UPDATE: MGM Resorts International has just reported disappointing earnings for the third quarter of 2025, failing to meet Wall Street expectations as financial struggles on the Las Vegas Strip weigh heavily on results. Following the release of the earnings report, shares of the casino and hospitality giant plummeted by over 5% in after-hours trading on Wednesday.
The company announced consolidated net revenues of $4.3 billion, reflecting a modest 2% year-over-year increase, driven primarily by recovery in MGM China. However, the company’s net loss surged to $285 million, a stark contrast to a profit of $185 million during the same quarter last year. This downturn was predominantly attributed to a substantial $256 million non-cash goodwill impairment and $93 million in write-offs following MGM’s withdrawal from its New York casino license bid.
In Las Vegas, the company’s flagship market, net revenues from Strip resorts fell by 7% to $2 billion. This decline was exacerbated by ongoing renovations at MGM Grand, underperformance in table games, and disappointing food and beverage sales. Adjusted EBITDAR for this segment plummeted 18% to $601 million, with budget-friendly properties like Luxor and Excalibur experiencing the most significant pressure.
On a brighter note, MGM China demonstrated resilience, with revenues soaring 17% to $1.1 billion, fueled by robust mass-market table game performance. EBITDAR climbed 20% to $284 million, showcasing Macau as a vital growth area in an otherwise challenging quarter. Additionally, MGM Digital, which includes its BetMGM joint venture, reported a remarkable 23% revenue increase to $174 million, though it still recorded an adjusted loss of $23 million.
MGM CEO Bill Hornbuckle reassured investors with a positive outlook, emphasizing the company’s diversification strategies and strong momentum in Asia and digital ventures. “MGM Resorts delivered another quarter of consolidated net revenue growth as we benefit from our operational scale and diversity,” he stated, highlighting expectations for BetMGM’s North American business to contribute at least $100 million in cash distributions starting in Q4.
CFO Jonathan Halkyard expressed optimism about Las Vegas, citing signs of stabilization as convention visitors return and renovations at MGM Grand near completion. He also noted the strategic realignment reflected in the recent sale of MGM Northfield Park’s operations, steering the company towards premium integrated resorts.
MGM’s withdrawal from the New York downstate casino license contest is particularly noteworthy, as the company determined that plans to expand Empire City into a full-scale casino were no longer economically viable. Nonetheless, MGM continues to prioritize margin improvements and global expansion, with long-term investments in Las Vegas and Macau expected to yield future dividends.
As investors react to this significant update, all eyes will be on MGM’s next moves and how the company plans to navigate these turbulent waters.
