MGM Resorts Reports Q3 Results Below Expectations Amid Las Vegas Challenges
Overview of Q3 Financial Performance
MGM Resorts International reported earnings for the third quarter of 2025 that fell short of Wall Street predictions. The company’s results were negatively impacted by weak performance on the Las Vegas Strip alongside one-time expenses related to its exit from the Empire City project. Following the earnings announcement, MGM’s stock value declined by over 5% in after-hours trading.
Revenue and Profit Highlights
The company posted total net revenues of $4.3 billion, a modest increase of 2% compared to the prior year, driven largely by growth in its Chinese operations. Despite this revenue growth, MGM reported a net loss of $285 million, a significant downturn from a $185 million profit in the same quarter last year. This loss included a substantial non-cash goodwill impairment charge of $256 million as well as $93 million in write-offs tied to the decision to abandon the New York casino license bid.
Performance Challenges on the Las Vegas Strip
The Las Vegas segment, which remains MGM’s largest, experienced a difficult quarter. Revenues from Strip resorts fell by 7% to $2 billion. This decline was attributed to ongoing room refurbishment projects at MGM Grand, underwhelming results in the table games category, and reduced income from food and beverage services. The segment’s Adjusted EBITDAR decreased by 18% to $601 million. Budget properties like Luxor and Excalibur faced the greatest challenges within this segment.
Growth in MGM China and Digital Ventures
Conversely, MGM China showed notable strength with revenues rising 17% to $1.1 billion, fueled by strong demand in the mass-market table games sector. Adjusted EBITDAR improved by 20% to reach $284 million, marking Macau’s recovery as a bright spot for the company. Meanwhile, MGM Digital, which includes the BetMGM partnership, grew revenues by 23% to $174 million and slightly improved its adjusted loss to $23 million. Other regional properties across the U.S. maintained steady but unspectacular results.
Leadership Outlook and Strategic Moves
CEO Bill Hornbuckle expressed confidence in the company’s diversification strategy and highlighted the positive momentum in Asian markets and digital operations. He anticipated BetMGM’s North American business to sustain strong growth, contributing at least $100 million in cash distributions starting in the fourth quarter.
Chief Financial Officer Jonathan Halkyard noted emerging signs of stabilization on the Strip, pointing to renewed convention traffic and upcoming completion of renovations at MGM Grand. He also emphasized the recent sale of MGM Northfield Park as part of the company’s strategic focus on premium integrated resorts.
MGM’s withdrawal from the bid for a New York downstate casino license represented a significant strategic decision, based on an assessment that expanding Empire City into a larger casino was no longer financially attractive. Despite these challenges, MGM remains committed to margin improvement and broadening its global presence, expecting long-term benefits from investments in Las Vegas and Macau.
