UPDATE: MGM Resorts International has just announced a disappointing financial performance for Q3 2025, missing Wall Street’s expectations and causing shares to plunge by over 5% in after-hours trading. The results come amid a challenging landscape on the Las Vegas Strip and significant one-time charges related to the company’s exit from its Empire City casino project.
The company reported consolidated net revenues of $4.3 billion, marking only a 2% increase compared to the previous year, primarily fueled by recovery at MGM China. However, a staggering net loss of $285 million starkly contrasts with a profit of $185 million during the same quarter last year. This loss includes a $256 million non-cash goodwill impairment and $93 million in write-offs following MGM’s withdrawal from its New York casino license bid.
Operating results on the Las Vegas Strip, which remains MGM’s primary revenue source, were particularly troubling. Net revenues at Strip resorts fell by 7% to $2 billion, impacted by ongoing room renovations at MGM Grand, a slump in table games, and decreased food and beverage sales. The segment’s Adjusted EBITDAR also dropped 18% to $601 million. Notably, budget-friendly properties like Luxor and Excalibur faced the greatest challenges.
Despite these setbacks, MGM China reported a remarkable 17% revenue increase to $1.1 billion, driven by a strong performance in mass-market table games. EBITDAR for MGM China rose by 20% to $284 million, reflecting a significant recovery in Macau.
MGM Digital, including the BetMGM joint venture, also showed resilience, achieving a 23% revenue increase to $174 million and narrowing its adjusted loss to $23 million.
MGM’s leadership remains cautiously optimistic. CEO Bill Hornbuckle reassured investors about the company’s diversification strategies and the positive momentum in Asia and digital sectors. He anticipates that BetMGM will continue to thrive, projecting at least $100 million in cash distributions starting in Q4.
CFO Jonathan Halkyard expressed hope that the Las Vegas Strip is stabilizing, pointing to the return of convention visitors and the upcoming completion of renovations at the MGM Grand. He noted the recent sale of MGM Northfield Park’s operations as part of a strategic shift toward premium integrated resorts.
MGM’s decision to abandon its New York downstate casino license bid marks a pivotal moment, as the company deemed the planned expansion of Empire City no longer economically viable. Nevertheless, MGM remains committed to enhancing margins and expanding its global presence, with long-term investments in Las Vegas and Macau expected to yield positive outcomes.
As the situation develops, investors and industry observers will be closely monitoring MGM’s next moves in response to these financial challenges and the evolving landscape of the casino and hospitality sector.
