Motorsport Games (NASDAQ:MSGM) Announces Earnings Results

Motorsport Games (NASDAQ:MSGM) announced its quarterly earnings data on Tuesday. The company reported $0.15 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $3.85 million for the quarter. Motorsport Games had a net margin of 61.31% and a return on equity of 150.78%.

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

• Record profitability and stronger liquidity — full‑year 2025 revenue rose 30% YoY, adjusted EBITDA was $7.3M, the company generated ~ $0.3M average monthly operating cash flow, and cash increased to $6M by Feb 2026 with a $3M revolving credit facility in place.
• Le Mans Ultimate is the primary growth engine, with PC concurrent players rising from ~786 to ~3,000 on average in 2025 and a Jan‑2026 peak >8,700, supported by frequent content/technical updates and anti‑cheat/Live Steward features to improve retention.
• Race Control is scaling into a recurring‑revenue platform — >400k registered accounts, >26k paying subscribers, roughly $0.2M monthly recurring revenue, and emerging commercial opportunities with brands and rights holders.
• Management is targeting console launches for PlayStation/Xbox (early–mid 2027 timeframe) to expand the addressable market, but timing, revenue magnitude and margin impact remain unspecified and no forward guidance was provided.
• Revenue concentration and dependency risk — the Le Mans franchise comprised ~78% of 2025 revenues after selling the NASCAR license, leaving the company reliant on continued LMU and Race Control growth to sustain results.

Motorsport Games Stock Performance

Motorsport Games stock opened at $3.91 on Thursday. Motorsport Games has a one year low of $0.73 and a one year high of $5.41. The business has a fifty day moving average of $3.64 and a two-hundred day moving average of $3.08. The company has a market cap of $22.60 million, a P/E ratio of 2.72 and a beta of 1.79.

Insider Activity

In related news, major shareholder Mike Zoi sold 90,900 shares of the firm’s stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $4.49, for a total value of $408,141.00. Following the completion of the sale, the insider owned 1,245,364 shares in the company, valued at $5,591,684.36. This trade represents a 6.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last ninety days, insiders have sold 290,406 shares of company stock valued at $1,208,104. Company insiders own 17.34% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. XTX Topco Ltd acquired a new stake in shares of Motorsport Games during the 4th quarter valued at approximately $34,000. HRT Financial LP acquired a new stake in shares of Motorsport Games in the 4th quarter worth approximately $37,000. State Street Corp purchased a new position in Motorsport Games in the 4th quarter valued at approximately $39,000. Dimensional Fund Advisors LP purchased a new position in Motorsport Games in the 3rd quarter valued at approximately $46,000. Finally, Heron Bay Capital Management acquired a new position in Motorsport Games during the second quarter worth $132,000. 1.66% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Motorsport Games in a report on Monday, December 29th. Wall Street Zen raised shares of Motorsport Games to a “buy” rating in a report on Saturday, January 31st. One equities research analyst has rated the stock with a Hold rating, According to data from MarketBeat, the company presently has a consensus 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).