- In February 2026, Melco Resorts & Entertainment reported fourth-quarter 2025 results showing revenue rising to US$1,293.27 million and a swing from a US$20.27 million net loss to a US$60.64 million net income, supported by stronger gaming performance in Macau and Cyprus.
- Alongside this financial improvement, Melco secured a record 19 Forbes Travel Guide Five-Star Awards and maintained about US$2.40 billion of liquidity, underscoring both operational strength and brand positioning across its integrated resorts.
- With Melco returning to quarterly profitability and posting higher property EBITDA in Macau, we’ll now assess how this reshapes the existing investment narrative.
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Melco Resorts & Entertainment Investment Narrative Recap
To own Melco, you have to believe its premium mass focused Macau and international resorts can convert improved gaming volumes into consistently profitable earnings while managing a still heavy debt load. The latest Q4 swing to a US$60.64 million profit and stronger Macau and Cyprus EBITDA support that earnings base, but they do not remove the key short term risk that higher competition and reinvestment in Macau could pressure margins just as Melco steps up capital spending.
Among recent announcements, the company’s record 19 Forbes Travel Guide Five Star Awards is most relevant here, because it reinforces Melco’s positioning at the high end of the market that underpins its premium mass catalyst. These awards sit alongside roughly US$2.40 billion of liquidity and an 11% full year 2025 revenue increase to US$5.16 billion, framing a business that is now profitable but still investing heavily to keep those high value customers coming back.
Yet behind the awards and return to profit, investors should also be aware of how Melco’s sizeable debt and upcoming capex could interact with…
Read the full narrative on Melco Resorts & Entertainment (it’s free!)
Melco Resorts & Entertainment’s narrative projects $5.7 billion revenue and $438.0 million earnings by 2028. This assumes 4.1% yearly revenue growth and a $333.9 million earnings increase from $104.1 million today.
Uncover how Melco Resorts & Entertainment’s forecasts yield a $10.92 fair value, a 97% upside to its current price.
Exploring Other Perspectives
Before this Q4 beat on revenue, the most optimistic analysts were assuming earnings could climb toward about US$568 million by 2028, which is far more upbeat than the consensus view and leans heavily on premium mass demand and new markets, so if you are weighing that against the risk of capex and debt keeping margins under pressure, it is worth remembering that reasonable investors can look at the same numbers and reach very different conclusions.
Explore 8 other fair value estimates on Melco Resorts & Entertainment – why the stock might be worth less than half the current price!
Build Your Own Melco Resorts & Entertainment Narrative
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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