BetMGM Exceeds Expectations with 2025 Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy MGM?
Source: PRnewswire
- Strong Performance: BetMGM reported net revenue of $2.796 billion for 2025, a 33% increase year-over-year, showcasing robust growth momentum in the North American market and reflecting successful strategic execution.
- Profitability Improvement: EBITDA reached $220 million, a significant 464% improvement from the previous year, marking a clear shift in the company's profitability model and enhancing cash distribution capabilities to its parent companies.
- Increased User Engagement: Average monthly active users reached 597,000, a 4% increase from last year, indicating positive progress in enhancing user experience and engagement, further solidifying its market position.
- Optimistic Future Outlook: Management expresses strong confidence in growth prospects for 2026 and beyond, anticipating continued focus on optimizing products and platforms to adapt to industry changes and seize market opportunities.
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Analyst Views on MGM
Wall Street analysts forecast MGM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MGM is 40.31 USD with a low forecast of 29.00 USD and a high forecast of 56.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
5 Buy
7 Hold
2 Sell
Hold
Current: 33.490
Low
29.00
Averages
40.31
High
56.00
Current: 33.490
Low
29.00
Averages
40.31
High
56.00
About MGM
MGM Resorts International is a global gaming and entertainment company with national and international locations featuring hotels and casinos, meetings and conference spaces, live and theatrical entertainment experiences, and a range of restaurant, nightlife and retail offerings. The Company’s segments include Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. The Las Vegas Strip Resorts segment consists of Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. The Regional Operations segment consists of MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica; Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York, and others. MGM Digital is its online gaming portfolio which is primarily comprised of LeoVegas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BetMGM Exceeds Expectations with 2025 Performance
- Strong Performance: BetMGM reported net revenue of $2.796 billion for 2025, a 33% increase year-over-year, showcasing robust growth momentum in the North American market and reflecting successful strategic execution.
- Profitability Improvement: EBITDA reached $220 million, a significant 464% improvement from the previous year, marking a clear shift in the company's profitability model and enhancing cash distribution capabilities to its parent companies.
- Increased User Engagement: Average monthly active users reached 597,000, a 4% increase from last year, indicating positive progress in enhancing user experience and engagement, further solidifying its market position.
- Optimistic Future Outlook: Management expresses strong confidence in growth prospects for 2026 and beyond, anticipating continued focus on optimizing products and platforms to adapt to industry changes and seize market opportunities.
See More
BetMGM Exceeds Expectations with FY 2025 Performance
- Strong Performance: BetMGM's FY 2025 net revenue reached $2.8 billion, a 33% year-over-year increase, with online sports revenue soaring by 63%, demonstrating the company's robust growth momentum and solidifying its leadership position in the North American gaming market.
- Significant EBITDA Improvement: The FY 2025 EBITDA stood at $220 million, up $464 million year-over-year, marking a substantial enhancement in profitability and laying the groundwork for future cash distributions, thereby boosting investor confidence.
- Cash Distribution to Parents: In Q4 2025, BetMGM returned $270 million in cash to its parent companies, indicating a shift towards shareholder returns following the achievement of sustainable profitability, which further enhances market recognition of its financial health.
- Optimistic Future Outlook: BetMGM anticipates FY 2026 net revenue between $3.1 billion and $3.2 billion, with adjusted EBITDA projected at $300 million to $350 million, showcasing the company's strong confidence in ongoing growth and market expansion.
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- Commercial Costs: This year, 30-second Super Bowl ads cost between $8 million and $10 million, and while prediction markets cannot advertise, sports betting companies like DraftKings and FanDuel will still participate, ensuring stable advertising revenue.
- Market Dynamics: Although Kalshi and Polymarket cannot advertise during the Super Bowl, they still allow betting on game outcomes, raising concerns over insider trading that could affect consumer confidence and market transparency.
- Future Outlook: The NFL's ban may lead to missed partnership opportunities for prediction market companies with major events, and until more regulations and safeguards are in place, the NFL is likely to maintain its distance, impacting potential advertising revenue.
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- Compliance Commitment: Chief Compliance Officer Rhea Loney stated that BetMGM will take decisive actions against harassment, ensuring misconduct is identified and investigated within a legal framework, thus maintaining sports integrity.
- Responsible Gambling Initiatives: This update aligns with BetMGM's responsible gambling initiatives, including the integration of educational messaging through GameSense® at 10 football stadiums nationwide, aimed at promoting responsible play and providing practical tips.
- Market Presence: BetMGM currently operates in 30 markets with mobile and retail offerings, accessible on both iOS and Android platforms, further solidifying its leadership position in the online gaming industry.
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- Insurance Cost Reduction: Tesla's partnership with Lemonade introduces a pay-per-mile insurance product that offers a 50% discount when full self-driving is activated, alleviating financial burdens for users and enhancing the market appeal of Tesla's autonomous driving services.
- Intensifying Market Competition: Despite advancements, analysts note that Tesla does not hold an absolute lead in the autonomous driving market, suggesting that future competition will be more intense, particularly regarding safety and technological maturity.
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- Robo-Taxi Launch: Tesla has officially launched its robo-taxi service in Austin, Texas, marking a significant advancement in its autonomous driving efforts, although it still lags behind competitors like Waymo, which could impact Tesla's market competitiveness.
- Insurance Cost Reduction: Tesla's partnership with Lemonade introduces a pay-per-mile insurance product that offers a 50% discount when FSD is activated, which not only lowers operational costs for users but may also attract more consumers to Tesla's autonomous driving services.
- Intensifying Market Competition: While Tesla has made strides in autonomous technology, the competition remains fierce, with companies like Waymo and Zoox leading in fully driverless operations, necessitating Tesla to accelerate its technology iterations to maintain market share.
- Subscription Model Raises Concerns: The introduction of a monthly subscription model for FSD may boost short-term revenues, but it could also lead to consumer skepticism regarding long-term value, reflecting challenges in Tesla's market positioning.
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BetMGM Exceeds Expectations with 2025 Performance
- Strong Performance: BetMGM reported net revenue of $2.796 billion for 2025, a 33% increase year-over-year, showcasing robust growth momentum in the North American market and reflecting successful strategic execution.
- Profitability Improvement: EBITDA reached $220 million, a significant 464% improvement from the previous year, marking a clear shift in the company's profitability model and enhancing cash distribution capabilities to its parent companies.
- Increased User Engagement: Average monthly active users reached 597,000, a 4% increase from last year, indicating positive progress in enhancing user experience and engagement, further solidifying its market position.
- Optimistic Future Outlook: Management expresses strong confidence in growth prospects for 2026 and beyond, anticipating continued focus on optimizing products and platforms to adapt to industry changes and seize market opportunities.
See More
BetMGM Exceeds Expectations with FY 2025 Performance
- Strong Performance: BetMGM's FY 2025 net revenue reached $2.8 billion, a 33% year-over-year increase, with online sports revenue soaring by 63%, demonstrating the company's robust growth momentum and solidifying its leadership position in the North American gaming market.
- Significant EBITDA Improvement: The FY 2025 EBITDA stood at $220 million, up $464 million year-over-year, marking a substantial enhancement in profitability and laying the groundwork for future cash distributions, thereby boosting investor confidence.
- Cash Distribution to Parents: In Q4 2025, BetMGM returned $270 million in cash to its parent companies, indicating a shift towards shareholder returns following the achievement of sustainable profitability, which further enhances market recognition of its financial health.
- Optimistic Future Outlook: BetMGM anticipates FY 2026 net revenue between $3.1 billion and $3.2 billion, with adjusted EBITDA projected at $300 million to $350 million, showcasing the company's strong confidence in ongoing growth and market expansion.
See More
NFL Bans Prediction Market Ads for Super Bowl LX
- Advertising Ban: The NFL has prohibited prediction market ads during Super Bowl LX, categorizing them alongside firearms and tobacco, reflecting concerns over game integrity that could impact brand exposure and market participation for related companies.
- Commercial Costs: This year, 30-second Super Bowl ads cost between $8 million and $10 million, and while prediction markets cannot advertise, sports betting companies like DraftKings and FanDuel will still participate, ensuring stable advertising revenue.
- Market Dynamics: Although Kalshi and Polymarket cannot advertise during the Super Bowl, they still allow betting on game outcomes, raising concerns over insider trading that could affect consumer confidence and market transparency.
- Future Outlook: The NFL's ban may lead to missed partnership opportunities for prediction market companies with major events, and until more regulations and safeguards are in place, the NFL is likely to maintain its distance, impacting potential advertising revenue.
See More
BetMGM Updates Terms to Prohibit Harassment of Athletes
- Terms Update: BetMGM has revised its terms of service to explicitly prohibit harassment of athletes, coaches, and team personnel, with account suspension for customers using abusive language, thereby reinforcing its commitment to athlete safety.
- Compliance Commitment: Chief Compliance Officer Rhea Loney stated that BetMGM will take decisive actions against harassment, ensuring misconduct is identified and investigated within a legal framework, thus maintaining sports integrity.
- Responsible Gambling Initiatives: This update aligns with BetMGM's responsible gambling initiatives, including the integration of educational messaging through GameSense® at 10 football stadiums nationwide, aimed at promoting responsible play and providing practical tips.
- Market Presence: BetMGM currently operates in 30 markets with mobile and retail offerings, accessible on both iOS and Android platforms, further solidifying its leadership position in the online gaming industry.
See More
Tesla's Robo-Taxis Without Safety Drivers Launch in Texas
- Robo-Taxi Launch: Tesla has launched its robo-taxis without safety drivers in Austin, Texas, marking a significant advancement in its autonomous driving technology, although it still trails competitors like Waymo, indicating Tesla's ongoing commitment to innovation in this space.
- Insurance Cost Reduction: Tesla's partnership with Lemonade introduces a pay-per-mile insurance product that offers a 50% discount when full self-driving is activated, alleviating financial burdens for users and enhancing the market appeal of Tesla's autonomous driving services.
- Intensifying Market Competition: Despite advancements, analysts note that Tesla does not hold an absolute lead in the autonomous driving market, suggesting that future competition will be more intense, particularly regarding safety and technological maturity.
- Subscription Model Challenges: Tesla's introduction of a $100 monthly subscription for full self-driving raises potential revenue but faces challenges in consumer acceptance, especially as other manufacturers offer more standard features without additional costs.
See More
Tesla's Robo-Taxi Launch Marks a New Era
- Robo-Taxi Launch: Tesla has officially launched its robo-taxi service in Austin, Texas, marking a significant advancement in its autonomous driving efforts, although it still lags behind competitors like Waymo, which could impact Tesla's market competitiveness.
- Insurance Cost Reduction: Tesla's partnership with Lemonade introduces a pay-per-mile insurance product that offers a 50% discount when FSD is activated, which not only lowers operational costs for users but may also attract more consumers to Tesla's autonomous driving services.
- Intensifying Market Competition: While Tesla has made strides in autonomous technology, the competition remains fierce, with companies like Waymo and Zoox leading in fully driverless operations, necessitating Tesla to accelerate its technology iterations to maintain market share.
- Subscription Model Raises Concerns: The introduction of a monthly subscription model for FSD may boost short-term revenues, but it could also lead to consumer skepticism regarding long-term value, reflecting challenges in Tesla's market positioning.
See More
