MGM Resorts’ second quarter delivered revenue growth and an adjusted profit well ahead of Wall Street expectations, but the market responded negatively due to a significant shortfall in adjusted EBITDA. Management highlighted the benefits of MGM’s diversified portfolio, with international and digital segments offsetting softness in Las Vegas. CEO Bill Hornbuckle pointed to ongoing room renovations at MGM Grand and weaker midweek performance at value-oriented Las Vegas properties as the main drags on domestic results, while he noted record performance in China and regional markets as key supports.
Is now the time to buy MGM? Find out in our full research report (it’s free).
MGM Resorts (MGM) Q2 CY2025 Highlights:
- Revenue: $4.40 billion vs analyst estimates of $4.32 billion (1.8% year-on-year growth, 1.9% beat)
- Adjusted EPS: $0.79 vs analyst estimates of $0.55 (42.7% beat)
- Adjusted EBITDA: $647.5 million vs analyst estimates of $1.17 billion (14.7% margin, 44.6% miss)
- Operating Margin: 9.2%, in line with the same quarter last year
- Market Capitalization: $9.64 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MGM Resorts’s Q2 Earnings Call
- Barry Jonas (Truist): Asked about the financial impact of MGM Grand renovations. CFO Jonathan Halkyard confirmed disruption costs are front-loaded, with most effects realized by project completion in October.
- David Katz (Jefferies): Queried about digital cross-benefits and loyalty program integration. President Gary Fritz highlighted a 30% increase in Nevada monthly actives and strong loyalty-driven engagement post-visit.
- Brandt Montour (Barclays): Probed on Vegas leisure customer trends and booking cycle. CEO Bill Hornbuckle cited short booking windows and recent improvement in bookings, expressing confidence in convention and group business recovery.
- John DeCree (CBRE): Asked about Macau market dynamics and dividend policy. MGM China’s leadership pointed to premium mass demand and a new 50% dividend payout policy as supporting both growth and shareholder returns.
- Chad Beynon (Macquarie): Focused on digital investment in Brazil and scalability. President Gary Fritz explained that investments are concentrated in Brazil, with positive early player metrics and flexibility from local partnerships.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will closely monitor (1) the pace of Las Vegas recovery as renovations finish and major events return, (2) BetMGM’s ability to sustain digital profit growth and expand in new markets, and (3) progress on international projects like MGM Osaka and Dubai. Successful execution across these milestones will be critical to MGM’s long-term value creation.
MGM Resorts currently trades at $35.35, down from $37.91 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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