#United States #Mohegan Sun #Uncasville #financial report #Mohegan Digital

Mohegan Reports Strong First Quarter Financial Results for Fiscal 2026

On February 12, 2026, the Mohegan Tribal Gaming Authority, widely recognized as Mohegan, unveiled its operating results for the first quarter of fiscal 2026, which ended on December 31, 2025. The announcement highlighted impressive achievements across various sectors of Mohegan's operations, particularly in digital engagement and overall financial health.

Key Highlights

During this quarter, Mohegan Sun recorded its highest net slot win for the first quarter since fiscal year 2018, underscoring the casino's robust performance. In a significant milestone, Mohegan Digital reported its highest quarterly net revenues and Adjusted EBITDA to date, a reflection of the growing popularity of online gaming. Furthermore, monthly active users on Mohegan Digital reached an all-time peak, indicating a strong engagement among its user base. Notably, the Adjusted EBITDA for Mohegan Digital saw a remarkable year-over-year increase of 44.5%.

Financial Overview

A closer examination of the financial results reveals some intriguing details:

• - Net Revenues: Mohegan reported net revenues of $434.5 million for the first quarter of 2026, showing a slight decline from $435.4 million in the previous year.
• - Income from Operations: The income from operations amounted to $56.1 million, down from $70.5 million year-over-year, reflecting a drop of 20.3%.
• - Net Income: The net income showcased significant turnaround, recording $108.5 million compared to a loss of $85.9 million in the same quarter the previous year.
• - Adjusted EBITDA: Adjusted EBITDA stood at $86.4 million, a decrease of $3.1 million (3.4%) from the year prior.

Mohegan’s CFO, Ari Glazer, emphasized the importance of understanding these results in the context of broader market fluctuations. "The adjusted EBITDAR of $95.3 million increased by 2.4% against flat net revenues, showing that our core digital operations significantly drove performance this quarter," he stated in his commentary. According to Glazer, when normalizing for certain factors, Adjusted EBITDA would have shown an increase of $4.8 million, or 5.9%. This highlights the impact of previous favorable conditions that are not prevalent this quarter, such as a beneficial table hold at Mohegan Sun and a one-time property tax adjustment at Niagara Resorts.

Segment Performance

The report further broke down performance across Mohegan's various operations:
1. Domestic Resorts:
- Net revenues were $300.0 million, a decrease of about 3.9% compared to the previous year.
- Both income and adjusted EBITDA saw declines, primarily due to fewer entertainment events held in the current reporting period, coupled with the absence of earlier year windfalls.
2. Mohegan Digital:
- This segment reported net revenues of $72.2 million, marking a dramatic increase of 35.9% year-on-year. The growth trajectory indicates successful initiatives within Connecticut operations and strong performances in Pennsylvania and Ontario.
3. International Resorts:
- Here, Mohegan experienced a decline in net revenues to $65.5 million, primarily driven by reduced gaming volumes compared to the previous periods, along with accounting factors that had nettled last year’s figures.
4. Corporate Development:
- Overall revenues from this category fell to $3.8 million, but the adjusted EBITDA loss improved, indicative of cost-saving measures in labor.

Liquidity Position

As of December 31, 2025, Mohegan held cash and equivalents totaling $154.0 million, a healthy improvement compared to $128.0 million at the end of September 2025. The company also maintained a borrowing capacity of $146.8 million under its senior secured credit facility and line of credit as of the same date.

In conclusion, Mohegan’s first-quarter financial results for fiscal 2026 reflect a resilient performance despite challenges in some markets. With a focus on digital solutions and a strategic approach to operational efficiency, Mohegan appears well-positioned for the upcoming quarters. Stakeholders are invited to follow the developments closely as Mohegan hosts a conference call to delve deeper into these results, offering further insights into their strategic direction for the future.