MGM

MGM runs a deep portfolio of marquee resorts — eleven Las Vegas Strip properties (Bellagio, Aria, MGM Grand, Mandalay Bay, The Cosmopolitan), regional casinos, and MGM China (MGM Macau and Cotai) — plus digital gaming via BetMGM and LeoVegas. The top line is healthy and resilient: revenue grew 1.7% to $17.5B and operating cash flow rose 7.1% to $2.53B. After selling its real estate to VICI and operating under triple-net master leases, MGM is now an asset-light operator, which is the key to reading its financials.

That asset-light structure is why the balance sheet looks alarming on the surface — liabilities/equity of 15.68x reflects large lease liabilities against a thinned-out $2.43B equity base, not a cash-crisis. The real concern is the earnings collapse: net income fell 72.4% to $206M and diluted EPS dropped 68.3% to $0.76, with operating income down 32.8% to $1.00B. The lift from the prior real-estate transactions has rolled off, lease and depreciation costs (D&A +22.5%) weigh on GAAP profit, and management withdrew its Empire/New York commercial-license application in Q3 2025 after return assumptions changed. The 61.6x P/E on this depressed EPS is not the right lens.