At first glance, MGM Resorts’ fourth quarter numbers look robust: consolidated revenues reached $4.6bn (+6% YoY)while Adjusted EBITDA climbed 20% to $635m. Net income attributable to MGM nearly doubled year-on-year to $294m.
But beneath the headline growth, Q4 2025 tells a more nuanced story—one defined less by Las Vegas recovery and more by China momentum, digital scaling, and aggressive capital return.
This is increasingly a company optimising where it earns rather than how much it grows.
Las Vegas: resilience, but no longer the growth engine
Las Vegas Strip Resorts generated $2.2bn in Q4 revenue, down 3% YoY, with Segment Adjusted EBITDAR declining 4% to $735m. Hotel fundamentals weakened across the board:
- Occupancy: 91% (down from 94%)
- ADR: $251 (–7%)
- RevPAR: $228 (–10%)
Gaming performance was more mixed. Table games delivered a 21% increase in win, driven by higher hold, while slot revenue remained essentially flat.
Las Vegas is no longer MGM’s growth lever – it is a cash-generating base asset. Group and convention bookings provide visibility for 2026, but margin upside is limited. The Strip is transitioning from growth engine to stabiliser.
MGM China: the real earnings driver
If one segment carried MGM in 2025, it was MGM China.
- Q4 revenue: $1.2bn (+21% YoY)
- Adjusted EBITDAR: $332m (+30% YoY)
- Full-year revenue: $4.5bn (+11% YoY)
Table volumes and win percentages improved simultaneously—an important signal of healthy premium-mass demand rather than volatility-driven upside.
Just as notable: MGM extracted $153m in distributions from MGM China in 2025, reinforcing the unit’s role not only as a growth engine but also as a repatriable cash generator.
Unlike many Macau-exposed operators still rebuilding balance sheets, MGM is already harvesting China cash flows while maintaining growth – an enviable position heading into 2026.
Digital & BetMGM: the long game is paying off
MGM’s digital exposure is split between:
- MGM Digital (LeoVegas + international interactive)
- BetMGM (US joint venture, unconsolidated)
MGM Digital (consolidated)
- Q4 revenue: $188m (+35% YoY)
- Adjusted EBITDAR loss: just $7m, down from a $22m loss a year earlier
BetMGM (equity income + distributions)
- Q4 income contribution: $29.3m (vs a loss in Q4 2024)
- Cash distribution to MGM in Q4: $135m
- Cumulative return: >20% of MGM’s invested capital already recouped
Strategic takeaway:
MGM is past the “digital optionality” phase. BetMGM is now a cash-returning asset, not merely a market-share story. Combined with LeoVegas’ improving economics, MGM’s digital portfolio is approaching an inflection point where profitability – not growth – becomes the headline.
Capital allocation: MGM doubles down on financial engineering
Perhaps the most underappreciated part of the report is not operational—it’s financial.
In 2025, MGM:
- Repurchased 37.5m shares
- Reduced shares outstanding by ~48% since 2021
- Returned >$1.2bn to shareholders via buybacks
- Secured low-cost financing for MGM Osaka
- Monetised non-core assets (Northfield Park sale)
This explains a key paradox in the numbers:
- Full-year net income fell to $206m
- Adjusted EPS rose to $3.31 (from $2.59)
MGM is intentionally trading accounting earnings for per-share value creation.
Looking ahead: what to watch in 2026
Three themes will define MGM’s 2026 narrative:
- China sustainability – Can premium-mass demand persist without policy headwinds?
- Digital profitability – When does BetMGM move from distributions to sustained earnings?
- Mega-projects – MGM Osaka remains a long-dated but potentially transformative catalyst
Las Vegas will remain important—but it is no longer the story.
Bottom line
MGM Resorts is evolving from a US-centric casino operator into a capital-disciplined, globally diversified gaming group with credible digital exposure and a clear shareholder-return strategy.
Q4 2025 didn’t just show growth – it showed control. And in today’s gaming industry, that may be the more valuable asset.
