MGM Resorts’ Q1 results reflected a mix of continued revenue growth and margin compression, with revenue ahead of Wall Street expectations but non-GAAP profit below analyst estimates. Management cited strong contributions from its digital businesses and robust group and convention demand in Las Vegas as primary drivers. CEO Bill Hornbuckle highlighted the performance of MGM Digital and MGM China, emphasizing that group and convention bookings—especially linked to major events—supported top-line growth. However, higher self-insurance expenses and a decline in operating margins weighed on profitability.
Is now the time to buy MGM? Find out in our full research report (it’s free for active Edge members).
MGM Resorts (MGM) Q1 CY2026 Highlights:
- Revenue: $4.45 billion vs analyst estimates of $4.37 billion (4.2% year-on-year growth, 2% beat)
- Adjusted EPS: $0.49 vs analyst expectations of $0.53 (7.8% miss)
- Adjusted EBITDA: $580.2 million vs analyst estimates of $1.18 billion (13% margin, 50.9% miss)
- Operating Margin: 6.8%, down from 9% in the same quarter last year
- Market Capitalization: $9.70 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MGM Resorts’s Q1 Earnings Call
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David Katz (Jefferies) asked about early results and scalability of the all-inclusive package; COO Ayesha Molino said momentum has been steady, with many bookings from new customers, and the company is evaluating whether to expand the offering.
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Daniel Politzer (JPMorgan) inquired about customer health on the Las Vegas Strip; CEO William Hornbuckle noted improvement through the quarter, with successively better months, and sees resilience despite short-term booking cycles.
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Brandt Montour (Barclays) pressed for data on first-time Las Vegas visitor retention and profitability; Hornbuckle explained that international softness has impacted the percentage of new visitors, but the all-inclusive initiative is helping re-engage this segment.
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John DeCree (CBRE) raised questions about the timeline for digital business profitability; Gary Fritz, President of MGM Digital, stated the loss should materially narrow in 2026, with breakeven targeted by 2027.
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Stephen Grambling (Morgan Stanley) asked if asset monetization is under consideration given high sale multiples; CFO Jonathan Halkyard responded that such decisions are driven by strategic priorities rather than simply maximizing sale prices.
Catalysts in Upcoming Quarters
Over the next several quarters, the StockStory team will monitor (1) the pace of digital sportsbook and LeoVegas integration, especially in Brazil and Europe, (2) the ability of the Las Vegas convention pipeline and new all-inclusive packages to drive incremental non-gaming revenue, and (3) the execution of premium product investments in Macau and the progress of the Osaka project in Japan. Regulatory developments and margin trends will also be important factors to watch.
MGM Resorts currently trades at $37.60, down from $39.27 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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