MGM Resorts International Q4 Earnings Call Highlights

MGM Resorts International (NYSE:MGM) executives struck an upbeat tone on the company’s fourth-quarter and full-year 2025 earnings call, pointing to record performance in Macau, a sharp profitability turnaround at BetMGM, and signs of stabilization in Las Vegas after what management described as a “reset” year.

Leadership updates and 2025 highlights

CEO and President Bill Hornbuckle opened the call by introducing Ayesha Molino as the company’s new Chief Operating Officer. Hornbuckle also highlighted leadership promotions at MGM China, including Kenneth Feng’s move to Chief Executive Officer and Tian Han’s promotion to Chief Operating Officer.

Hornbuckle framed 2025 as a year that showcased MGM’s diversification across integrated resorts, digital gaming, and international development. Among the accomplishments he cited were:

• Record fourth-quarter and full-year EBITDA in Macau, with margins maintained and “outsized market share” throughout the year.
• A nearly $470 million EBITDA turnaround at the BetMGM North America venture, which began distributing cash to its parent companies in the fourth quarter.
• Breaking ground on MGM Osaka, which the company believes will be the world’s largest integrated resort upon opening.
• Ongoing investment across the portfolio, including upgraded dining and enhanced VIP gaming environments in Las Vegas and regional properties.

Las Vegas: Stabilization, group growth, and renovation tailwinds

Management said Las Vegas experienced headwinds in 2025 after several years of unusually strong growth, but described performance as stabilizing into the fourth quarter. Molino said Las Vegas segment EBITDA declined 4% year-over-year in the fourth quarter, which she characterized as an improvement from earlier-year declines. She attributed the better trend to the completion of the MGM Grand room remodel in October, a stronger year-over-year convention mix, and other factors that helped results normalize.

Hornbuckle and Molino emphasized the importance of group and convention demand, saying MGM is seeing mid-single-digit group and convention revenue growth in 2026 and that the group mix is expected to be closer to 20% this year. Hornbuckle said the quality of group business has improved due to actions taken in 2025 to increase profitability. He also said MGM has more group and convention room nights on the books for future years than at any point in its history, and pointed to citywide events such as CES and the return of CON/AGG as demand drivers.

MGM executives also highlighted large event-driven visitation and premium experiences. Hornbuckle cited Formula 1 as a top-tier event that helped drive higher room rates and increased cash ticket sales at the Bellagio Fountain Club. He said MGM plans to repeat two invitation-only luxury gaming tournaments, including a $5 million slot tournament, and described “the greatest growth potential” as residing in luxury offerings. Hornbuckle added that Bellagio and Aria together saw a 7% increase in EBITDA in 2025.

On the operational side, Hornbuckle said technology initiatives drove an 18% increase in digital check-ins, reducing check-in time to 1.5 minutes versus 6.5 minutes via traditional check-in, and said the company is using AI to improve productivity through its digital concierge tools.

In Q&A, Hornbuckle said occupancy had “clearly stabilized” and pointed to high-end strength in gaming and luxury demand. He also said the MGM Grand remodel created an unusually large operational impact because 700 to 1,000 rooms were out of service per day for much of 2025—a headwind that will not repeat in 2026.

Regional results steady; Macau outperforms with record EBITDA

MGM’s regional business was described as resilient. Molino said the regional segment delivered best-ever fourth-quarter slot win and the best full-year slot win in 2025, contributing to a 2% increase in net stable EBITDA. Management also noted the pending sale of Northfield Park, expected to close in May 2026.

Macau was a standout. Hornbuckle said MGM China produced a record high quarterly and full-year segment adjusted EBITDA and maintained market share above 16% for the year, including 16.5% in the fourth quarter. Molino provided additional detail, stating that MGM China’s fourth-quarter net revenues grew 21% and segment adjusted EBITDA rose 31%, setting a new fourth-quarter record. She said the operating team has consistently maintained mid-to-high 20s margins by focusing on service levels while adapting to changing customer preferences.

Feng said MGM China has seen stable conditions in the market in recent quarters and reiterated that margins have been in the mid-to-high 20s, consistent with prior guidance. On Lunar New Year, Feng said MGM China was “very, very optimistic,” with strong trends, a waiting list for top players, and an emphasis on “quality over quantity” given limited room inventory and a premium customer mix.

BetMGM turnaround, MGM Digital momentum, and capital allocation

Hornbuckle and CFO Jonathan Halkyard emphasized the improved earnings trajectory at BetMGM. Hornbuckle said BetMGM beat 2025 guidance and turned annual EBITDA around by nearly $470 million. He noted that monthly player volumes increased 24% in 2025 and active player days increased 14%. Halkyard said BetMGM delivered fourth-quarter EBITDA improvement of $176 million to $71 million. Management also cited BetMGM’s 2026 Adjusted EBITDA guidance of $300 million to $350 million, expected capex of $50 million, and an intention to “regularly” distribute excess cash to its parent companies. Hornbuckle also reiterated BetMGM’s goal to reach $500 million of Adjusted EBITDA in 2027.

For MGM Digital, management cited 35% growth in net revenues, driven by momentum across legacy LeoVegas markets and Brazil. Hornbuckle said Sweden remains the top international market, and that MGM made “significant headway” in Brazil after launching an in-house sportsbook in December. He said the company expects continued investment in Brazil, describing the market as new, robust, and evolving, supported by the joint venture with Globo and MGM’s global marketing assets.

On corporate capital priorities, Halkyard said MGM’s 2026 Japan funding commitment is expected to be approximately $350 million to $400 million, funded largely through proceeds from a yen-denominated credit facility that was upsized to approximately $350 million at a low single-digit cost of capital. He also outlined cash flow sources that include Las Vegas and regional operations, MGM China branding fees and distributions, and BetMGM distributions, calling the latter two “recurring sources of income.”

Share repurchases were another focus. Halkyard said MGM repurchased $500 million of shares in the fourth quarter, bringing total 2025 share repurchase activity to $37.2 billion at an average price of $32.43. He added that over the last five years, the company has reduced its share count by almost 50%.

In response to analyst questions about buyback priorities, Halkyard said repurchase levels are evaluated relative to other uses of cash, and noted that MGM resumed buybacks after deciding not to proceed with the New York license pursuit that had been budgeted for. Hornbuckle added that MGM China has roughly a 22% public float and suggested the key point was that MGM China’s trading multiple appears “cheap,” rather than indicating an intent to reduce the float materially.

Quarter-specific modeling items: hold and corporate expense

During Q&A, Halkyard said table hold in Las Vegas was slightly above average and above the prior year, estimating the impact at roughly “$20-ish million” to the Las Vegas bottom line in the fourth quarter. He also flagged corporate expense for modeling, suggesting a run-rate of approximately $110 million to $115 million and noting that some unusual expenses in the fourth quarter and first quarter of the prior year should not recur.

Looking to 2026, Halkyard said MGM expects to keep overall expense growth to “very, very low single digits,” citing efforts to offset wage increases through labor management and technology-driven efficiencies, including reductions in FTEs in regional operations and the corporate office during 2025.

About MGM Resorts International (NYSE:MGM)

MGM Resorts International is a leading global hospitality and entertainment company that develops, owns and operates destination resorts, hotels and casinos. Its properties feature integrated gaming floors alongside luxury accommodations, fine dining and retail outlets, live entertainment venues and convention facilities. The company also offers loyalty programs, sports betting and digital gaming experiences to enhance guest engagement and drive repeat visitation.

The company traces its heritage to the opening of the original MGM Grand Hotel & Casino on the Las Vegas Strip in 1973.