Here's What Key Metrics Tell Us About MGM (MGM) Q3 Earnings

MGM Resorts (MGM) reported Q3 2025 revenue of $4.25 billion, surpassing the Zacks Consensus Estimate by 0.82% and marking a 1.6% year-over-year increase. However, EPS of $0.24 significantly missed the $0.37 consensus, representing a 35.14% negative surprise and a decline from $0.54 a year ago. Strong performance in MGM China and Digital revenues, which grew 17% and beat estimates, was offset by a 6.9% year-over-year decline in Las Vegas Strip Resorts revenue and lower-than-expected Adjusted Property EBITDA for that segment. The stock has underperformed the broader market, returning -7.8% over the past month, and carries a Zacks Rank #4 (Sell).

Analysis

MGM Resorts (MGM) reported Q3 2025 revenue of $4.25 billion, surpassing the Zacks Consensus Estimate of $4.22 billion by 0.82% and marking a 1.6% year-over-year increase. However, the company's EPS of $0.24 significantly missed the $0.37 consensus estimate by 35.14%, representing a substantial decline from $0.54 in the prior year. This divergence between top-line beat and bottom-line miss indicates potential margin pressures or increased costs.

Performance was mixed across segments, with strong growth in MGM China and MGM Digital revenues, which increased by 17% and beat estimates, respectively. Conversely, Las Vegas Strip Resorts revenue declined by 6.9% year-over-year to $1.98 billion, falling short of the $2.01 billion estimate, and its Adjusted Property EBITDA of $600.87 million also missed the $635.03 million consensus. Key metrics like Las Vegas Strip Occupancy at 89% and Table Games Win also underperformed analyst expectations.

The stock has underperformed the broader market, returning -7.8% over the past month compared to the S&P 500's +3.8% change, reflecting investor concern over the earnings miss and Las Vegas performance. The current Zacks Rank #4 (Sell) further suggests a potential for near-term underperformance. This indicates that despite overall revenue growth, the quality of earnings and performance in its flagship market are weighing on investor sentiment.

Key Decisions for Investors

• Investors should closely monitor the performance trends in the Las Vegas Strip Resorts segment, particularly occupancy rates and gaming win, as these continue to be a drag on overall profitability.
• Evaluate the sustainability of growth in MGM China and Digital segments, which are currently offsetting weakness in the core domestic market.
• Consider the implications of the significant EPS miss and the Zacks Rank #4 (Sell) on near-term stock performance, suggesting potential for continued underperformance relative to the broader market.