MGM Resorts’s Q1 results indicate company is on right path, execs say – CDC Gaming
MGM Resorts International’s first-quarter 2026 earnings call Wednesday was relatively even keeled.
The company reported 2026 revenue of $4.5 billion, a 4% increase year-over-year. Net income attributable to MGM Resorts was $125 million and Adjusted EBITDA reached $580 million.
There were no great areas of concern from analysts on the call, but a few headwinds might become problematic.
Self-insurance, where the operator sets aside funds to cover potential future losses instead of purchasing a traditional insurance policy, came in at $37 million in Las Vegas and $9 million for regional operations during Q126.
“While we support a fair and balanced legal system, claims that lack merit divert capital, management attention, and resources away from investments that benefit employees, guests, and our communities,” said MGM Resorts Chief Financial Officer Jonathan Halkyard. “We’re focused on what we can control, which is enforcing high standards, and process and the other operational elements of our business with the utmost care.”
“It has been an increasing cost in our business,” Halkyard added. “It’s the reason I wanted to call it out clearly. But for that charge, our results this quarter would have been, I think we’d all agree, much better on an operating basis. But we certainly hope that that’s not going to be anything that recurs.”
A downturn in international visitation has also impacted MGM Resorts’s bottom line. MGM Resorts CEO Bill Hornbuckle noted that visitation by Canadian customers has decreased 30%-40%. But Hornbuckle thinks that a possible increase in convention business this summer might offset the decrease in foreign visitors.
“The majority of first-time visitors, actually, many of them come through conventions,” Hornbuckle said. “And they come because they have to. They’re told to. Then they learn about this place and they go, ‘You know, this looks interesting and fun. I want to come back.’ So they come back with family and friends. I think the only real differentiator for now is that international is hurting that number.”
Hornbuckle said MGM is involved with the Las Vegas Convention and Visitors Authority, with Chief Commercial Office Gary Fritz sitting on the board. Hornbuckle noted that MGM has over four million square feet of convention space and remains competitive for sector conventions, including tech.
“We’re big into tech. That sector continues to grow and is looking exciting,” Hornbuckle said. “We’ve got some really good groups lined up for the summer. We’ve got Google coming back and a few others. Cisco’s coming in with a massive group this summer.
“The question becomes, because Con/AGG (the construction tradeshow) rotates, are there other groups in the world like Con/AGG? And the answer is yes, there are. And yes, we’ve been cooperative and we’ll go on with them from time to time and on field trips to go pursue some of this other stuff.”
Hornbuckle did admit that attracting lower-end leisure customers to properties, including Excalibur and Luxor, is still challenging. But the good news is that business segment comprises only 6% of MGM overall EBITDA.
“On the weekends, we’re fine,” Hornbuckle said. “The balance of the portfolio is performing from fine to good. And to answer the core question, we do see growth through the balance of the year, but it’s got to be tempered modestly.
“It’s a crazy world out there right now,” Hornbuckle added, “but based on what we see, particularly in advanced bookings, we remain optimistic that we will have growth by year-end.”
