Melco Resorts & Entertainment (MLCO) Q3 2025 earnings summary

Executive summary

• Achieved global presence with integrated resorts in Macau, the Philippines, Cyprus, and Sri Lanka, adapting to diverse markets and customer segments; City of Dreams Sri Lanka opened in August 2025, expanding the South Asia footprint.

• Macau properties achieved 21% year-over-year Property EBITDA growth in Q3 2025, despite a $12 million typhoon impact; post-Golden Week, Macau GGR grew over 30% year-over-year, with record mass tables GGR at COD in October.

• New initiatives included the opening of the Signature Clubhouse for premium mass customers and expanded gaming areas at City of Dreams, with table and machine reallocations from closed venues.

• Studio City expanded its high-limit gaming area and launched new private gaming salons; iRad Hospital was relaunched to enhance tourism infrastructure.

• Recognized for over 1,200 awards, including Forbes and MICHELIN accolades in 2025.

Financial highlights

• Total operating revenues for Q3 2025 were $1.31 billion, up 11.4% year-over-year; gaming revenue rose 12.4%, non-gaming up 7.5%.

• Adjusted Property EBITDA was $380.4 million, up 18% year-over-year; Adjusted EBITDA margin improved to 29.1%.

• Net income reached $74.7 million, up from $27.3 million in Q3 2024.

• City of Dreams Macau contributed $207 million in Adjusted EBITDA, up 27% year-over-year.

• Studio City reported $105 million in Adjusted EBITDA, up 13% year-over-year.

Outlook and guidance

• Q4 2025 guidance: depreciation and amortization expense of $135–$140 million, corporate expense of $25–$30 million, and consolidated net interest expense of $115–$120 million.

• CapEx for Countdown Hotel renovation is $125 million; 2026 CapEx guidance is approximately $400 million.

• OPEX in Macau expected to spike in Q4 due to one-off events, with a run rate of about $3.3 million per day, then decline in subsequent quarters.

• Management remains focused on cost discipline and new initiatives to enhance customer engagement.