Melco Resorts & Entertainment Ltd. reported adjusted net loss of $40.2 million, or $0.12 per share, for the second quarter of 2026, missing analysts' consensus forecast of a $0.05 per share profit. The Macau-based casino operator cited a 18% year-over-year decline in revenue to $423.7 million, driven by weaker gaming demand and reduced VIP player activity.
The company attributed the shortfall to ongoing softness in Macau’s gaming market, which has faced regulatory scrutiny and reduced tourism flows. Melco’s adjusted EBITDA fell 22% to $98.4 million, while cash and cash equivalents decreased to $1.1 billion from $1.3 billion at the end of the prior quarter.
Melco’s management noted that while mass-market gaming had shown resilience, high-roller segments remained under pressure. The company did not provide updated guidance for the full year, stating that visibility on Macau’s recovery remains limited amid regulatory and macroeconomic uncertainties.
Shares of Melco Resorts fell 3.2% in pre-market trading following the announcement, extending losses after a 15% decline over the past month. The stock has underperformed the broader Macau gaming sector, which has also faced headwinds from China’s economic slowdown and stricter anti-corruption measures.
Analysts at Jefferies maintained a hold rating on Melco, citing concerns over near-term profitability but noting potential long-term benefits from Macau’s integrated resort expansion plans. The company is scheduled to release its full financial results on August 14.
