Studio City International Holdings Ltd (MSC) saw its stock price plummet by 6.13% in Thursday's trading session, despite reporting improved second-quarter results for 2025. The sharp decline came shortly after the company released its unaudited financial statements for Q2 2025, which showed mixed performance across various metrics.

According to the earnings report, Studio City's total operating revenues increased to $190.1 million in Q2 2025, up from $161.5 million in the same quarter of 2024. The company's net loss narrowed significantly to $3.7 million, compared to a $33.4 million loss in the previous year. Additionally, Studio City reported an improved Adjusted EBITDA of $76.4 million, up from $54.2 million in Q2 2024.

Despite these improvements, investors appear to have reacted negatively to certain aspects of the report. The company still recorded a net loss, albeit smaller than the previous year, and faces challenges such as high interest expenses of $32.5 million. The market's reaction suggests that investors may have been expecting even stronger results or are concerned about other factors affecting the company's long-term prospects in the competitive Macau gaming market.