MGM (MGM) Q2 Revenue Tops Estimates 2%

Key Points

• GAAP revenue for Q2 2025 exceeded expectations at $4.40 billion, Revenue reached $4.40 billion, a 2% increase over the prior year quarter and above analyst estimates.

• Adjusted EPS (earnings per share) beat forecasts at $0.79, but net income (GAAP) dropped sharply due to a one-time foreign currency loss.

• Core Las Vegas Strip metrics softened from a year ago.

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MGM Resorts International (NYSE:MGM), the hospitality, casino, and entertainment operator behind well-known resort brands in Las Vegas, Macau, and beyond, released its earnings for Q2 2025 on July 30, 2025. The big headlines: the company delivered GAAP revenue and non-GAAP adjusted EPS above market expectations, thanks to strong results in its digital gaming and Macau operations, but reported net income (GAAP) fell steeply year-over-year, mainly due to a significant foreign currency loss. GAAP revenue totaled $4.40 billion compared to analyst forecasts of $4.32 billion, and adjusted EPS came in at $0.79, well over the $0.58 consensus. However, net income attributable to MGM slid to $49 million from $187 million the prior year. The period highlighted ongoing momentum in digital and international expansion, while the company’s flagship Las Vegas Strip properties saw softer performance against a backdrop of property remodels and shifting customer demand.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

The Business in Brief and Key Success Factors

MGM Resorts International operates integrated resorts and casinos in the United States, China, and digital markets. The company’s most recognized assets include luxury hotels and gaming venues on the Las Vegas Strip, as well as casinos in regional U.S. markets and Macau.

Recently, MGM has emphasized three strategies. First, an “asset-light” business model, selling physical properties and using leases to redirect capital to high-growth opportunities. Second, the expansion of its digital gaming and online betting platforms to capture broader consumer trends. Third, a push into international markets, especially Asia, aiming to lessen dependence on Las Vegas and tap new sources of revenue. Success in these areas hinges on the company’s ability to grow digital and overseas business, manage property upgrades, and maintain regulatory compliance across multiple countries.

Quarter in Review: Segment Metrics and Notable Developments

GAAP revenue rose 2% from the prior year, reaching $4.40 billion and surpassing expectations. Adjusted EBITDA, a profitability metric that focuses on the company’s core operations, increased 2.0% to $648 million compared to the prior year quarter. Meanwhile, Adjusted EPS (non-GAAP) came in at $0.79, ahead of analyst forecasts, but below last year’s Adjusted EPS of $0.86 for Q2 2024, as softer Strip results and higher digital spending weighed on margins. Net income attributable to MGM plummeted to $49 million (GAAP), as the company incurred a $208 million pre-tax foreign currency loss related to U.S. dollar-denominated debt in its international units—a one-time, non-cash cost that impacted reported earnings.

The Las Vegas Strip segment posted lower revenues and profitability. Net revenues (GAAP) fell 4% to $2.11 billion as MGM Grand room remodels and lower table games hold—how much money the casino wins as a percentage of money wagered—reduced casino and room revenue. Occupancy at Strip properties slipped to 93% from 97%, and average daily room rate (ADR) in the segment rose modestly by 1%. Slot revenue and slot gaming volume increased 4%. Convention bookings and new partnerships, particularly with Marriott Bonvoy, continued to attract incremental guests, but disruptions from property upgrades and changes in customer demand remained headwinds.

Regional properties delivered record performance. Segment revenue climbed 4% and segment Adjusted EBITDAR—Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent—rose 7%. These gains helped offset weakness in the Las Vegas core and highlighted the value of MGM’s geographic diversification.

Net revenue jumped 9% to $1.11 billion for MGM China, the highest ever for the segment, while segment Adjusted EBITDAR reached a record $301 million. Growth was driven by new premium room inventory in Macau, where main-floor table gaming volume rose 7%. MGM China’s market share hit an all-time high of 16.6%. Segment margin growth was moderate, suggesting rising costs or reinvestment.

The digital gaming division, including LeoVegas and other international digital platforms, posted 14% higher revenue year-over-year as brand expansion gained traction in new markets like Brazil. At the same time, The segment’s adjusted EBITDAR loss widened to $26 million. Management views ongoing losses as part of building scale and expects these digital operations to become profitable over the next several years. The separately reported BetMGM, a joint venture focused on U.S. sports betting, turned a profit, contributing $21.8 million in operating income versus a $38.4 million loss a year ago. BetMGM also raised guidance for the remainder of FY2025.

The company continued its large share repurchase program, buying back 8 million shares for $217 million. The share count has now been reduced by 45% since the beginning of 2021, reflecting aggressive capital returns. As of June 30, 2025, MGM held $1.96 billion in cash (GAAP) and had approximately $2.1 billion in remaining buyback authorization, though management noted the pace is expected to slow as capital expenditures for international projects, such as the Osaka resort in Japan and Dubai’s MGM Tower, ramp up in coming years. Long-term debt stood at roughly $6.2 billion, with ongoing focus on maintaining balance sheet flexibility.

Property upgrades and customer experience initiatives remain a focus. Ongoing remodeling—such as at MGM Grand and planned investments at Aria and Cosmopolitan—temporarily disrupts operations. MGM Rewards, the company’s loyalty platform, crossed 50 million members as of April 2025, an increase of more than 50% since 2020. The Marriott Bonvoy partnership generated more than 20,000 room nights a week during April 2025, helping to broaden customer mix.

Regulatory compliance, cybersecurity, and international operating requirements continue to represent a major area of investment and attention. The company collected over $100 million in business interruption insurance proceeds in the past six months and continues to work through further claims. No new material changes to food and beverage or non-gaming revenue trends appeared. Expenses and margins remained closely managed.

Looking Ahead: Company Outlook and Key Watchpoints

Specifically, leadership expects at least $150 million in additional EBITDA enhancements by year-end 2025. BetMGM raised its full-year revenue and profit outlook for FY2025, but the company offered no explicit consolidated earnings or revenue forecast for FY2025 or FY2026.

MGM’s future results will hinge on its ability to execute large capital projects overseas and manage a smooth recovery at its Las Vegas Strip properties as upgrades conclude. Ongoing share repurchases are expected to slow as expenditures rise for projects in Osaka. Investors are likely to monitor margin recovery in Las Vegas, losses and scale-up costs in digital gaming, and the further rollout of international resorts. No dividend is currently paid by MGM.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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