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Read Full BioMGM Resorts International (NYSE: MGM) delivered better-than-expected results in Q2 2025, posting $4.4 billion in revenue (up by 2%) and adjusted EPS of $0.79, easily topping the $0.55 analysts’ estimates. Yet the stock fell slightly by 0.67% in aftermarket trading amid fears that the online betting business is hurting profitability.
The $4.4 billion in revenue not only beat analysts’ expectations of $4.32 billion but also marked the highest consolidated revenue that MGM has ever posted. Still, adjusted EPS declined year-over-year, falling short of the $0.87 in Q2 2024.
Much of the profit decline stemmed from MGM Digital, which reported a 100% increase in EBITDAR loss to $26 million, despite iGaming revenues surging.
Segment Highlights
Here is a breakdown of how MGM’s different business segments performed in the quarter.
- Las Vegas Strip Resorts reported revenues of $2.1 billion in the quarter, a 2% year-over-year decline, which the company attributed to room remodels and lower revenues from table games.
- MGM China reported $1.1 billion in revenue, a 9% yearly rise. The segment’s adjusted EBITDAR also rose 3% to $301 million.
- The Regional Operations segment reported net revenues of $965 million, 4% higher than the corresponding quarter. The sector’s adjusted EBITDAR rose 7% to $309 million.
- MGM Digital’s revenues rose 14% year-over-year to $164 million. Specifically, iGaming revenues grew 29% in Q2, despite no new state launches in the quarter. However, the segment’s adjusted EBITDAR loss widened to $26 million, nearly double the loss in the corresponding quarter last year.
Online Losses Widen, But BetMGM Offers a Bright Spot
Gaming companies have been expanding aggressively in the online sports betting space, which is growing much faster than the physical channels. However, only a few have achieved profitability in the online segment.
The losses have begun to test investors’ patience. Activist investor HG Vora, which won two board seats on Penn Entertainment’s board, alleged that Penn’s online sports betting pivot has “failed” despite spending $4 billion on the venture over five years.
Still, investor interest in the online segment remains strong, driven by its long-term potential. A day before MGM’s earnings, BetMGM, which is a joint venture between Entain and MGM Resorts, raised its annual guidance after the impressive performance in the first half of the year.
It now expects full-year revenues to be at least $2.7 billion, $100 million higher than the previous guidance. Similarly, it raised the EBITDA guidance by $50 million. It now expects the number to be at least $150 million this year.
This is the second upward revision in the past two months. The June forecast adjustment lifted not only the parent company’s stocks but much of the industry. The latest guidance implies EBITDA improvement by at least $400 million compared to last year.
MGM Maintains Optimistic Outlook Despite Competitive Pressures
MGM also gave upbeat commentary on its outlook. That could be reassuring to some investors, considering the price war in the Las Vegas market, where some players are offering rooms for as low as $19.
In his prepared remarks, MGM’s CEO Bill Hornbuckle emphasized confidence in the company’s trajectory:
“Our outlook on the business remains bright, particularly in Las Vegas, as 4Q25 and full year 2026 will benefit from meaningful capital investment, including the completion of the MGM Grand room remodel, combined with strong convention bookings.”
He reaffirmed MGM’s long-term digital strategy,
“Looking beyond 2025, our BetMGM venture continues towards its goal of $500 million in EBITDA, and our MGM Digital segment is on target to become profitable in the coming years.”
MGM Stock Forecast: Mixed Analyst Sentiment
Ahead of MGM’s Q2 report, Susquehanna raised the target price from $50 to $60. It cited strength in regional operations and upside potential of MGM’s digital segment.
However, the overall Street sentiment towards the company is mixed, though. While some brokerages have raised MGM’s target price, others remain cautious.
Seaport downgraded the stock from “buy” to “neutral,” citing higher capital expenditures and challenges in the Las Vegas market. Goldman Sachs also initiated coverage on MGM with a “sell” rating and $34 target price earlier this month.
Overall, MGM has a consensus rating of Moderate Buy from analysts. Its mean target price of $54.66 is 27.8% higher than yesterday’s closing price.
