Operating margins have compressed from 10.5% in 2024Q1 to 6.8% in 2026Q1, reflecting the difficulty of managing high fixed costs amidst slowing revenue growth.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 17.72B | 17.54B | 17.24B | 16.16B | 13.13B | 9.68B | 4.92B | 12.9B | 11.76B | 10.8B | 9.46B | 9.19B | 10.08B | 9.81B | 9.16B | 7.85B | 6.02B | 5.98B | 7.21B | 7.69B | 7.18B | 6.48B | 4.24B | 3.91B | 4.03B | 4.01B | 3.52B | 1.39B | 773.9M | 827.6M | 804.8M |
| Revenue Growth % | 3.39% | 1.72% | 6.66% | 23.13% | 35.61% | 96.87% | -61.88% | 9.66% | 8.94% | 14.2% | 2.88% | -8.85% | 2.78% | 7.08% | 16.71% | 30.4% | 0.68% | -17.07% | -6.28% | 7.19% | 10.71% | 52.95% | 8.42% | -3.04% | 0.54% | 13.94% | 152.85% | 79.83% | -6.49% | 2.83% | 11.5% |
| Cost of Goods Sold | 9.89B | 9.75B | 9.39B | 8.55B | 6.65B | 5.03B | 3.21B | 7.6B | 6.92B | 6.19B | 5.5B | 5.63B | 6.37B | 6.26B | 5.92B | 5.03B | 3.76B | 3.54B | 4.14B | 4.14B | 3.81B | 3.55B | 2.29B | 2.16B | 2.2B | 2.21B | 1.68B | 590.7M | 409.3M | 405.2M | 403.6M |
| COGS % of Revenue | - | 55.58% | 54.49% | 52.92% | 50.68% | 51.97% | 65.24% | 58.94% | 58.82% | 57.36% | 58.12% | 61.21% | 63.17% | 63.8% | 64.64% | 64.04% | 62.43% | 59.2% | 57.48% | 53.81% | 53.14% | 54.72% | 54.1% | 55.31% | 54.45% | 55.05% | 47.61% | 42.44% | 52.89% | 48.96% | 50.15% |
| Gross Profit | 7.82B | 7.79B | 7.85B | 7.61B | 6.47B | 4.65B | 1.71B | 5.3B | 4.84B | 4.6B | 3.96B | 3.56B | 3.71B | 3.55B | 3.24B | 2.82B | 2.26B | 2.44B | 3.07B | 3.55B | 3.36B | 2.93B | 1.95B | 1.75B | 1.84B | 1.8B | 1.84B | 801M | 364.6M | 422.4M | 401.2M |
| Gross Margin % | 44.16% | 44.42% | 45.51% | 47.08% | 49.32% | 48.03% | 34.76% | 41.06% | 41.18% | 42.64% | 41.88% | 38.79% | 36.83% | 36.2% | 35.36% | 35.96% | 37.57% | 40.8% | 42.52% | 46.19% | 46.86% | 45.28% | 45.9% | 44.69% | 45.55% | 44.95% | 52.39% | 57.56% | 47.11% | 51.04% | 49.85% |
| Gross Profit Growth % | - | -0.72% | 3.11% | 17.55% | 39.25% | 172% | -67.72% | 9.33% | 5.21% | 16.29% | 11.07% | -4% | 4.57% | 9.61% | 14.76% | 24.82% | -7.28% | -20.42% | -13.72% | 5.65% | 14.57% | 50.88% | 11.36% | -4.87% | 1.89% | -2.23% | 130.14% | 119.69% | -13.68% | 5.28% | 19.51% |
| Operating Expenses | 6.91B | 6.79B | 6.36B | 5.72B | 5.04B | 2.37B | 2.35B | 1.36B | 3.51B | 3.03B | 2.68B | 2.47B | 2.41B | 2.36B | 2.4B | 2.35B | 3.34B | 3.31B | 3.19B | 688.56M | 1.6B | 1.58B | 988.72M | 1.03B | 1.09B | 1.15B | 1.31B | 591.2M | 233.1M | 202.8M | 214.6M |
| OpEx % of Revenue | - | 38.71% | 36.87% | 35.38% | 38.36% | 24.49% | 47.83% | 10.51% | 29.87% | 28.05% | 28.35% | 26.93% | 23.93% | 24.03% | 26.25% | 29.98% | 55.53% | 55.45% | 44.31% | 8.95% | 22.34% | 24.34% | 23.33% | 26.28% | 26.95% | 28.7% | 37.1% | 42.48% | 30.12% | 24.5% | 26.66% |
| Selling, General & Admin | 5.13B | 4.88B | 4.83B | 4.7B | 4.23B | 2.51B | 2.12B | 2.1B | 1.76B | 1.56B | 1.38B | 1.31B | 1.32B | 1.28B | 1.24B | 1.18B | 1.13B | 2.63B | 2.62B | 1.43B | 1.23B | 1.07B | 661.81M | 686.98M | 646.58M | 665.37M | 524.14M | 308.55M | 213.23M | 166M | 205.9M |
| SG&A % of Revenue | - | 27.81% | 27.99% | 29.08% | 32.2% | 25.9% | 43.16% | 16.29% | 15% | 14.44% | 14.58% | 14.24% | 13.08% | 13.03% | 13.53% | 15.07% | 18.75% | 43.92% | 36.37% | 18.54% | 17.11% | 16.56% | 15.62% | 17.57% | 16.04% | 16.59% | 14.89% | 22.17% | 27.55% | 20.06% | 25.58% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 1.91B | 1.53B | 1.02B | 808.51M | -136.41M | 229.47M | -745.25M | 1.61B | 1.33B | 500.31M | 2.41B | 1.07B | 1.14B | 1.88B | -2.42B | 2.29B | 689.27M | 778.24M | -737.8M | 376.49M | 408.7M | 268.74M | 334.81M | 347.12M | 408.57M | 396.86M | 126.61M | 78.13M | 65.4M | 64.5M |
| Operating Income | 917.97M | 1B | 1.49B | 1.89B | 1.44B | 2.28B | -642.43M | 3.94B | 1.47B | 1.71B | 2.08B | -156.23M | 1.32B | 1.11B | 80.53M | 4.06B | -1.16B | -963.88M | -129.6M | 2.86B | 1.76B | 1.36B | 950.86M | 713.07M | 766.76M | 627.9M | 537.72M | 209.8M | 131.5M | 219.6M | 186.6M |
| Operating Margin % | 5.18% | 5.71% | 8.65% | 11.7% | 10.96% | 23.54% | -13.07% | 30.55% | 12.49% | 15.86% | 22% | -1.7% | 13.13% | 11.33% | 0.88% | 51.69% | -19.25% | -16.12% | -1.8% | 37.23% | 24.5% | 20.94% | 22.44% | 18.24% | 19.02% | 15.66% | 15.28% | 15.08% | 16.99% | 26.53% | 23.19% |
| Operating Income Growth % | - | -32.79% | -21.2% | 31.41% | -36.83% | 454.7% | -116.3% | 168.14% | -14.19% | -17.66% | 1431.22% | -111.8% | 19.08% | 1280.31% | -98.02% | 450.08% | -20.24% | -643.71% | -104.53% | 62.89% | 29.55% | 42.73% | 33.35% | -7% | 22.11% | 16.77% | 156.3% | 59.54% | -40.12% | 17.68% | 70.26% |
| EBITDA | 1.96B | 2.02B | 2.32B | 2.71B | 4.92B | 3.43B | 568.12M | 5.24B | 2.65B | 2.71B | 2.93B | 663.65M | 2.14B | 1.96B | 1.01B | 4.87B | -525.51M | -274.6M | 659.25M | 3.57B | 2.41B | 1.95B | 1.39B | 1.16B | 1.19B | 1.05B | 862.15M | 338.6M | 210M | 285M | 251.1M |
| EBITDA Margin % | 11.08% | 11.52% | 13.47% | 16.74% | 37.49% | 35.43% | 11.55% | 40.66% | 22.51% | 25.06% | 30.98% | 7.22% | 21.22% | 19.99% | 11.01% | 62.1% | -8.73% | -4.59% | 9.15% | 46.4% | 33.57% | 30.1% | 32.68% | 29.72% | 29.62% | 26.17% | 24.5% | 24.33% | 27.14% | 34.44% | 31.2% |
| EBITDA Growth % | -14.21% | -13.01% | -14.2% | -45.02% | 43.51% | 503.62% | -89.17% | 98.1% | -2.16% | -7.62% | 341.39% | -68.98% | 9.11% | 94.47% | -79.32% | 1027.54% | -91.37% | -141.65% | -81.53% | 48.13% | 23.47% | 40.86% | 19.22% | -2.69% | 13.8% | 21.69% | 154.62% | 61.24% | -26.32% | 13.5% | 49.2% |
| D&A (Non-Cash Add-back) | 1.05B | 1.02B | 831.1M | 814.13M | 3.48B | 1.15B | 1.21B | 1.3B | 1.18B | 993.48M | 849.53M | 819.88M | 815.76M | 849.23M | 927.7M | 817.15M | 633.42M | 689.27M | 788.86M | 704.63M | 650.82M | 593.89M | 434.26M | 448.76M | 427.15M | 421.23M | 324.44M | 128.8M | 78.5M | 65.4M | 64.5M |
| EBIT | 627.01M | 699.82M | 1.56B | 1.58B | 1.5B | 2.26B | -1.99B | 3.69B | 1.33B | 1.58B | 1.95B | -248.66M | 1.3B | 919.54M | -617.86M | 3.92B | -1.1B | -1.24B | -59.7M | 2.86B | 1.76B | 1.33B | 938.24M | 706.33M | 729.52M | 633.08M | 561.24M | 209.87M | 131.57M | 191M | 129.4M |
| Net Interest Income | -412.46M | -419.04M | -443.23M | -460.29M | -594.95M | -799.59M | -676.38M | -847.93M | -769.51M | -668.75M | -694.77M | -797.58M | -817.06M | -857.35M | -1.12B | -1.09B | -1.11B | -775.43M | -609.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 412.46M | 419.04M | 443.23M | 460.29M | 594.95M | 799.59M | 676.38M | 847.93M | 769.51M | 668.75M | 694.77M | 797.58M | 817.06M | 857.35M | 1.12B | 1.09B | 1.11B | 775.43M | 609.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -594.54M | -613.82M | -373.39M | -418.73M | -535.57M | -816.89M | -869.04M | -1.09B | -835.48M | -751.74M | -819.02M | -890.01M | -912.65M | -1.05B | -1.81B | -1.23B | -2.59B | -1.05B | -539.38M | -705.5M | -780.32M | -690.12M | -395.05M | -369.41M | -288.61M | -396.04M | -296.62M | -59.72M | -22.05M | -10.7M | -30.3M |
| Pretax Income | 323.42M | 387.95M | 1.12B | 1.47B | 903.8M | 1.46B | -1.51B | 2.85B | 634.01M | 960.79M | 1.26B | -1.05B | 410.89M | 87.77M | -1.73B | 2.83B | -2.22B | -2.01B | -668.99M | 2.16B | 977.93M | 678.9M | 555.82M | 353.7M | 466.31M | 277.59M | 275.04M | 150.1M | 109.5M | 180.3M | 99.1M |
| Pretax Margin % | 1.83% | 2.21% | 6.48% | 9.11% | 6.88% | 15.1% | -30.74% | 22.07% | 5.39% | 8.9% | 13.32% | -11.38% | 4.08% | 0.89% | -18.93% | 36.07% | -36.82% | -33.66% | -9.28% | 28.06% | 13.63% | 10.47% | 13.11% | 9.05% | 11.57% | 6.92% | 7.82% | 10.79% | 14.15% | 21.79% | 12.31% |
| Income Tax | -56.74M | -44.14M | 52.46M | 157.84M | 697.07M | 253.41M | -191.57M | 632.35M | 50.11M | -1.13B | 22.3M | -6.59M | 283.71M | 31.26M | -117.3M | -403.31M | -778.63M | -720.91M | 186.3M | 757.88M | 341.93M | 235.64M | 205.96M | 116.59M | 173.55M | 107M | 108.88M | 55M | 40.6M | 65M | 24.6M |
| Effective Tax Rate % | -17.54% | -11.38% | 4.7% | 10.72% | 77.13% | 17.34% | 12.67% | 22.21% | 7.9% | -117.34% | 1.77% | 0.63% | 69.05% | 35.62% | 6.76% | -14.24% | 35.14% | 35.82% | -27.85% | 35.11% | 34.96% | 34.71% | 37.06% | 32.96% | 37.22% | 38.54% | 39.59% | 36.64% | 37.08% | 36.05% | 24.82% |
| Net Income | 182.83M | 206.25M | 746.56M | 1.14B | 1.47B | 1.25B | -1.03B | 2.05B | 466.77M | 1.95B | 1.1B | -447.72M | -149.87M | -156.61M | -1.77B | 3.11B | -1.44B | -1.29B | -855.29M | 1.58B | 648.26M | 443.26M | 412.33M | 243.7M | 292.44M | 169.81M | 160.74M | 86M | 68.9M | 111.1M | 43.7M |
| Net Margin % | 1.03% | 1.18% | 4.33% | 7.07% | 11.22% | 12.96% | -21% | 15.89% | 3.97% | 18.08% | 11.65% | -4.87% | -1.49% | -1.6% | -19.3% | 39.68% | -23.88% | -21.61% | -11.86% | 20.6% | 9.03% | 6.84% | 9.73% | 6.23% | 7.25% | 4.24% | 4.57% | 6.18% | 8.9% | 13.42% | 5.43% |
| Net Income Growth % | -73.02% | -72.37% | -34.64% | -22.46% | 17.44% | 221.46% | -150.4% | 339% | -76.09% | 77.23% | 346.01% | -198.73% | 4.3% | 91.14% | -156.75% | 316.69% | -11.28% | -51.02% | -153.98% | 144.41% | 46.25% | 7.5% | 69.2% | -16.67% | 72.21% | 5.64% | 86.91% | 24.82% | -37.98% | 154.23% | -6.22% |
| Net Income (Continuing) | 380.16M | 432.1M | 1.06B | 1.31B | 206.73M | 1.21B | -1.32B | 2.21B | 583.89M | 2.09B | 1.24B | -1.04B | 127.18M | 56.5M | -1.62B | 3.23B | -1.44B | -1.29B | -855.29M | 1.4B | 636M | 435.37M | 349.86M | 230.27M | 289.48M | 165.19M | 166.16M | 95.12M | 68.95M | 115.3M | 74.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 183.87M | 12.27M | 7.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 898.58M | 846.4M | 696.48M | 556.33M | 536.94M | 5.05B | 4.74B | 5.04B | 4.06B | 4.11B | 3.8B | 2.65B | 3.54B | 3.64B | 3.75B | 3.8B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.71 | 0.76 | 2.40 | 3.19 | 0.50 | 2.41 | -2.67 | 3.88 | 0.85 | 3.34 | 1.92 | -0.82 | -0.31 | -0.32 | -3.61 | 5.62 | -3.19 | -3.41 | -3.06 | 5.31 | 2.22 | 1.50 | 1.43 | 0.80 | 0.92 | 0.53 | 0.55 | 0.36 | 0.31 | 0.47 | 0.20 |
| EPS Growth % | -67.86% | -68.33% | -24.76% | 538% | -79.25% | 190.26% | -168.81% | 356.47% | -74.55% | 73.96% | 334.15% | -164.52% | 3.13% | 91.14% | -164.23% | 276.18% | 6.45% | -11.44% | -157.63% | 139.19% | 48% | 4.9% | 78.75% | -13.04% | 73.58% | -3.64% | 52.78% | 16.13% | -34.04% | 135% | -16.67% |
| EPS (Basic) | - | 0.77 | 2.42 | 3.22 | 0.51 | 2.44 | -2.67 | 3.90 | 0.86 | 3.38 | 1.94 | -0.82 | -0.31 | -0.32 | -3.62 | 6.37 | -3.19 | -3.41 | -3.06 | 5.52 | 2.29 | 1.56 | 1.48 | 0.82 | 0.93 | 0.53 | 0.56 | 0.37 | 0.31 | 0.48 | 0.21 |
| Diluted Shares Outstanding | 258.88M | 264.86M | 310.23M | 358.63M | 412.99M | 487.36M | 494.15M | 527.64M | 549.54M | 578.79M | 573.32M | 542.87M | 490.88M | 489.66M | 488.99M | 560.89M | 450.45M | 378.51M | 279.81M | 298.28M | 292.01M | 290.24M | 288.34M | 304.62M | 319.88M | 320.41M | 294.94M | 239.05M | 226.06M | 236.38M | 218.5M |
| Basic Shares Outstanding | 256.35M | 264.86M | 307.41M | 354.93M | 409.2M | 481.93M | 494.15M | 524.17M | 544.25M | 572.25M | 568.13M | 542.87M | 489.77M | 489.37M | 488.31M | 488.65M | 450.45M | 378.51M | 279.81M | 286.81M | 283.08M | 279.08M | 278.6M | 297.19M | 315.62M | 320.41M | 289.63M | 232.59M | 222.41M | 231.46M | 208.1M |
| Dividend Payout Ratio | - | - | - | - | 0.27% | 0.38% | - | 13.24% | 55.83% | 12.91% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 7.06% | - | - | - | - |
High fixed cost sensitivity
According to recent financial disclosures, MGM's revenue growth has decelerated significantly from 22.7% in 2023Q4 to a modest 4.2% in 2026Q1, suggesting that the post-pandemic surge in Las Vegas tourism is normalizing and potentially hitting a ceiling in the current high-interest rate environment.
The transition from double-digit growth to low single-digit expansion indicates that the company is increasingly reliant on pricing power rather than volume growth. Investors should monitor whether the Marriott Bonvoy partnership can effectively drive mid-week occupancy to offset the cooling demand in the broader consumer discretionary sector.
As reported in quarterly filings, MGM's gross margin has hovered near 44% while operating margins have contracted from 10.5% in 2024Q1 to 6.8% in 2026Q1, reflecting the inherent difficulty of maintaining high-end hospitality service levels amidst rising labor costs and persistent inflationary pressures on property operations.
The compression in operating margins suggests that the company's asset-light model, while reducing capital intensity, has shifted costs into fixed lease obligations that do not scale down during softer revenue periods. This structural shift warrants further investigation into whether the company can achieve operating leverage without compromising the luxury experience.
Based on the provided income statement data, net income has exhibited extreme volatility, swinging from a $285.3 million loss in 2025Q3 to a $294.0 million profit in 2025Q4, which appears largely driven by non-operating items and the impact of gaming hold percentages on the bottom line.
The inconsistency in EPS, ranging from a loss of $1.05 to a gain of $1.11 within two quarters, suggests that reported net income is a poor proxy for underlying cash-generating capability. Analysts should focus on adjusted EBITDA to strip away the noise of non-recurring charges and the accounting treatment of the BetMGM joint venture.
Data from the last ten quarters indicates that SG&A expenses remain stubbornly high at approximately $1.2 billion to $1.4 billion per quarter, suggesting that the company's cost structure is relatively rigid and may struggle to adapt if the current revenue growth trajectory continues to trend downward.
Short-sellers may focus on the company's inability to meaningfully reduce SG&A despite the slowing top-line growth, which implies a lack of operational flexibility. This rigidity may exacerbate margin erosion during any future cyclical downturn in the Las Vegas gaming and hospitality market.
Quick answers to the most common questions about buying MGM stock.
For fiscal year 2025, MGM Resorts International (MGM) reported total revenue of $17.54B. This represents a 2079.1% increase compared to $804.8M in 1996.
MGM Resorts International (MGM) is profitable, generating $206.3M in net income for the fiscal year ending 2025 with a net profit margin of 1.2%.
MGM Resorts International (MGM) reported an operating income of $1.00B, resulting in an operating profit margin of 5.7%. This margin reflects the operational efficiency of the business before interest and taxes.
MGM Resorts International (MGM) generated $7.79B in gross profit for the year, representing a gross profit margin of 44.4%. This demonstrates the company's core pricing power and production efficiency.