US$1.25bn Revenue, US$303.8m EBITDA: Melco Resorts Reports Q2 2026 Results Under CEO Lawrence Ho
Melco Resorts posted a softer second quarter, and the numbers look worse at a glance than they do on inspection. In results announced on 13 August 2026, the Macau and Europe casino operator reported Q2 2026 revenue of US$1.25bn, down roughly 6% from US$1.33bn a year earlier, with Adjusted Property EBITDA falling to US$303.8m from US$377.7m.
The company put the decline down to weaker rolling chip and mass market table games, along with softer non-gaming. Yet operating income rose. So did net income. That divergence is the story.
Three numbers, three directions: what Melco Resorts Q2 2026 earnings really show
Start with what fell and what didn’t. Adjusted Property EBITDA dropped nearly 20% year-on-year. Operating income, by contrast, edged up to US$127.8m from US$124.7m, and net income attributable to Melco rose to US$22.7m, or US$0.06 per ADS, from US$17.2m a year earlier. Three lines, moving in different directions.
That spread usually points to composition rather than collapse. It also marks a step down from the group’s stronger start to the year, when Melco’s Q1 2026 revenue reached US$1.37bn. And in Melco’s case, the composition of that shift is clear.
US$225.6m to US$147.8m: the one property behind Melco’s Q2 EBITDA drop
Almost all the pressure sits at one property. City of Dreams in Macau saw revenue fall to US$632.2m from US$710.5m, and its Adjusted EBITDA fell by about a third to US$147.8m from US$225.6m. The driver was softer rolling chip and mass market table games. The telling detail is the rolling chip win rate, which fell to 2.71% from 3.93% a year earlier, taking it just below Melco’s own stated expected range of 2.85% to 3.15%. A low hold quarter mechanically pulls down EBITDA even when underlying activity holds up. Studio City softened more modestly, with revenue of US$371.5m against US$388.2m and EBITDA of US$95.5m against US$105.2m.
Altira up, Mocha down: the smaller Macau segments telling the fuller story
Not every Macau property went backwards. Two of the smaller segments tell that side of the story:
- Altira Macau lifted revenue to US$33.9m from US$28.3m and more than doubled Adjusted EBITDA to US$2.2m from US$0.8m, helped by better mass market performance.
- Mocha brought in US$15.1m of revenue and US$4.0m of EBITDA, against US$27.9m and US$5.2m a year earlier when it was reported as Mocha and Other. The segment now covers three Mocha Clubs following government-mandated closures in 2025; separately, Grand Dragon Casino closed in September 2025.
Small numbers on their own. But together they show the Macau softness is concentrated at the top end, not spread evenly across the estate.
US$30.9m in Manila and a 60% Cyprus jump: the quarter Macau overshadowed
Outside Macau, the picture reads differently. City of Dreams Manila delivered Adjusted EBITDA of US$30.9m, up from US$28.4m, on broadly steady revenue of US$97.3m. In Cyprus, City of Dreams Mediterranean and Other grew revenue to US$82.0m from US$72.3m and lifted Adjusted EBITDA to US$19.9m from US$12.4m, with property EBITDA up 60% year-on-year, on Melco’s own figure, as regional travel disruption eased. Other Operations, covering the casino at City of Dreams Sri Lanka that opened in August 2025, added US$16.9m of revenue and US$3.5m of EBITDA. The diversification is doing real work while Macau resets.
Why one number, 2.71%, matters more than Melco’s 6% revenue drop
For anyone running a VIP-exposed book, this is a familiar shape. When a Macau quarter misses on hold rather than footfall, the market’s instinct to discount the whole franchise is often too harsh. The number that matters for the next planning cycle isn’t this quarter’s EBITDA, it’s whether table games volumes are stabilising underneath the noise.
Melco’s own commentary leaned into that read. Chairman and CEO Lawrence Ho pointed to confidence in the long-term strength of the business and the outlook for Macau, framing the quarter’s softness as near-term headwinds rather than a structural shift. He tied that to the group’s continued investment in its properties, including the new REM hotel, which is set to begin a phased opening in the third quarter.
Behind the numbers: US$7.05bn in debt Melco is quietly reshaping
A single quarter’s win rate cuts both ways, and honesty requires saying so. Just as a low hold flatters no one this quarter, a high hold could flatter the next, so one clean print won’t prove a recovery either. Melco continues to carry a heavy balance sheet, with total debt of US$7.05bn against cash and bank balances of US$1.04bn, though available liquidity of around US$2.80bn gives it room. The group has been active on maturities: in May 2026 Studio City Company issued US$300.0m of 6.125% senior secured notes due 2031 to refinance US$350.0m of 7.000% notes due 2027, and in July it redeemed US$165.0m of 6.500% notes due 2028. The MN1 2020 revolving facilities were also extended from April 2027 to June 2031 and expanded to total commitments of US$2.76bn. Capital expenditure for the quarter was US$123.9m, mainly on enhancement projects at City of Dreams in Macau and in Cyprus.
Two quarters, one question: will City of Dreams Macau volumes firm up
The forward markers are specific. REM’s phased opening through the second half adds capacity into a market Melco expects to keep recovering. The buyback pace, roughly US$120.6m of ADSs repurchased between 1 April and 12 August with about US$589.6m of authority left, signals management comfort with current levels. On a six-month view the group is still ahead of last year, with H1 net income attributable to Melco of US$99.5m against US$49.7m. And the single cleanest tell for the next two quarters will be whether City of Dreams table games volumes firm up. Get that, and this quarter reads as a hold blip. Miss it, and the questions get harder.
