Melco Resorts Posts 9% Revenue Growth in Q4 2025, Driven by Macau Recovery
Event summary
- Melco Resorts reported Q4 2025 revenues of $1.29 billion, up 9% YoY, driven by improved rolling chip and mass market table games performance in Macau.
- Operating income increased to $146.4 million from $97.0 million in Q4 2024, with Adjusted Property EBITDA rising to $331.3 million.
- City of Dreams saw a 35% YoY increase in Adjusted EBITDA, while Studio City's EBITDA grew by 6% YoY.
- City of Dreams Manila faced competitive pressures, with revenues declining 25% YoY.
- Full-year 2025 revenues reached $5.16 billion, up from $4.64 billion in 2024.
The big picture
Melco Resorts' Q4 2025 earnings reflect a broader recovery in Macau's gaming market, driven by disciplined cost management and margin expansion. However, competitive pressures in the Philippines and Cyprus highlight the challenges of maintaining growth across diverse markets. The company's strategic focus on premium mass and mass operations, along with new initiatives, will be key to sustaining its momentum in a competitive industry landscape.
What we're watching
- Macau Recovery
- The pace at which Macau's gaming market sustains its recovery will be critical for Melco's future performance.
- Competitive Pressures
- Whether Melco can mitigate competitive pressures in the Philippines and Cyprus will impact its regional growth strategy.
- Execution Risk
- How Melco executes its new initiatives and differentiates its offerings will determine its long-term success.
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