MGM Resorts International 10-Q

Item 1. Financial Statements MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 2,270,563 $ 2,415,532 Accounts receivable, net 970,077 1,071,412 Inventories 135,016 140,559 Income tax receivable 210,222 257,514 Prepaid expenses and other 553,196 478,582 Total current assets 4,139,074 4,363,599 Property and equipment, net 6,190,406 6,196,159 Investments in and advances to unconsolidated affiliates 393,795 380,626 Goodwill 5,161,826 5,145,004 Other intangible assets, net 1,701,293 1,715,381 Operating lease right-of-use assets, net 23,407,115 23,532,287 Deferred income taxes 47,745 39,591 Other long-term assets, net 861,859 858,980 $ 41,903,113 $ 42,231,627 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts and construction payable $ 380,842 $ 412,662 Accrued interest on long-term debt 100,342 69,916 Other accrued liabilities 2,688,271 2,869,105 Total current liabilities 3,169,455 3,351,683 Deferred income taxes 2,810,395 2,811,663 Long-term debt, net 6,414,628 6,362,098 Operating lease liabilities 25,056,930 25,076,139 Other long-term obligations 830,283 910,088 Total liabilities 38,281,691 38,511,671 Commitments and contingencies (Note 7) Redeemable noncontrolling interests 35,086 34,805 Stockholders' equity Common stock, $ 0.01 par value: authorized 1,000,000,000 shares, issued and outstanding 279,650,593 and 294,374,189 shares 2,797 2,944 Capital in excess of par value — — Retained earnings 2,762,722 3,081,753 Accumulated other comprehensive income (loss) 88,025 ( 61,216 ) Total MGM Resorts International stockholders' equity 2,853,544 3,023,481 Noncontrolling interests 732,792 661,670 Total stockholders’ equity 3,586,336 3,685,151 $ 41,903,113 $ 42,231,627 The accompanying notes are an integral part of these consolidated financial statements. 1 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended March 31, 2025 2024 Revenues Casino $ 2,252,148 $ 2,241,095 Rooms 863,408 956,401 Food and beverage 770,173 769,403 Entertainment, retail and other 391,353 416,571 4,277,082 4,383,470 Expenses Casino 1,244,310 1,271,844 Rooms 280,849 274,408 Food and beverage 560,295 558,080 Entertainment, retail and other 234,429 256,477 General and administrative 1,164,898 1,194,682 Corporate expense 142,351 129,666 Preopening and start-up expenses 85 1,095 Property transactions, net 15,468 17,154 Depreciation and amortization 236,444 196,562 3,879,129 3,899,968 Loss from unconsolidated affiliates ( 12,896 ) ( 25,124 ) Operating income 385,057 458,378 Non-operating income (expense) Interest expense, net of amounts capitalized ( 107,269 ) ( 110,037 ) Non-operating items from unconsolidated affiliates 262 ( 136 ) Other, net ( 11,266 ) ( 4,806 ) ( 118,273 ) ( 114,979 ) Income before income taxes 266,784 343,399 Provision for income taxes ( 40,053 ) ( 43,673 ) Net income 226,731 299,726 Less: Net income attributable to noncontrolling interests ( 78,177 ) ( 82,250 ) Net income attributable to MGM Resorts International $ 148,554 $ 217,476 Earnings per share Basic $ 0.52 $ 0.68 Diluted $ 0.51 $ 0.67 Weighted average common shares outstanding Basic 287,125 320,488 Diluted 289,096 323,757 The accompanying notes are an integral part of these consolidated financial statements. 2 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited) Three Months Ended March 31, 2025 2024 Net income $ 226,731 $ 299,726 Other comprehensive income (loss), net of tax: Foreign currency translation 148,308 ( 85,190 ) Comprehensive income 375,039 214,536 Less: Comprehensive income attributable to noncontrolling interests ( 77,244 ) ( 81,146 ) Comprehensive income attributable to MGM Resorts International $ 297,795 $ 133,390 The accompanying notes are an integral part of these consolidated financial statements. 3 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 31, 2025 2024 Cash flows from operating activities Net income $ 226,731 $ 299,726 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 236,444 196,562 Amortization of debt discounts and issuance costs 6,820 7,020 Provision for credit losses 10,784 18,152 Stock-based compensation 28,653 26,780 Foreign currency transaction loss (gain) 100,923 ( 32,925 ) Property transactions, net 15,468 17,154 Noncash lease expense 128,361 128,509 Other investment losses (gains) ( 35,029 ) 21,287 Loss from unconsolidated affiliates 12,634 25,260 Distributions from unconsolidated affiliates 1,449 1,317 Deferred income taxes ( 9,781 ) ( 8,203 ) Change in operating assets and liabilities: Accounts receivable 91,780 34,607 Inventories 5,507 ( 5,727 ) Income taxes receivable and payable, net 49,407 52,949 Prepaid expenses and other ( 70,475 ) ( 39,249 ) Accounts payable and accrued liabilities ( 227,015 ) ( 224,616 ) Other ( 25,582 ) 30,668 Net cash provided by operating activities 547,079 549,271 Cash flows from investing activities Capital expenditures ( 228,041 ) ( 172,080 ) Dispositions of property and equipment 60 547 Investments in unconsolidated affiliates — ( 10,029 ) Acquisitions, net of cash acquired — ( 491 ) Distributions from unconsolidated affiliates 522 595 Investments and other 419 73,048 Net cash used in investing activities ( 227,040 ) ( 108,410 ) Cash flows from financing activities Net borrowings (repayments) under bank credit facilities - maturities of 90 days or less 50,374 ( 76,702 ) Debt issuance costs — ( 9,608 ) Distributions to noncontrolling interest owners ( 11,807 ) ( 11,572 ) Repurchases of common stock ( 489,280 ) ( 506,571 ) Other ( 19,506 ) ( 24,517 ) Net cash used in financing activities ( 470,219 ) ( 628,970 ) Effect of exchange rate on cash, cash equivalents, and restricted cash 5,089 ( 17,600 ) Cash, cash equivalents, and restricted cash Net change for the period ( 145,091 ) ( 205,709 ) Balance, beginning of period 2,503,064 3,014,896 Balance, end of period $ 2,357,973 $ 2,809,187 Supplemental cash flow disclosures Interest paid, net of amounts capitalized $ 70,023 $ 48,362 Federal, state, and foreign income taxes paid (refunds received), net ( 156 ) 2,327 The accompanying notes are an integral part of these consolidated financial statements. 4 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In thousands) (Unaudited) Common Stock Shares Par Value Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income Total MGM Resorts International Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Balances, January 1, 2025 294,374 $ 2,944 $ — $ 3,081,753 $ ( 61,216 ) $ 3,023,481 $ 661,670 $ 3,685,151 Net income — — — 148,554 — 148,554 78,378 226,932 Currency translation adjustment — — — — 149,241 149,241 ( 933 ) 148,308 Stock-based compensation — — 27,758 — — 27,758 746 28,504 Issuance of common stock pursuant to stock-based compensation awards 31 1 ( 366 ) — — ( 365 ) — ( 365 ) Distributions to noncontrolling interest owners — — — — — — ( 11,365 ) ( 11,365 ) Repurchases of common stock ( 14,754 ) ( 148 ) ( 26,513 ) ( 467,544 ) — ( 494,205 ) — ( 494,205 ) Adjustment of redeemable noncontrolling interest to redemption value — — — ( 41 ) — ( 41 ) — ( 41 ) Other — — ( 879 ) — — ( 879 ) 4,296 3,417 Balances, March 31, 2025 279,651 $ 2,797 $ — $ 2,762,722 $ 88,025 $ 2,853,544 $ 732,792 $ 3,586,336 The accompanying notes are an integral part of these consolidated financial statements. 5 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In thousands) (Unaudited) Common Stock Shares Par Value Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income Total MGM Resorts International Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Balances, January 1, 2024 326,550 $ 3,266 $ — $ 3,664,008 $ 143,896 $ 3,811,170 $ 522,975 $ 4,334,145 Net income — — — 217,476 — 217,476 82,048 299,524 Currency translation adjustment — — — — ( 84,086 ) ( 84,086 ) ( 1,104 ) ( 85,190 ) Stock-based compensation — — 25,894 — — 25,894 707 26,601 Issuance of common stock pursuant to stock-based compensation awards 68 — ( 1,161 ) — — ( 1,161 ) — ( 1,161 ) Distributions to noncontrolling interest owners — — — — — — ( 33,183 ) ( 33,183 ) Repurchases of common stock ( 11,703 ) ( 117 ) ( 23,553 ) ( 487,812 ) — ( 511,482 ) — ( 511,482 ) Adjustment of redeemable noncontrolling interest to redemption value — — — 133 — 133 — 133 Other — — ( 1,180 ) — — ( 1,180 ) ( 930 ) ( 2,110 ) Balances, March 31, 2024 314,915 $ 3,149 $ — $ 3,393,805 $ 59,810 $ 3,456,764 $ 570,513 $ 4,027,277 The accompanying notes are an integral part of these consolidated financial statements. 6 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 — ORGANIZATION Organization. MGM Resorts International, a Delaware corporation, (together with its consolidated subsidiaries, unless otherwise indicated or unless the context requires otherwise, the “Company”) is a global gaming and entertainment company with domestic and international locations featuring hotels and casinos, convention, dining, and retail offerings, and sports betting and online gaming operations. As of March 31, 2025, the Company’s domestic casino resorts include the following integrated casino, hotel and entertainment resorts in Las Vegas, Nevada: Aria (including Vdara), Bellagio, The Cosmopolitan of Las Vegas ( “ The Cosmopolitan”), MGM Grand Las Vegas (including The Signature), Mandalay Bay (including W Las Vegas and Four Seasons), Luxor, New York-New York, Park MGM (including NoMad Las Vegas), and Excalibur. The Company also operates MGM Grand Detroit in Detroit, Michigan, MGM National Harbor in Prince George’s County, Maryland, MGM Springfield in Springfield, Massachusetts, Borgata in Atlantic City, New Jersey, Empire City in Yonkers, New York, MGM Northfield Park in Northfield Park, Ohio, and Beau Rivage in Biloxi, Mississippi. Additionally, the Company operates The Park, a dining and entertainment district located between New York-New York and Park MGM. The Company leases the real estate assets of its domestic properties pursuant to triple net lease agreements. The Company has an approximate 56 % controlling interest in MGM China Holdings Limited (together with its subsidiaries, “MGM China”), which owns MGM Grand Paradise, S.A. (“MGM Grand Paradise”). MGM Grand Paradise owns and operates MGM Macau and MGM Cotai, two integrated casino, hotel and entertainment resorts in Macau, as well as the related gaming concession and land concessions. The Company also owns LV Lion Holding Limited (together with its subsidiaries, “LeoVegas”), a consolidated subsidiary that has global online gaming operations headquartered in Sweden and Malta. Additionally, the Company and its venture partner, Entain plc, each have a 50 % ownership interest in BetMGM, LLC (“BetMGM North America Venture”), an unconsolidated affiliate, which provides online sports betting and gaming in certain jurisdictions in North America. The Company also has a 50 % ownership interest in Osaka IR KK, an unconsolidated affiliate, which is developing an integrated resort in Osaka, Japan. Reportable segments. The Company has four reportable segments: Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. See Note 10 for additional information about the Company’s segments. NOTE 2 — BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of presentation . As permitted by the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company’s 2024 annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim financial statements. The results for such periods are not necessarily indicative of the results to be expected for the full year. Principles of consolidation . The Company evaluates entities for which control is achieved through means other than voting rights to determine if it is the primary beneficiary of a variable interest entity (“VIE”). The Company consolidates its investment in a VIE when it determines that it is its primary beneficiary. Bellagio REIT Venture (the landlord of Bellagio, which is a venture in which the Company has a 5 % ownership interest) and Osaka IR KK are VIEs in which the Company is not the primary beneficiary because it does not have power on its own to direct the activities that could potentially be significant to the ventures and, accordingly, does not consolidate the ventures. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The Company performs this analysis on an ongoing basis. 7 For entities determined not to be a VIE, the Company consolidates such entities in which the Company owns 100 % of the equity. For entities in which the Company owns less than 100 % of the equity interest, the Company consolidates the entity under the voting interest model if it has a controlling financial interest based upon the terms of the respective entities’ ownership agreements, such as MGM China. For these entities, the Company records a noncontrolling interest in the consolidated balance sheets and all intercompany balances and transactions are eliminated in consolidation. If the entity does not qualify for consolidation under the voting interest model and the Company has significant influence over the operating and financial decisions of the entity, the Company generally accounts for the entity under the equity method, such as BetMGM North America Venture, which does not qualify for consolidation as the Company has joint control, given the entity is structured with substantive participating rights whereby both owners participate in the decision making process, which prevents the Company from exerting a controlling financial interest in such entity, as defined in Accounting Standards Codification (“ASC”) 810. For entities over which the Company does not have significant influence, the Company accounts for its equity investment under ASC 321. Reclassifications. Certain reclassifications have been made to conform the prior period presentation. Fair value measurements . Fair value measurements affect the Company’s accounting and impairment assessments of its long-lived assets, investments in unconsolidated affiliates or equity interests, assets acquired, and liabilities assumed in an acquisition, and goodwill and other intangible assets. Fair value measurements also affect the Company’s accounting for certain of its financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and is measured according to a hierarchy that includes: Level 1 inputs, such as quoted prices in an active market; Level 2 inputs, which are quoted prices for identical or comparable instruments or pricing using observable market data; or Level 3 inputs, which are unobservable inputs. The Company used the following inputs in its fair value measurements: • Level 1 inputs when measuring its equity investments recorded at fair value; • Level 2 inputs for its long-term debt fair value disclosures; See Note 4; • Level 2 inputs for its derivatives, and • Level 1 and Level 2 inputs for its debt investments. Equity investments. Fair value is measured based upon trading prices on the applicable securities exchange for equity investments for which the Company has elected the fair value option of ASC 825 and equity investments accounted for under ASC 321 that have a readily determinable fair value. The fair value of these investments was $ 420 million and $ 388 million as of March 31, 2025 and December 31, 2024, respectively, and is reflected within “Other long-term assets, net” on the consolidated balance sheets. Gains and losses are recorded in “Other, net” in the statements of operations. For the three months ended March 31, 2025 the Company recorded a net gain on its equity investments of $ 32 million. For the three months ended March 31, 2024, the Company recorded a net loss on its equity investments of $ 24 million. Derivatives. The Company uses derivatives that are not designated for hedge accounting. The changes in fair value of these derivatives are recorded within “Other, net” in the statements of operations and within “Other” in operating activities in the statements of cash flows. The balance sheet classification of the derivatives in a current liability position are within “Other accrued liabilities,” a long-term liability position are within “Other long-term obligations,” a current asset position are within “Prepaid expenses and other,” and a long-term asset position are within “Other long-term assets, net.” As of March 31, 2025, the Company has forward currency exchange contracts to manage its exposure to changes in foreign currency exchange rates. As of March 31, 2025, the fair value of derivatives classified as assets were $ 2 million within long-term assets and liabilities of $ 60 million within current liabilities. As of December 31, 2024, the fair value of derivatives classified as liabilities were $ 96 million, with $ 57 million in current liabilities and $ 39 million in long-term liabilities. For the three months ended March 31, 2025, the Company recorded a net gain on its derivatives of $ 40 million. For the three months ended March 31, 2024, the Company recorded a net loss on its derivatives of $ 38 million. Debt investments. The Company’s investments in debt securities are classified as trading securities and recorded at fair value. Gains and losses are recorded in “Other, net” in the statements of operations. Debt securities are considered cash equivalents if the criteria for such classification is met or otherwise classified as short-term investments within “Prepaid expenses and other” since the investment of cash is available for current operations. 8 The following table presents information regarding the Company’s debt investments: Fair value level March 31, 2025 December 31, 2024 (In thousands) Cash and cash equivalents: Money market funds Level 1 $ 174,687 $ 52,794 Cash and cash equivalents 174,687 52,794 Short-term investments: U.S. government securities Level 1 10,420 19,075 Corporate bonds Level 2 180,324 171,117 Asset-backed securities Level 2 12,334 9,960 Short-term investments 203,078 200,152 Total debt investments $ 377,765 $ 252,946 Cash and cash equivalents. Cash and cash equivalents consist of cash and highly liquid investments with maturities of 90 days or less at the date of purchase. The fair value of cash and cash equivalents approximates carrying value because of the short maturity of those instruments (Level 1). Restricted cash. MGM China’s pledged cash of $ 87 million for each of March 31, 2025 and December 31, 2024 , securing the bank guarantees discussed in Note 7 is restricted in use and classified within “Other long-term assets, net.” Such amounts plus “Cash and cash equivalents” on the consolidated balance sheets equal “Cash, cash equivalents, and restricted cash” on the consolidated statements of cash flows as of March 31, 2025 and December 31, 2024 . Accounts receivable. As of March 31, 2025 and December 31, 2024, the loss reserve on accounts receivable was $ 134 million and $ 135 million, respectively. Accounts payable. As of March 31, 2025 and December 31, 2024, the Company had accrued $ 84 million and $ 109 million, respectively, for purchases of property and equipment within “Accounts and construction payable” on the consolidated balance sheets. Revenue recognition. Contract and Contract-Related Liabilities . There may be a difference between the timing of cash receipts from the customer and the recognition of revenue, resulting in a contract or contract-related liability. The Company generally has three types of liabilities related to contracts with customers: (1) outstanding chip liability, which represents the amounts owed in exchange for gaming chips held by a customer, (2) loyalty program obligations, which represents the deferred allocation of revenue relating to loyalty program incentives earned, and (3) customer advances and other, which is primarily funds deposited by customers before gaming play occurs (“casino front money”) and advance payments on goods and services yet to be provided, such as advance ticket sales and deposits on rooms and convention space or for unpaid wagers. These liabilities are generally expected to be recognized as revenue within one year of being purchased, earned, or deposited and are recorded within “Other accrued liabilities” on the consolidated balance sheets. The following table summarizes the activity related to contract and contract-related liabilities: Outstanding Chip Liability Loyalty Program Customer Advances and Other 2025 2024 2025 2024 2025 2024 (In thousands) Balance at January 1 $ 215,710 $ 211,606 $ 215,005 $ 201,973 $ 825,236 $ 766,226 Balance at March 31 177,017 190,631 205,276 194,946 813,917 781,973 Increase / (decrease) $ ( 38,693 ) $ ( 20,975 ) $ ( 9,729 ) $ ( 7,027 ) $ ( 11,319 ) $ 15,747 Revenue by source. The Company presents the revenue earned disaggregated by the type or nature of the good or service (casino, room, food and beverage, and entertainment, retail and other) within Note 10. Leases. Refer to Note 6 for information regarding leases under which the Company is a lessee. The Company is a lessor under certain other lease arrangements. Lease revenues earned by the Company from third parties are classified within the line item corresponding to the type or nature of the tenant’s good or service . For the three months ended 9 March 31, 2025, lease revenues from third-party tenants include $ 18 million recorded within food and beverage revenue, and $ 28 million recorded within entertainment, retail, and other revenue. For the three months ended March 31, 2024, lease revenues from third-party tenants include $ 20 million recorded within food and beverage revenue and $ 28 million recorded within entertainment, retail, and other revenue. Lease revenues from the rental of hotel rooms are recorded as rooms revenues within the consolidated statements of operations. NOTE 3 — INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES Investments in and advances to unconsolidated affiliates were $ 394 million and $ 381 million as of March 31, 2025 and December 31, 2024, respectively. The Company’s share of losses of BetMGM North America Venture in excess of its equity method investment balance is $ 103 million and $ 89 million as of March 31, 2025 and December 31, 2024, respectively, which is recorded within “Other accrued liabilities” on the consolidated balance sheets. The Company recorded its share of loss from unconsolidated affiliates as follows: Three Months Ended March 31, 2025 2024 (In thousands) Loss from unconsolidated affiliates $ ( 12,896 ) $ ( 25,124 ) Non-operating items from unconsolidated affiliates 262 ( 136 ) $ ( 12,634 ) $ ( 25,260 ) The following table summarizes information related to the Company’s share of operating loss from unconsolidated affiliates: Three Months Ended March 31, 2025 2024 (In thousands) BetMGM North America Venture $ ( 15,201 ) $ ( 32,601 ) Other 2,305 7,477 $ ( 12,896 ) $ ( 25,124 ) 10 NOTE 4 — LONG-TERM DEBT Long-term debt consisted of the following: March 31, 2025 December 31, 2024 (In thousands) MGM China first revolving credit facility $ 527,033 $ 477,567 5.25 % MGM China senior notes, due 2025 500,000 500,000 5.875 % MGM China senior notes, due 2026 750,000 750,000 4.625 % senior notes, due 2026 400,000 400,000 5.5 % senior notes, due 2027 675,000 675,000 4.75 % MGM China senior notes, due 2027 750,000 750,000 4.75 % senior notes, due 2028 750,000 750,000 6.125 % senior notes, due 2029 850,000 850,000 7.125 % MGM China senior notes, due 2031 500,000 500,000 6.5 % senior notes, due 2032 750,000 750,000 7 % debentures, due 2036 552 552 6,452,585 6,403,119 Less: Unamortized discounts and debt issuance costs, net ( 37,957 ) ( 41,021 ) $ 6,414,628 $ 6,362,098 MGM China’s senior notes due within one year of the applicable balance sheet date were classified as long-term as MGM China had both the intent and ability to refinance the notes on a long-term basis. Senior secured credit facility. In February 2024, the Company amended its revolving facility to increase the facility to $ 2.3 billion and extend the maturity date to February 2029. At March 31, 2025, no amounts were drawn. The Company’s senior secured credit facility contains customary representations and warranties, events of default and positive and negative covenants. The Company was in compliance with its credit facility covenants at March 31, 2025. MGM China first revolving credit facility. At March 31, 2025, the MGM China first revolving credit facility consisted of a HK$ 9.75 billion (approximately $ 1.3 billion) unsecured revolving credit facility, which was to mature in May 2026, and had a weighted average interest rate of 5.47 %. The MGM China first revolving credit facility contained customary representations and warranties, events of default, and positive, negative and financial covenants, including that MGM China maintain compliance with a maximum leverage ratio and a minimum interest coverage ratio. MGM China was in compliance with its MGM China first revolving credit facility covenants at March 31, 2025. MGM China second revolving credit facility. At March 31, 2025, the MGM China second revolving credit facility consisted of a HK$ 5.85 billion (approximately $ 752 million) unsecured revolving credit facility, which was to mature in May 2026. At March 31, 2025, no amounts were drawn on the MGM China second revolving credit facility. The MGM China second revolving credit facility contained customary representations and warranties, events of default, and positive, negative and financial covenants, including that MGM China maintain compliance with a maximum leverage ratio and a minimum interest coverage ratio. MGM China was in compliance with its MGM China second revolving credit facility covenants at March 31, 2025. MGM China revolving credit facility. On April 15, 2025, MGM China entered into a HK$ 23.4 billion senior unsecured revolving credit facility. The MGM China revolving credit facility matures in April 2030 and bears interest at a fluctuating rate per annum based on the Hong Kong Interbank Offer Rate plus 1.625 % to 2.75 %, as determined by MGM China’s leverage ratio. The MGM China revolving credit facility contains customary representations and warranties, events of default, and positive, negative and financial covenants, including that MGM China maintains compliance with a maximum leverage ratio and a minimum interest coverage ratio. In April 2025, MGM China repaid in full the amounts 11 outstanding under its MGM China first revolving credit facility with borrowings under the MGM China revolving credit facility and the total commitments of the MGM China first revolving credit facility and MGM China second revolving credit facility were cancelled in full. Fair value of long-term debt. The estimated fair value of the Company’s long-term debt was $ 6.4 billion and $ 6.3 billion at March 31, 2025 and December 31, 2024, respectively. NOTE 5 — INCOME TAXES For interim income tax reporting the Company estimates its annual effective income tax rate and applies it to its year-to-date ordinary income. The income tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur. The Company’s effective income tax rate was 15.0 % and 12.7 % for the three months ended March 31, 2025 and March 31, 2024, respectively. The Company recognizes deferred income tax assets, net of applicable reserves, related to net operating losses, tax credit carryforwards and certain temporary differences. The Company recognizes future tax benefits to the extent that realization of such benefit is more likely than not. Otherwise, a valuation allowance is applied. NOTE 6 — LEASES The Company leases real estate, land underlying certain of its properties, and various equipment under operating and, to a lesser extent, finance lease arrangements. Other information. Components of lease costs and other information related to the Company’s leases were: Three Months Ended March 31, 2025 2024 (In thousands) Operating lease cost, primarily classified within “General and administrative” (1) $ 574,157 $ 574,943 Finance lease costs Interest expense $ 4,318 $ 8,884 Amortization expense 18,171 12,896 Total finance lease costs $ 22,489 $ 21,780 (1) Operating lease cost includes $ 83 million for each of the three months ended March 31, 2025 and 2024 related to the Bellagio lease, which is held with a related party. 12 March 31, 2025 December 31, 2024 (In thousands) Operating leases Operating lease ROU assets, net (1) $ 23,407,115 $ 23,532,287 Operating lease liabilities - current, classified within “Other accrued liabilities” $ 100,189 $ 98,021 Operating lease liabilities - long-term (2) 25,056,930 25,076,139 Total operating lease liabilities $ 25,157,119 $ 25,174,160 Finance leases Finance lease ROU assets, net, classified within “Property and equipment, net” $ 282,912 $ 304,645 Finance lease liabilities - current, classified within “Other accrued liabilities” $ 74,551 $ 74,191 Finance lease liabilities - long-term, classified within “Other long-term obligations” 225,880 243,256 Total finance lease liabilities $ 300,431 $ 317,447 Weighted average remaining lease term (years) Operating leases 24 24 Finance leases 8 8 Weighted average discount rate (%) Operating leases 7 7 Finance leases 6 6 (1) As of March 31, 2025 and December 31, 2024, operating lease right-of-use assets (“ROU”), net included $ 3.4 billion related to the Bellagio lease. (2) As of March 31, 2025 and December 31, 2024, operating lease liabilities – long-term included $ 3.8 billion related to the Bellagio lease. As of March 31, 2025 and December 31, 2024, operating lease liabilities – current included $ 5 million and $ 3 million related to the Bellagio lease, respectively. Three Months Ended March 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities (In thousands) Operating cash outflows from operating leases $ 466,044 $ 456,382 Operating cash outflows from finance leases 4,318 3,817 Financing cash outflows from finance leases (1) 15,038 14,309 ROU assets obtained in exchange for new lease liabilities Operating leases $ 65 $ 3,072 Finance leases — 186,197 (1) Included within “Other” within “Cash flows from financing activities” on the consolidated statements of cash flows. 13 Maturities of lease liabilities were as follows: Operating Leases Finance Leases Year ending December 31, (In thousands) 2025 (excluding the three months ended March 31, 2025) $ 1,403,211 $ 68,910 2026 1,891,709 81,702 2027 1,919,697 81,462 2028 1,945,674 29,569 2029 1,972,273 7,046 Thereafter 46,972,297 121,202 Total future minimum lease payments 56,104,861 389,891 Less: Amount of lease payments representing interest ( 30,947,742 ) ( 89,460 ) Present value of future minimum lease payments 25,157,119 300,431 Less: Current portion ( 100,189 ) ( 74,551 ) Long-term portion of lease liabilities $ 25,056,930 $ 225,880 NOTE 7 — COMMITMENTS AND CONTINGENCIES Cybersecurity litigation, claims, and investigations. In September 2023, through unauthorized access to certain of its U.S. systems, third-party criminal actors accessed, for some of the Company’s customers, personal information (including name, contact information (such as phone number, email address and postal address), gender, date of birth and driver’s license numbers). For a limited number of customers, Social Security numbers and passport numbers were also accessed by the criminal actors. The Company has notified individuals impacted by this issue in accordance with federal and state law. In connection with this cybersecurity issue, the Company became subject to consumer class actions in U.S. and Canadian courts. These class actions assert a variety of common law and statutory claims based on allegations that the Company failed to use reasonable security procedures and practices to safeguard customers’ personal information, and seek monetary and statutory damages, injunctive relief and other related relief. The Company reached a settlement for $ 45 million to resolve the purported U.S. civil class action litigation related to the 2023 cybersecurity issue and a 2019 cybersecurity issue, which was paid by insurance carriers into a settlement fund in February 2025. In addition, the Company continues to be subject to investigations by state regulators, which also could result in monetary fines and other relief. The Company cannot predict the timing or outcome of any of these potential matters, or whether the Company may be subject to additional legal proceedings, claims, regulatory inquiries, investigations, or enforcement actions. While the Company believes it is reasonably possible that it may incur losses associated with the above-described proceedings, it is not possible to estimate the amount of loss or range of loss, if any, that might result from adverse judgments, settlements, or other resolution given the preliminary stage of these proceedings. Other litigation. The Company is a party to various other legal proceedings, most of which relate to routine matters incidental to its business. Management does not believe that the outcome of such proceedings will have a material adverse effect on the Company’s financial position, results of operations or cash flows . Commitments and guarantees. MGM China bank guarantees. In connection with the issuance of the gaming concession in January 2023, bank guarantees were provided to the government of Macau in the amount of MOP 1 billion (approximately $ 125 million as of March 31, 2025 ) to warrant the fulfillment of labor liabilities and of damages or losses that may result if there is noncompliance with the concession. The guarantees expire 180 days after the end of the concession term. As of March 31, 2025 , MOP 700 million of the bank guarantees (approximately $ 87 million as of March 31, 2025 ) were secured by pledged cash. Bellagio REIT shortfall guarantee. The Company provides a shortfall guarantee of the $ 3.01 billion principal amount of indebtedness (and any interest accrued and unpaid thereon) of the landlord of Bellagio, Bellagio REIT Venture, which is a VIE and a related party, for which such indebtedness matures in 2029. The terms of the shortfall guarantee provide that after the lenders have exhausted certain remedies to collect on the obligations under the indebtedness, the Company would then be responsible for any shortfall between the value of the collateral, which is the real estate assets of the applicable property owned by the landlord, and the debt obligation. The guarantee is accounted for under ASC 460 at fair value; such value is immaterial. 14 Osaka IR KK guarantees. The Company provides for guarantees (1) in the amount of 12.65 billion yen (approximately $ 84 million as of March 31, 2025 ) for 50 % of Osaka IR KK’s obligations to Osaka under various agreements related to the venture’s development of an integrated resort in Osaka, Japan and (2) of an uncapped amount to provide funding to Osaka IR KK, if necessary, for the completion of the construction and full opening of the integrated resort. The guarantees expire when the obligations relating to the full opening of the integrated resort are fulfilled. The guarantees are accounted for under ASC 460 at fair value; such value is immaterial. Additionally, the Company’s ownership interest in Osaka IR KK, which had a carrying value of $ 285 million as of March 31, 2025 , is pledged as collateral for Osaka IR KK’s obligations under its credit agreement. Osaka IR KK funding commitment. The Company has commitments to fund Osaka IR KK of 428 billion yen, of which an estimated amount of approximately 392 billion yen (approximately $ 2.6 billion as of March 31, 2025 ) remains to be funded as of March 31, 2025 . During the three months ended March 31, 2024 , the Company funded 1.4 billion yen (approximately $ 9 million) of the committed amount to Osaka IR KK. The amount and timing of funding is expected to change as a result of project progress, inflation, and other factors. Other guarantees. The Company and its subsidiaries are party to various guarantee contracts in the normal course of business, which are generally supported by letters of credit issued by financial institutions . The Company’s senior credit facility limits the amount of letters of credit that can be issued to $ 1.35 billion. At March 31, 2025, $ 25 million in letters of credit were outstanding under the Company’s senior credit facility. The amount of available borrowings under the credit facility is reduced by any outstanding letters of credit. NOTE 8 — EARNINGS PER SHARE The table below reconciles basic and diluted earnings per share of common stock. Diluted weighted-average common and common equivalent shares include adjustments for potential dilution of stock-based awards outstanding under the Company’s stock compensation plan. Antidilutive share-based awards excluded from the diluted earnings per share calculation are not material. Three Months Ended March 31, 2025 2024 (In thousands) Numerator: Net income attributable to MGM Resorts International $ 148,554 $ 217,476 Adjustment related to redeemable noncontrolling interests ( 41 ) 133 Net income available to common stockholders – basic and diluted $ 148,513 $ 217,609 Denominator: Weighted-average common shares outstanding – basic 287,125 320,488 Potential dilution from stock-based awards 1,971 3,269 Weighted-average common and common equivalent shares – diluted 289,096 323,757 NOTE 9 — STOCKHOLDERS’ EQUITY MGM Resorts International stock repurchases. In February 2023, the Company announced that the Board of Directors authorized a $ 2.0 billion stock repurchase plan, in November 2023, the Company announced that the Board of Directors authorized a $ 2.0 billion stock repurchase plan, and in April 2025, the Company announced that the Board of Directors authorized a $ 2.0 billion stock repurchase plan. Under these stock repurchase plans, the Company may repurchase shares from time to time in the open market or in privately negotiated agreements. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The timing, volume and nature of stock repurchases will be at the sole discretion of management, dependent on market conditions, applicable securities laws, and other factors, and may be suspended or discontinued at any time. During the three months ended March 31, 2024, the Company repurchased approximately 12 million shares of its common stock for an aggregate amount of $ 511 million. In connection with these repurchases, the February 2023 stock repurchase plan was completed. Repurchased shares were retired. 15 During the three months ended March 31, 2025, the Company repurchased approximately 15 million shares of its common stock for an aggregate amount of $ 494 million. Repurchased shares were retired. The remaining availability under the November 2023 $ 2.0 billion stock repurchase plan was $ 337 million as of March 31, 2025. Subsequent to March 31, 2025, the Company repurchased approximately 8 million shares of its common stock for an aggregate amount of $ 215 million, excluding excise tax. Repurchased shares were retired. NOTE 10 — SEGMENT INFORMATION The Company’s management views the operations of each of its casino properties as an operating segment which are aggregated into the reportable segments of Las Vegas Strip Resorts, Regional Operations, and MGM China based on their similar economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate and their management and reporting structure. The Company’s interactive gaming operations are reported within the MGM Digital reportable segment. During the fourth quarter of 2024, the Company added MGM Digital as a reportable segment to reflect the Company’s strategic focus on interactive gaming. The corresponding items of segment information for MGM Digital, which were previously included within “Corporate and other”, as applicable, were recast for prior periods. Las Vegas Strip Resorts. Las Vegas Strip Resorts consists of the following casino resorts in Las Vegas, Nevada: Aria (including Vdara), Bellagio, The Cosmopolitan, MGM Grand Las Vegas (including The Signature), Mandalay Bay (including W Las Vegas and Four Seasons), Luxor, New York-New York (including The Park), Excalibur, and Park MGM (including NoMad Las Vegas). Regional Operations. Regional Operations consists of the following casino properties: MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York; and MGM Northfield Park in Northfield Park, Ohio. MGM China. MGM China consists of MGM Macau and MGM Cotai. MGM Digital. MGM Digital consists of LeoVegas and other consolidated subsidiaries that offer interactive gaming. The Company’s operations related to investments in unconsolidated affiliates, and certain other corporate operations and management services have not been identified as separate reportable segments; therefore, these operations are included in “Corporate and other” in the following segment disclosures to reconcile to consolidated results. Segment Adjusted EBITDAR is the Company’s reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. Segment Adjusted EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net, triple net lease rent expense, loss from unconsolidated affiliates, and also excludes corporate expense and stock compensation expense, which are not allocated to each operating segment. Triple net lease rent expense is the expense for rent to landlords under triple net operating leases for its domestic properties, the ground subleases of Beau Rivage and MGM National Harbor, and the land concessions at MGM China. 16 Three Months Ended March 31, 2025 2024 Net revenue (In thousands) Las Vegas Strip Resorts Casino $ 538,259 $ 497,548 Rooms 750,049 827,253 Food and beverage 586,039 599,281 Entertainment, retail and other 301,773 330,947 2,176,120 2,255,029 Regional Operations Casino 671,975 684,968 Rooms 66,725 65,933 Food and beverage 109,081 107,753 Entertainment, retail and other 52,638 50,825 900,419 909,479 MGM China Casino 895,852 920,048 Rooms 46,634 63,215 Food and beverage 75,053 62,369 Entertainment, retail and other 9,933 10,385 1,027,472 1,056,017 MGM Digital Casino 128,058 127,608 Reportable segment net revenues 4,232,069 4,348,133 Corporate and other 45,013 35,337 $ 4,277,082 $ 4,383,470 Three Months Ended March 31, 2025 2024 Expenses (In thousands) Las Vegas Strip Resorts Payroll related $ 661,746 $ 643,583 Cost of sales 127,757 135,188 Gaming taxes 59,210 57,944 Other segment items (1) 516,247 590,526 1,364,960 1,427,241 Regional Operations Payroll related 228,947 227,238 Cost of sales 37,214 39,344 Gaming taxes 184,714 185,996 Other segment items (1) 170,502 182,799 621,377 635,377 MGM China Payroll related 145,208 133,166 Cost of sales 27,500 22,350 Gaming taxes 448,776 478,319 Other segment items (1) 120,423 120,996 741,907 754,831 MGM Digital Payroll related 29,537 20,369 Marketing costs 57,793 59,034 Gaming taxes 30,625 28,814 Other segment items (2) 44,496 38,181 $ 162,451 $ 146,398 (1) Other segment items primarily include corporate allocations, service provider costs, promotional expense, and other miscellaneous expenses. (2) Other segment items primarily include third party game provider fees, service provider costs, and other miscellaneous expenses. 17 Three Months Ended March 31, 2025 2024 (In thousands) Segment Adjusted EBITDAR Las Vegas Strip Resorts $ 811,160 $ 827,788 Regional Operations 279,042 274,102 MGM China 285,565 301,186 MGM Digital ( 34,393 ) ( 18,790 ) 1,341,374 1,384,286 Other operating income (expense) Corporate and other, net ( 126,949 ) ( 121,634 ) Preopening and start-up expenses ( 85 ) ( 1,095 ) Property transactions, net ( 15,468 ) ( 17,154 ) Depreciation and amortization ( 236,444 ) ( 196,562 ) Triple net lease rent expense ( 564,475 ) ( 564,339 ) Loss from unconsolidated affiliates ( 12,896 ) ( 25,124 ) Operating income 385,057 458,378 Non-operating income (expense) Interest expense, net of amounts capitalized ( 107,269 ) ( 110,037 ) Non-operating items from unconsolidated affiliates 262 ( 136 ) Other, net ( 11,266 ) ( 4,806 ) ( 118,273 ) ( 114,979 ) Income before income taxes 266,784 343,399 Provision for income taxes ( 40,053 ) ( 43,673 ) Net income 226,731 299,726 Less: Net income attributable to noncontrolling interests ( 78,177 ) ( 82,250 ) Net income attributable to MGM Resorts International $ 148,554 $ 217,476 Three Months Ended March 31, 2025 2024 Capital expenditures: (In thousands) Las Vegas Strip Resorts $ 105,238 $ 102,985 Regional Operations 22,617 19,832 MGM China 59,736 15,384 MGM Digital 18,437 11,769 Reportable segment capital expenditures 206,028 149,970 Corporate and other 22,013 22,110 $ 228,041 $ 172,080 Total assets are not allocated to segments for internal reporting or when determining the allocation of resources and, accordingly, are not presented. 18