Studio City International Holdings Ltd (MSC) saw its stock price plummet 6.13% in intraday trading on Thursday, despite reporting improved second-quarter earnings for 2025. The Macau-based casino resort operator announced financial results that showed progress in several key areas, yet investors appeared to react negatively to the news.

According to the company's unaudited financial report, Studio City's total operating revenues for Q2 2025 reached US$190.1 million, marking a significant increase from US$161.5 million in the same quarter of 2024. The company's operating income also saw a substantial improvement, rising to US$23.1 million from US$3.0 million year-over-year. Furthermore, Studio City managed to narrow its net loss to US$3.7 million, a considerable reduction from the US$33.4 million loss reported in Q2 2024.

The company's Adjusted EBITDA for the second quarter stood at US$76.4 million, up from US$54.2 million in the previous year, reflecting enhanced operational efficiency. However, despite these positive indicators, the market response was decidedly bearish. The negative reaction may be attributed to factors such as the company's continued net loss position, albeit reduced, or concerns about the broader economic environment affecting Macau's gaming industry. Investors might also be weighing the company's performance against higher expectations or considering potential headwinds in the highly competitive casino resort sector.