Liquidity visibility is limited by a compressed current ratio of 1.07 as of 2025Q4 and the ongoing reliance on stock-based compensation, which averaged approximately $7 million per quarter.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Cash from Operations | 818.12M | 626.66M | 622.69M | -619.43M | -268.77M | -860.96M | 836.16M | 1.06B | 1.16B | 1.16B | 522.03M | 894.61M | 1.15B | 871.2M | 744.66M | 401.95M | -112.26M | -11.16M | 151.14M | -20.24M | 4.28M | 2.22M |
| Operating CF Margin % | 15.84% | 13.51% | 16.49% | -45.88% | -13.36% | -49.83% | 14.58% | 20.48% | 22% | 25.63% | 13.13% | 18.63% | 22.64% | 21.27% | 19.44% | 15.21% | -8.42% | -0.79% | 42.15% | -56.06% | 24.72% | 36.52% |
| Operating CF Growth % | 30.55% | 0.64% | 200.53% | -130.47% | 68.78% | -202.97% | -20.87% | -9.1% | 0.38% | 121.85% | -41.65% | -22.34% | 32.22% | 16.99% | 85.26% | 458.07% | -906.07% | -107.38% | 846.84% | -572.39% | 93.23% | - |
| Net Income | 145.46M | -27.96M | -326.92M | -1.1B | -956.46M | -1.45B | 394.23M | 353.85M | 315.29M | 66.92M | -60.81M | 527.39M | 578.01M | 481.86M | 288.84M | -10.53M | -308.46M | -2.46M | -178.15M | -73.48M | -3.26M | -1.01M |
| Depreciation & Amortization | 543.56M | 541.54M | 520.73M | 521.94M | 579.85M | 618.53M | 651.21M | 564.08M | 540.58M | 552.27M | 470.63M | 368.39M | 382.81M | 334.54M | 350.86M | 313.06M | 217.5M | 126.89M | 114.94M | 36.51M | 8.5M | 1.87M |
| Stock-Based Compensation | 29.27M | 27.37M | 35.47M | 71.81M | 67.96M | 54.39M | 31.8M | 25.14M | 17.3M | 18.49M | 20.83M | 20.4M | 14.99M | 8.97M | 8.62M | 6.04M | 11.38M | 6.86M | 278K | 0 | 0 | 0 |
| Deferred Taxes | 5.8M | 5.87M | 6.67M | 5.71M | 3.02M | 5.79M | 3.73M | 4.09M | 2.81M | 5.46M | 30.25M | 24.29M | 109.84M | 19.96M | 5.81M | 14.89M | 9.75M | 454K | -2.75M | -1.81M | 0 | 0 |
| Other Non-Cash Items | 87.68M | 14.72M | 144.21M | 11.12M | 73.21M | 390.88M | 121.07M | 29.93M | 111.61M | 145.76M | 97.77M | 38.76M | 35.05M | 10.22M | 74.04M | 35.17M | 16.76M | 5.38M | 13.48M | 7.92M | -343K | 1.28M |
| Working Capital Changes | 6.34M | 65.13M | 242.54M | -132.85M | -36.35M | -475.94M | -365.87M | 79.61M | 174.91M | 369.23M | -36.65M | -84.62M | 31.24M | 15.64M | 16.48M | 43.3M | -59.19M | -148.27M | 203.35M | 14.5M | -617K | 69K |
| Change in Receivables | 4.95M | -53.94M | -31.53M | -396K | 67.57M | 27.5M | -77.63M | -60.48M | 54.9M | -18.34M | -56.17M | -7.73M | -15.26M | -42.37M | -69.74M | -45.8M | -243.7M | -28.74M | -377K | 0 | 0 | 0 |
| Change in Inventory | 20.5M | 5.12M | 20.18M | 4.19M | 16.13M | -2.19M | -593K | -27.85M | -2.08M | -5.88M | -9.96M | -4.94M | -1.59M | -1.32M | -268K | -3.69M | -4.36M | -686K | -1.29M | -109K | -72K | -15K |
| Change in Payables | 0 | 0 | 212.38M | -121.29M | 0 | -470.57M | -341.76M | 161.54M | 181.66M | 448.34M | 1.16M | 4.6M | -3.92M | 1.72M | 3.14M | 64K | 6.22M | -3.67M | 2.36M | 0 | 0 | 0 |
| Cash from Investing | -341.77M | -300.81M | -48.51M | -806.11M | -674.55M | -53.31M | -1.03B | -609.7M | -410.23M | 280.6M | -469.66M | -1.61B | -1.21B | -344.56M | -585.39M | -190.31M | -1.14B | -913.6M | -972.62M | -38.65M | -181.26M | -5.47M |
| Capital Expenditures | -307.22M | -227.76M | -257.02M | -622.09M | -139.16M | -463.87M | -449.92M | -615.11M | -502.75M | -508.24M | -1.35B | -1.36B | -656.66M | -117.77M | -109.5M | -232.41M | -970.35M | -1.1B | -673.64M | -35.11M | -77.96M | -4.3M |
| CapEx % of Revenue | 5.95% | 4.91% | 6.81% | 46.08% | 6.92% | 26.85% | 7.84% | 11.92% | 9.51% | 11.25% | 34.01% | 28.42% | 12.91% | 2.88% | 2.86% | 8.8% | 72.8% | 77.4% | 187.85% | 97.27% | 449.9% | 70.91% |
| Acquisitions | 0 | 0 | 15.38M | 15.98M | 0 | 255.01M | -15.04M | 261.58M | -328.34M | -343.53M | -1.07B | -1.03B | 0 | -5.32M | -290.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -34.56M | -73.05M | -6.86M | -184.01M | -535.4M | -254.45M | 1.28M | -260.99M | 310.94M | 618.48M | 2.57B | 269.89M | 74.33M | -221.48M | -185.83M | 42.1M | -173.29M | 182.48M | -298.98M | -3.53M | -103.3M | -1.17M |
| Cash from Financing | -603.12M | -478.35M | -1.13B | 1.78B | 821.75M | 1.26B | 97.11M | -340.52M | -1.02B | -1.34B | -29.69M | 926.95M | -264.97M | 934.74M | 557.91M | 17.68M | 653.35M | 904.49M | 1.07B | 623.11M | 191.21M | 8.79M |
| Debt Issued (Net) | -432.72M | -328.02M | -950.55M | 1.85B | 913.03M | 1.25B | 341M | 503.03M | -193.77M | -124.33M | 77.95M | 1.37B | -668.01M | 865.25M | 589.48M | 40.62M | 270.69M | 912.13M | 398.56M | -500M | -107K | -46K |
| Equity Issued (Net) | -165.33M | -113.03M | -170.28M | -58.37M | -60.99M | 173.46M | 83.23M | -655.65M | 30.13M | -803.17M | 0 | -302.22M | 329.69M | 0 | 0 | 0 | 383.53M | 0 | 722.8M | 1.07B | 0 | 0 |
| Dividends Paid | -78K | -344K | -314K | -196K | 0 | -79.12M | -301M | -271.53M | -821.33M | -385.57M | -62.85M | -342.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -166.01M | -113.03M | -170.51M | -192.47M | -60.99M | -44.98M | 0 | -854.92M | 0 | -805.78M | 0 | -302.22M | -8.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -4.99M | -36.95M | -7.98M | -7.99M | -30.3M | -83M | -26.13M | 83.63M | -26.52M | -26.64M | -44.78M | 202.16M | 73.35M | 69.49M | -31.57M | -22.94M | -870K | -7.64M | -48.45M | 55.64M | 191.31M | 8.84M |
| Net Change in Cash | -124.64M | -162.76M | -552.62M | 335.14M | -102.45M | 323.27M | -88.09M | 38.11M | -259.11M | -186.55M | 13.37M | 215.9M | -327.45M | 551.18M | 716.1M | 229.32M | -602.55M | -20.27M | 251.42M | 564.23M | 14.23M | 5.54M |
| Free Cash Flow | 476.13M | 325.48M | 358.8M | -1.24B | -948.17M | -1.32B | 386.25M | 385.84M | 646.11M | 649.9M | -834.35M | -471.61M | 495.27M | 668.22M | 635.16M | 169.54M | -1.08B | -1.14B | -522.5M | -55.35M | -73.67M | -2.09M |
| FCF Margin % | 9.22% | 7.02% | 9.5% | -91.97% | -47.12% | -76.67% | 6.73% | 7.48% | 12.23% | 14.38% | -20.99% | -9.82% | 9.74% | 16.32% | 16.58% | 6.42% | -81.22% | -80.64% | -145.7% | -153.32% | -425.17% | -34.39% |
| FCF Growth % | 46.29% | -9.29% | 128.9% | -30.94% | 28.43% | -443% | 0.11% | -40.28% | -0.58% | 177.89% | -76.91% | -195.22% | -25.88% | 5.2% | 274.63% | 115.66% | 5.2% | -118.55% | -843.97% | 24.87% | -3428.45% | - |
| FCF per Share | 1.19 | 0.75 | 0.82 | -2.68 | -1.98 | -2.78 | 0.80 | 0.76 | 1.30 | 1.28 | -1.54 | -0.85 | 0.89 | 1.21 | 1.18 | 0.32 | -2.22 | -2.59 | -1.28 | -0.12 | -0.14 | -0.00 |
| FCF Conversion (FCF/Net Income) | 4.42x | 14.39x | -1.90x | 0.67x | 0.33x | 0.68x | 2.24x | 3.01x | 3.35x | 6.58x | 4.94x | 1.47x | 1.81x | 1.81x | 2.53x | -38.19x | 0.36x | 4.53x | -0.85x | 0.28x | -1.31x | -2.20x |
| Interest Paid | 460.63M | 473.23M | 490.91M | 350.74M | 310.32M | 251.44M | 253.31M | 239.34M | 239.78M | 209.7M | 106.98M | 95.12M | 127.81M | 102.02M | 111.66M | 85.18M | 27.98M | 181K | 0 | 0 | 0 | 0 |
| Taxes Paid | 13.75M | 10.14M | 1M | 2.99M | 4.52M | 5.36M | 3.89M | 275K | 6.54M | 3.41M | 7.01M | 7.15M | 333K | 1.13M | 827K | 726K | 2.46M | 0 | 0 | 0 | 0 | 0 |
High debt and regulatory sensitivity
As reported in recent financial filings, the lack of transparent operating cash flow data prevents a direct assessment of the conversion ratio between net income and cash generation, leaving investors unable to verify if the reported $60.6M net income in 2025Q4 translates into actual liquidity.
The absence of reported operating cash flow figures makes it difficult to determine the quality of earnings or the extent of non-cash accruals impacting the bottom line. Investors should monitor whether the company's net income is supported by genuine cash inflows or if it remains heavily influenced by accounting adjustments and non-cash items.
Based on the provided financial statements, Melco's free cash flow trajectory remains entirely opaque due to missing data points, which complicates any attempt to evaluate the company's ability to self-fund operations or service its significant debt obligations following the completion of major capital projects.
Without clear free cash flow metrics, it is impossible to gauge the company's true margin of safety or its capacity to generate excess cash after accounting for maintenance requirements. This lack of visibility warrants further investigation into whether the firm's cash-generating potential is being masked by the high depreciation associated with its recent asset expansion.
According to historical data, the company has historically prioritized aggressive capital expenditure to build iconic properties, yet the current lack of reported capex figures makes it impossible to determine if the firm has shifted toward a maintenance-only phase or continues to pursue growth-oriented investments.
The high depreciation and amortization observed in previous periods suggest a capital-intensive business model that requires constant reinvestment to remain competitive in the Macau market. Analysts should be cautious, as any future surge in capital spending could further strain the company's already vulnerable balance sheet and limit liquidity.
As indicated by the provided data, stock-based compensation has remained a consistent expense, averaging roughly $7M per quarter, which suggests that the company is utilizing equity-based incentives to manage cash outflows while navigating a period of inconsistent net income and high debt-related interest burdens.
The reliance on stock-based compensation may indicate a strategic effort to preserve cash, yet it also highlights the potential for shareholder dilution that investors must weigh against the company's operational performance. This practice appears to be a necessary lever for management to maintain liquidity while the core business continues to recover from pandemic-era volatility.
Quick answers to the most common questions about buying MLCO stock.
Melco Resorts & Entertainment Limited (MLCO) generated $818.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Melco Resorts & Entertainment Limited (MLCO) generated $476.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Melco Resorts & Entertainment Limited (MLCO) spent $307.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Melco Resorts & Entertainment Limited (MLCO) returned $0.1M to shareholders via cash dividends and spent $166.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.