GET DAILY SIGNALSStudio City International Holdings (MSC) Narrows Q3 Loss Despite Revenue Pressure
Key Takeaways
- MSC posted a third-quarter net loss attributable to the company of $13.14 million, narrowing from $18.57 million in the prior-year period.
- Diluted loss per ADS improved to $0.068, versus $0.096 a year earlier.
- Revenue fell 10.5% to $163.3 million from $182.51 million, weighed down by a softer mass-market segment.
- Adjusted EBITDA declined to $65.5 million from $78.1 million.
- Nine-month revenue reached $504.59 million, down from $534.29 million, while the net loss narrowed to $25.89 million.
Why These Results Matter
Studio City International Holdings operates the Studio City integrated resort in Macau and is majority-owned by Melco Resorts & Entertainment. Macau’s post-pandemic recovery has been uneven, so each earnings release offers insight into demand trends across mass-market and premium-mass table games. This quarter’s report is particularly relevant because it shows whether the company can continue narrowing losses even as revenue faces headwinds. MSC also carries substantial leverage, with a debt-to-equity ratio above 370%, which makes Adjusted EBITDA and cash generation important indicators of its ability to service debt and sustain operations.
Breaking Down the Third-Quarter Numbers
For the quarter ended September 30, 2026, MSC reported revenue of $163.3 million, a 10.5% decline from $182.51 million in the same period last year. The drop reflected weaker mass-market gaming and softer non-gaming income. The net loss attributable to the company narrowed to $13.14 million from $18.57 million a year earlier. On a diluted basis, the loss per ADS improved to $0.068 from $0.096.
Adjusted EBITDA came in at $65.5 million, down from $78.1 million in the prior-year quarter. The company also recorded operating income of $14.7 million and capital expenditures of $6.1 million. Over the first nine months of 2026, revenue totaled $504.59 million compared with $534.29 million a year earlier, while the net loss narrowed to $25.89 million from $38.29 million. Nine-month Adjusted EBITDA was $212.6 million, down from $224.37 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction
Despite the narrower loss, MSC shares fell sharply after the release. Investors appeared to focus on the year-over-year declines in revenue and Adjusted EBITDA. The softness in mass-market gaming and non-gaming performance highlighted that the resort’s recovery remains uneven, and the company continues to operate at a net loss with high leverage. Sentiment around the report has stayed cautious, with the stock trading well below its 52-week highs and limited institutional coverage contributing to volatility in the shares.
What Investors Should Watch Next
Looking ahead, the focus will be on whether Studio City can stabilize volumes in its mass-market and premium-mass segments, which drove the third-quarter revenue shortfall. A sustained pickup in Macau visitation and spending will be essential for any meaningful top-line improvement.
Non-gaming revenue trends also warrant attention, as weaker performance there added to the decline. The company’s ability to translate activity into operating earnings will be tested by the Adjusted EBITDA trajectory, which slipped year over year. Balance-sheet health remains a key consideration given the debt-to-equity ratio above 370% and ongoing net losses. Broader Macau industry conditions, including competition from other resorts and regulatory factors, will influence whether the recent narrowing of losses can continue in coming quarters.
Using Tickeron’s AI Screener for Deeper Analysis
In my research process, I regularly turn to Tickeron’s AI Screener to filter stocks and ETFs by technical patterns, fundamentals, and AI-driven signals. It helps surface comparable names in the gaming sector and identify potential trade ideas more efficiently than manual screening, which is especially useful when tracking thinly covered names like MSC.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
MSC's Stochastic Oscillator penetrating overbought zone
The Stochastic Oscillator for MSC moved into overbought territory on November 04, 2026. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MSC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 90%.
MSC broke above its upper Bollinger Band on November 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MSC entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where MSC's RSI Indicator exited the oversold zone, 23 of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 88%.
The Momentum Indicator moved above the 0 level on November 02, 2026. You may want to consider a long position or call options on MSC as a result. In 96 of 114 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 84%.
The Moving Average Convergence Divergence (MACD) for MSC just turned positive on October 02, 2026. Looking at past instances where MSC's MACD turned positive, the stock continued to rise in 51 of 58 cases over the following month. The odds of a continued upward trend are 88%.
Following a +36.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where MSC advanced for three days, in 165 of 197 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 14 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 18 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.323) is normal, around the industry mean (14.889). P/E Ratio (-3.321) is within average values for comparable stocks, (53.682). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (0.784). Dividend Yield (0.000) settles around the average of (0.021) among similar stocks. P/S Ratio (0.363) is also within normal values, averaging (1.049).
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. MSC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 93 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MSC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
an operator of gaming, retail and entertainment resort
Industry HotelsResortsCruiselines
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