The following discussion should be read in conjunction with, and is qualified in its entirety by, the audited consolidated financial statements and the notes thereto in this annual report on Form 20-F. Certain statements in this “Operating and Financial Review and Prospects” are forward-looking statements. See “Special Note Regarding Forward-Looking Statements” regarding these statements. Overview We are a holding company and, through our subsidiaries, develop, own and operate integrated resort facilities in Asia and Europe. Our future operating results are subject to significant business, economic, regulatory and competitive uncertainties and risks, many of which are beyond our control. See “Item 3. Key Information — D. Risk Factors — Risks Relating to Our Business and Operations.” For detailed information regarding our operations and development projects, see “Item 4. Information on the Company — B. Business Overview.” A. OPERATING RESULTS Operations Our primary business segments consist of: City of Dreams In 2025, City of Dreams had an average of approximately 439 gaming tables and approximately 635 gaming machines. Following the closure of Grand Dragon Casino in September 2025 and Mocha Hotel Royal in December 2025, 15 gaming tables and 137 gaming machines were re-allocated to City of Dreams. Morpheus offers approximately 783 rooms, suites and villas. Nüwa, which was under renovation since early 2020 and re-opened at the end of March 2021, offers approximately 286 guest rooms, suites and villas, and the Grand Hyatt Macau hotel offers approximately 763 guest rooms and suites. The Countdown is currently undergoing renovations as part of its rebranding and is expected to be launched in the third quarter of 2026 with approximately 150 high end luxury suites with an average room size in excess of 1,000 square feet. In addition, City of Dreams includes 41 food and beverage outlets, approximately 110 retail outlets, a wet stage performance theater, recreation and leisure facilities, including health and fitness clubs, swimming pools, spas and salons and banquet and meeting facilities. The wet stage performance theater with approximately 2,000 seats features House of Dancing Water, which had been temporarily closed since June 2020 and re-launched in May 2025. The Para nightclub offers approximately 2,232 square meters (equivalent to approximately 24,025 square feet) of live entertainment space. City of Dreams targets premium market and rolling chip patrons from regional markets across Asia. For the years ended December 31, 2025, 2024 and 2023, operating revenues generated from City of Dreams amounted to US$2,736.8 million, US$2,282.3 million and US$1,930.5 million, representing 53.0%, 49.2% and 51.1% of our total operating revenues, respectively. 127 Table of Contents Studio City Studio City is a large-scale cinematically-themed integrated resort located in Cotai, with gaming facilities, luxury hotel offerings and various entertainment, retail and food and beverage outlets to attract a diverse range of customers in Asia, with a focus primarily on the mass market and targeting all ranges of mass market patrons. The SC ADSs are listed on the New York Stock Exchange, and we owned approximately 54.9% of SCI’s total issued and outstanding shares as of March 6, 2026. In 2025, Studio City had an average of approximately 253 gaming tables and 775 gaming machines. Following the closure of Mocha Kuong Fat, Mocha Grand Dragon Hotel and Mocha Hotel Royal in September, November and December 2025, respectively, 198 gaming machines were re-allocated to Studio City. For the years ended December 31, 2025, 2024 and 2023, operating revenues generated from Studio City amounted to US$1,478.4 million, US$1,390.3 million and US$958.4 million, representing 28.6%, 30.0% and 25.4% of our total operating revenues, respectively. Altira Macau In 2025, Altira Macau had an average of approximately 31 gaming tables and 160 gaming machines operated under the brand Mocha at Altira Macau. In addition, Altira Macau had approximately 216 hotel rooms as of December 31, 2025 and features several fine dining and casual restaurants and recreation and leisure facilities. Altira Macau caters to the premium mass and mass operations. Following the closure of Mocha Grand Dragon Hotel in November 2025, 100 gaming machines were re-allocated to Altira Macau. For the years ended December 31, 2025, 2024 and 2023, operating revenues generated from Altira Macau amounted to US$107.0 million, US$125.1 million and US$110.8 million, representing 2.1%, 2.7% and 2.9% of our total operating revenues, respectively. Mocha and Other The Mocha and Other segment included the operations of the Grand Dragon Casino before its closure in September 2025. This segment has been renamed to the Mocha segment effective on September 23, 2025. In 2025, Mocha Clubs had an average of approximately 810 gaming machines in operation (excluding approximately 160 gaming machines at Altira Macau). Mocha Clubs focus primarily on general mass market patrons, including day-trip customers, outside the conventional casino setting. Grand Dragon Casino had an average of approximately 15 gaming tables in 2025. As part of our development strategy and in accordance with Macau law, Grand Dragon Casino and three of the six Mocha Clubs, namely Mocha Kuong Fat, Mocha Grand Dragon Hotel and Mocha Hotel Royal, ceased operations progressively between September and December 2025. Following these closures, 15 gaming tables and 137 gaming machines were re-allocated to City of Dreams, and 100 gaming machines and 198 gaming machines were re-allocated to Altira Macau and Studio City, respectively. The Chief Executive of Macau has approved the engagement of a wholly-owned management company by Melco Resorts Macau and the respective management agreement in connection with the continuing operations of Mocha Inner Harbour, Mocha Hotel Sintra and Mocha Golden Dragon beyond December 31, 2025, and an amendment agreement to the Concession Contract was signed in February 2026 to reflect that these three Mocha Clubs will continue to be operated under the engagement of such management company effective from January 1, 2026, subject to compliance with all legal and regulatory requirements. For the years ended December 31, 2025, 2024 and 2023, operating revenues generated from Mocha and Other amounted to US$107.1 million, US$122.6 million and US$117.7 million, representing 2.1%, 2.6% and 3.1% of our total operating revenues, respectively. City of Dreams Manila In 2025, City of Dreams Manila had an average of approximately 2,265 gaming machines and 265 gaming tables. City of Dreams Manila also includes three branded hotel towers, several entertainment venues and features a wide selection of regional and international food and beverage offerings as well as extended retail 128 Table of Contents shops. For the years ended December 31, 2025, 2024 and 2023, operating revenues generated from City of Dreams Manila amounted to US$411.1 million, US$472.3 million and US$495.1 million, representing 8.0%, 10.2% and 13.1% of our total operating revenues, respectively. City of Dreams Mediterranean and Other Effective from June 12, 2023, with the soft opening of City of Dreams Mediterranean, the Cyprus Operations segment which previously included the operation of the temporary casino before its closure on June 9, 2023 and the licensed satellite casinos in Cyprus, has been renamed to City of Dreams Mediterranean and Other segment which includes the operation of City of Dreams Mediterranean and the licensed satellite casinos in Cyprus. We currently operate and manage City of Dreams Mediterranean in Limassol and three satellite casinos in Nicosia, Ayia Napa and Paphos in Cyprus. In 2025, our facilities in Cyprus had an average of approximately 106 gaming tables and 890 gaming machines. In addition, City of Dreams Mediterranean had approximately 500 guest rooms and suites as of December 31, 2025 and features a variety of premium dining outlets and luxury retail. For the years ended December 31, 2025, 2024 and 2023, operating revenues generated from our operations in Cyprus amounted to US$300.2 million, US$234.6 million and US$159.4 million, representing 5.8%, 5.1% and 4.2% of our total operating revenues, respectively. Other Operations Effective from August 1, 2025, the initial opening of the Sri Lanka Casino, the operations in Sri Lanka including the provision of management services to Nüwa Sri Lanka effective from its opening on July 15, 2025, which were previously reported under the Corporate and Other category, has been included in the Other Operations segment for the years ended December 31, 2025 and 2024. For the year ended December 31, 2025, operating revenues generated from Other Operations amounted to US$12.5 million, representing 0.2% of our total operating revenues. Corporate and Other Corporate and Other category primarily includes general corporate costs and our development projects in other countries. Summary of Financial Results For the year ended December 31, 2025, our total operating revenues were US$5.16 billion, an increase of 11.3% from US$4.64 billion for the year ended December 31, 2024. Net income attributable to Melco Resorts & Entertainment Limited for the year ended December 31, 2025 was US$185.0 million, as compared to US$43.5 million for the year ended December 31, 2024. The change was primarily attributable to better performance in all gaming and non-gaming operations, partially offset by higher operating costs for the increase in business activities. Year Ended December 31, 2025 2024 2023 (in thousands of US$) Total operating revenues $ 5,163,299 $ 4,638,213 $ 3,775,247 Total operating costs and expenses (4,562,873 ) (4,153,586 ) (3,710,288 ) Operating income 600,426 484,627 64,959 Net income (loss) attributable to Melco Resorts & Entertainment Limited $ 185,045 $ 43,543 $ (326,920 ) 129 Table of Contents Key events which occurred during the years ended December 31, 2025, 2024 and 2023 are summarized below. Therefore, our results of operations and financial position for the years presented may not be fully comparable. • On January 1, 2023, we recognized an intangible asset and financial liability of US$239.6 million, representing the right to use and operate the gaming and gaming support areas comprising the Altira Casino, City of Dreams Casino and Studio City Casino, and related gaming equipment and utensils, the right to conduct games of fortunes and chance in Macau and the unconditional obligation to make payments under the Concession Contract. • In March 2023, we repurchased 40,373,076 ordinary shares from Melco Leisure for an aggregate purchase price of approximately US$169.8 million. • On April 6, 2023, we opened an indoor water park and the Epic Tower, at Studio City Phase 2. • On June 28, 2023, we recognized an intangible asset of US$73.9 million and financial liability of US$73.1 million representing the right under the Cyprus License and the unconditional obligation to pay a minimum annual license fee for City of Dreams Mediterranean and an aggregate annual license fee for three operating satellite casinos during the term of the Cyprus License from June 28, 2023. • On July 10, 2023, City of Dreams Mediterranean officially opened to the public, after a soft opening in June. • On September 8, 2023, we opened W Macau at Studio City Phase 2. • On November 28, 2023, Studio City Finance settled the 2025 SCF Senior Notes Tender Offer (2023) for the aggregate principal amount of US$100.0 million of the 2025 SCF Senior Notes. • During the year ended December 31, 2023, MCO Nominee One repaid US$820.0 million and HK$206.0 million (equivalent to US$29.6 million) in aggregate principal amount on a net basis along with accrued interest under the MN1 2020 Revolving Facilities. • On March 27, 2024, the Sri Lanka Ministry of Finance, Economic Stabilization & National Policies granted the Sri Lanka License to our subsidiary, Bluehaven Services to operate a casino business for a term of 20 years effective from April 1, 2024 in an integrated resort under development at that time by Waterfront Properties, a subsidiary of John Keells, an independent third party, in Colombo, Sri Lanka which has been rebranded as City of Dreams Sri Lanka. On July 10, 2024, Bluehaven Services and Waterfront Properties entered into a casino lease agreement under which Waterfront Properties agreed to lease to Bluehaven Services an area within the integrated resort under development at that time by Waterfront Properties together with the common area rights as defined in the casino lease agreement, for the purpose of establishing, developing and operating the Sri Lanka Casino. Upon the signing of the casino lease agreement, the Company recognized an intangible asset of LKR5 billion (equivalent to US$16.1 million), representing the casino license fee. • On April 8, 2024, the maturity date of the MN1 2020 Revolving Facilities was extended by two years to April 29, 2027. • On April 17, 2024, Melco Resorts Finance issued US$750.0 million in aggregate principal amount of the 2032 MRF Senior Notes. • On April 24, 2024, Studio City Finance settled the 2025 SCF Senior Notes Tender Offer (2024) for the aggregate principal amount of US$100.0 million of the 2025 SCF Senior Notes. • On June 6, 2024, the maturity date of the MRM 2015 Credit Facilities was extended by two years to June 24, 2026. • On June 26, 2024, we opened a cinema in Studio City. • On November 29, 2024, Studio City Company entered into the SCC 2024 Revolving Facilities. 130 Table of Contents • On November 29, 2024, Studio City Company entered into an amendment and restatement agreement to amend the terms of the SCC 2021 Credit Facilities including the extension of the maturity date from January 15, 2028 to August 29, 2029 and change of interest rates. • During the year ended December 31, 2024, MCO Nominee One repaid HK$6.99 billion (equivalent to US$893.9 million) in aggregate principal amount on a net basis along with accrued interest under the MN1 2020 Revolving Facilities. • During the year ended December 31, 2024, Studio City Finance repurchased an aggregate principal amount of US$75.3 million of the 2025 SCF Senior Notes. • During the year ended December 31, 2024, we repurchased 20,712,895 ADSs (equivalent to 62,138,685 ordinary shares) for the aggregate purchase price of US$112.3 million, and 53,138,685 repurchased ordinary shares were subsequently cancelled by us. • On February 25, 2025, pursuant to the MN1 2024 Amendment and Restatement under the MN1 2020 Revolving Facilities, an incremental facility of HK$387.5 million (equivalent to US$49.8 million) was established to increase the available commitments under the MN1 2020 Revolving Facilities from HK$14.85 billion (equivalent to US$1.91 billion) to HK$15.24 billion (equivalent to US$1.96 billion), subject to satisfaction of certain conditions precedent. • In May 2025, we relaunched House of Dancing Water. • On June 6, 2025, Melco Resorts Finance redeemed the aggregate principal amount outstanding of US$1.00 billion of the 2025 MRF Senior Notes. • In June, 2025, MCO Nominee One entered into interest rate swap arrangements with aggregate notional amount of HK$5.88 billion (equivalent to US$755.7 million) to manage interest rate risk on the loans drawn under the MN1 2020 Revolving Facilities. • On July 15, 2025, Studio City Finance redeemed the aggregate principal amount outstanding of US$221.6 million of the 2025 SCF Senior Notes. • On August 1, 2025, we had an initial opening of the Sri Lanka Casino. • On September 24, 2025, Melco Resorts Finance issued US$500.0 million in aggregate principal amount of the 2033 MRF Senior Notes and settled the 2026 MRF Senior Notes Tender Offer for an aggregate principal amount outstanding of US$142.1 million of the 2026 MRF Senior Notes. In September 2025, we also entered into cross-currency swap agreements with an aggregate notional amount of US$500.0 million to manage foreign currency exchange risk associated with the outstanding U.S. dollar denominated 2023 MRF Senior Notes. • On October 25, 2025, the remaining aggregate principal amount outstanding of US$357.9 million of the 2026 MRF Senior Notes following the completion of the 2026 MRF Senior Notes Tender Offer was redeemed. • Between September and December 2025, Grand Dragon Casino and three of the six Mocha Clubs, namely Mocha Kuong Fat, Mocha Grand Dragon Hotel and Mocha Hotel Royal, ceased operations. Following the closures, 15 gaming tables and 435 gaming machines were re-allocated to the Company’s other gaming areas in Macau. • During the year ended December 31, 2025, MCO Nominee One drew down HK$5.67 billion (equivalent to US$719.9 million) in aggregate principal amount on a net basis under the MN1 2020 Revolving Facilities. • During the year ended December 31, 2025, Studio City Company drew down HK$233.0 million (equivalent to US$29.7 million) and HK$389.0 million (equivalent to US$48.8 million) in aggregate principal amount on a net basis under the SCC 2021 Credit Facilities and the SCC 2024 Revolving Facilities, respectively. 131 Table of Contents • During the year ended December 31, 2025, we repurchased 32,345,223 ADSs (equivalent to 97,035,669 ordinary shares) for the aggregate purchase price of US$166.0 million, of which no ordinary shares repurchased were retired. Key Performance Indicators (KPIs) We use the following KPIs to evaluate our casino operations, including table games and gaming machines: • Rolling chip volume: the amount of non-negotiable chips net buy in plus the amount of cash chips converted to non-negotiable chips. • Rolling chip win rate: rolling chip table games win (calculated before discounts, commissions, other incentives and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis) as a percentage of rolling chip volume. • Mass market table games drop: the amount wagered in the mass market table games operation. • Mass market table games hold percentage: mass market table games win (calculated before discounts, commissions, other incentives and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis) as a percentage of mass market table games drop. • Table games win: the amount of wagers won net of wagers lost on gaming tables that is retained and recorded as casino revenues. Table games win is calculated before discounts, commissions, other incentives and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis. • Gaming machine handle: the total amount wagered in gaming machines. • Gaming machine win rate: gaming machine win (calculated before other incentives and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis) expressed as a percentage of gaming machine handle. In the rolling chip market operations, customers purchase identifiable chips known as non-negotiable chips, or rolling chips, from the casino cage, and there is no deposit into a gaming table’s drop box for rolling chips purchased from the cage. Rolling chip volume and mass market table games drop are not equivalent. Rolling chip volume is a measure of amounts of non-negotiable chips net buy in plus the amount of cash chips converted into non-negotiable chips. Mass market table games drop measures buy in. Rolling chip volume is generally substantially higher than mass market table games drop. As these volumes are the denominator used in calculating win rate or hold percentage, with the same use of gaming win as the numerator, the win rate is generally lower in the rolling chip market operations than the hold percentage in the mass market table games operations. Our combined expected rolling chip win rate across our properties is in the range of 2.85% to 3.15%. We use the following KPIs to evaluate our hotel operations: • Average daily rate: calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms occupied, including complimentary rooms, i.e., average price of occupied rooms per day. • Occupancy rate: the average percentage of available hotel rooms occupied, including complimentary rooms, during a period. 132 Table of Contents • Revenue per available room, or REVPAR: calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available, thereby representing a combination of hotel average daily room rates and occupancy. Complimentary rooms are included in the calculation of the above room-related KPIs. The average daily rate of complimentary rooms is typically lower than the average daily rate for cash rooms. The occupancy rate and REVPAR would be lower if complimentary rooms were excluded from the calculation. As not all available rooms are occupied, average daily room rates are normally higher than revenue per available room. Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Revenues Our total operating revenues for the year ended December 31, 2025 were US$5.16 billion, an increase of US$525.1 million, or 11.3%, from US$4.64 billion for the year ended December 31, 2024. The increase in total operating revenues was primarily attributable to an overall improved performance in all gaming and non-gaming operations, led by the continued recovery in inbound tourism to Macau in 2025. Our total operating revenues for the year ended December 31, 2025 consisted of US$4.25 billion of casino revenues, representing 82.3% of our total operating revenues, and US$916.3 million of non-casino revenues. Our total operating revenues for the year ended December 31, 2024 consisted of US$3.77 billion of casino revenues, representing 81.3% of our total operating revenues, and US$865.6 million of non-casino revenues. Casino. Casino revenues for the year ended December 31, 2025 were US$4.25 billion, representing a US$474.4 million, or 12.6%, increase from casino revenues of US$3.77 billion for the year ended December 31, 2024, primarily due to an overall improved performance in all gaming operations. City of Dreams. City of Dreams’ rolling chip volume for the year ended December 31, 2025 of US$23.40 billion represented an increase of US$3.34 billion, or 16.7%, from US$20.06 billion for the year ended December 31, 2024. The rolling chip win rate was 3.62% for the year ended December 31, 2025, which increased from 2.74% for the year ended December 31, 2024. Our expected range was 2.85% to 3.15%. Mass market table games drop was US$6.74 billion for the year ended December 31, 2025, which represented an increase of US$0.87 billion, or 14.8%, from US$5.87 billion for the year ended December 31, 2024. The mass market table games hold percentage was 30.4% for the year ended December 31, 2025, decreasing from 32.1% for the year ended December 31, 2024. Average net win per gaming machine per day was US$496 for the year ended December 31, 2025, a decrease of US$29, or 5.5%, from US$524 for the year ended December 31, 2024. Studio City. Studio City did not have VIP rolling chip operations in 2025. Studio City’s VIP rolling chip volume was US$2.00 billion and VIP rolling chip win rate was 3.85% in 2024. Mass market table games drop was US$3.76 billion for the year ended December 31, 2025, an increase from US$3.68 billion for the year ended December 31, 2024. The mass market table games hold percentage was 33.4% for the year ended December 31, 2025, representing an increase from 30.6% for the year ended December 31, 2024. Average net win per gaming machine per day was US$451 for the year ended December 31, 2025, an increase of US$20, or 4.7%, from US$431 for the year ended December 31, 2024. Altira Macau. Mass market table games drop was US$493.6 million for the year ended December 31, 2025, representing a decrease of 7.9% from US$535.8 million for the year ended December 31, 2024. The mass market table games hold percentage was 19.3% for the year ended December 31, 2025, decreasing from 22.4% for the year ended December 31, 2024. Average net win per gaming machine per day was US$261 for the year ended December 31, 2025, an increase of US$6, or 2.3%, from US$255 for the year ended December 31, 2024. Mocha and Other. As part of the Company’s development strategy and in accordance with Macau law, Grand Dragon Casino and three of the six Mocha Clubs, namely Mocha Kuong Fat, Mocha Grand Dragon Hotel 133 Table of Contents and Mocha Hotel Royal, ceased operations during the period from September to December 2025. Following the closures, 15 gaming tables and 435 gaming machines were re-allocated to the Company’s other gaming areas in Macau. Mass market table games drop was US$155.1 million for the year ended December 31, 2025, a decrease from US$231.6 million for the year ended December 31, 2024 primarily due to the closure of Grand Dragon Casino in September 2025. The mass market table games hold percentage was 17.0% for the year ended December 31, 2025, increasing from 16.8% for the year ended December 31, 2024. Average net win per gaming machine per day for the year ended December 31, 2025 was US$283, an increase of US$9, or 3.2%, from US$274 for the year ended December 31, 2024. City of Dreams Manila. City of Dreams Manila’s rolling chip volume for the year ended December 31, 2025 was US$2.03 billion, representing a decrease of US$453.5 million, or 18.2%, from US$2.49 billion for the year ended December 31, 2024. The rolling chip win rate was 3.37% for the year ended December 31, 2025, a decrease from 3.57% for the year ended December 31, 2024. Our expected range was 2.85% to 3.15%. Mass market table games drop was US$566.4 million for the year ended December 31, 2025, representing a decrease of US$129.4 million, or 18.6%, from US$695.8 million for the year ended December 31, 2024. The mass market table games hold percentage was 34.0% for the year ended December 31, 2025, representing an increase from 32.8% for the year ended December 31, 2024. Average net win per gaming machine per day was US$235 for the year ended December 31, 2025, a decrease of US$27, or 10.5%, from US$263 for the year ended December 31, 2024. City of Dreams Mediterranean and Other. The Company operates City of Dreams Mediterranean in conjunction with three satellite casinos in Cyprus . Rolling chip volume for the year ended December 31, 2025 was US$14.1 million, which decreased from US$32.0 million for the year ended December 31, 2024. The rolling chip win rate was 4.15% for the year ended December 31, 2025, an increase from 0.24% for the year ended December 31, 2024. Our expected range was 2.85% to 3.15%. The significant fluctuation on the rolling chip win rate resulted from low rolling chip gaming volumes. Mass market table games drop was US$657.9 million for the year ended December 31, 2025, representing an increase of US$170.5 million, or 35.0%, from US$487.4 million for the year ended December 31, 2024. The mass market table games hold percentage was 22.3% for the year ended December 31, 2025, representing a decrease from 22.9% for the year ended December 31, 2024. Average net win per gaming machine per day was US$418 for the year ended December 31, 2025, an increase of US$78, or 23.0%, from US$340 for the year ended December 31, 2024. Rooms. Room revenues (including complimentary rooms) for the year ended December 31, 2025 were US$444.0 million, representing an increase of US$21.4 million, or 5.1%, from room revenues (including complimentary rooms) of US$422.6 million for the year ended December 31, 2024. The increase was primarily due to the increased occupancy as a result of a year-over-year increase in inbound tourism to Macau and increased occupancy in City of Dreams Mediterranean. The average daily rate, occupancy rate and REVPAR of each property are as follows: Year Ended December 31, 2025 2024 2025 2024 2025 2024 Average daily rate (US$) Occupancy rate REVPAR (US$) City of Dreams 220 211 98 % 93 % 215 197 Studio City 171 165 98 % 96 % 167 159 Altira Macau 133 133 97 % 95 % 129 127 City of Dreams Manila 159 164 94 % 97 % 149 158 City of Dreams Mediterranean and Other 485 425 62 % 61 % 299 261 Food, beverage and others. Food, beverage and other revenues (including complimentary food and beverage and entertainment services) for the year ended December 31, 2025 included food and beverage revenues of US$290.7 million and entertainment, retail and other revenues of US$181.6 million. Food, beverage 134 Table of Contents and other revenues (including complimentary food and beverage and entertainment services) for the year ended December 31, 2024 included food and beverage revenues of US$285.9 million and entertainment, retail and other revenues of US$157.1 million. The increase of US$29.3 million in food, beverage and other revenues from the year ended December 31, 2024 to the year ended December 31, 2025 was primarily due to the re-launch of House of Dancing Water in May 2025. Operating costs and expenses Total operating costs and expenses were US$4.56 billion for the year ended December 31, 2025, representing an increase of US$409.3 million, or 9.9%, from US$4.15 billion for the year ended December 31, 2024. Casino. Casino expenses increased by US$211.9 million, or 8.4%, to US$2.74 billion for the year ended December 31, 2025 from US$2.52 billion for the year ended December 31, 2024, primarily due to an increase in gaming taxes, which increased as a result of increased gaming volumes and associated higher group-wide revenues, higher payroll expenses and higher provision for credit losses, partially offset by lower marketing and promotional expenses. Rooms. Room expenses, which represent the costs of operating the hotel facilities were US$148.4 million and US$127.9 million for the years ended December 31, 2025 and 2024, respectively. The increase was primarily due to increased occupancy in Macau, as well as increased occupancy and available rooms in Cyprus, which was in-line with higher room revenues for the year ended December 31, 2025. Food, beverage and others. Food, beverage and other expenses were US$342.2 million and US$309.5 million for the years ended December 31, 2025 and 2024, respectively. The increase was primarily due to higher payroll expenses and other expenses, which was in-line with higher food, beverage and other revenues for the year ended December 31, 2025. General and administrative. General and administrative expenses increased by US$88.7 million, or 15.6%, to US$657.4 million for the year ended December 31, 2025 from US$568.7 million for the year ended December 31, 2024, primarily due to the full year trademark license fees to Melco International for the use of certain licensed marks granted by Melco International, an increase in payroll expenses, maintenance costs, marketing expenses and other general and administrative expenses to support the continuous ramp up of operations in 2025. Payments to the Philippine Parties. Payments to the Philippine Parties decreased to US$37.2 million for the year ended December 31, 2025 from US$41.9 million for the year ended December 31, 2024, primarily due to the softer performance in gaming operations and resulting decrease in revenues from gaming operations in City of Dreams Manila. Pre-opening costs. Pre-opening costs were US$50.6 million and US$20.9 million for the years ended December 31, 2025 and 2024, respectively. Such costs relate primarily to personnel training, rental, marketing, advertising and administrative costs in connection with new or start-up operations. Higher pre-opening costs for the year ended December 31, 2025 were due to the re-launch of House of Dancing Water and the opening of City of Dreams Sri Lanka in 2025. Development costs. Development costs were US$7.6 million and US$5.4 million for the years ended December 31, 2025 and 2024, respectively, which predominantly related to travel and entertainment costs as well as professional and consultancy fees for corporate business development. Amortization of land use rights. Amortization expenses for the land use rights continued to be recognized on a straight-line basis and were US$20.0 million for both the years ended December 31, 2025 and 2024. 135 Table of Contents Depreciation and amortization. Depreciation and amortization expenses slightly increased by US$2.0 million, or 0.4%, to US$523.6 million for the year ended December 31, 2025 from US$521.6 million for the year ended December 31, 2024. The slight increase was primarily due to the higher depreciation and amortization expenses at City of Dreams and Studio City as a result of more gaming equipment as well as more property enhancements that placed into service and higher depreciation and amortization expenses upon the opening of City of Dreams Sri Lanka during the year ended December 31, 2025, partially offset by lower depreciation and amortization expenses as a result of the fully depreciated assets at City of Dreams Manila. Property charges and other. Property charges and other for the year ended December 31, 2025 were US$39.5 million, which primarily included impairment on goodwill in relation to the Mocha Clubs and asset impairments in Altira Macau, partially offset by reversal of provision for litigation claims related to junket player deposits. In 2025, we recognized an impairment of goodwill in relation to the Mocha and Other segment of US$57.9 million as a result of three Mocha Clubs ceasing operations between the period from September to December 2025. Property charges and other for the year ended December 31, 2024 were US$13.2 million, which primarily included the litigation claims related to junket player deposits, repairs and maintenance costs incurred as a result of a typhoons and remodeling, and asset impairments in Altira Macau. Non-operating expenses, net Net non-operating expenses consist of interest income, interest expense, net of amounts capitalized, other financing costs, foreign exchange gains (losses), net, loss on extinguishment of debt and other non-operating income, net. Interest income was US$8.5 million for the year ended December 31, 2025, as compared to US$15.8 million for the year ended December 31, 2024. The decrease in interest income was primarily due to lower bank interest income as a result of lower average bank balances during the year ended December 31, 2025. Interest expense was US$464.9 million (net of amounts capitalized of US$1.2 million) for the year ended December 31, 2025, compared to US$486.7 million (net of amounts capitalized of US$0.3 million) for the year ended December 31, 2024. The decrease in interest expense (net of amounts capitalization) of US$21.8 million was primarily due to decreases in our weighted average total borrowings balance. Other financing costs for the year ended December 31, 2025 amounted to US$6.7 million, compared to US$7.4 million for the year ended December 31, 2024. The decrease in other financing costs was primarily due to a decrease in loan commitment fees as result of the net drawdowns of the MN1 2020 Revolving Facilities during the year ended December 31, 2025, partially offset by the full year loan committee fees in the year 2025 for the SCC 2024 Revolving Facilities entered in November 2024. Other income, net for the year ended December 31, 2025 amounted to US$3.0 million, compared to US$3.8 million for the year ended December 31, 2024. Loss on extinguishment of debt for the year ended December 31, 2025 was US$0.8 million and was associated with the 2026 MRF Senior Notes Tender Offer and early redemption of the remaining 2026 MRF Senior Notes. Loss on extinguishment of debt for the year ended December 31, 2024 was US$1.0 million and was primarily associated with the 2025 SCF Senior Notes Tender Offer (2024). Income tax expense Income tax expense for the year ended December 31, 2025 was primarily attributable to payments in lieu of Macau Complementary Tax otherwise due by Melco Resorts Macau’s shareholders on dividends distributable to them by Melco Resorts Macau of US$7.8 million, Macau Complementary Tax of US$7.7 million and Philippine withholding tax on dividends of U$5.9 million, partially offset by over-provision of Hong Kong 136 Table of Contents Profits Tax of US$10.4 million, over-provision of Macau Complementary Tax in prior years of US$6.4 million and deferred income tax credit of US$2.0 million. The effective tax rate for the year ended December 31, 2025 was 1.91%, as compared to (340.37)% for the year ended December 31, 2024. Such rates differ from the statutory Macau Complementary Tax rate of 12%, where the Company’s majority operations are located, primarily due to the effect of gaming profits exempted from income tax, income for which no income tax is payable, expenses for which no income tax benefit is receivable, different tax rates of subsidiaries operating in other jurisdictions, and changes in valuation allowance for the relevant years. The effective tax rate in 2025 was also impacted by the effect of change in unrecognized tax benefits and in 2024, the effect of expired tax losses. Our management currently does not expect to realize significant income tax benefits associated with net operating loss carryforwards and other deferred tax assets generated by our Macau, Philippine, Cyprus and Sri Lanka operations. However, to the extent that the financial results of our Macau, Philippine, Cyprus and Sri Lanka operations improve and it becomes more likely than not that the deferred tax assets are realizable, we will be able to reduce the valuation allowance related to the net operating losses and other deferred tax assets. Net loss attributable to noncontrolling interests Our net loss attributable to noncontrolling interests was US$39.6 million for the year ended December 31, 2025, compared to US$71.5 million for the year ended December 31, 2024. For the year ended December 31, 2025, such net loss represented the share of Studio City’s expenses of US$32.6 million, City of Dreams Mediterranean and Other’s expenses of US$7.2 million, partially offset by City of Dreams Manila’s income of US$0.2 million attributable to the respective minority shareholders. Net income attributable to Melco Resorts & Entertainment Limited As a result of the foregoing, we had net income attributable to Melco Resorts & Entertainment Limited of US$185.0 million for the year ended December 31, 2025, compared to US$43.5 million for the year ended December 31, 2024. For a discussion of our results of operations for the year ended December 31, 2024 compared with the year ended December 31, 2023, see “Item 5. Operating and Financial Review and Prospects — A. Operating Results — Year Ended December 31, 2024 Compared to Year Ended December 31, 2023” of our annual report on Form 20-F for the fiscal year ended December 31, 2024, filed with the SEC on March 21, 2025. Adjusted Property EBITDA and Adjusted EBITDA Our Chief Executive Officer is the Chief Operating Decision Maker (“CODM”) of the Company. The CODM uses Adjusted Property EBITDA for each segment as the measure of segment profit or loss to allocate resources to each segment and to compare the operating performance of the Company’s properties with those of its competitors as a way to assess performance. Adjusted Property EBITDA is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, integrated resort and casino rent, Corporate and Other expenses, and other non-operating income and expenses. 137 Table of Contents The following table sets forth a summary of our Adjusted Property EBITDA for the years presented. Year Ended December 31, 2025 2024 2023 (in thousands of US$) City of Dreams $ 822,134 $ 621,642 $ 576,313 Studio City 393,800 341,239 206,790 Altira Macau (4,053 ) (1,922 ) (1,277 ) Mocha and Other(1) 22,168 26,974 27,286 City of Dreams Manila 132,788 181,058 205,452 City of Dreams Mediterranean and Other 68,226 50,546 27,500 Other Operations(2) (4,624 ) (195 ) — Total Adjusted Property EBITDA $ 1,430,439 $ 1,219,342 $ 1,042,064 Notes: (1) Mocha and Other segment included the operation of Grand Dragon Casino before its closure and was changed to Mocha segment effective on September 23, 2025. (2) Effective from August 1, 2025, the initial opening of Sri Lanka Casino, the operations in Sri Lanka including the provision of management services to Nüwa Sri Lanka effective from its opening on July 15, 2025, which were previously reported under the Corporate and Other category, has been included in the Other Operations segment for the years ended December 31, 2025 and 2024. City of Dreams City of Dreams generated Adjusted Property EBITDA of US$822.1 million in 2025, compared with US$621.6 million in 2024. The year-over-year increase in Adjusted Property EBITDA was a result of improved performance in rolling chip, mass market table games and non-gaming operations, led by the continued recovery in inbound tourism to Macau in 2025 and the re-launch of House of Dancing Water in May 2025. The increase was partially offset by higher operating costs for the increase in business activities and an increase in staffing levels to enhance service quality and improve performance. Studio City Studio City generated Adjusted Property EBITDA of US$393.8 million in 2025, compared with US$341.2 million in 2024. The year-over-year increase in Adjusted Property EBITDA was a result of improved performance in mass market operations, led by the continued recovery in inbound tourism to Macau in 2025. The increase was partially offset by higher operating costs for the increase in business activities and an increase in staffing levels to enhance service quality and improve performance. Altira Macau Altira Macau generated negative Adjusted Property EBITDA of US$4.1 million and US$1.9 million in 2025 and 2024, respectively. Mocha and Other Mocha and Other generated Adjusted Property EBITDA of US$22.2 million and US$27.0 million in 2025 and 2024, respectively. The-year-over-year decrease in Adjusted Property EBITDA was a result of the closure of Grand Dragon Casino and three Mocha Clubs between September and December 2025, which led to decreased gaming volumes in mass market operations. 138 Table of Contents City of Dreams Manila City of Dreams Manila generated Adjusted Property EBITDA of US$132.8 million in 2025, compared with US$181.1 million in 2024. The year-over-year decrease in Adjusted Property EBITDA was primarily a result of softer performance in all gaming and non-gaming operations. City of Dreams Mediterranean and Other City of Dreams Mediterranean and Other generated Adjusted Property EBITDA of US$68.2 million in 2025, compared with US$50.5 million in 2024. The year-over-year increase in Adjusted Property EBITDA was primarily a result of improved performance in all gaming and non-gaming operations. The increase was partially offset by higher operating costs for the increase in business activities and an increase in staffing levels to enhance service quality and improve performance. Other Operations Other operations include the Company’s casino operations at City of Dreams Sri Lanka, which commenced business on August 1, 2025, and provision of management services to the Nüwa hotel at City of Dreams Sri Lanka, which opened to the public on July 15, 2025. Other operations generated negative Adjusted Property EBITDA of US$4.6 million in 2025. The following table sets forth a summary of reconciliation of net income/loss attributable to Melco Resorts & Entertainment Limited to Adjusted EBITDA and Adjusted Property EBITDA for the years presented. Year Ended December 31, 2025 2024 2023 (in thousands of US$) Net income (loss) attributable to Melco Resorts & Entertainment Limited $ 185,045 $ 43,543 $ (326,920 ) Net loss attributable to noncontrolling interests (39,589 ) (71,502 ) (88,410 ) Net income (loss) 145,456 (27,959 ) (415,330 ) Income tax expense 2,829 21,610 13,422 Interest and other non-operating expenses, net 452,141 490,976 466,867 Depreciation and amortization 543,562 541,538 543,396 Property charges and other 39,481 13,221 228,437 Share-based compensation 29,270 27,368 35,473 Development costs 7,619 5,433 1,202 Pre-opening costs(1) 46,390 17,833 43,994 Integrated resort and casino rent(2) 12,714 8,436 1,911 Payments to the Philippine Parties 37,181 41,939 42,451 Adjusted EBITDA 1,316,643 1,140,395 961,823 Corporate and Other expenses 113,796 78,947 80,241 Adjusted Property EBITDA $ 1,430,439 $ 1,219,342 $ 1,042,064 Notes: (1) Certain amount of pre-opening costs are grouped and reported under the line item Integrated resort and casino rent (2) Integrated resort and casino rent represents land rent and variable lease costs to Belle Corporation and casino rent to a subsidiary of John Keells Holdings PLC 139 Table of Contents Adjusted EBITDA is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, integrated resort and casino rent and other non-operating income and expenses. Adjusted EBITDA and Adjusted Property EBITDA, which are non-GAAP financial measures, are presented as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA and Adjusted Property EBITDA to measure the operating performance of our segments and to compare the operating performance of our properties with those of our competitors. The Company also presents Adjusted EBITDA and Adjusted Property EBITDA because they are used by some investors as ways to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported similar measures as supplements to financial measures in accordance with generally accepted accounting principles, in particular, U.S. GAAP or International Financial Reporting Standards. However, Adjusted EBITDA and Adjusted Property EBITDA should not be considered as alternatives to operating income/loss as indicators of the Company’s performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income/loss, Adjusted EBITDA and Adjusted Property EBITDA do not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company recognizes these limitations and uses Adjusted EBITDA and Adjusted Property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. Such U.S. GAAP measurements include operating income/loss, net income/loss, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in Adjusted EBITDA or Adjusted Property EBITDA. Also, the Company’s calculation of Adjusted EBITDA and Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. The use of Adjusted Property EBITDA and Adjusted EBITDA has material limitations as an analytical tool, as Adjusted Property EBITDA and Adjusted EBITDA do not include all items that impact our net income/loss. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measure to its most directly comparable GAAP financial measure. B. LIQUIDITY AND CAPITAL RESOURCES We have relied and intend to rely on our cash generated from our operations and our debt and equity financings to meet our financing needs and repay our indebtedness, as the case may be. As of December 31, 2025, we held cash and cash equivalents and restricted cash (mainly being cash collateral for concession-related guarantees issued to the Macau government and security under credit facilities) of US$1.02 billion and US$125.2 million, respectively. Major currencies in which our cash and bank balances (including restricted cash) were held as of December 31, 2025 were the U.S. dollar, H.K. dollar, Euro, Philippine peso, Pataca and Sri Lanka rupee. As of December 31, 2025, we had the following bank credit facilities available for future drawdown, subject to satisfaction of certain conditions precedent: (1) HK$8.34 billion (equivalent to US$1.07 billion) of the MN1 2020 Revolving Facilities; (2) the HK$1.0 million (equivalent to US$0.1 million) of the revolving credit facility under the MRM 2015 Credit Facilities; (3) the HK$1.56 billion (equivalent to US$200.0 million) of the SCC 2024 Revolving Facilities, of which US$119.9 million is available to draw, subject to the satisfaction of certain conditions; and (4) the PHP2.35 billion (equivalent to US$39.9 million) bank credit facility of MRP. Available liquidity, including cash and cash equivalents and restricted cash and undrawn revolving credit facilities as of December 31, 2025 was approximately US$2.38 billion. We have been able to meet our working 140 Table of Contents capital needs, and we believe that our operating cash flow, existing cash balances, funds available under various credit facilities and any additional equity or debt financings will be adequate to satisfy our current and anticipated operating, debt and capital commitments, including our development project plans, as described in “— Other Financing and Liquidity Matters” below. For any additional financing requirements, we cannot provide assurance that future borrowings will be available. See “Item 3. Key Information — D. Risk Factors — Risks Relating to Our Financing and Indebtedness” for more information. We have significant indebtedness and will continue to evaluate our capital structure and opportunities to enhance it in the normal course of our activities. We may from time to time seek to retire or purchase our outstanding debt through open market purchases, tender offers, privately-negotiated transactions or otherwise. Such purchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. Cash Flows The following table sets forth a summary of our cash flows for the years presented. Year Ended December 31, 2025 2024 2023 (in thousands of US$) Net cash provided by operating activities $ 818,115 $ 626,656 $ 622,690 Net cash used in investing activities (341,775 ) (300,807 ) (48,513 ) Net cash used in financing activities (603,117 ) (478,349 ) (1,129,124 ) Effect of exchange rate on cash, cash equivalents and restricted cash 2,139 (10,264 ) 2,326 Decrease in cash, cash equivalents and restricted cash (124,638 ) (162,764 ) (552,621 ) Cash, cash equivalents and restricted cash at beginning of year 1,273,072 1,435,836 1,988,457 Cash, cash equivalents and restricted cash at end of year $ 1,148,434 $ 1,273,072 $ 1,435,836 Operating Activities Operating cash flows are generally affected by changes in operating income and accounts receivable with VIP table games play and hotel operations conducted on a cash and credit basis and the remainder of the business including mass market table games play, gaming machine play, food and beverage, and entertainment are conducted primarily on a cash basis. Net cash provided by operating activities was US$818.1 million for the year ended December 31, 2025, compared to US$626.7 million for the year ended December 31, 2024. The change was primarily driven by increased operating income resulting from higher business volumes in 2025, partially offset by working capital requirements for operations, which primarily consisted of payments of gaming taxes and operating accruals arising from the increased business volumes. Net cash provided by operating activities was US$626.7 million for the year ended December 31, 2024, compared to US$622.7 million for the year ended December 31, 2023. The change was primarily due to better performance of operations which resulted in a decrease in net loss in 2024 as described in the foregoing section, partially offset by increased working capital for operations, primarily consisted of the payment of gaming taxes as well as the operating accruals as a result of the increased business volumes. Investing Activities Net cash used in investing activities was US$341.8 million for the year ended December 31, 2025, compared to US$300.8 million for the year ended December 31, 2024. The change was primarily due to the 141 Table of Contents increase in acquisition of property and equipment and payments for capitalized construction costs, partially offset by decrease in payments for intangible and other assets. Net cash used in investing activities for the year ended December 31, 2025 mainly included acquisition of property and equipment and payments for capitalized construction costs of US$323.1 million and payments for intangible and other assets of US$18.9 million. Net cash used in investing activities was US$300.8 million for the year ended December 31, 2024, compared to US$48.5 million for the year ended December 31, 2023. The change was primarily due to the repayment of loan to an affiliated company during the year ended December 31, 2023 which was not recurring in 2024. Net cash used in investing activities for the year ended December 31, 2024 mainly included acquisition of property and equipment and payments for capitalized construction costs of US$261.9 million and payments for intangible and other assets of US$39.2 million. Our total payments for capitalized construction costs and acquisition of property and equipment were US$323.1 million and US$261.9 million for the years ended December 31, 2025 and 2024, respectively. Such expenditures were mainly associated with our development projects, as well as enhancement of our integrated resort offerings. We expect to incur significant capital expenditures for the ongoing enhancement and maintenance of our properties. We intend to finance these projects through our operating cash flow and existing cash balances as well as equity or debt financings. See “— Other Financing and Liquidity Matters” below for more information. The following table sets forth our capital expenditures incurred by segment on an accrual basis for the years ended December 31, 2025, 2024 and 2023. Year Ended December 31, 2025 2024 2023 (in thousands of US$) City of Dreams $ 162,672 $ 83,988 $ 22,259 Studio City 69,498 86,071 73,452 Altira Macau 10,550 5,614 3,892 Mocha and Other 4,072 6,549 4,590 City of Dreams Manila 10,597 17,940 24,970 City of Dreams Mediterranean and Other 14,920 11,815 108,214 Other Operations(1) 65,470 28,298 — Corporate and Other 5,411 3,206 15,113 Total capital expenditures $ 343,190 $ 243,481 $ 252,490 Note: (1) Effective from August 1, 2025, the initial opening of Sri Lanka Casino, the operations in Sri Lanka including the provision of management services to Nüwa Sri Lanka effective from its opening on July 15, 2025, which were previously reported under the Corporate and Other category, has been included in the Other Operations segment for the years ended December 31, 2025 and 2024. Our capital expenditures for the year ended December 31, 2025 increased from that for the year ended December 31, 2024 was primarily due to the enhancements to City of Dreams and completion of the fit-out of the Sri Lanka Casino under Other Operations. Our capital expenditures for the year ended December 31, 2024 slightly decreased from that for the year ended December 31, 2023 was primarily due to the completion of City of Dreams Mediterranean in 2023, partially offset by increased capital expenditures for enhancements to our Macau properties and the fit-out of the Sri Lanka Casino under Other Operations. Financing Activities Net cash used in financing activities of US$603.1 million for the year ended December 31, 2025 was primarily due to (i) the full redemption of the aggregate principal amount outstanding of US$1.00 billion of the 142 Table of Contents 2025 MRF Senior Notes, (ii) redemption of the remaining aggregated principal amount outstanding of US$357.9 million of the 2026 MRF Senior Notes, (iii) repayments of aggregate principal amount outstanding of the MN1 2020 Revolving Facilities of US$280.5 million, (iv) redemption of the remaining aggregated principal amount outstanding of US$221.6 million of the 2025 SCF Senior Notes, (v) repurchase of shares of US$166.0 million, (vi) redemption of the 2026 MRF Senior Notes for an aggregate principal amount outstanding of US$142.1 million and (vii) repayments of aggregate principal amount outstanding of the SCC 2024 Revolving Facilities of US$91.8 million, which were offset in part by (viii) the proceeds from the drawdown of the MN1 2020 Revolving Facilities of US$1.00 billion, (ix) the proceeds from the issuance of 2033 MRF Senior Notes of US$500.0 million, (x) the proceeds from the drawdown of the SCC 2024 Revolving Facilities of US$140.6 million and (xi) the proceeds from the drawdown of the SCC 2021 Credit Facilities of US$29.7 million. Net cash used in financing activities of US$478.3 million for the year ended December 31, 2024 was primarily due to (i) the repayments of aggregate principal amount outstanding of the MN1 2020 Revolving Facilities of US$994.2 million, (ii) repurchase of shares of US$112.3 million, (iii) settlement of the 2025 SCF Senior Notes Tender Offer (2024) in an aggregate principal amount of US$100.0 million, (iv) repurchase of 2025 SCF Senior Notes in an aggregate principal amount of US$75.3 million and (v) payments of financing costs of US$37.0 million, which were offset in part by (vi) the proceeds from the issuance of 2032 MRF Senior Notes of US$750.0 million and (vii) the proceeds from the drawdown of the MN1 2020 Revolving Facilities of US$100.3 million. Net cash used in financing activities of US$1.13 billion for the year ended December 31, 2023 was primarily due to (i) the repayments of aggregate principal amount outstanding of the MN1 2020 Revolving Facilities of US$2.10 billion, (ii) settlement of the 2025 SCF Senior Notes Tender Offer (2023) in an aggregate principal amount of US$97.5 million and (iii) repurchase of shares of US$169.8 million, which were offset in part by (iv) the proceeds from the drawdown of the MN1 2020 Revolving Facilities of US$1.25 billion. Indebtedness We enter into loan facilities and issue notes through our subsidiaries. The following table presents a summary of our gross indebtedness as of December 31, 2025: As of December 31, 2025 (in thousands of US$) 2029 MRF Senior Notes $ 1,150,000 2029 SCF Senior Notes 1,100,000 MN1 2020 Revolving Facilities 886,625 2028 MRF Senior Notes 850,000 2032 MRF Senior Notes 750,000 2027 MRF Senior Notes 600,000 2033 MRF Senior Notes 500,000 2028 SCF Senior Notes 500,000 2027 SCC Senior Secured Notes 350,000 SCC 2024 Revolving Facilities 49,992 SCC 2021 Credit Facilities 30,073 MRM 2015 Credit Facilities 129 $ 6,766,819 Major changes in our indebtedness during the year ended and subsequent to December 31, 2025 are summarized below. 143 Table of Contents During the year ended December 31, 2025, MCO Nominee One drew down HK$5.67 billion (equivalent to US$719.9 million) in aggregate principal amount on a net basis under the MN1 2020 Revolving Facilities. During the year ended December 31, 2025, Studio City Company drew down HK$233.0 million (equivalent to US$29.7 million) and HK$389.0 billion (equivalent to US$48.8 million) in aggregate principal amount on a net basis under the SCC 2021 Credit Facilities and the SCC 2024 Revolving Facilities, respectively. On February 25, 2025, pursuant to the MN1 2024 Amendment and Restatement under the MN1 2020 Revolving Facilities, an incremental facility of HK$387.5 million (equivalent to US$49.8 million) was established to increase the available commitments under the MN1 2020 Revolving Facilities from HK$14.85 billion (equivalent to US$1.91 billion) to HK$15.24 billion (equivalent to US$1.96 billion), subject to satisfaction of certain conditions precedent. On June 6, 2025, Melco Resorts Finance redeemed the aggregate principal amount outstanding of US$1.00 billion of the 2025 MRF Senior Notes. In June 2025, MCO Nominee One entered into interest rate swap arrangements with aggregate notional amount of HK$5.88 billion (equivalent to US$755.7 million) to manage interest rate risk on the loans drawn under the MN1 2020 Revolving Facilities. On July 15, 2025, Studio City Finance redeemed the aggregate principal amount outstanding of US$221.6 million of the 2025 SCF Senior Notes. On September 24, 2025, Melco Resorts Finance issued US$500.0 million in an aggregate principal amount of the 2033 MRF Senior Notes. The proceeds were used to settle the 2026 MRF Senior Notes Tender Offer and early redemption of the 2026 MRF Senior Notes. US$142.1 million in an aggregate principal amount of the 2026 MRF Senior Notes tendered in the 2026 MRF Senior Notes Tender Offer was settled on September 24, 2025, while the remaining aggregate principal amount outstanding of US$357.9 million of the 2026 MRF Senior Notes following the completion of the 2026 MRF Senior Notes Tender Offer was redeemed on October 25, 2025. During the period from January 1, 2026 through March 6, 2026, MCO Nominee One repaid additional HK$467.0 million (equivalent to US$59.8 million) in aggregate principal amount outstanding under the MN1 2020 Revolving Facilities, together with accrued interest. For further details of the above indebtedness, see note 10 to the consolidated financial statements included elsewhere in this annual report, which includes information regarding the type of debt facilities used, the extent to which borrowings are at fixed rates, the maturity profile of debt, the currency and interest rate structure, the charge on our assets and the nature and extent of any restrictions on our ability, and the ability of our subsidiaries, to transfer funds as cash dividends, loans or advances. See also “— Other Financing and Liquidity Matters” below for details of the maturity profile of debt and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” for further understanding of our hedging of interest rate risk and foreign exchange risk exposure. Other Financing and Liquidity Matters We may obtain financing in the form of, among other things, equity or debt, including additional bank loans or high yield, mezzanine or other debt, or rely on our operating cash flow to fund the maintenance, enhancement and development of our projects. We expect to have significant capital expenditures in the future as we continue to maintain, enhance and develop our properties in Macau, the Philippines, Cyprus and Sri Lanka as well as pursue potential growth opportunities in existing and new jurisdictions. 144 Table of Contents We have relied, and intend in the future to rely, on our operating cash flow and different forms of financing to meet our funding needs and repay our indebtedness, as the case may be. The timing of any future debt and equity financing activities will be dependent on our funding needs, our development and construction schedule, the availability of funds on terms acceptable to us and prevailing market conditions. We may carry out activities from time to time to strengthen our financial position and ability to better fund our business operations and expansion plans. Such activities may include refinancing existing debt, monetizing assets, sale-and-leaseback transactions or other similar activities. Our material cash requirements arise from the development and continuous enhancement of our Macau properties, City of Dreams Manila and City of Dreams Mediterranean, as well as the payment of interest expenses and repayment of principal relating to our indebtedness. We are also required to comply with the investment plan which forms part of the gaming concession contract in Macau in the amount of MOP11,823.7 million (equivalent to approximately US$1.48 billion), of which MOP10,008.0 million (equivalent to approximately US$1.25 billion) is to be invested in non-gaming projects per the terms of the concession contract, and incremental additional non-gaming investment in the amount of approximately 20% of our initial non-gaming investment, or MOP2,003.0 million (equivalent to approximately US$249.9 million), in the event the Incremental Investment Trigger is triggered. As Macau’s annual gross gaming revenue exceeded MOP180.0 billion (equivalent to approximately US$22.46 billion) in 2023, the Incremental Investment Trigger was triggered in 2023, thereby increasing our non-gaming investment by MOP2,003.0 million (equivalent to approximately US$249.9 million), with the overall investment amount increased to MOP13,826.7 million (equivalent to approximately US$1.73 billion) to be carried out by December 2032. As of December 31, 2025, the total investment in gaming and non-gaming related projects carried out was in the aggregate amount of MOP5,724.2 million (equivalent to approximately US$714.2 million). Cash from financings and operations is primarily retained by our operating subsidiaries for the purposes of funding our operating activities, capital expenditures and investing activities. Cash from financing and operations within our group is primarily transferred between our subsidiaries through intercompany loan arrangements or equity capital contributions. In 2025, excluding cash transferred for the purpose of the settlement of intragroup charges for operating activities, cash transferred to our holding company, Melco Resorts, from its subsidiaries for repayment of advances amounted to US$2.9 million, while cash transferred from our holding company to its subsidiaries in the form of advances amounted to US$19.7 million. Dividend payments of US$20.0 million were received from our Macau operating subsidiary in 2025, and no dividend payments were made to our shareholders in 2025, including holders of our ordinary shares with an address of record known to us to be in the United States (which includes all holders of our ADSs, which are traded on Nasdaq in the United States). See also “Item 4. Information on the Company — B. Business Overview — Tax” and “Item 8. Financial Information — A. Consolidated Statements and Other Financial Information — Dividend Policy.” There are no regulatory or foreign exchange restrictions or limitations on our ability to transfer cash within our corporate group, or to declare dividends to holders of our ADSs, except that Melco Resorts Macau must notify the Chief Executive of Macau five business days in advance of any decision related to dividend distribution in an amount greater than MOP500 million (equivalent to approximately US$62.4 million), seek Macau government consent to grant or receive any loan in the amount of MOP100 million (equivalent to approximately US$12.5 million) and our subsidiaries incorporated in Macau are required to set aside a specified amount of the entity’s profit after tax as a legal reserve which is not distributable to the shareholders of such subsidiaries and authorization is required in the Philippines for inward and outward transfers of Philippine pesos above a certain amount. See “Item 4. Information on the Company — B. Business Overview — Regulations — Macau Regulations — Restrictions on Distribution of Profits Regulations” and “Item 10. Additional Information — D. Exchange Controls.” As of December 31, 2025, we had capital commitments mainly for the construction and acquisition of property and equipment for Studio City and City of Dreams totaling US$88.4 million. In addition, we have contingent liabilities arising in the ordinary course of business. For further details for our commitments and contingencies, see note 20 to the consolidated financial statements included elsewhere in this annual report. 145 Table of Contents Our total long-term indebtedness and other contractual obligations as of December 31, 2025 are summarized below. Payments Due by Period Less than 1 year 1-3 years 3-5 years More than 5 years Total (in millions of US$) Long-term debt obligations(1): 2029 MRF Senior Notes $ — $ — $ 1,150.0 $ — $ 1,150.0 2029 SCF Senior Notes — — 1,100.0 — 1,100.0 MN1 2020 Revolving Facilities — 886.6 — — 886.6 2028 MRF Senior Notes — 850.0 — — 850.0 2032 MRF Senior Notes — — — 750.0 750.0 2027 MRF Senior Notes — 600.0 — — 600.0 2033 MRF Senior Notes — — — 500.0 500.0 2028 SCF Senior Notes — 500.0 — — 500.0 2027 SCC Senior Secured Notes — 350.0 — — 350.0 SCC 2024 Revolving Facilities — — 50.0 — 50.0 SCC 2021 Credit Facilities — — 30.1 — 30.1 MRM 2015 Credit Facilities 0.1 — — — 0.1 Fixed interest payments 346.1 544.5 238.9 163.0 1,292.5 Variable interest payments(2) 42.2 21.0 3.4 — 66.6 Finance leases(3) 35.3 70.6 70.6 89.2 265.7 Operating leases(3) 20.1 33.3 27.4 156.7 237.5 Construction costs and property and equipment retention payables 7.5 6.0 — — 13.5 Other contractual commitments: Construction costs and property and equipment acquisition commitments 88.1 0.3 — — 88.4 Gaming concession premium, license fee and related annual levy(4) 27.4 55.8 55.8 194.8 333.8 Reversion Assets payments(5) 24.1 48.1 48.1 48.1 168.4 Total contractual obligations $ 590.9 $ 3,966.2 $ 2,774.3 $ 1,901.8 $ 9,233.2 Notes: (1) See note 10 to the consolidated financial statements included elsewhere in this annual report for further details on these debt facilities. (2) Amounts for all periods represent our estimated interest payments on our debt facilities based upon amounts outstanding and HIBOR as of December 31, 2025 plus the applicable interest rate spread in accordance with the respective debt agreements. Actual rates will vary. (3) See note 11 to the consolidated financial statements included elsewhere in this annual report for further details on these lease liabilities. (4) Represents i) annual premium with a fixed portion and a variable portion based on the number and type of gaming tables and machines that Melco Resorts Macau is currently approved to operate by the Macau government for our gaming concession in Macau; ii) annual fixed license fee for the Cyprus License and (iii) annual fixed levy for the Sri Lanka License. The variable gaming tax for our gaming concession in Macau and the Cyprus License; the variable levy for the Sri Lanka License; and the license fee for the Philippine License as disclosed in note 20(b) to the consolidated financial statements included elsewhere in this annual report are not included in this table. 146 Table of Contents (5) The gaming and gaming support areas of the City of Dreams Casino, the Altira Casino and the Studio City Casino with an area of 31,227.3 square meters, 17,128.8 square meters and 28,784.3 square meters, respectively, and related gaming equipment and utensils (collectively referred to as the “Reversion Assets”) are currently owned by the Macau government. Effective January 1, 2023, the Macau government has transferred the Reversion Assets to us for usage in our operations during the duration of the Concession Contract for a fee of MOP750.00 (equivalent to US$94) per square meter for years 1 to 3 of the Concession Contract, subject to consumer price index increase in years 2 and 3 of the concession. The fee will increase to MOP2,500.00 (equivalent to US$312) per square meter for years 4 to 10 of the concession, subject to consumer price index increase in years 5 to 10 of the concession. (6) In addition to the amounts included in the table above, in connection with the Concession Contract, Melco Resorts Macau committed to an overall investment of MOP11,823.7 million (equivalent to US$1.48 billion) and incremental additional non-gaming investment in the amount of approximately 20% of its initial non-gaming investment, or MOP2,003.0 million (equivalent to US$249.9 million), in the event Macau’s annual gross gaming revenue reaches MOP180.0 billion (equivalent to US$22.46 billion). As Macau’s annual gross gaming revenue exceeded MOP180.0 billion (equivalent to US$22.46 billion) in 2023, the Incremental Investment Trigger was reached and, the non-gaming investment to be carried out was increased by MOP2,003.0 million (equivalent to US$249.9 million) to MOP12.01 billion (equivalent to US$1.50 billion), with the overall investment amount increased to MOP13,826.7 million (equivalent to US$1.73 billion) to be carried out by December 2032. As of December 31, 2025, the total investment in gaming and non-gaming related projects carried out was in the aggregate amount of MOP5,724.2 million (equivalent to US$714.2 million). We have not entered into any material financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us. Each of Melco Resorts Macau and Studio City Company has a corporate rating of “BB-” and “B+” with a stable outlook by Standard & Poor’s, respectively, and each of Melco Resorts Finance and Studio City Finance has a corporate rating of “Ba3” and “B1” with a stable outlook by Moody’s Investors Service, respectively. For future borrowings, any decrease in our corporate rating could result in an increase in borrowing costs. Restrictions on Distributions For discussion on the ability of our subsidiaries to transfer funds to our Company in the form of cash dividends, loans or advances and the impact such restrictions have on our ability to meet our cash obligations, see “Item 4. Information on the Company — B. Business Overview — Regulations — Macau Regulations — Restrictions on Distribution of Profits Regulations.” See also “Item 8. Financial Information — A. Consolidated Statements and Other Financial Information — Dividend Policy” and note 18 to the consolidated financial statements included elsewhere in this annual report. C. RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC. We have entered into license or hotel management agreements with the following entities or groups: • Hyatt group in relation to the use of various trademarks owned by Hyatt group for the branding of the Grand Hyatt hotel at City of Dreams; 147 Table of Contents • Nobu Hospitality LLC in relation to the use of certain trademarks and intellectual property rights owned by Nobu in connection with its development, operation and management of the Nobu hotel and restaurant at City of Dreams Manila; • Hyatt International Corporation and Melco Resorts Leisure, under which various trademarks owned by Hyatt are licensed to Melco Resorts Leisure for its operation of a hotel at City of Dreams Manila; • DreamWorks Animation and Melco Resorts Leisure, under which various trademarks and other intellectual property rights owned by DreamWorks Animation are licensed to Melco Resorts Leisure for its operation of DreamPlay by DreamWorks, a family entertainment center at City of Dreams Manila; • Marriott International group in relation to the use of its various trademarks for the operation of a W-branded hotel by the Marriot International group at Studio City; • Waterfront Properties in relation to the management by MCO Europe Holdings Three (NL) B.V. of the top five floors of City of Dreams Sri Lanka under our Nüwa brand; and • Waterfront Properties in relation to the licensing of our brand “City of Dreams Sri Lanka” for City of Dreams Sri Lanka. In addition, we also purchase gaming tables and gaming machines and enter into licensing agreements for the use of certain trademarks and trade names and, in the case of the gaming machines, the right to use software in connection therewith. These include a license to use a jackpot system for the gaming machines. For other intellectual property that we owned, see “Item 4. Information on the Company — B. Business Overview — Intellectual Property.” D. TREND INFORMATION The following trends and uncertainties may affect our operations and financial conditions: • Policies, legislations and campaigns implemented by the PRC government, including restrictions on travel, anti-corruption campaigns, monitoring of cross-border currency movement and adoption of measures to eliminate perceived channels of illicit cross-border currency movements, restrictions on currency withdrawal, scrutiny of marketing activities in China or measures taken by the PRC government, including criminalization of certain conduct, to deter marketing of gaming activities to mainland China residents by foreign casinos, slowdown of economic growth in China, travel and visa policies, may lead to a decline and limit the recovery and growth in the number of patrons visiting our properties and the spending amount of such patrons; • The gaming and leisure market in Macau and the Philippines are developing and the competitive landscapes are expected to evolve as more gaming and non-gaming facilities are developed in the regions where our properties are located. More supply of such facilities in the Cotai region of Macau and in Entertainment City of the Philippines will intensify the competition in the business that we operate. Our business in Cyprus operates in a relatively new gaming market and the market landscape is expected to be more volatile and unpredictable; • The impact of new policies and legislation implemented by the Philippine government, including potential additional licensing requirements and potential tax legislation subjecting our Philippine subsidiaries to Philippines corporate income tax, value-added tax and other tax assessments in addition to the license fees paid to PAGCOR pursuant to the Philippine License; • Greater regulatory scrutiny, including increased audits and inspections, in relation to movement of capital and anti-money laundering and other financial crime. Anti-money laundering, anti-bribery and corruption and sanctions and counter-terrorism financing laws and regulations have become increasingly complex and subject to greater regulatory scrutiny and supervision by regulators globally and may increase our 148 Table of Contents compliance costs and any potential non- compliances of such laws and regulations could have an adverse effect on our reputation, financial condition, results of operations or cash flows; • Enactment of new laws, or amendments to existing laws with more stringent requirements, in relation to personal data, including, among others, collection, use and/or transmission of personal data, and as to which there may be limited precedent on their interpretation and application, may increase operating costs and/or adversely impact our ability to market to our customers and guests. In addition, any non-compliance with such laws may result in damage to our reputation and/or subject us to lawsuits, fines and other penalties as well as restrictions on our use or transfer of data; and • Increases in cybersecurity and ransomware attacks around the world, including in the gaming and hospitality industries, and the need to continually evaluate, enhance and improve our internal process, systems and technology infrastructure to comply with the increasing cybersecurity, data privacy and data protection laws, regulations and requirements. See also “Item 3. Key Information — D. Risk Factors,” “Item 4. Information on the Company — B. Business Overview — Market and Competition” and other information elsewhere in this annual report for recent trends affecting our revenues and costs since the previous financial year and a discussion of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause the reported financial information not necessarily to be indicative of future operating results or financial condition. E. CRITICAL ACCOUNTING ESTIMATES Management’s discussion and analysis of our results of operations and liquidity and capital resources are based on our consolidated financial statements. Our consolidated financial statements were prepared in conformity with U.S. GAAP. Certain of our accounting policies require that management applies significant judgment in defining the appropriate assumptions integral to financial estimates. On an ongoing basis, management evaluates those estimates and judgments which are made based on information obtained from our historical experience, terms of existing contracts, industry trends and outside sources that are currently available to us, and on various other assumptions that management believes to be reasonable and appropriate in the circumstances. However, by their nature, judgments are subject to an inherent degree of uncertainty, and therefore actual results could differ from our estimates. We believe that the critical accounting policies discussed below affect our more significant judgments and estimates used in the preparation of our consolidated financial statements. Property and Equipment As of December 31, 2025 and 2024, we had net property and equipment of US$5.16 billion and US$5.27 billion, representing 67.9% and 66.0% of our total assets respectively. Property and equipment are stated at cost, net of accumulated depreciation and amortization, and accumulated impairment, if any. We depreciate property and equipment on a straight-line basis over their estimated useful lives. The useful lives are estimated based on factors including the nature of the assets, its relationship to other assets, our operating plans and anticipated use and other economic and legal factors that impose limits. The remaining estimated useful lives of the property and equipment are periodically reviewed. Refer to note 2(i) to the consolidated financial statements included elsewhere in this annual report for further details of estimated useful lives of the property and equipment. Impairment of Long-lived assets, Intangible assets and Goodwill We evaluate our property and equipment and other long-lived assets for impairment whenever indicators of impairment exist. If an indicator of impairment exists, we first group our assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the “asset group”). Secondly, we estimate the undiscounted future cash flows over the 149 Table of Contents remaining useful life of the primary asset within the asset group which involves significant assumptions, including future revenue growth rates and cost inflation. The future cash flows are derived based on management historical experience and market condition which are consistent with our budget and strategic plan. If the sum of undiscounted cash flows exceeds the carrying value, no impairment is indicated. If the sum of undiscounted cash flows does not exceed the carrying value, then an impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model involving significant assumptions, such as discount rates. If an asset is still under development, future cash flows include remaining construction costs. Future changes to our estimates and assumptions based upon changes in operating results, macro-economic factors or management’s intentions may result in future changes to the recoverability of our asset groups. We review the carrying value of goodwill and intangible assets with indefinite useful lives for impairment at least on an annual basis or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill and intangible assets with indefinite useful lives as of December 31, 2025 and 2024 was associated with Mocha Clubs, a reporting unit, which arose from the acquisition of Mocha Slot Group Limited and its subsidiaries by our Company in 2006. When performing the impairment analysis for goodwill and intangible assets with indefinite lives, we will first perform a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative factors indicate that the carrying amount of the reporting unit is more likely than not to exceed the fair value, then a quantitative impairment test is performed. No impairment of goodwill was recognized during the year ended December 31, 2024 and 2023. To perform quantitative impairment test of goodwill, we perform an assessment that consists of a comparison of the carrying value of a reporting unit with its fair value. If the carrying value of the reporting unit exceeds its fair value, we will recognize an impairment for the amount by which the carrying value exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. We determine the fair value of our reporting unit based on income approach through the application of discounted cash flow method. The future cash flows of the reporting unit involve significant assumptions, including future revenue growth rates and cost inflation. The future cash flows are derived based on management historical experience and market condition which are consistent with our budget and strategic plan. For the impairment test of Mocha Clubs as a reporting unit, the rates used to discount the cash flow are 13.2% and 10.5% for the years ended December 31, 2025 and 2024 respectively. To perform quantitative impairment test of the trademarks of Mocha Clubs, discounted cash flow approach is adopted which is based on relief-from-royalty method. If the fair value of an indefinite-lived intangible asset is less than its carrying amount, an impairment loss is recognized equal to the difference. Future changes to our estimates and assumptions based upon changes in operating results, macro-economic factors or management’s intentions may result in future changes to the fair value of the reporting unit and trademarks. Effective from June 9, 2025, the date which the Company announced the development of Mocha Clubs, the estimated useful lives of the Mocha Clubs trademarks were changed from indefinite useful lives to finite useful lives. Accordingly, the carrying amount is amortized on a straight-line basis over the remaining period of the Concession and the projection period of Mocha Clubs’ future cash flow is also adjusted to the end of the Concession period for impairment testing. During the year ended December 31, 2025, as a result of three Mocha Clubs ceasing operations between the period from September to December 2025, the Company recognized an impairment of goodwill in relation to the Mocha and Other segment of US$57.9 million. During the year ended December 31, 2023, with the market value of Altira Macau significantly decreased as a result of a change in its forecasted performance given the latest market conditions and lingering disruptions to the business caused by COVID-19 and our earlier cessation of arrangements with gaming promoters in Macau, we recognized an impairment of long-lived assets in relation to Altira Macau of US$207.6 million. Such amount included the impairment of Altira Macau’s property and equipment of US$110.0 million, and the full impairment of the finite-lived intangible assets, land use rights and operating lease right-of-use assets for Altira Macau of US$30.4 million, US$65.2 million and US$2.0 million, respectively. 150 Table of Contents During the year ended December 31, 2025 and 2024, the performance of Altira Macau had not improved and a further impairment of long-lived assets of US$4.1 million and US$3.3 million were recognized respectively. The fair values of the long-lived assets of Altira Macau were estimated based on a combination of income and cost approaches and the discount rates adopted in income approach for the years ended December 31, 2025, 2024 and 2023 were 14.0%, 12.6% and 12.3% respectively. Allowances for credit losses Financial instruments that potentially subject our Company to concentration of credit risk consist principally of casino accounts receivable. We issue credit pursuant to gaming credit facilities entered into with casino customers following a review of their creditworthiness. Credit is/can be also given to gaming promoters in the Philippines and Cyprus. These receivables can be offset against commissions payable and any other payments due by us to customers and gaming promoters. As of December 31, 2025 and 2024, a substantial portion of our markers issued pursuant to gaming credit facilities were due from customers residing in various countries and from licensed gaming promoters. Business and economic conditions, the legal enforceability of gaming debts, foreign currency control measures or other significant circumstances in these countries could affect the collectability of receivables from customers and gaming promoters. Accounts receivable, including casino, hotel and other receivables, are typically non-interest bearing and are recorded at amortized cost. Accounts are written off when management deems it is probable the receivables are uncollectible. Recoveries of accounts previously written off are recorded when received. An estimated allowance for credit losses is maintained to reduce our receivables to their carrying amounts and reflects the net amount the Company expects to collect. The allowance for credit losses is estimated based on our specific reviews of the age of the balances owed, the customers’ financial condition, management’s experience with the collection trends of customers, current business and economic conditions, and management’s expectations of future business and economic conditions. As of December 31, 2025 and 2024, the Company’s allowances for casino credit losses were 49.9% and 48.2% of gross casino accounts receivable, respectively. As of December 31, 2025 and 2024, a 100 basis-point change in the estimated allowances for credit losses as a percentage of casino receivables would change the allowances for credit losses by approximately US$2.4 million and US$2.7 million respectively. Income Tax Deferred income taxes are recognized for all significant temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. As of December 31, 2025 and 2024, we recorded valuation allowances of US$472.5 million and US$477.8 million, respectively, as management believes it is more likely than not that these deferred tax assets will not be realized. Our assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, and the duration of statutory carryforward periods. To the extent that the financial results of our operations improve and it becomes more likely than not that the deferred tax assets are realizable, the valuation allowances will be reduced. Litigation and Contingency Estimates We are subject to certain legal proceedings which relate to matters arising out of the Company’s ordinary course of business. We estimate the accruals for the claims of these legal proceedings based on all relevant facts and circumstances currently available and will recognize these claims as liabilities when it is determined such contingencies are both probable and reasonably estimable. 151 Table of Contents Other Estimates In addition to the critical accounting estimates described above, there are other accounting estimates within the consolidated financial statements. Management believes the current assumptions and other considerations used to estimate amounts reflected in the consolidated financial statements are appropriate. However, if actual experience differs from the assumptions and other considerations used in estimating amounts reflected in the consolidated financial statements, the resulting changes could have a material adverse effect on the consolidated financial statements. See note 2 to the consolidated financial statements for further information on significant accounting policies. 152 Table of Contents