MGM Resorts International reported its Q4 and full-year 2025 results on 5 February, posting higher profitability despite softer performance on the Las Vegas Strip.
The company recorded consolidated net revenue of $4.6bn for the quarter, a 6% year-on-year increase.
Net income attributable to MGM reached $294m, up sharply from $157m in the prior-year period. Consolidated adjusted EBITDA rose 20% to $635m, attributed to stronger contributions from the firm’s regional properties, China, and digital operations.
For the full year, MGM generated $17.5bn in consolidated net revenue, a 2% increase from 2024. Net income attributable to the group declined to $206m from $747m a year earlier, largely due to non-operating items and impairments.
Full-year consolidated adjusted EBITDA totaled $2.4bn, up 1%. Adjusted earnings per share increased to $3.31 from $2.59, while diluted earnings per share fell to $0.76 from $2.40.
The company highlighted continued capital returns, regional stability, and international exposure as key priorities entering 2026.
MGM Resorts President and CEO Bill Hornbuckle said: “As we enter 2026, we are full of optimism for the future driven by the solid base of group and convention business and the completion of the MGM Grand renovations in Las Vegas, continued solid and unwavering results in our regional operations, premium mass leadership position at MGM China, double digit revenue growth in BetMGM North America Venture, and an international pipeline of long-term growth with MGM Osaka.”
Mixed results across segments
Regional operations delivered modest growth. Quarterly net revenue rose 2% to $950m, with adjusted EBITDAR broadly stable at $280m.
Gaming volumes increased across both table games and slots, supporting incremental gains despite limited margin expansion.
MGM China was a key growth driver. Fourth-quarter net revenue climbed 21% to $1.2bn, while adjusted EBITDAR surged 30% to $332m.
Casino revenue increased 23%, supported by higher table game volumes and improved win percentages. For the full year, MGM China revenue rose 11% to $4.5bn, with adjusted EBITDAR also up 11%.
Digital operations also continued to scale. MGM Digital reported quarterly revenue of $188m, up 35%, while its adjusted EBITDAR loss narrowed to $7m from $22m. Full-year digital revenue reached $654m, though losses widened to $90m.
However, Las Vegas Strip Resorts remained a drag on quarterly performance. Segment net revenue declined 3% to $2.2bn, while adjusted EBITDAR slipped 4% to $735m.
Hotel metrics weakened, with occupancy falling to 91% and average daily rates declining 7%. Slot handle was flat year-on-year, while table games win increased 21%, partially offsetting lower room revenue.
The BetMGM North America venture distributed $135m to MGM during the quarter, returning more than 20% of MGM’s invested capital.
MGM also repurchased 15 million shares in the quarter and 37.5 million shares during 2025, reducing shares outstanding by roughly 48% since early 2021.
The company ended 2025 with $2.1bn in cash and equivalents.
Citizens underscores cautious approach
Jordan Bender of Citizens remained cautious and largely neutral toward the results. He highlighted that regional gaming underperformed relative to forecasts, despite modest improvement over the full year.
Bender believes that attention is now firmly on the path forward in Las Vegas. Full-year performance there reflected several headwinds, including difficult comparisons and disruption from property renovations.
He also does not believe MGM Resorts will consider a buyout of Entain’s share of BetMGM.
He said: “The pressure around online gaming valuation suggests to us a bid for the remaining 50% of BetMGM (from Entain) is unlikely in the near term, but cash building on the balance sheet allows flexibility longer term.”
Confidence in a sharp recovery remains limited. Early in the year is expected to mark a low point, with gradual improvement anticipated as comparisons normalise and renovation benefits begin to flow through.
While the company is executing well in certain areas, its valuation already reflects much of this progress.
Clear evidence of renewed growth and operating leverage in Las Vegas is still needed before the risk-reward profile becomes more compelling relative to other opportunities in the gaming sector.
Stifel analysts more forgiving
Stifel analysts on the other hand were constructively bullish. They pointed out that the core debate around MGM comes down to whether it can deliver growth on the Las Vegas Strip.
If that happens, the stock looks attractive; if not, it likely remains sidelined.
They added that at current trading levels, the risk-reward skews favourably. While meaningful Strip improvement is not expected in the near term, there is a credible path to growth later on, and current expectations already sit in a realistic range.
Near-term Strip demand is described as stable but uninspiring, and investors are unlikely to re-engage until there is sustained evidence of recovery across multiple periods.
That said, ongoing softness in Las Vegas is being offset by strength elsewhere, with regional properties, Macau, and digital operations all performing well and providing a meaningful buffer.
MGM shares continue to be unpopular with much of the market, largely due to leverage concerns, questions around capital allocation, and lingering doubts about Strip growth.
Stifel suggested the current valuation implies an overly harsh outlook, however, one that already assumes prolonged weakness in Las Vegas.
Even if overall growth across physical assets remains muted, momentum from Macau, digital operations, and a healthier group and convention segment should be enough to support a higher valuation than where shares trade today, the analysts argued.
