MGM Resorts International has posted its financial outcomes for the third quarter of 2025, revealing a consolidated net revenue of $4.3 billion, marking a 2 percent increase from the same period last year. This positive result is largely attributed to a significant rise in net revenues at MGM China, which helped offset other challenges faced by the company.
Despite the revenue growth, MGM reported a net loss of $285 million, compared to a net income of $185 million in the third quarter of the previous year. This downturn was primarily due to a substantial pre-tax impact from a non-cash goodwill impairment charge amounting to $256 million, as well as costs associated with withdrawing its application for a commercial gaming license for Empire City. The decision to pull back from Empire City’s gaming license application reflects a strategic choice by MGM to focus its resources on more promising ventures, albeit at an immediate financial cost.
The company also reported a consolidated adjusted EBITDA of $506 million, which is a decline from $574 million in the same quarter of 2024. A noticeable factor in this decrease was the performance of their Las Vegas Strip resorts, which recorded revenues of $2.0 billion compared to $2.1 billion the previous year. This decrease was attributed to several factors, including the ongoing room remodel at MGM Grand Las Vegas that temporarily affected capacity and rates, a decline in the revenue per available room, reduced table game win percentages, and a decrease in food and beverage revenue. The segment’s adjusted EBITDAR was $601 million, showing an 18 percent drop.
Meanwhile, regional operations reported revenues of $957 million, slightly up from $952 million in the prior year, however, adjusted EBITDAR decreased by 1 percent, coming in at $296 million. This marginal decline suggests stability in regional markets despite broader economic pressures that could potentially impact spending in the hospitality sector.
A notable highlight for MGM was the performance of MGM China, which reported a revenue increase of 17 percent, reaching $1.1 billion. This was largely driven by growth in the main-floor table-games segment. The adjusted EBITDAR for MGM China rose to $284 million from $237 million in 2024, representing a 20 percent increase. This robust performance underscores the company’s strong positioning in the Asian market, where recovery from previous economic disruptions has been gaining momentum.
MGM Digital also showed impressive growth with revenue reported at $174 million, an increase of 23 percent. However, despite the revenue growth, the segment’s adjusted EBITDAR decreased by 2 percent year-over-year. This slight decline in profitability margins is not uncommon in digital expansions where initial investments in technology and marketing can outpace immediate returns.
Bill Hornbuckle, CEO and President of MGM Resorts International, remarked on the company’s achievements: “MGM Resorts delivered another quarter of consolidated net revenue growth as we benefit from our operational scale and diversity, highlighted by record third quarter results from MGM China. The BetMGM North American venture reported accelerated growth in 3Q25, increasing full year guidance for the second consecutive quarter and announcing cash distributions to MGM Resorts beginning in 4Q25. The initial distribution to MGM is expected to be at least $100 million, proving significant progress on the growth, profitability, and free cash flow generation of the business.”
This optimism is echoed by Jonathan Halkyard, CFO and Treasurer of MGM Resorts, who noted, “We are seeing encouraging signs of stability in Las Vegas with the return of the group and convention season and the completion of the MGM Grand room remodel. MGM’s strategic focus on premium, market-leading integrated resort operations drove the decision to sell the operations of MGM Northfield Park. The price reflects a solid multiple, which again demonstrates the value gap available in the MGM Resorts equity price.”
The mention of the completed room remodel at MGM Grand and the strategic sale of MGM Northfield Park operations underscore MGM’s commitment to refining its portfolio to focus on high-value assets. This approach not only frees up capital but also aligns with market dynamics where premium integrated resorts are gaining greater consumer traction.
While these developments paint a positive picture for MGM’s strategic direction, some analysts caution about the broader economic environment. With consumer spending potentially tightening due to inflationary pressures and other global economic factors, the full impact on discretionary travel and entertainment spending remains to be seen. Balancing investment in growth areas like digital and Asia with the potential volatility of traditional markets will be key to sustaining long-term profitability.
Thus, while MGM Resorts has demonstrated resilience and adaptability in navigating current market conditions, the path forward will require continuous strategic adjustments to maintain momentum and capitalize on emerging opportunities. The company’s ability to leverage its diverse portfolio while managing economic headwinds will be critical in determining its future success.
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