MGM sees improving demand indicators following weaker 2025 performance on the Strip

MGM Resorts International said it is entering 2026 with improving indicators in Las Vegas, following a year in which revenue and earnings from its Strip properties declined, according to company filings and executive commentary during a quarterly earnings call.

The earnings call was held earlier than scheduled after financial documents were inadvertently published ahead of time. During the call, President and Chief Executive Officer Bill Hornbuckle said 2025 represented a shift following several years of unusually strong growth in Las Vegas.

“Last year marked a return to a more balanced environment after several years of exceptional growth in Las Vegas,” Hornbuckle said. “Even with the Las Vegas-specific headwinds, we were able to achieve record full-year slot win in 2025, driven by our luxury offerings. From this reset baseline, we see a path to growth in Las Vegas for the full year of 2026.”

MGM’s Las Vegas Strip portfolio includes nine casinos and four non-gaming hotels. The properties generated $8.4 billion in net revenue during 2025, a decline of 4% from the previous year. Core operating earnings from the Strip totaled $2.9 billion, down 8% from 2024.

President and Chief Executive Officer Bill Hornbuckle

In the fourth quarter, Strip net revenue reached $2.2 billion, representing a 3% year-on-year decrease, while core operating earnings fell 4% to $735 million. Hornbuckle said the performance of MGM’s Strip properties during 2025 was affected by the scale of renovation work at MGM Grand.

The $300 million project reduced room inventory for much of the year. “We had anywhere from 700 to 1,000 rooms offline per day for most of last year,” Hornbuckle noted. “But that will not be the case in 2026. We’ve received tremendous positive feedback on the refreshed product and will have the full complement of rooms available this year.”

He said the renovation weighed on comparisons with the prior year. “’24 was an amazing year, and so ‘25 was difficult,” Hornbuckle told investors and analysts. “But, generally speaking, we feel very positive. Positive enough to think that we’re going to exit 26 on an up.”

At the consolidated level, MGM reported net revenue of $17.5 billion for 2025, up 2% from $17.2 billion in 2024. Consolidated adjusted EBITDA totaled $2.4 billion, reflecting a 1% increase. The results include contributions from MGM’s regional operations, MGM China, MGM Digital, and the BetMGM North America venture, in addition to the Las Vegas Strip business.

A look at the renovated MGM Grand's rooms

MGM executives said demand indicators in Las Vegas have strengthened. Group and convention bookings are pacing ahead of the prior year, supported by a calendar of large trade shows and events scheduled throughout 2026. Hornbuckle said the company expects mid-single-digit revenue growth on the Strip during 2026, driven by leisure and group business.

“We exited 2025 with Las Vegas showing signs of stabilization and an improving trajectory,” Hornbuckle said Thursday. “We continue to see those positive trends as we begin 2026 and expect to make even greater progress from a reset baseline in Las Vegas.”

The company also referenced operational initiatives introduced during 2025. Digital check-ins at MGM’s top-tier resorts increased 18% during the year, while AI-powered concierge tools handled more than 1 million guest chats, which executives said reduced wait and check-in times.

Hornbuckle pointed to several developments expected to support visitation in the coming years, including the continuation of the Formula One race in Las Vegas for the next five years, the NCAA football championship scheduled for 2027, the planned relocation of Major League Baseball’s Athletics in 2028, and the possibility of an NBA franchise.

“There’s nothing comparable to Las Vegas,” he said. “People are visiting to have unforgettable experiences, and their exceptional value is the optionality of what our guests can enjoy and discover on any particular visit.”

MGM Chief Operating Officer Ayesha Molino said the company will place greater focus on leisure travelers during 2026. “Like a lot of companies in the hospitality industry, I think over the last year or so we did see that shortening of the booking window,” Molino said.

“That said, we’re paying close attention to that customer, and we are starting to see a response, particularly to large-scale events, that feels positive to us in terms of some of the broader initiatives.”