MGM Resorts Q2 revenue rises 2% to $4.4 billion on regional, China gains

MGM Resorts International reported a 2% year-over-year increase in second-quarter revenue to $4.4 billion, driven by strong performance in its regional operations and MGM China, though net income fell sharply due to a foreign currency transaction loss.

Net income declined to $49 million from $187 million a year earlier, which the company attributed to a $208 million pre-tax loss related to U.S. dollar-denominated debt held by a foreign subsidiary. Adjusted EBITDA rose to $648 million from $635 million in the prior-year quarter.

“This performance was driven by accelerating EBITDA growth at the BetMGM venture and record results out of our regional operations as well as MGM China,” said President and CEO Bill Hornbuckle. “Our outlook on the business remains bright, particularly in Las Vegas, as 4Q25 and full year 2026 will benefit from meaningful capital investment, including the completion of the MGM Grand room remodel, combined with strong convention bookings.”

Revenue from MGM’s Las Vegas Strip properties fell 4% to $2.1 billion, while adjusted EBITDAR declined 9% to $710 million. The company cited room remodel disruptions and lower table games hold at MGM Grand as contributing factors.

Regional operations generated revenue of $965 million, a 4% increase, with adjusted EBITDAR up 7% to $309 million, supported by higher casino volumes. MGM China posted a 9% year-over-year revenue increase to $1.1 billion, driven by growth in main-floor table games drop and VIP win percentages.

MGM Digital, which includes BetMGM, saw revenue grow 14% to $164 million, though its adjusted EBITDAR loss widened to $26 million from $14 million a year ago.

Hornbuckle also addressed a decline in Las Vegas visitation, with citywide figures down 11.3% in June and conference attendance falling 10.7%. However, he pointed to signs of recovery.

“We saw, starting in May, about a nine-week decline in bookings... For the last four weeks in a row, we’ve seen an increase in bookings,” he said. “That gives confidence, as we think about August, September, and into October, remembering that the booking cycle here is short.”

He noted a drop in international visitors, including from Canada, and flagged soft airport traffic as additional headwinds. Still, Hornbuckle defended Las Vegas’ pricing appeal amid criticism over rising costs.

“To say Las Vegas is not a value, which I know has become a headline, is just not a complete reality,” he said. “Some of the rates out there this next midweek are comparable to things I’ve seen 20 years ago.”

MGM’s partnership with Marriott’s Bonvoy program is gaining traction, with 900,000 hotel stays projected in 2025 and a record 25,000 bookings logged in a single week. “Those customers continue to spend more than average... outspending others by as much as $150 per day,” Hornbuckle said.

On regulatory matters, Hornbuckle raised concerns over provisions in President Donald Trump’s recently passed “Big Beautiful Bill,” specifically a tax burden on high-volume gamblers.

“You could win $1,000, lose $1,000, and end up paying a 10% tax on 10% of your losses,” he said. While the company welcomed other provisions, such as the slot jackpot tax threshold increase from $1,200 to $2,000, it remained neutral on exclusions for tips and overtime.

CFO Jonathan Halkyard highlighted a favorable shift in the company’s tax forecast following the bill’s passage. “This is one of the reasons why we’ve updated our tax forecast from a liability of approximately $100 million this year to actually a positive refund of $100 million in 2025,” he said, citing bonus depreciation as a key driver.