Motorsport Games (NASDAQ:MSGM) Releases Earnings Results, Beats Estimates By $0.11 EPS

Motorsport Games (NASDAQ:MSGM) announced its quarterly earnings data on Thursday. The company reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.08 by $0.11, FiscalAI reports. The business had revenue of $3.78 million during the quarter, compared to the consensus estimate of $3.79 million. Motorsport Games had a return on equity of 41.13% and a net margin of 16.15%.

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

• Third-quarter revenue rose 21.8% year over year to $3.8 million, gross margin increased to 88%, and adjusted EBITDA grew 75.7% to $1.8 million. Motorsport Games reported its seventh consecutive profitable quarter.
• RaceControl subscription revenue increased 186% to about $2 million for the first nine months, with more than 45,000 paid subscribers and October annualized recurring revenue of about $3.4 million. The company brought its portal fully in-house, which management said will also end a 10% revenue share with its former technology partner.
• Le Mans Ultimate surpassed 2 million sales across game copies and downloadable content; its first American content pack set a record for launch-day DLC sales. A playable console version is ready ahead of schedule, with a release planned for 2027.
• Operating cash flow reached $4.1 million for the first nine months, and the company ended September with $5.4 million in cash and $4.2 million in working capital. Management said the stronger balance sheet gives it room to invest for growth.
• Management acknowledged the business remains largely driven by one title and provided no forward guidance. Plans to diversify through new products and partnerships are underway, but specifics and signed agreements have not yet been announced.

Motorsport Games Trading Down 1.6%

Shares of NASDAQ:MSGM traded down $0.07 during midday trading on Thursday, hitting $4.28. 65,120 shares of the stock were exchanged, compared to its average volume of 63,291. The business’s 50-day moving average price is $4.73 and its 200 day moving average price is $4.30. Motorsport Games has a 12 month low of $2.46 and a 12 month high of $5.65. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.85 and a current ratio of 1.85. The stock has a market capitalization of $17.85 million, a price-to-earnings ratio of 9.95, a P/E/G ratio of 0.58 and a beta of 2.03.

Insider Transactions at Motorsport Games

In other Motorsport Games news, major shareholder Red Oak Partners, Llc bought 23,143 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The shares were acquired at an average cost of $3.86 per share, for a total transaction of $89,331.98. Following the transaction, the insider directly owned 333,410 shares in the company, valued at approximately $1,286,962.60. This represents a 7.46% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last three months, insiders have purchased 72,779 shares of company stock valued at $283,660. 4.59% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several brokerages have commented on MSGM. Zacks Research downgraded Motorsport Games from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 19th. Wall Street Zen raised shares of Motorsport Games to a “buy” rating in a report on Saturday, September 26th. Finally, Weiss Ratings upgraded shares of Motorsport Games from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, September 11th. Two analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold”.

About Motorsport Games

Motorsport Games Inc. (NASDAQ: MSGM) is a video game developer and publisher focused on racing and motorsport entertainment. The company creates and distributes racing games for consoles and personal computers, and supports related online, competitive and esports experiences. Its portfolio has included officially licensed motorsport titles and racing technology platforms. Motorsport Games has been associated with products such as Le Mans Ultimate , the official game of the FIA World Endurance Championship, and rFactor 2 , a racing simulation platform developed by its Studio 397 business.