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 $17.7B of revenue into $183M 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

$17.7B

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: $183M

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

Line item	Amount	Running total
Revenue	$17.7B	$17.7B
Cost of Revenue	-$9.89B	$7.82B
Gross Profit	$7.82B	$7.82B
Operating Expenses	-$6.91B	$918M
Operating Income	$918M	$918M
Other Income / Expense	-$595M	$323M
Pre-tax Income	$323M	$323M
Tax Benefit	$56.7M	$380M
Other Items	-$197M	$183M
Net Income	$183M	$183M

Revenue$17.7B
Cost of Revenue-$9.89B
Gross Profit$7.82B
Operating Expenses-$6.91B
Operating Income$918M
Other Income / Expense-$595M
Pre-tax Income$323M
Tax Benefit$56.7M
Other Items-$197M
Net Income$183M

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