MGM Resorts Q2 Earnings Miss Estimates, Revenues Rise Y/Y

MGM’s Q2 Earnings & Revenue Details

MGM Resorts reported adjusted earnings per share (EPS) of 59 cents, missing the Zacks Consensus Estimate of 63 cents by 6.4%. The figure declined 25.3% from 79 cents reported in the prior-year quarter.

Quarterly revenues of $4.45 billion topped the consensus mark of $4.44 billion by 0.4%. The top line increased 1% year over year, marking record second-quarter consolidated revenues. Consolidated adjusted EBITDA decreased 5.7% to $610 million.

MGM's Las Vegas Results Gain Ground

Las Vegas Strip Resorts revenues increased 3% year over year to $2.17 billion. Segment adjusted EBITDAR rose 3% to $735 million, while margin improved 30 basis points to 33.9%. Management attributed the EBITDAR increase primarily to a recovery at MGM Grand, supported by remodeled rooms and a favorable hold benefit.

Casino revenues jumped 17% to $536 million as table games win climbed 27% to $451 million. Table games win percentage expanded to 29.6% from 22.9%. However, Room revenues declined 2% to $717 million. Occupancy remained unchanged at 93%, while average daily rate and revenue per available room decreased 4% to $242 and $224, respectively.

MGM Resorts' Regional Trends Stay Mixed

Regional Operations revenues declined 4% to $924 million, reflecting the April sale of MGM Northfield Park. On a same-store basis, revenues increased 3% to $904 million and reached an all-time quarterly record.

Segment adjusted EBITDAR fell 9% to $280 million. Same-store EBITDAR was flat at $271 million, while the corresponding margin contracted 83 basis points to 30.0%. Casino revenues declined 6% as slot win fell 9%, partly offset by a 4% increase in table games win.

MGM's China Profitability Faces Pressure

MGM China revenues were relatively flat at $1.10 billion. Casino revenues decreased 2% to $956 million as main-floor table games drop declined 7%, though table games win increased 2% and win percentage improved to 27.2% from 25.0%.

Segment adjusted EBITDAR dropped 15% to $257 million, and margin fell 383 basis points to 23.3%. Results were pressured by a $21 million year-over-year increase in intercompany branding license fees. Management said World Cup activity temporarily affected June volumes, followed by an encouraging rebound in July.

MGM Resorts' Digital Growth Accelerates

MGM Digital revenues increased 20% year over year to $196 million. The segment posted an adjusted EBITDAR loss of $31 million compared with a loss of $26 million a year earlier, as marketing costs and gaming taxes increased.

BetMGM, MGM's unconsolidated North American venture, generated second-quarter net revenues of $711 million, up 3%. iGaming revenues rose 8% to $483 million, while online sports revenues were flat at $228 million. Adjusted EBITDA declined 15% to $74 million, and average monthly actives fell 3% to 875,000.

MGM Resorts' Balance Sheet and Capital Plans

MGM Resorts ended the second quarter with cash and cash equivalents of $2.55 billion, up from $2.06 billion at the end of 2025. Long-term debt was $6.07 billion compared with $6.23 billion at the end of 2025.

During the first half of 2026, net cash provided by operating activities totaled $1.13 billion, while capital expenditures were $396 million. MGM repurchased approximately 4 million shares for $164 million during the quarter. The remaining authorization under its share repurchase program was $1.4 billion.

Construction of MGM Osaka remains on schedule and within budget for a 2030 opening. Approximately 60% of foundation piles were completed, with concrete and structural steel work progressing.

MGM’s Zacks Rank & Stocks to Consider

MGM Resorts currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Life Time Group Holdings, Inc. LTH, AMC Entertainment Holdings, Inc. AMC and The Marcus Corporation MCS.

Life Time Group presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Life Time Group delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 72% in the year-to-date period. The Zacks Consensus Estimate for LTH’s 2026 sales and EPS implies growth of 11.3% and 18.1%, respectively, from the year-ago levels.

AMC Entertainment presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 76.3% in the year-to-date period.

The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS indicates an increase of 13.3% and 77.1%, respectively, from the year-ago levels.

Marcus currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings miss of 40.4%, on average. The stock has gained 60.9% in the year-to-date period.

The Zacks Consensus Estimate for Marcus’ 2026 sales and EPS indicates growth of 6.2% and 211.8%, respectively, from the year-ago period’s levels.

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