Melco Reaffirms Deleveraging Priority While Executing Share Repurchases in Q3 2026

Melco Resorts & Entertainment reiterated its focus on reducing leverage during its third-quarter 2026 earnings call. The Macau concessionaire continues to pursue stock buybacks while current valuations remain dislocated from fair market value. Chairman and CEO Lawrence Ho and President Evan Winkler detailed the capital allocation approach.

Melco repurchased 33.1 million American Depositary Shares for US$160 million in Q3. That activity brought total 2026 repurchases to 47.1 million shares at a consideration of US$236 million. Ho stated that deleveraging remains the corporate priority but the share price dislocation cannot be ignored.

"I think our corporate priority, as we’ve stated for the last two or three years, has been to delever," Ho explained. "But recognizing there is a massive dislocation of share prices versus what we believe the fair market value of Melco Resorts is, we have bought back a lot of shares at Melco. Any sort of Studio City consolidation, that is not a priority at all."

Capital Return and Dividend Timing

Winkler noted that the exact timing of dividend resumption remains fluid despite a target of late 2027. Buybacks retain precedence at present valuation levels. "We have prioritized buying back stock at these very dislocated levels of valuation and you can expect us to continue to buy stock if the shares stay at or around these levels," Winkler said.

Operational Guardrails in Competitive Macau

Both executives emphasized disciplined reinvestment. Winkler said the company is not chasing unhealthy levels and has implemented guard rails after sales force adjustments to protect margins relative to player performance. The competitive environment in Macau makes such restraint necessary to avoid a race to the bottom on spending, according to reporting by Inside Asian Gaming.

The stance leaves Studio City stake consolidation off the immediate agenda. Melco instead concentrates resources on balance sheet repair and opportunistic repurchases while maintaining rational capital deployment.