NYSE:MGM
MGM Resorts International
A leading global hospitality giant offering integrated luxury resort experiences centered around gaming, accommodation, and world-class entertainment.
Key Metrics
Investment Thesis
Bull Case
MGM Resorts offers compelling value given its dominant market position and ability to generate strong operating profits of $1.00B despite recent net income compression. The company's robust gaming ecosystem creates high-margin recurring revenue streams that can withstand short-term economic volatility better than pure-play competitors. Share repurchases of $1.23B demonstrate management's confidence in the stock's undervaluation relative to its tangible asset base and cash flow potential.
Bear Case
Investors should be cautious due to significant long-term debt obligations totaling $6.23B and substantial operating lease liabilities that weigh on balance sheet flexibility. The decline in net profit from $1.06B in 2024 to $520.9M in 2025 signals potential saturation or increased operational costs that could persist. Heavy capital expenditures of $1.07B coupled with negative investing cash flow may constrain dividend growth or future buyback programs for an extended period.
About MGM Resorts International
MGM Resorts International is a premier global hospitality and entertainment company operating luxury resorts, casinos, hotels, and convention centers primarily in the United States. The company serves leisure travelers, corporate guests, and event organizers through its iconic properties in Las Vegas, Atlantic City, New York, Chicago, and beyond. Key revenue streams include room lodging, gaming operations, food and beverage services, and entertainment experiences.
Analysis
Management Discussion
Despite a net profit of $520.9M, the company reported negative operating cash flow from investing activities of -$1.14B and financing outflows of -$1.73B, indicating heavy investment in growth or deleveraging efforts. Revenue growth has stabilized at $17.54B for 2025 following a strong recovery to $16.16B in 2023, though net income declined from the peak of $1.31B in 2023. The reduction in cash reserves from $2.50B to $2.15B suggests active capital allocation toward debt management or strategic initiatives.
Industry Overview
The global hospitality and gaming industry is highly cyclical, heavily influenced by tourism trends, disposable income levels, and regulatory environments across major jurisdictions like Nevada and New York. Consolidation is common as operators seek scale to compete with digital entertainment options and drive efficiency through shared services platforms. Success in this sector now relies increasingly on diversifying revenue beyond gaming into high-margin dining, accommodation, and experiential entertainment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $13.13B | $16.16B | $17.24B | $17.54B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $13.13B | $16.16B | $17.24B | $17.54B |
| Operating Expenses | $11.69B | $14.27B | $15.75B | $16.54B |
| Operating Income | $1.44B | $1.89B | $1.49B | $1.00B |
| G&A | $4.23B | $4.70B | $4.83B | $4.88B |
| Stock-Based Comp | $71.3M | $73.6M | $80.2M | $90.5M |
| D&A | $3.48B | $814.1M | $831.1M | $1.02B |
| Amortization | $2.70B | $103.0M | $119.0M | $139.0M |
| Other OpEx | $7.46B | $9.57B | $10.92B | $11.66B |
| Non-Operating Income | $-535.6M | $-418.7M | $-373.4M | $-721.0M |
| Interest Expense | $595.0M | $460.3M | — | — |
| Pre-Tax Income | $903.8M | $1.47B | $1.12B | $280.8M |
| Income Tax | $697.1M | $157.8M | $52.5M | $-240.1M |
| Continuing Ops | $206.7M | $1.31B | $1.06B | $520.9M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $206.7M | $1.31B | $1.06B | $520.9M |
| Minority Interest | $-1.27B | $172.7M | $318.1M | $315.0M |
| Net to Common | $1.47B | $1.14B | $746.6M | $205.9M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $8.15B | $4.91B | $4.36B | $4.33B |
| Cash & Equivalents | $5.91B | $2.93B | $2.42B | $2.06B |
| Accounts Receivable | $852.1M | $929.1M | $1.07B | $1.12B |
| Inventory | $126.1M | $141.7M | $140.6M | $124.5M |
| Prepaid Expenses | $583.1M | $770.5M | $478.6M | $486.4M |
| Other Current Assets | $681.5M | $141.4M | $257.5M | $535.5M |
| Long-Term Assets | $37.54B | $37.46B | $37.87B | $37.04B |
| PP&E (Net) | $5.22B | $5.45B | — | — |
| Intangibles | $1.55B | $1.72B | $1.72B | $1.36B |
| Goodwill | $5.03B | $5.17B | $5.15B | $4.90B |
| Operating Leases | $24.53B | $24.03B | $23.53B | $23.00B |
| Other LT Assets | $1.20B | $1.09B | $7.48B | $7.78B |
| Total Assets | $45.69B | $42.37B | $42.23B | $41.37B |
| Current Liabilities | $4.52B | $3.13B | $3.35B | $3.51B |
| Accounts Payable | $369.8M | $461.7M | $412.7M | $421.5M |
| Current Debt | $1.29B | $0 | — | — |
| Current Leases | $54.0M | $75.0M | $98.0M | $106.0M |
| Other Current Liab | $2.81B | $2.59B | $2.84B | $2.98B |
| Long-Term Liabilities | $35.97B | $34.91B | $35.16B | $34.59B |
| Long-Term Debt | $7.43B | $6.34B | $6.36B | $6.23B |
| LT Operating Leases | $25.15B | $25.13B | $25.08B | $24.96B |
| Other LT Liab | $3.38B | $3.44B | $3.72B | $3.39B |
| Total Liabilities | $40.48B | $38.03B | $38.51B | $38.10B |
| Shareholders' Equity | $5.21B | $4.33B | $3.72B | $3.28B |
| Retained Earnings | $4.79B | $3.66B | $3.08B | $2.11B |
| AOCI | $33.5M | $143.9M | $-61.2M | $320.5M |
| Total L&E | $45.69B | $42.37B | $42.23B | $41.37B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $206.7M | $1.31B | $1.06B | $520.9M |
| Non-Cash Adjustments | $916.1M | $825.5M | $1.42B | $1.97B |
| Working Capital Changes | $633.7M | $550.3M | $-118.9M | $35.3M |
| Cash from Operations | $1.76B | $2.69B | $2.36B | $2.53B |
| Capital Expenditures | $765.1M | $931.8M | $1.15B | $1.07B |
| Cash from Investing | $2.12B | $-714.2M | $-1.28B | $-1.14B |
| Debt Issuances | $0 | $0 | $2.10B | $353.8M |
| Debt Repayments | $1.07B | $1.29B | $2.17B | $500.0M |
| Share Buybacks | $2.78B | $2.29B | $1.36B | $1.23B |
| Dividends Paid | $4.0M | $0 | $0 | — |
| Cash from Financing | $-3.02B | $-5.00B | $-1.56B | $-1.73B |
| FX Effect | $8.9M | $-19.4M | $-26.9M | $4.4M |
| Net Change in Cash | $833.3M | $-3.02B | $-511.8M | $-352.7M |
| Beginning Cash | $5.20B | $6.04B | $3.01B | $2.50B |
| Ending Cash | $6.04B | $3.01B | $2.50B | $2.15B |
Frequently Asked Questions
How does MGM Resorts International make money?
Core revenue is driven by Gaming Operations (casino floor and slots), Room Lodging (hotel stays), Food and Beverage (restaurants and bars), and Entertainment (shows and events). The company also generates significant revenue through Corporate and Government Business segments including meeting spaces and convention facilities.
What are the main risks for MGM?
The company faces significant exposure to regional economic downturns that impact discretionary travel and gaming handle. Regulatory changes at the federal or state level regarding online gaming and casino operations could materially affect revenue. High capital expenditure requirements for property maintenance and upgrades pose a risk to free cash flow if occupancy rates decline. The business remains vulnerable to shifts in consumer sentiment towards gambling and entertainment spending.
What is MGM's competitive advantage?
MGM Resorts possesses a unique portfolio of prime real estate locations in high-demand markets like Las Vegas and New York, creating a strong barrier to entry for competitors. The brand leverages deep operational expertise in managing complex, large-scale resort ecosystems and maintains a diverse entertainment slate that drives non-gaming traffic. Its loyalty program and corporate travel contracts provide stable cash flow streams independent of pure consumer discretionary spending.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.