Melco Resorts Roars Back to Profit on Macau and Cyprus Strength

MACAU – February 12, 2026 – Melco Resorts & Entertainment has signaled a powerful financial comeback, posting robust fourth-quarter and full-year 2025 earnings that saw the company swing decisively back to profitability. The integrated resort operator announced total operating revenues of US$1.29 billion for the fourth quarter, a 9% increase year-over-year, culminating in a net income of US$60.6 million. This marks a dramatic turnaround from the US$20.3 million net loss reported in the same period of 2024.

The impressive results were fueled by a resurgent Macau gaming market and burgeoning success at its new European flagship, City of Dreams Mediterranean. The performance underscores a successful strategic pivot toward the mass and premium-mass market segments, which have become the primary engines of growth in the post-pandemic era. For the full year, Melco reported a net income of US$185.0 million, more than quadrupling the US$43.5 million earned in 2024.

“2025 was a year of growth and recovery, supported by disciplined cost management and margin expansion,” said Chairman and CEO Mr. Lawrence Ho in a statement. “We remain focused on executing our growth priorities and are energized by the pipeline of new initiatives launching in the coming year, each designed to further differentiate our offerings.”

Macau's Mass Market Engine Fires on All Cylinders

The heart of Melco’s recovery beats strongest in Macau, where its flagship properties, City of Dreams and Studio City, capitalized on a market-wide boom. The city's overall gaming revenue for 2025 climbed to nearly 85% of pre-pandemic levels, driven by record-breaking tourism and a structural shift away from the volatile VIP segment.

Melco's results reflect this trend perfectly. The company's Macau Property EBITDA grew by a formidable 25% for the full year. City of Dreams saw its fourth-quarter operating revenues surge to US$695.7 million, powered by strong performance in both mass market table games and a surprisingly lucky streak in its high-roller rolling chip segment. Mass market table games drop at the property increased to US$1.74 billion from US$1.53 billion a year prior.

This performance is the direct result of a market that has fundamentally changed. The mass market segment, now accounting for roughly 70-75% of Macau's total gaming revenue, has proven far more resilient and is recovering faster than its VIP counterpart. Melco’s strategic decisions appear prescient in this context. The company’s repositioning of its Studio City resort to focus specifically on premium mass and mass operations, a move finalized in late 2024, has proven to be a well-timed masterstroke. Studio City delivered a solid performance with Adjusted EBITDA of US$86.6 million for the quarter, bolstered by better mass market table games performance.

Further demonstrating this strategic focus, Melco has been actively consolidating its operations. The company streamlined its Mocha Clubs, a network of electronic gaming machine venues, and reallocated gaming tables and machines from closed satellite casino operations to its primary integrated resorts, concentrating firepower where it matters most.

A Tale of Two Markets: Cyprus Shines as Manila Faces Headwinds

While Macau provided the muscle for Melco's recovery, the company's geographic diversification presented a more mixed picture. The standout performer was City of Dreams Mediterranean in Cyprus, which is rapidly establishing itself as a key profit center.

As the largest integrated resort in Europe, the Cyprus property and its satellite casinos recorded a stellar 35% year-over-year growth in Property EBITDA for the full year 2025. In the fourth quarter alone, its Adjusted EBITDA nearly doubled to US$21.0 million from US$11.8 million in the prior year, driven by strong mass market play. This success validates Melco's expansion strategy and provides a crucial foothold in the European market, tapping into both regional and international tourism.

In stark contrast, the Philippine market proved to be a tougher environment. City of Dreams Manila experienced what the company termed a “softer performance” due to “competitive pressures and industry headwinds.” Fourth-quarter operating revenues at the property fell to US$100.2 million from US$133.8 million a year ago, with Adjusted EBITDA dropping from US$56.8 million to US$33.1 million. This reflects the intense competition in Manila's Entertainment City, where rivals like Solaire Resort and Okada Manila are vying for market share in a dynamic and evolving regulatory landscape, particularly as the state operator PAGCOR plans to privatize its own casinos.

Fortifying the Foundation for Future Growth

Beyond the headline revenue numbers, Melco spent 2025 diligently strengthening its financial foundation. The company has taken a proactive approach to deleveraging its balance sheet, a move that has not gone unnoticed by credit rating agencies. In the fourth quarter, Melco repaid over US$240 million in debt across its various credit facilities, following an early redemption of US$357.9 million in senior notes in October.

This disciplined financial management has left the company in an enviable position of strength. As of December 31, 2025, Melco boasted an available liquidity of approximately US$2.38 billion, including cash and undrawn revolving credit facilities. This substantial war chest provides significant flexibility to fund capital expenditures, navigate economic uncertainties, and invest in the new growth initiatives hinted at by Mr. Ho.

With a fortified balance sheet and a clear strategy aligned with the dominant trends in its core market, Melco Resorts appears well-equipped to build on its recovery. The company's ability to navigate the complex, divergent paths of its global operations while optimizing its assets in Macau will be critical as it moves into 2026.