MGM Resorts International

🇺🇸New York Stock Exchange
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MGM Resorts International stock analysis MGM overview
Somewhat Bullish +45

MGM Resorts posts record first-quarter revenue as profit slips on weaker margins

📈 MGM Resorts reported record first-quarter 2026 consolidated net revenue of $4.5 billion, a 4% increase from the prior-year quarter.

📉 Despite strong top-line growth, profitability declined with net income falling to $125 million from $149 million a year earlier.

💰 Diluted earnings per share decreased to $0.48 from $0.51, while adjusted diluted EPS dropped to $0.49 from $0.69.

🇨🇳 MGM China drove revenue growth with net revenue reaching $1.1 billion, up 9% year-over-year, despite a 4% decline in Segment Adjusted EBITDAR.

💻 MGM Digital contributed significantly with a 43% surge in net revenue to $183 million as its EBITDAR loss narrowed.

🎰 The BetMGM North America Venture turned profitable in the first quarter, contributing $7.4 million compared to a $15.2 million loss previously.

❌ Las Vegas Strip Resorts experienced margin pressure with Segment Adjusted EBITDAR declining 8% as casino revenue fell 5%.

🏨 Hotel performance on the Las Vegas Strip was mixed with occupancy dropping to 92% and revenue per available room falling 2%.

🗽 Regional Operations outside of Las Vegas showed resilience with net revenue up 2%, though margin compression persisted.

💸 MGM Resorts completed the sale of MGM Northfield Park for $546 million in April, bolstering liquidity for share repurchases.

📉 The company repurchased approximately 2 million shares for $90 million during the quarter under its remaining stock buyback plan.

📉 Stock shares fell 1.7% to $38.61 in after-hours trading following the earnings release.

💬 CEO Bill Hornbuckle noted record revenue was driven by China and digital growth despite softer margins on Strip operations.

🤝 Management expressed optimism for the second quarter citing strength in convention bookings and refreshed properties at MGM Grand Las Vegas.

Bullish Signals
  • MGM Resorts posted record first-quarter consolidated net revenue of $4.5 billion, up 4% from the prior-year quarter.
  • MGM China drove significant growth with net revenue reaching $1.1 billion, a 9% increase year-over-year.
  • MGM Digital revenue surged 43% to $183 million, reflecting strong performance in interactive gaming segments.
  • The BetMGM North America Venture turned profitable, contributing $7.4 million compared to a $15.2 million loss in the prior year.
  • MGM Resorts repurchased approximately 2 million shares for $90 million, demonstrating commitment to returning capital to shareholders.
  • Management closed on the sale of MGM Northfield Park for $546 million in April, generating incremental liquidity for balance sheet strength.
  • CEO Bill Hornbuckle highlighted strong convention bookings and a newly launched all-inclusive promotion as future growth catalysts.
  • The refreshed rooms at the MGM Grand Las Vegas are expected to drive renewed interest among visitors.
Risk Factors
  • Net income dropped $24 million year-over-year to $125 million, reflecting a decline in profitability despite record revenue.
  • Consolidated Adjusted EBITDA fell significantly to $580 million from $637 million, indicating widening operational losses.
  • Adjusted earnings per share of $0.49 missed analyst expectations by 2%, with adjusted diluted EPS dropping sharply to $0.49 from $0.69 a year earlier.
  • Las Vegas Strip Resorts Segment Adjusted EBITDAR declined 8% to $749 million, driven primarily by a 5% drop in casino revenue and declining win rates for both table games (-1%) and slots (-1%).
  • Hotel performance at the Las Vegas Strip deteriorated with occupancy falling from 94% to 92%, while revenue per available room decreased by 2% to $238.
  • MGM China continues to operate at a loss with Segment Adjusted EBITDAR down 4% to $273 million, contributing significantly to the overall margin compression.
  • MGM Digital segment expanded its operating loss from $34 million to $26 million in absolute terms (though narrowing, it remains a liability), offsetting growth in revenue.
  • The stock price fell 1.7% to $38.61 in after-hours trading and was down 1.2% at the market close of $39.27 following the earnings report.
  • MGM Resorts is using proceeds from the $546 million sale of MGM Northfield Park primarily for liquidity management and share repurchases rather than core organic growth investment.
Full Analysis
MGM Resorts International reported record first-quarter 2026 consolidated net revenue of $4.5 billion, a 4% increase from the prior-year quarter, driven by growth in MGM China, MGM Digital, and its BetMGM North America Venture. This revenue achievement occurred despite a decline in profitability, with net income attributable to MGM falling to $125 million from $149 million a year earlier. Diluted earnings per share decreased to $0.48 compared to $0.51, while adjusted diluted earnings per share dropped to $0.49 from $0.69. Consolidated Adjusted EBITDA also declined to $580 million from $637 million as the company faced weaker margins across several operating segments. Geographically and segment-wise, MGM China contributed significantly with net revenue reaching $1.1 billion, up 9%, though its Segment Adjusted EBITDAR fell 4% to $273 million. In the digital sector, MGM Digital (excluding BetMGM North America) saw a 43% revenue rise to $183 million and narrowed its loss to $26 million. Notably, the BetMGM North America Venture turned profitable with $7.4 million in contribution compared to a $15.2 million loss previously. Conversely, Las Vegas Strip Resorts posted net revenue of $2.2 billion but saw Segment Adjusted EBITDAR decline 8% to $749 million due to a 5% drop in casino revenue and declining slot wins, while occupancy on the Strip dipped to 92%. Regional Operations reported net revenue of $918 million, up 2%, though Segment Adjusted EBITDAR fell 7% to $259 million. Looking forward, MGM Resorts is positioned for continued liquidity through recent asset divestitures. In April, the company closed the sale of MGM Northfield Park operations for $546 million, with proceeds intended to support a strong balance sheet and potential share repurchases. During the quarter itself, MGM repurchased approximately 2 million shares for $90 million, retiring all acquired shares against a plan that left about $1.5 billion in availability as of March 31. Bill Hornbuckle, President and CEO, highlighted the record revenue and noted improving trends in convention bookings and promotional activities. The stock traded at $39.27 before falling 1.2% to $38.61 in after-hours trading on Wednesday.