Motorsport Games (NASDAQ:MSGM) Releases Earnings Results

Motorsport Games (NASDAQ:MSGM) announced its earnings results on Wednesday. The company reported $0.07 earnings per share (EPS) for the quarter, Zacks reports. Motorsport Games had a net margin of 61.31% and a return on equity of 129.70%.

Here are the key takeaways from Motorsport Games’ conference call:

• Revenue jumped 129% year over year to $4.0 million, driven mainly by stronger sales of Le Mans Ultimate and higher RaceControl subscription revenue. Management also said the company generated positive operating income and improved adjusted EBITDA.
• Le Mans Ultimate continues to gain traction, with a new all-time Steam peak of more than 8,800 concurrent players after version 1.3 launched. The company emphasized that average concurrent users are also rising sharply, suggesting players are sticking with the game.
• RaceControl is becoming a meaningful recurring revenue stream, with monthly recurring revenue now above $0.2 million and Q1 subscription revenue of $0.8 million, or 19% of total company revenue. Management described it as a high-margin platform business with room for further expansion.
• The company completed a major corporate restructuring, including repurchasing 904,395 Class A shares from Driven Lifestyle Group and retiring all Class B super-voting shares. Shareholders also approved an expansion of the employee equity plan, and management said these moves improve governance and flexibility.
• Motorsport Games said development of Le Mans Ultimate for PlayStation and Xbox is progressing, but exact timing is still uncertain and more details are expected in 2027. The company is also preparing a new long-term project that will build on its existing simulation technology, live-service platform, and community.

Motorsport Games Price Performance

NASDAQ:MSGM opened at $4.94 on Thursday. The firm’s fifty day moving average price is $4.21 and its 200 day moving average price is $3.54. Motorsport Games has a 1-year low of $2.11 and a 1-year high of $5.56. The firm has a market cap of $28.55 million, a price-to-earnings ratio of 3.43 and a beta of 1.73.

Insiders Place Their Bets

In other Motorsport Games news, major shareholder Mike Zoi sold 904,395 shares of the business’s stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $4.11, for a total transaction of $3,717,063.45. Following the sale, the insider directly owned 254,453 shares in the company, valued at approximately $1,045,801.83. The trade was a 78.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In the last 90 days, insiders have sold 1,225,932 shares of company stock valued at $5,065,568. Company insiders own 4.59% of the company’s stock.

Institutional Investors Weigh In On Motorsport Games

Institutional investors have recently made changes to their positions in the stock. XTX Topco Ltd acquired a new position in shares of Motorsport Games during the 4th quarter worth $34,000. HRT Financial LP acquired a new position in Motorsport Games in the 4th quarter valued at about $37,000. State Street Corp acquired a new position in Motorsport Games in the 4th quarter valued at about $39,000. Finally, Dimensional Fund Advisors LP purchased a new stake in Motorsport Games in the 3rd quarter valued at about $46,000. 1.66% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen upgraded shares of Motorsport Games from a “buy” rating to a “strong-buy” rating in a research report on Saturday, March 14th. One investment analyst has rated the stock with a Hold rating, According to MarketBeat, Motorsport Games currently has an average rating of “Hold”.

About Motorsport Games

Motorsport Games, Inc is a publicly traded developer and publisher of interactive motorsport entertainment, headquartered in Miami, Florida. The company specializes in creating officially licensed racing simulation titles and managing associated esports competitions. By focusing exclusively on the motorsport genre, Motorsport Games aims to deliver authentic digital experiences that mirror the rules, tracks and vehicles of real-world racing series.

The company’s core activities include the development of video games under licenses from major sanctioning bodies such as NASCAR, the Fédération Internationale de l’Automobile (FIA) and International Motor Sports Association (IMSA).