MGM Resorts' latest quarterly results reveal a clear divergence between revenue growth and profitability. The company reported record second-quarter 2026 consolidated revenue of $4.45 billion, a 1% increase from a year earlier, but adjusted EBITDA fell 5.7% to $610 million and adjusted earnings per share dropped 25.3% to $0.59, according to Ad Hoc News. The combination of modest top-line growth and weaker earnings points to higher costs or a less favorable business mix eroding margins.
Revenue reaches a new quarterly high
Consolidated revenue rose 1% to $4.45 billion, a second-quarter record. Las Vegas Strip Resorts revenue grew 3% to $2.17 billion, and the joint venture BetMGM contributed $711 million in net revenue, up 3% year over year. The Globe and Mail added that regional operations posted their best same-store quarter. Because company-wide revenue increased only 1% while Las Vegas grew faster, other segments likely expanded more slowly or were flat.
Profitability metrics decline across key units
Consolidated adjusted EBITDA slipped to $610 million from $648 million a year earlier, a 5.7% decline, while adjusted EPS fell 25.3% to $0.59 from $0.79. The Globe and Mail reported that MGM China's EBITDAR fell 15%, and at BetMGM sports betting revenue was flat while adjusted EBITDA dropped 15%. These figures show that record revenue did not translate into higher earnings, as costs, mix effects, or operating deleverage in certain segments compressed margins. Ad Hoc News said the 1% revenue increase alongside a 5.7% EBITDA decline underscored that margin pressure is a key issue for investors.
Balance sheet and cash returns improve
Despite the profit decline, MGM's balance sheet strengthened. Cash and cash equivalents rose to $2.55 billion at the end of Q2 2026 from $2.06 billion at the end of 2025, while long-term debt edged down to $6.07 billion from $6.23 billion. Net cash provided by operating activities was $1.13 billion in the first half, against $396 million of capital expenditures. The company repurchased 4 million shares for $164 million during the quarter and had $1.4 billion remaining under its buyback authorization, suggesting management still had capacity for shareholder returns even as earnings fell.
Market reaction sharpens focus on margins
Shares closed at $42.67 on August 28, 2026, a gain of 0.92% on the day, but by mid-October MGM was down about 17% for the year, according to The Globe and Mail. The stock traded near $30.40 on October 1 after an unsolicited takeover approach by Barry Diller's People Inc. fell apart, suggesting investors have focused more on profitability and deal uncertainty than on record revenue. Goldman Sachs had issued a Sell rating with a $43 price target in mid-July, and Bank of America reinstated coverage at Neutral with a $40 target after the withdrawal, according to The Globe and Mail. The publication also noted that a rival bid for Caesars Entertainment at a premium to its unaffected share price indicates private-market valuations for Strip assets have not collapsed, even as MGM's own stock has traded below bearish analyst targets.
