MGM Resorts reports modest growth in 2025 despite Strip earnings dip
MGM Resorts International entered 2026 with strengthening demand trends in Las Vegas, according to company filings and commentary during a quarterly earnings call that was held earlier than planned after financial materials were inadvertently released.
President and chief executive officer Bill Hornbuckle described 2025 as a reset year after several periods of unusually strong Strip performance. He said:
"Last year marked a return to a more balanced environment after several years of exceptional growth in Las Vegas."
"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."
Strip Performance and Renovation Impact
MGM operates nine casino resorts and four non-gaming hotels on the Las Vegas Strip. Those properties generated $8.4 billion in net revenue during 2025, a 4 percent decline from the prior year. Core operating earnings from the Strip reached $2.9 billion, down 8 percent compared with 2024.
The fourth quarter followed a similar pattern. Strip net revenue totaled $2.2 billion, a 3 percent year on year decrease, while core operating earnings slipped 4 percent to $735 million.
Hornbuckle attributed much of the pressure to extensive renovation work at MGM Grand Las Vegas. The $300 million project reduced available inventory for most of the year.
"We had anywhere from 700 to 1,000 rooms offline per day for most of last year," "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 acknowledged that comparisons were difficult given how strong the prior year had been.
"'24 was an amazing year, and so '25 was difficult," Hornbuckle said. "But, generally speaking, we feel very positive. Positive enough to think that we're going to exit 26 on an up."
Demand Signals Improve as 2026 Begins
At the group level, MGM reported net revenue of $17.5 billion for 2025, a 2 percent increase from 2024. Consolidated adjusted EBITDA rose 1 percent to $2.4 billion, supported by contributions from regional casinos, MGM China, MGM Digital, and the BetMGM venture, alongside Las Vegas operations.
Executives said demand indicators on the Strip have strengthened entering 2026. Group and convention bookings are pacing ahead of last year, supported by a packed calendar of trade shows and major events.
Hornbuckle said MGM expects mid single digit revenue growth on the Strip in 2026, driven by leisure travel and group business.
"We exited 2025 with Las Vegas showing signs of stabilization and an improving trajectory," "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."
Operational initiatives introduced during 2025 are also contributing. Digital check-ins at MGM top tier resorts increased 18 percent year on year, while AI powered concierge tools handled more than one million guest chats, helping reduce wait times.
Hornbuckle also pointed to longer term demand drivers, including the continuation of the Formula One Las Vegas race, the NCAA football championship scheduled for 2027, the planned relocation of Major League Baseball Athletics in 2028, and the potential arrival of an NBA franchise.
"There's nothing comparable to Las Vegas," "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."
Chief operating officer Ayesha Molino said MGM will lean more heavily into leisure travel during 2026 as booking patterns evolve. She said:
"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."
"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."
