MGM Resorts reported a Q4 where Las Vegas stabilized and Macau outperformed, with management expressing confidence in 2026 growth driven by a full year of renovated rooms and a strong group pipeline. The company highlighted MGM China's record results, BetMGM's turnaround, and an optimistic outlook for returning to top-line growth in Las Vegas. Las Vegas EBITDA declined 4% YoY in Q4, improving versus earlier declines, with MGM Grand renovation disruption of $65 million EBITDA removed for 2026.
Buzzberg readLas Vegas expected to return to growth in 2026MGM Resorts reported a Q4 where Las Vegas stabilized and Macau outperformed, with management expressing confidence in 2026 growth driven by a full year of renovated rooms and a strong group pipeline. The company highlighted MGM China's record results, BetMGM's turnaround, and an optimistic outlook for returning to top-line growth in Las Vegas. Las Vegas EBITDA declined 4% YoY in Q4, improving versus earlier declines, with MGM Grand renovation disruption of $65 million EBITDA removed for 2026.Read full analysisCollapse analysis
MGM Resorts reported a Q4 where Las Vegas stabilized and Macau outperformed, with management expressing confidence in 2026 growth driven by a full year of renovated rooms and a strong group pipeline. The company highlighted MGM China's record results, BetMGM's turnaround, and an optimistic outlook for returning to top-line growth in Las Vegas. Las Vegas EBITDA declined 4% YoY in Q4, improving versus earlier declines, with MGM Grand renovation disruption of $65 million EBITDA removed for 2026.
MGM China Q4 net revenues grew 21%, EBITDA +31% to a record, and market share reached 16.5%.
BetMGM turned in a record year with EBITDA improved by $470M and issued 2026 guidance of $300-350M EBITDA.
Group and convention room nights on the books are at an all-time high with mid-single-digit revenue growth expected in 2026.
Revenue$4.6053B
reported
EPS$1.60
reported
Gross margin44.03%
reported
Op margin7.06%
reported
What changed this quarter
01
Guidance
Las Vegas expected to return to growth in 2026
Guidance tone
02
Demand
Group and convention room nights at record levels
Management expresses optimism for 2026 growth in Las Vegas, highlights record performance in Macau and regional segments, and repeatedly emphasizes stabilization and improving trends.
03
Demand
MGM China holds record market share, trading at discount
Group and convention room nights at record levels. Management expresses optimism for 2026 growth in Las Vegas, highlights record performance in Macau and regional segments, and repeatedly emphasizes stabilization and improving trends.
04
Guidance
BetMGM targets $500 million EBITDA in 2027
Guidance tone
AI, capex & demand read
AI
Platform & monetization
Management discussed AI-driven technology efficiencies, including digital check-ins and an AI-powered digital concierge, which have improved guest engagement and productivity.
Demand
Bookings & conversion
Group and convention room nights at record levels. Management expresses optimism for 2026 growth in Las Vegas, highlights record performance in Macau and regional segments, and repeatedly emphasizes stabilization and improving trends.
Capex
Investment and capacity
Capital expenditure is focused on property renovations (MGM Grand completed, ARIA starting Q4 2026), MGM Osaka construction (on track, ~$350-400M funding in 2026), and continued investment in digital and international markets like Brazil. The company is also funding buybacks and growth while managing a disciplined capex program.
Tone · Constructive
Management expresses optimism for 2026 growth in Las Vegas, highlights record performance in Macau and regional segments, and repeatedly emphasizes stabilization and improving trends.
Supply-chain alpha
A1
The lagging leisure/value customer segment (Luxor/Excalibur) is weighing on Las Vegas results, but management sees strength in the south end of the Strip during large events, indicating a bifurcated demand environment where premium programming drives traffic but core value demand remains soft.
“Luxor and Excalibur continue to have a disproportionate impact to this quarter's decline in Las Vegas, though keep in mind these two properties only represent about 6% of Las Vegas segment adjusted EBITDA in 2025.”
MGM China's recent branding fee increase to 3.5% (from 1.75%) will generate over $50 million in incremental annual cash flow to the parent, effectively acting as a hidden dividend stream that may not be fully reflected in the parent's market valuation.
“MGM China recently announced new terms for its branding fee, which will increase this year from 1.75% to 3.5% and secures the MGM branding through the life of the concession and auto renews for up to 20 years upon a concession renewal.”
MGM successfully backfilled about 50% of lost Las Vegas airlift capacity with new airline service, helping to stabilize visitation levels, but the remaining deficit remains a headwind for the broader market.
“further progress at the Las Vegas airport, as about 50% of the lost capacity left by Value Airlines and select international carriers has been backfilled by other airlines.”
The lagging leisure/value customer segment (Luxor/Excalibur) is weighing on Las Vegas results, but management sees strength in the south end of the Strip during large events, indicating a bifurcated demand environment where premium programming drives traffic but core value demand remains soft. — Suggests a demand bifurcation in the Las Vegas market that could pressure operators with more value-oriented properties (like some competitors) even as premium operators see strength, potentially widening performance gaps.
… growth opportunities in 2026. Consistent with our third quarter commentary surrounding Las Vegas, we saw stabilization in the fourth quarter. Las Vegas EBITDA declined 4% year-over-year, an improvement versus the declines experienced earlier this year, driven by the completion of the MGM Grand Room remodel in October, a year-over-year improvement in convention mix, and hold settling in above our normal range. Luxor and Excalibur continue to have a disproportionate impact to this quarter's decline in Las Vegas, though keep in mind these two properties only represent about 6% of Las Vegas segment adjusted EBITDA in 2025. While we do not see immediate changes to value customer habits, we are seeing strength in the south end of the strip when we have robust programming at Allegiant and, as Bill referenced, we're working towards some creative concepts on marketing our value proposition to these customers. Additionally, the comparisons just become more favorable toward the end of the first half of 2026. The return of the MGM Grand Room inventory has been a benefit, and it's worth noting upon completion, the average age of our Las Vegas rooms since renovation is about six years. We have …
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