February 12, 2026 4Q'25 Results Presentation 1 Disclaimer Safe Harbor Statement This presentation contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Melco Resorts & Entertainment Limited (the "Company") may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written m ...

Core Viewpoint - Melco Resorts & Entertainment Limited reported significant growth in its financial performance for the fourth quarter and full year of 2025, driven by improved gaming revenues and disciplined cost management. Financial Performance - Total operating revenues for Q4 2025 were US$1.29 billion, a 9% increase from US$1.19 billion in Q4 2024 [2] - Operating income for Q4 2025 was US$146.4 million, up from US$97.0 million in Q4 2024 [2] - Adjusted Property EBITDA for Q4 2025 was US$331.3 million, compared to US$295.2 million in Q4 2024 [3] - Net income attributable to Melco Resorts for Q4 2025 was US$60.6 million, or US$0.16 per ADS, compared to a net loss of US$20.3 million, or US$0.05 per ADS, in Q4 2024 [4] Yearly Overview - For the full year 2025, total operating revenues reached US$5.16 billion, up from US$4.64 billion in 2024 [38] - Operating income for 2025 was US$600.4 million, compared to US$484.6 million in 2024 [39] - Adjusted Property EBITDA for the full year was US$1.43 billion, compared to US$1.22 billion in 2024 [39] - Net income attributable to Melco Resorts for 2025 was US$185.0 million, or US$0.46 per ADS, compared to US$43.5 million, or US$0.10 per ADS, in 2024 [40] Segment Performance - In Macau, Property EBITDA grew by 25% year-over-year to US$1.23 billion for 2025, driven by stronger gaming revenue [5] - City of Dreams in Q4 2025 had total operating revenues of US$695.7 million, up from US$591.1 million in Q4 2024 [6] - Studio City reported total operating revenues of US$360.4 million in Q4 2025, compared to US$342.0 million in Q4 2024 [10] - City of Dreams Manila's total operating revenues decreased to US$100.2 million in Q4 2025 from US$133.8 million in Q4 2024 [22] Gaming Operations - Rolling chip volume increased to US$6.28 billion in Q4 2025, with a win rate of 3.18%, up from 2.35% in Q4 2024 [7] - Mass market table games drop increased to US$1.74 billion in Q4 2025, with a hold percentage of 31.0% [8] - Total non-gaming revenue at City of Dreams in Q4 2025 was US$98.8 million, compared to US$85.6 million in Q4 2024 [9] Financial Position - Total cash and bank balances as of December 31, 2025, were US$1.15 billion, including US$125.2 million of restricted cash [34] - Total debt at the end of Q4 2025 was US$6.75 billion [34] - Available liquidity, including cash and undrawn revolving credit facilities, was approximately US$2.38 billion as of December 31, 2025 [36]

Core Insights - Melco Resorts & Entertainment has achieved a historic leadership position in the 2026 Forbes Travel Guide by receiving 19 Five-Star Awards, making it the world's integrated resort operator with the most FTG Five-Star Awards [1][2] - The company has a total of 107 FTG Stars across its Hotel, Restaurant, and Spa categories, showcasing its commitment to luxury hospitality [1][2] Group 1: Awards and Recognition - Melco's properties, including City of Dreams, Studio City, Altira Macau, and City of Dreams Manila, have been recognized with multiple Five-Star Awards in various categories [1][2] - The specific awards include Five-Star ratings for hotels such as Morpheus and Nüwa, restaurants like Alain Ducasse at Morpheus and Jade Dragon, and spas including Morpheus Spa and Nüwa Spa [2] Group 2: Company Overview - Melco Resorts & Entertainment is a developer, owner, and operator of integrated resort facilities in Asia and Europe, with properties in Macau, the Philippines, and Cyprus [4] - The company is majority owned by Melco International Development Limited, which is led by Mr. Lawrence Ho, who serves as Chairman and CEO [5]

Core Insights - Melco Resorts & Entertainment has achieved a historic leadership position in the 2026 Forbes Travel Guide by receiving 19 Five-Star Awards, making it the world's integrated resort operator with the most FTG Five-Star Awards [1][2] - The company has attained a total of 107 FTG Stars across its Hotel, Restaurant, and Spa categories, reinforcing its status as a premier luxury hospitality provider in the region [1][2] Company Overview - Melco Resorts & Entertainment is a developer, owner, and operator of integrated resort facilities in Asia and Europe, with properties including City of Dreams and Altira Macau in Macau, Studio City in Cotai, and City of Dreams Manila in the Philippines [4] - The company also operates City of Dreams Mediterranean in Cyprus and manages the Nüwa hotel at City of Dreams Sri Lanka [4] Awards and Recognition - The 19 Five-Star awards received by Melco properties include accolades for hotels such as Morpheus and Nüwa, restaurants like Alain Ducasse at Morpheus and Jade Dragon, and spas including Morpheus Spa and Altira Spa [2][3] - This recognition highlights the company's commitment to excellence in design and guest experiences [2] Leadership - The company is majority owned by Melco International Development Limited, which is led by Mr. Lawrence Ho, who serves as the Chairman, Executive Director, and CEO [5]

Group 1 - The core viewpoint of the report indicates that the total gaming revenue in Macau is expected to range between 21-22.4 billion MOP in February 2026, with daily average revenue projected at 750-800 million MOP, reflecting a year-on-year growth of 6-13%, but a decline of 12-17% compared to February 2019 [1] - In January 2026, Macau recorded a total gaming revenue (GGR) of 22.6 billion MOP, representing a year-on-year increase of 24.0% and a month-on-month increase of 8.4%, surpassing the consensus expectation of 18.5% growth [1] - The daily average revenue (ADR) for January 2026 was 730 million MOP, which is a 24.0% year-on-year increase and an 8.4% month-on-month increase from December 2025 [1] Group 2 - The strong performance of Macau's gaming industry in January 2026 is attributed to several factors: a longer New Year holiday compared to previous years, sustained demand on other days of the month, and diversified activities attracting visitors [2] - The estimated VIP gaming revenue in January 2026 decreased by 46-55% compared to January 2019, while mass gaming revenue increased by 27-37%, with mass revenue accounting for 70-75% of total gaming revenue [2] - In December 2025, the number of visitors to Macau increased by 17.8% year-on-year, reaching 3,580,130, which is 116.1% of the level seen in December 2019 [2]

Company Overview - Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is a developer, owner, and operator of casino gaming and resort facilities in Europe and Asia, including the City of Dreams and various leisure facilities [4] Investment Ratings and Price Targets - Texas Capital initiated coverage of Melco Resorts with a Buy rating and a price target of $11.5, citing the company's unique non-gaming offerings as a growth driver, with Macau's gross gaming revenue nearing 2019 levels [1] - JPMorgan downgraded the stock from Overweight to Hold on January 15, lowering the price target from $11 to $7.7, indicating a potential upside of 25.61% from current levels, while expressing concerns over downside risks to consensus estimates and lack of dividend support [2] - Bank of America analyst Karl Choi reduced the price target from $9.5 to $7.9 on January 13, maintaining a Hold rating, with the new target suggesting a 28.87% upside, reflecting a selective view on Macau gaming stocks ahead of a projected slowdown in gross gaming revenue growth in 2026 [3] Market Context - Analysts are taking a more selective approach to Macau gaming stocks, indicating a cautious outlook for the sector [2][3] - The company's margins show clear and sustained improvement, but it remains in 'show-me' territory for investors, suggesting that further validation of its growth story is needed [2]

Group 1 - Melco Resorts & Entertainment Limited (NASDAQ:MLCO) has been downgraded by J.P. Morgan from Buy to Hold, with a price target reduced from $11 to $7.7 [1] - Bank of America Securities reiterated a Hold rating on the stock, lowering the price target from $9.5 to $7.9 [1][2] - Analysts at BofA express a cautious outlook on the Macau gaming sector, expecting gross gaming revenue to slow down in 2026 [2] Group 2 - J.P. Morgan analysts are also adopting a selective approach in the gaming sector, citing risks regarding consensus estimates for Melco Resorts [3] - Melco operates three casinos in Macau: City of Dreams, Studio City, and Altira Macau [3]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] AI and Energy Demand - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming as much energy as small cities [2] - The increasing demand for AI is straining global power grids, leading to rising electricity prices and a need for utilities to expand capacity [2] Investment Opportunity - A specific company, largely overlooked by AI investors, is positioned to benefit from the anticipated surge in energy demand due to AI [3][6] - This company owns critical energy infrastructure assets and is involved in the U.S. LNG exportation sector, which is expected to grow under the current administration's energy policies [7][8] Financial Position - The company is noted for being debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization [8] - It also has a substantial equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities without high premiums [9] Market Perception - Wall Street is beginning to recognize this company as it benefits from various market trends without the inflated valuations seen in many energy and utility firms [8][10] - The company is trading at less than 7 times earnings, making it an attractive investment option in the AI and energy sectors [10] Future Outlook - The ongoing technological disruption driven by AI is expected to reshape traditional industries, with companies that adapt likely to thrive [11][12] - The influx of talent into the AI sector is anticipated to lead to rapid advancements and innovative ideas, reinforcing the potential for investment in this area [12][13] Strategic Context - The company is strategically positioned to capitalize on the AI infrastructure supercycle, the onshoring boom due to tariffs, and the surge in U.S. LNG exports [14]

Group 1 - The core viewpoint of the article is that Macau is expected to remain a preferred travel destination for affluent mainland tourists, driven by a rich lineup of concert events, luxurious new hotel offerings, and new baccarat side bets [1] - The forecast for Macau's gaming revenue in the coming year is a year-on-year growth of 6%, with industry EBITDA projected to grow by 10% annually, maintaining an EBITDA margin of approximately 29% [1] Group 2 - Sands China is identified as the top pick in the industry, with expectations that it will become the largest market share winner by 2026, increasing its share by 1.6 percentage points to 25.1%. The target price has been raised from HKD 25.5 to HKD 26.5 [1] - Wynn Macau is also highlighted, with the expansion of the Chairman's Club in the VIP gaming area expected to open in the first quarter of next year, leading to a recovery in market share. Its target price has been increased from HKD 7.2 to HKD 8.05 [1] - Other preferred gaming stocks include Galaxy Entertainment, MGM China, Melco Resorts, and SJM Holdings, with target prices set at HKD 54, HKD 20, USD 13, and HKD 2.3 respectively [1] - Las Vegas Sands is maintained as the global gaming stock of choice, with its target price raised from USD 75.5 to USD 76.75 [1]

Group 1 - The core viewpoint of the article is that the Macau gaming industry is experiencing a strong recovery, with total revenue reaching 21.1 billion MOP in November, a year-on-year increase of 14%, and recovering to 92% of pre-pandemic levels, marking the best recovery since the pandemic [1] - Morgan Stanley expects December gaming revenue to increase by over 15% year-on-year, with potential for growth exceeding 20%, indicating a robust fourth quarter for the Macau gaming sector [1] - The report highlights that the gaming sector's valuation has significant upside potential due to improved earnings visibility and an expanding investor base [1] Group 2 - The investment ranking provided by Morgan Stanley is as follows: Sands China (01928) and Galaxy Entertainment (00027) are favored over Wynn Macau (01128) and MGM China (02282), followed by Melco Resorts (MLCO.US), SJM Holdings (00880), and New World Development (00200) [1] - The firm anticipates that Sands China may double its dividend per share in February, while MGM China might increase its payout ratio in March, reflecting operators' strong confidence in sustainable profit and cash flow growth [1] - The growth momentum in the gaming sector is expected to continue into the first quarter of next year, benefiting from a low base effect [1]