How Did Studio City International's (NYSE:MSC) Q3 2026 Results Reflect Macau's Gaming Trends?

Sonal Goyal

05 November 2026 12:37 PM AEDT

How Did Studio City International's (NYSE:MSC) Q3 2026 Results Reflect Macau's Gaming Trends?

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Key Highlights

• Total operating revenues for Q3 2026 were $163.3 million, down from $182.5 million in Q3 2025, reflecting softer mass market gaming performance.

• Gross gaming revenues at Studio City Casino were $320.9 million, compared to $344.4 million in the prior-year quarter.

• Adjusted EBITDA was $65.5 million, down from $78.1 million in Q3 2025.

• Net loss attributable to Studio City narrowed to $13.1 million, or $0.07 per ADS, from $18.6 million, or $0.10 per ADS, a year ago.

Studio City International Holdings Limited(NYSE:MSC), the operator of an integrated resort in Cotai, Macau, reported unaudited financial results for the third quarter of 2026 on November 4, 2026. The results reflected softer performance across both gaming and non-gaming segments compared to the prior year.

Revenue and Gaming Performance

Total operating revenues for Q3 2026 were $163.3 million, down 10.5% from $182.5 million in Q3 2025. The decline was primarily attributed to softer mass market operations and lower non-gaming revenues. Studio City Casino generated gross gaming revenues of $320.9 million during the quarter, compared to $344.4 million a year earlier.

Mass market table games drop — the total amount wagered — was $846.3 million in Q3 2026, compared to $942.5 million in Q3 2025, representing a decline of roughly 10%. However, the hold percentage improved to 34.3% from 33.1%, partially offsetting the Volume decline. Gaming machine handle edged up to $892.9 million from $873.3 million, though the win rate contracted to 3.4% from 3.7% in the year-ago quarter.

Revenue from the casino contract, which is net of gaming taxes and operational costs deducted by the gaming operator Melco Resorts (Macau) Limited, was $66.9 million for the quarter, down from $77.3 million in Q3 2025. Total gaming taxes and operational costs deducted from gross gaming revenues were $254.0 million, compared to $267.2 million in the prior-year period.

Non-Gaming and Operating Metrics

Total non-gaming revenues were $96.4 million in Q3 2026, down from $105.2 million in Q3 2025. Operating Income fell to $14.7 million from $23.9 million a year ago. Adjusted EBITDA came in at $65.5 million, compared to $78.1 million in Q3 2025, with the decrease driven by lower casino contract revenue and softer non-gaming performance.

The company noted a $25.0 million difference between its reported Adjusted EBITDA and the figure cited in the Earnings release of Parent Company Melco Resorts & Entertainment Limited. This difference reflects intercompany charges, including fees and shared service charges between Studio City subsidiaries and certain Melco Resorts subsidiaries, as well as certain gaming concession-related costs.

Net Loss and Financial Position

Net loss attributable to Studio City narrowed to $13.1 million, or $0.07 per American depositary share (ADS), compared to $18.6 million, or $0.10 per ADS, in Q3 2025. Net non-operating expenses for the quarter totaled $27.5 million, primarily comprising $27.9 million in interest expense, partially offset by $0.8 million in net foreign exchange gains. Depreciation and amortization costs were $51.3 million.

Total cash and bank balances as of September 30, 2026, were $97.8 million, down from $109.5 million at the end of 2025. The company's total debt, net of unamortized deferred financing costs, remains a significant component of its Capital Structure given the capital-intensive nature of integrated resort operations.

What the Numbers Suggest

Studio City's Q3 2026 results mirror broader trends in the Macau gaming market, where mass market table game volumes have softened from their post-pandemic recovery peaks. The decline in mass market drop, which is the primary revenue driver for the property, accounted for most of the revenue shortfall. The improved hold percentage provided some cushion but was insufficient to fully offset lower wagering volumes. The narrowing of net losses year-over-year is a positive signal on the cost management front, but the property continues to face headwinds from the Debt burden and depreciation costs inherent in operating a large-scale integrated resort. The trajectory of Macau's broader tourism and gaming recovery will remain a key Factor in Studio City's performance in the coming quarters.

FAQs

Q: What were Studio City's total operating revenues in Q3 2026?

A: Total operating revenues were $163.3 million, down 10.5% from $182.5 million in Q3 2025.

Q: Why did Studio City's revenue decline?

A: The decline was primarily due to softer mass market table games performance, with drop decreasing roughly 10% year-over-year, and lower non-gaming revenues.

Q: What was Studio City's Adjusted EBITDA in Q3 2026?

A: Adjusted EBITDA was $65.5 million, compared to $78.1 million in Q3 2025.

Q: What is Studio City's relationship with Melco Resorts?

A: Studio City Casino is operated by Melco Resorts (Macau) Limited, which acts as the gaming operator and deducts gaming taxes and operational costs from gross gaming revenues before passing through revenue to Studio City.

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