What Does Melco Resorts' (NASDAQ:MLCO) Q3 2026 Earnings Decline Reveal About Macau's Gaming Landscape?

Sonal Goyal

05 November 2026 12:37 PM AEDT

What Does Melco Resorts' (NASDAQ:MLCO) Q3 2026 Earnings Decline Reveal About Macau's Gaming Landscape?

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Key Highlights

• Melco Resorts reported Q3 2026 total operating revenues of US$1.17 billion, down approximately 10% from US$1.31 billion in Q3 2025

• Adjusted Property EBITDA declined to US$287.6 million from US$380.4 million in the prior-year quarter

• Net Income attributable to the company was effectively zero at US$34 thousand, compared with US$74.7 million in Q3 2025

• City of Dreams Mediterranean and satellite casinos achieved their highest quarterly EBITDA on record

Melco Resorts & Entertainment Limited (NASDAQ:MLCO), a developer, owner, and operator of integrated resort facilities across Asia and Europe, reported its unaudited third-quarter 2026 financial results, revealing a period of declining revenue and Earnings driven primarily by softer gaming activity at its Macau properties.

Revenue and Earnings Overview

Total operating revenues for Q3 2026 reached US$1.17 billion, a decline of approximately 10% from US$1.31 billion in the same quarter of 2025. The decrease was primarily attributable to softer performance in rolling chip and mass market table games, as well as lower overall non-gaming revenue. Operating Income fell to US$100.2 million from US$184.5 million a year earlier, while Adjusted Property EBITDA declined to US$287.6 million from US$380.4 million.

Net income attributable to Melco Resorts was effectively nil at US$34 thousand, or US$0.00009 per American depositary share, compared with US$74.7 million, or US$0.19124 per ADS, in Q3 2025. Net losses attributable to noncontrolling interests, primarily from Studio City and City of Dreams Mediterranean, totaled US$9.1 million during the quarter.

City of Dreams Macau Performance

City of Dreams, the company's flagship Macau integrated resort, reported total operating revenues of US$566.2 million for the quarter, down from US$672.6 million in Q3 2025. Adjusted EBITDA at the property fell to US$130.3 million from US$206.9 million. The year-over-year decline was primarily driven by lower rolling chip volume, which decreased to US$4.63 billion from US$5.58 billion. The rolling chip win rate also declined to 2.49% from 3.68% in Q3 2025, falling below the company's expected range of 2.85% to 3.15%.

Mass market table games drop edged lower to US$1.63 billion from US$1.66 billion, with hold percentage relatively stable at 29.5% compared with 29.8% in the prior year. Gaming machine handle was US$1.01 billion, down modestly from US$1.04 billion, though the machine win rate improved to 3.6% from 3.2%. Total non-gaming revenue at City of Dreams came in at US$88.4 million, compared with US$94.8 million a year earlier.

Studio City and Other Properties

Studio City, Melco's entertainment-focused integrated resort, generated total operating revenues of US$346.2 million, down from US$375.3 million in Q3 2025. Adjusted EBITDA at the property was US$90.6 million, compared with US$104.7 million in the prior-year period. The declines tracked the broader trends in Macau's gaming environment during the quarter.

In contrast, the company's operations outside Macau showed a different trajectory. City of Dreams Mediterranean and Melco's satellite casinos delivered their highest quarterly EBITDA on record, according to Chairman and CEO Lawrence Ho. He noted that while these properties faced ongoing headwinds in their respective countries and regions, they continued to demonstrate operational resilience.

Hotel and Renovation Updates

Chairman Ho also highlighted ongoing renovation and development activity, including the opening of the newly branded REM hotel and the renovation of retail space at City of Dreams in Macau. These initiatives are part of Melco's strategy to capture evolving customer preferences and position its Macau properties for long-term Demand growth.

The Broader View

Melco Resorts' Q3 2026 results highlight the cyclical pressures facing Macau's gaming sector, with rolling chip volumes and win rates both declining meaningfully from prior-year levels. While the company's European and regional properties achieved record quarterly EBITDA, the Macau operations remain the dominant Factor in the company's overall financial performance. The coming quarters will test whether ongoing property renovations and shifting customer engagement strategies can offset the headwinds in Macau's VIP and mass market segments.

FAQs

Q: What was Melco Resorts' total revenue in Q3 2026?

A: Total operating revenues were US$1.17 billion, representing an approximately 10% decrease from US$1.31 billion in Q3 2025.

Q: Why did Melco Resorts' earnings decline in Q3 2026?

A: The decline was primarily attributable to softer rolling chip and mass market table games performance at its Macau properties, along with lower non-gaming revenue.

Q: How did City of Dreams perform during the quarter?

A: City of Dreams generated total operating revenues of US$566.2 million, down from US$672.6 million, with Adjusted EBITDA declining to US$130.3 million from US$206.9 million.

Q: Did any Melco properties show improvement in Q3 2026?

A: Yes, City of Dreams Mediterranean and Melco's satellite casinos achieved their highest quarterly EBITDA on record during the quarter.

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