Melco Resorts & Entertainment (NASDAQ:MLCO) Releases Quarterly Earnings Results, Meets Expectations

Melco Resorts & Entertainment (NASDAQ:MLCO) announced its earnings results on Thursday. The company reported $0.06 earnings per share for the quarter, meeting the consensus estimate of $0.06, Briefing.com reports. The business had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Melco Resorts & Entertainment had a negative return on equity of 26.45% and a net margin of 4.50%.The company’s quarterly revenue was down 5.7% on a year-over-year basis. During the same quarter last year, the business posted $0.04 earnings per share.

Here are the key takeaways from Melco Resorts & Entertainment’s conference call:

• Macau faced near-term pressure in Q2 from lower-than-expected visitation, World Cup-related substitution of gaming spend, and an unfavorable City of Dreams Macau VIP win rate of 2.7% versus 3.9% a year earlier. Group adjusted property EBITDA was approximately $304 million, or $312 million excluding VIP hold effects.
• Management said post-World Cup trends improved in late July and early August, with customers returning and playing volumes normalizing. Macau daily operating expenses remained controlled at roughly HKD 3.3–3.4 million, including House of Dancing Water, despite the upcoming REM ramp-up.
• REM has soft-opened and is scheduled for a grand opening after Golden Week in October; management views the differentiated luxury product, new gaming areas, and City of Dreams retail revamp as catalysts for visitation and customer engagement. However, retail construction is expected to disrupt the property through approximately June 2027.
• The company’s non-Macau portfolio continued to grow, with City of Dreams Manila EBITDA up 9% year over year to $31 million, Cyprus EBITDA up 60%, and Sri Lanka generating positive EBITDA of $3.5 million as its casino operations ramp.
• Melco reported approximately $2.8 billion of available liquidity and extended and upsized its revolving credit facility to $2.8 billion through June 2031, supporting financial flexibility. The company repurchased approximately 22.4 million ADSs during the quarter and now expects to recommence a substantive dividend in 2027, while the 2027 debt maturities remain under review.

Melco Resorts & Entertainment Stock Up 1.8%

MLCO opened at $5.60 on Friday. The firm has a market cap of $2.17 billion, a PE ratio of 9.33, a P/E/G ratio of 3.43 and a beta of 0.59. The business has a fifty day simple moving average of $5.47 and a 200-day simple moving average of $5.64. Melco Resorts & Entertainment has a fifty-two week low of $5.07 and a fifty-two week high of $10.15.

Wall Street Analyst Weigh In

Several brokerages have commented on MLCO. Susquehanna set a $7.00 price target on shares of Melco Resorts & Entertainment in a research report on Friday. JPMorgan Chase & Co. reduced their price objective on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a “neutral” rating for the company in a research report on Thursday, July 16th. Wall Street Zen cut shares of Melco Resorts & Entertainment from a “buy” rating to a “hold” rating in a research note on Sunday, June 28th. CLSA upgraded shares of Melco Resorts & Entertainment from a “hold” rating to an “outperform” rating and dropped their target price for the stock from $6.10 to $6.00 in a report on Friday, July 10th. Finally, CICC Research upgraded shares of Melco Resorts & Entertainment to an “outperform” rating in a report on Sunday, April 19th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Melco Resorts & Entertainment presently has a consensus rating of “Moderate Buy” and a consensus target price of $7.27.

Trending Headlines about Melco Resorts & Entertainment

Here are the key news stories impacting Melco Resorts & Entertainment this week:

• Positive Sentiment: Melco reported quarterly earnings of $0.06 per share, matching the consensus estimate. The company remained profitable, with a reported net margin of 4.33%. Melco Resorts Q2 Earnings Match Estimates
• Neutral Sentiment: The company’s second-quarter results and management commentary were presented in an earnings call and investor presentation, giving investors additional detail on performance across Melco’s integrated resorts in Asia and Europe. Melco Q2 2026 Earnings Call Transcript
• Negative Sentiment: Revenue was $1.25 billion, below analysts’ $1.26 billion forecast, and decreased 5.7% from the year-ago period. The revenue miss is likely weighing more heavily on the stock than the in-line EPS result because it points to softer business activity and limited top-line growth. Melco Resorts Shares Fall as Q2 Earnings and Revenue Miss Forecasts
• Negative Sentiment: Although EPS met estimates, earnings were weaker than in the comparable prior-year period. Melco also reported a negative return on equity of 32.60%, underscoring ongoing balance-sheet and profitability concerns. Melco Resorts Earnings Report

Institutional Investors Weigh In On Melco Resorts & Entertainment

Several hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. boosted its position in shares of Melco Resorts & Entertainment by 8.3% in the 2nd quarter. Osaic Holdings Inc. now owns 16,990 shares of the company’s stock valued at $123,000 after purchasing an additional 1,295 shares during the period. Orion Porfolio Solutions LLC raised its holdings in Melco Resorts & Entertainment by 15.5% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 13,556 shares of the company’s stock worth $98,000 after buying an additional 1,819 shares during the period. Fox Run Management L.L.C. raised its holdings in Melco Resorts & Entertainment by 5.1% during the 4th quarter. Fox Run Management L.L.C. now owns 46,211 shares of the company’s stock worth $350,000 after buying an additional 2,256 shares during the period. Ameriprise Financial Inc. lifted its stake in Melco Resorts & Entertainment by 0.9% during the third quarter. Ameriprise Financial Inc. now owns 259,631 shares of the company’s stock valued at $2,380,000 after buying an additional 2,442 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its stake in Melco Resorts & Entertainment by 3.7% during the fourth quarter. The Manufacturers Life Insurance Company now owns 69,325 shares of the company’s stock valued at $525,000 after buying an additional 2,444 shares in the last quarter. 39.62% of the stock is owned by hedge funds and other institutional investors.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited (NASDAQ: MLCO) is a developer, owner and operator of integrated resort destinations in Asia and Europe. The company’s portfolio spans casino gaming, hotel accommodations, retail, dining and entertainment facilities. Melco’s properties feature a mix of luxury hotels, award-winning restaurants, high-limit gaming salons and entertainment venues, catering to a broad range of leisure and business travelers.

In Macau, Melco owns and operates flagship properties including City of Dreams Macau, Altira Macau and Studio City.