Hotels, Restaurants & Leisure
MGM Resorts reported Q1 FY2026 revenue of $4.45B (+4.2% YoY), but operating income fell 21.8% to $301M as SG&A costs surged 10.1%, compressing operating margin to 6.8% from 9.0% a year ago.
Key risk: High Financial Leverage
MGM carries a debt-to-equity ratio of approximately 15.6x, with $6.40B in long-term debt. This elevated leverage increases interest expense burden and limits financial flexibility, particularly if operating income continues to decline. Any deterioration in cash flows could strain debt servicing capacity.
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