total debt of US$7.05 billion. Available liquidity, counting undrawn credit facilities, stood at approximately US$2.80 billion. Capital expenditure for the quarter was US$123.9 million.
The company repurchased approximately 22.4 million ADSs, equivalent to 67.1 million ordinary shares, for US$120.6 million between 1 April and 12 August 2026. US$589.6 million remains under the existing authorisation.
On the debt side, Studio City Company Limited issued US$300 million of 6.125% senior secured notes due 2031 in May 2026, using the proceeds to refinance US$350 million of 7.000% notes due 2027. After the quarter closed, on 18 July 2026, Studio City Finance redeemed US$165 million of 6.500% senior notes due 2028. Melco also extended the maturity of its MN1 2020 revolving facilities to June 2031 and added an incremental facility of HK$6.44 billion.
REM hotel opens in phases from Q3
The new REM hotel at City of Dreams Macau begins a phased opening in the third quarter of 2026. Ho tied the group’s Macau outlook to that opening and to cost discipline across the estate.
We are confident in the long-term strength of our businesses and our outlook for Macau.
He linked the REM opening, alongside continued work to run the estate more efficiently, to capturing demand he said has been gaining momentum in Macau.
The quarter places Melco among a set of operators reporting softer top lines this earnings season, alongside DraftKings, whose Q2 2026 revenue fell 5% to US$1.44 billion. For Melco specifically, the question through the second half is whether REM room inventory and the Cyprus recovery can offset the mass market softness at City of Dreams Macau and Studio City, which together account for the bulk of group revenue. Q3 results will be the first period to carry any REM contribution, partial as it will be. Further quarterly earnings coverage follows as operators report.
Source: Melco Resorts & Entertainment
