MGM Resorts International reported a 1% year-on-year decline in consolidated revenue for the third quarter of 2026, with total revenue reaching $4.2 billion. The company's performance was affected by weaker results on the Las Vegas Strip, which offset gains in its digital and international operations. MGM's net loss narrowed significantly to $17 million from $285 million in the prior year, but adjusted EBITDA fell to $403 million from $506 million.
Las Vegas Strip Under Pressure
The Las Vegas Strip, MGM's largest revenue segment, posted a 2% decline in revenue to $1.95 billion. Despite an 8% increase in casino revenue to $488 million, room revenue dropped 6% to $622 million, and the average daily room rate fell 8% to $218. Revenue per available room also declined by 8%, though occupancy remained stable at 89%. Company leadership cited higher travel costs, including rising airfares and gasoline prices, as key factors impacting leisure travelers' budgets and contributing to lower room rates.
Mixed Results Across Other Segments
While the Las Vegas Strip faced challenges, MGM China reported a 5% revenue increase to $1.1 billion, and MGM Digital saw a 6% rise to $184 million. The digital division also narrowed its adjusted EBITDAR loss to $4 million from $23 million previously. Regional operations, however, experienced an 8% decline in revenue to $883 million, though same-store revenue was up 1% when adjusted for asset sales. Profitability weakened across most segments, with adjusted EBITDAR falling by double digits in both the Las Vegas and regional operations.
Outlook and Strategic Moves
MGM executives indicated that early fourth-quarter trends appeared more positive, with October showing signs of improvement in room-rate trends following declines in August and September. The company expects November to benefit from major events such as Formula One and other large-scale gatherings in Las Vegas. Additionally, MGM amended its voting agreement with its largest shareholder, People, Inc., restricting further share purchases beyond a 29.9% ownership threshold and aligning voting on change-of-control matters with the board.
Implications for the Industry
The Q3 results highlight the ongoing volatility in the Las Vegas hospitality and gaming market, particularly as travel costs impact consumer behavior. For operators, the need to adapt pricing strategies and diversify revenue streams remains crucial. Affiliates and suppliers should note the resilience in digital and international segments, which may present growth opportunities even as traditional markets face headwinds. Regulatory developments, such as changes in shareholder agreements, also underscore the importance of governance in maintaining strategic direction.
Key takeaways
- MGM Resorts' Q3 2026 revenue dipped 1% year-on-year to $4.2 billion.
- Las Vegas Strip results weakened due to lower room rates and higher travel costs.
- Digital and international segments showed revenue growth and improved profitability.
- Early Q4 trends suggest potential recovery, with major events expected to boost performance.