MGM Resorts Misses Q3 Estimates amid Las Vegas Weakness

MGM Resorts International did not meet Wall Street’s expectations for the third quarter of 2025, as poor performance on the Las Vegas Strip and one-time charges related to its Empire City exit impacted financial results. Shares of the casino and hospitality giant dropped by more than 5% in after-hours trading on Wednesday after the release of the earnings report.

MGM China and MGM Digital Recorded Stable Growth

The company announced consolidated net revenues of $4.3 billion, only a 2% increase compared to last year, primarily supported by continued recovery at MGM China. However, MGM posted a net loss of $285 million, compared to a profit of $185 million in the same quarter last year. The company attributed these results to a $256 million non-cash goodwill impairment and an additional $93 million in write-offs due to the company’s decision to withdraw from its New York casino license bid.

Operating results in Las Vegas, the company’s leading segment, revealed a challenging quarter. Net revenues at the Strip resorts decreased 7% to $2 billion, due to ongoing room renovations at MGM Grand, underperformance in the table games sector, and softer food and beverage revenue. Segment Adjusted EBITDAR was down 18% to $601 million. Analysts pointed out that MGM’s budget-oriented properties, including Luxor and Excalibur, faced the most significant pressure.

On the bright side, MGM China’s revenues surged 17% to $1.1 billion, propelled by robust performance in mass-market table games. EBITDAR went up 20% to $284 million as the company described Macau’s recovery as one of the few bright spots in the quarter. Regional properties across the US showed stable but unimpressive performance. Meanwhile, MGM Digital, which includes its BetMGM joint venture, posted a 23% revenue increase to $174 million, narrowing its adjusted loss modestly to $23 million.

Company Leadership Remained Optimistic

MGM CEO Bill Hornbuckle reassured investors, underlining the company’s diversification efforts and the robust momentum in Asia and digital ventures. He expected the BetMGM North American business to maintain its impressive momentum, contributing at least $100 million in cash distributions beginning in Q4.

MGM Resorts delivered another quarter of consolidated net revenue growth as we benefit from our operational scale and diversity.

Bill Hornbuckle, MGM Resorts CEO

CFO Jonathan Halkyard, meanwhile, was optimistic that the Strip was showing signs of stabilization, citing the return of convention visitors and the imminent completion of the MGM Grand room renovations. He also noted that the recent sale of MGM Northfield Park’s operations reflected the company’s strategic realignment toward premium integrated resorts.

MGM’s decision to withdraw from the contest for a New York downstate casino license marked one of the quarter’s most significant moves. The company calculated that the planned expansion of Empire City into a full-scale casino was no longer economically viable. Even so, MGM remains focused on improving margins and strengthening its global footprint as long-term investments in Las Vegas and Macau begin to pay dividends.