Despite a 28.3% year-over-year revenue increase in 2026Q1, structural margin compression has driven gross margins down to 39.9%, leaving operating margins at a razor-thin 0.2%.
| Sales/Revenue | 2.82B | 2.66B | 2.45B | 2.45B | 2.26B | 1.32B | 372.79M | 523.58M | 437.54M | 421.05M | 414.82M |
| Revenue Growth % | 16.6% | 8.42% | 0.06% | 8.57% | 70.57% | 254.74% | -28.8% | 19.66% | 3.91% | 1.5% | - |
| Cost of Goods Sold | 1.56B | 1.52B | 1.12B | 1.11B | 1.01B | 535.08M | 138.67M | 185.17M | 135.24M | 119.64M | 123.54M |
| COGS % of Revenue | - | 57.04% | 45.83% | 45.13% | 44.74% | 40.46% | 37.2% | 35.37% | 30.91% | 28.41% | 29.78% |
| Gross Profit | 1.26B | 1.14B | 1.33B | 1.34B | 1.25B | 787.36M | 234.12M | 338.4M | 302.3M | 301.42M | 291.27M |
| Gross Margin % | 44.73% | 42.96% | 54.17% | 54.87% | 55.26% | 59.54% | 62.8% | 64.63% | 69.09% | 71.59% | 70.22% |
| Gross Profit Growth % | - | -14.01% | -1.23% | 7.82% | 58.31% | 236.3% | -30.82% | 11.95% | 0.29% | 3.48% | - |
| Operating Expenses | 1.27B | 1.11B | 1.59B | 1.24B | 1.54B | 693.98M | 252.51M | 223.78M | 181.65M | 177.69M | 178.82M |
| OpEx % of Revenue | - | 41.88% | 64.71% | 50.63% | 68.25% | 52.48% | 67.73% | 42.74% | 41.52% | 42.2% | 43.11% |
| Selling, General & Admin | 1.19B | 1.11B | 986.03M | 1.03B | 776.23M | 496.66M | 192.75M | 180.4M | 145.96M | 155.49M | 148.72M |
| SG&A % of Revenue | - | 41.88% | 40.24% | 42.21% | 34.41% | 37.56% | 51.7% | 34.46% | 33.36% | 36.93% | 35.85% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 599.63M | 206.22M | 763.25M | 197.32M | 59.76M | 43.38M | 35.69M | 22.2M | 30.1M |
| Operating Income | -4.68M | 28.77M | -258.33M | 104.01M | -293.01M | 93.38M | -18.39M | 114.63M | 120.65M | 123.72M | 112.46M |
| Operating Margin % | -0.17% | 1.08% | -10.54% | 4.25% | -12.99% | 7.06% | -4.93% | 21.89% | 27.57% | 29.38% | 27.11% |
| Operating Income Growth % | - | 111.14% | -348.37% | 135.5% | -413.77% | 607.9% | -116.04% | -4.99% | -2.48% | 10.02% | - |
| EBITDA | 338.4M | 344.23M | 41.1M | 454.42M | 7.55M | 238.17M | 19.46M | 147.02M | 142.98M | 145.93M | 137.53M |
| EBITDA Margin % | 11.99% | 12.96% | 1.68% | 18.55% | 0.33% | 18.01% | 5.22% | 28.08% | 32.68% | 34.66% | 33.15% |
| EBITDA Growth % | 309.32% | 737.57% | -90.96% | 5917.97% | -96.83% | 1124.14% | -86.77% | 2.82% | -2.02% | 6.11% | - |
| D&A (Non-Cash Add-back) | 343.08M | 315.46M | 299.43M | 350.41M | 300.56M | 144.79M | 37.84M | 32.39M | 22.33M | 22.2M | 25.07M |
| EBIT | 16.2M | 28.77M | 41.87M | -40.18M | 169.68M | 145.92M | 3.53M | 125.61M | 134.01M | 123.72M | 117.49M |
| Net Interest Income | -488.19M | -392.46M | -289.63M | -277.56M | -208.15M | -115.67M | -62.64M | -37.93M | -22.85M | -22.61M | -26.4M |
| Interest Income | 5.41M | 8.34M | 20.72M | 0 | 616K | 2.25M | 612K | 1.9M | 173K | 194K | 180K |
| Interest Expense | 493.59M | 400.8M | 310.35M | 277.56M | 208.77M | 117.92M | 63.25M | 39.83M | 23.02M | 22.81M | 26.58M |
| Other Income/Expense | -714.82M | -697.11M | -294.17M | -289.75M | -161.46M | -212.46M | -56.42M | -39.45M | -22.85M | -22.61M | -29.06M |
| Pretax Income | -719.5M | -668.34M | -552.5M | -185.74M | -454.47M | -119.07M | -74.81M | 75.18M | 97.8M | 101.11M | 83.39M |
| Pretax Margin % | -25.49% | -25.16% | -22.55% | -7.58% | -20.15% | -9% | -20.07% | 14.36% | 22.35% | 24.01% | 20.1% |
| Income Tax | 141.41M | 48.23M | 15.25M | 1.76M | 28.92M | 4.38M | 69.32M | 20.05M | 26.36M | 38.86M | 38.55M |
| Effective Tax Rate % | -19.65% | -7.22% | -2.76% | -0.95% | -6.36% | -3.68% | -92.67% | 26.67% | 26.95% | 38.44% | 46.23% |
| Net Income | -846.5M | -701.1M | -567.75M | -187.5M | -425.55M | -114.7M | -5.49M | 55.13M | 71.44M | 62.25M | 44.84M |
| Net Margin % | -29.98% | -26.39% | -23.17% | -7.66% | -18.87% | -8.67% | -1.47% | 10.53% | 16.33% | 14.78% | 10.81% |
| Net Income Growth % | -106.29% | -23.49% | -202.8% | 55.94% | -271.02% | -1990.34% | -109.95% | -22.83% | 14.77% | 38.82% | - |
| Net Income (Continuing) | -860.91M | -716.56M | -567.75M | -187.5M | -425.55M | -114.7M | -5.49M | 55.13M | 71.44M | 62.25M | 44.84M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.55B | 1.55B | 0 | 428K | 428K | 3.76M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -14.05 | -14.45 | -11.71 | -3.51 | -7.32 | -1.45 | -0.18 | 1.46 | 1.85 | 1.56 | 1.12 |
| EPS Growth % | -15.44% | -23.4% | -233.62% | 52.05% | -404.83% | -705.56% | -112.33% | -21.08% | 18.59% | 39.29% | - |
| EPS (Basic) | - | -14.45 | -11.71 | -3.51 | -7.32 | -1.45 | -0.18 | 1.46 | 1.93 | 1.64 | 1.17 |
| Diluted Shares Outstanding | 60.25M | 60.69M | 48.47M | 53.35M | 58.11M | 49.64M | 31.32M | 37.82M | 38.55M | 38.44M | 39.25M |
| Basic Shares Outstanding | 60.25M | 60.69M | 48.47M | 53.35M | 58.11M | 49.64M | 31.32M | 37.71M | 36.94M | 36.48M | 37.42M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 13.68% | 0.9% | - | - |
Capital intensive project execution
According to the most recent quarterly filings, Bally's reported a 28.3% year-over-year revenue increase to $755.7 million, yet this top-line expansion appears disconnected from the company's persistent inability to generate consistent operating income, suggesting that growth may be driven by aggressive acquisition rather than organic demand.
While the revenue trajectory shows a sharp uptick, the lack of corresponding profitability suggests that the company is scaling its footprint without achieving necessary economies of scale. Investors should monitor whether this growth is sustainable or if it merely reflects the integration of new assets that carry significant, unabsorbed overhead costs.
As reported in financial statements, Bally's gross margin contracted to 39.9% in 2026Q1 from historical peaks exceeding 54%, indicating that the company's shift toward more capital-intensive operations is significantly eroding the pricing power previously afforded by its digital-first Gamesys platform and other high-margin interactive assets.
The sharp decline in gross margins suggests that the cost of revenue is rising faster than the company's ability to extract value from its gaming operations. This trend warrants further investigation into whether the current mix of land-based and digital revenue is structurally less profitable than management's initial projections.
Based on Bally's reported figures, the company's operating margin of 0.2% in 2026Q1 highlights a failure to achieve meaningful operating leverage, as SG&A expenses continue to consume nearly the entirety of gross profit, leaving almost no cushion for interest obligations or unexpected capital expenditures.
The inability to scale operating income despite significant revenue growth suggests that the company's fixed-cost base is disproportionately high. This lack of efficiency implies that any minor downturn in gaming win could quickly push the company into deeper operating losses.
Data from recent income statements reveal that Bally's has consistently reported negative net income, with a loss of $161.9 million in 2026Q1, suggesting that the company's bottom line is heavily burdened by non-operating items and interest expenses that mask the underlying performance of its core gaming segments.
The recurring nature of these net losses, combined with the absence of stock-based compensation in recent quarters, suggests that the company is struggling with structural financial burdens rather than temporary accounting anomalies. Investors should remain cautious regarding the company's path to profitability given the current debt-heavy capital structure.
Analysis of the company's recent financial trajectory suggests that the market may be underestimating the risk of the Chicago permanent casino project, as the current cash burn rate and negative net margins leave little room for error in the company's ambitious capital allocation strategy.
Short-sellers would likely focus on the company's reliance on external financing to fund its development pipeline, which appears increasingly precarious given the current interest rate environment. The potential for further asset sales or dilutive equity raises remains a significant risk that could undermine long-term shareholder value.
Quick answers to the most common questions about buying BALY stock.
For fiscal year 2025, Bally's Corporation (BALY) reported total revenue of $2.66B. This represents a 540.4% increase compared to $414.8M in 2016.
Bally's Corporation (BALY) reported a net loss of $701.1M for the fiscal year ending 2025.
Bally's Corporation (BALY) reported an operating income of $28.8M, resulting in an operating profit margin of 1.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Bally's Corporation (BALY) generated $1.14B in gross profit for the year, representing a gross profit margin of 43.0%. This demonstrates the company's core pricing power and production efficiency.