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MGM Resorts' BetMGM Reports Steady Q1, Lowers 2026 Revenue Outlook
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Key Takeaways
MGM's BetMGM Q1 net revenues rose 6% to $696M as adjusted EBITDA increased 11% to $25M.
BetMGM cut the 2026 revenue outlook to $2.9-$3.1B from $3.1-$3.2B and kept EBITDA at $300-$350M.
BetMGM iGaming 9%, betting 4%; users fell, but revenue and handle per user rose.
BetMGM, jointly owned by MGM Resorts International (MGM - Free Report) and Entain plc, provided a business update for the first quarter of 2026. While the company reported steady growth and operational progress, it revised its full-year revenue outlook to reflect year-to-date performance. Management indicated that BetMGM has had a stable start to 2026 and is executing well on its strategy, driving sustainable, profitable growth and beginning to return cash to its parent companies. Strength in iGaming continues to lead performance, while online sports betting is improving despite a competitive and player-friendly environment.
BetMGM Growth Holds Steady
BetMGM reported modest yet steady growth in the first quarter, supported by continued execution of its refined player management strategy. Total net revenues increased 6% year over year to $696 million, driven primarily by iGaming growth of 9%, while online sports betting rose 4%, impacted by player-friendly outcomes and higher promotional intensity. Adjusted EBITDA improved 11% to $25 million, reflecting enhanced operating efficiency and a disciplined approach to profitability. Notably, the company maintained stable contribution levels and achieved a podium position with approximately 13% gross gaming revenue market share across active markets.
Operationally, BetMGM continues to prioritize value over volume, as reflected in a decline in average monthly active users due to disciplined customer acquisition, while engagement metrics such as revenue per user and handle per active showed healthy growth.
Revised Guidance for 2026
The updated outlook reflects moderated top-line growth expectations, with BetMGM lowering its 2026 revenue forecast from $3.1-$3.2 billion to $2.9-$3.1 billion. Despite this, the company continues to expect adjusted EBITDA of $300-$350 million, supported by ongoing operational efficiencies and disciplined investment focused on its core strengths.
Strategically, BetMGM aims to drive long-term growth through expansion in iGaming, deeper penetration in multi-product states and leveraging its omnichannel advantage in Nevada. Additional catalysts include major event-driven opportunities such as the World Cup, potential entry into new markets like Alberta and continued focus on premium mass customers. The company also highlighted its ability to return cash to its parent entities through parent fees and excess cash generation, remaining on track to achieve its longer-term target of $500 million in Adjusted EBITDA by 2027.
MGM's Share Price Performance
Shares of MGM have gained 14.2% in the past six months against the Zacks Gaming industry’s 27.1% decline.
Image Source: Zacks Investment Research
The company’s performance has been supported by its diversified operating model and solid execution across key segments, particularly in Macau, digital operations and regional casinos. Growth was led by record results in Macau, where MGM delivered all-time high fourth-quarter and full-year EBITDAR, supported by strong margins and sustained market share gains.
However, these gains were partly offset by challenges in Las Vegas, where EBITDAR declined year over year due to normalization, lower occupancy and softness in value-oriented customers. Performance was further impacted by renovation-related disruptions at MGM Grand and broader macro-driven travel headwinds.
MGM’s Zacks Rank & Key Picks
Currently, MGM Resorts carries a Zacks Rank #3 (Hold).
The company delivered a trailing four-quarter earnings surprise of 187.5%, on average. APEI stock has moved up 54.9% in the past six months. The Zacks Consensus Estimate for APEI’s 2026 sales and EPS indicates an increase of 6.4% and 75%, respectively, from the year-ago levels.
Strategic Education (STRA - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 19.9%, on average. STRA stock has gained 0.2% in the past six months.
The Zacks Consensus Estimate for Strategic Education’s fiscal 2026 sales and EPS implies growth of 4.1% and 12.8%, respectively, from the year-ago levels.
GDEV Inc. (GDEV - Free Report) currently flaunts a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 262.7%, on average. GDEV stock has declined 30.6% in the past six months.
The Zacks Consensus Estimate for GDEV’s 2026 sales and EPS implies growth of 6.4% and 23.8%, respectively, from the year-ago levels.
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MGM Resorts' BetMGM Reports Steady Q1, Lowers 2026 Revenue Outlook
Key Takeaways
BetMGM, jointly owned by MGM Resorts International (MGM - Free Report) and Entain plc, provided a business update for the first quarter of 2026. While the company reported steady growth and operational progress, it revised its full-year revenue outlook to reflect year-to-date performance. Management indicated that BetMGM has had a stable start to 2026 and is executing well on its strategy, driving sustainable, profitable growth and beginning to return cash to its parent companies. Strength in iGaming continues to lead performance, while online sports betting is improving despite a competitive and player-friendly environment.
BetMGM Growth Holds Steady
BetMGM reported modest yet steady growth in the first quarter, supported by continued execution of its refined player management strategy. Total net revenues increased 6% year over year to $696 million, driven primarily by iGaming growth of 9%, while online sports betting rose 4%, impacted by player-friendly outcomes and higher promotional intensity. Adjusted EBITDA improved 11% to $25 million, reflecting enhanced operating efficiency and a disciplined approach to profitability. Notably, the company maintained stable contribution levels and achieved a podium position with approximately 13% gross gaming revenue market share across active markets.
Operationally, BetMGM continues to prioritize value over volume, as reflected in a decline in average monthly active users due to disciplined customer acquisition, while engagement metrics such as revenue per user and handle per active showed healthy growth.
Revised Guidance for 2026
The updated outlook reflects moderated top-line growth expectations, with BetMGM lowering its 2026 revenue forecast from $3.1-$3.2 billion to $2.9-$3.1 billion. Despite this, the company continues to expect adjusted EBITDA of $300-$350 million, supported by ongoing operational efficiencies and disciplined investment focused on its core strengths.
Strategically, BetMGM aims to drive long-term growth through expansion in iGaming, deeper penetration in multi-product states and leveraging its omnichannel advantage in Nevada. Additional catalysts include major event-driven opportunities such as the World Cup, potential entry into new markets like Alberta and continued focus on premium mass customers. The company also highlighted its ability to return cash to its parent entities through parent fees and excess cash generation, remaining on track to achieve its longer-term target of $500 million in Adjusted EBITDA by 2027.
MGM's Share Price Performance
Shares of MGM have gained 14.2% in the past six months against the Zacks Gaming industry’s 27.1% decline.
Image Source: Zacks Investment Research
The company’s performance has been supported by its diversified operating model and solid execution across key segments, particularly in Macau, digital operations and regional casinos. Growth was led by record results in Macau, where MGM delivered all-time high fourth-quarter and full-year EBITDAR, supported by strong margins and sustained market share gains.
However, these gains were partly offset by challenges in Las Vegas, where EBITDAR declined year over year due to normalization, lower occupancy and softness in value-oriented customers. Performance was further impacted by renovation-related disruptions at MGM Grand and broader macro-driven travel headwinds.
MGM’s Zacks Rank & Key Picks
Currently, MGM Resorts carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
American Public Education, Inc. (APEI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The company delivered a trailing four-quarter earnings surprise of 187.5%, on average. APEI stock has moved up 54.9% in the past six months. The Zacks Consensus Estimate for APEI’s 2026 sales and EPS indicates an increase of 6.4% and 75%, respectively, from the year-ago levels.
Strategic Education (STRA - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 19.9%, on average. STRA stock has gained 0.2% in the past six months.
The Zacks Consensus Estimate for Strategic Education’s fiscal 2026 sales and EPS implies growth of 4.1% and 12.8%, respectively, from the year-ago levels.
GDEV Inc. (GDEV - Free Report) currently flaunts a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 262.7%, on average. GDEV stock has declined 30.6% in the past six months.
The Zacks Consensus Estimate for GDEV’s 2026 sales and EPS implies growth of 6.4% and 23.8%, respectively, from the year-ago levels.