What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of MGM Resorts (MGM) revenue becomes net income?

For TTM through Q1 2026, MGM Resorts turned $17.72B of revenue into $182.83M of net income — a net margin of 1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are MGM Resorts (MGM) gross, operating, and net margins?

For TTM through Q1 2026, MGM Resorts reported a gross margin of 44.2%, an operating margin of 5.2%, and a net margin of 1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does MGM Resorts (MGM) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

MGM Resorts (MGM) Income Statement Waterfall

Revenue

$17.72B

Gross Margin

+44.2%

Operating Margin

+5.2%

Net Margin

+1.0%

Income statement waterfall for MGM Resorts (MGM) — TTM through Q1 2026

Net income: $182.83M

Margin breakdown for MGM Resorts (MGM) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$17.72B	$17.72B
Cost of Revenue	−$9.89B	$7.82B
Gross Profit	$7.82B	$7.82B
Operating Expenses	−$6.91B	$917.97M
Operating Income	$917.97M	$917.97M
Other Income / Expense	−$594.55M	$323.42M
Pre-tax Income	$323.42M	$323.42M
Tax Benefit	$56.74M	$380.16M
Other Items	−$197.32M	$182.83M
Net Income	$182.83M	$182.83M

Revenue$17.72B
Cost of Revenue−$9.89B
Gross Profit$7.82B
Operating Expenses−$6.91B
Operating Income$917.97M
Other Income / Expense−$594.55M
Pre-tax Income$323.42M
Tax Benefit$56.74M
Other Items−$197.32M
Net Income$182.83M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

MGM Resorts (MGM) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Income statement waterfall for MGM Resorts (MGM) — TTM through Q1 2026

Margin breakdown for MGM Resorts (MGM) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of MGM Resorts (MGM) revenue becomes net income?

+What are MGM Resorts (MGM) gross, operating, and net margins?

+Why does MGM Resorts (MGM) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

MGM Resorts (MGM) Key Financials

Explore more