MSGM — Motorsport Games Inc.

Summary of Motorsport Games, Inc. Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $3.1 million, a 71.9% increase year-over-year, primarily driven by $1.8 million from Le Mans Ultimate DLC sales.
• Net Income: $0.8 million, compared to a net loss of $0.6 million in Q3 2024, marking a $1.4 million improvement.
• Net Income per Share: $0.14 for Q3 2025, up from a loss of $0.18 per share in the prior year.
• Adjusted EBITDA: $1.1 million, significantly up from $0.1 million in Q3 2024.
• Cash Position: Cash and cash equivalents increased from $4.1 million (Sept 30, 2025) to $4.5 million (Oct 31, 2025).

2. Strategic Updates and Business Highlights

• Profit Generation: The company reported operational profit for the second consecutive quarter, indicating effective restructuring and improved margins.
• Le Mans Ultimate: The game exited Steam Early Access and saw record user engagement, with successful DLC releases planned.
• RaceControl Growth: The subscription service achieved its highest performance quarter, processing nearly 100,000 deliveries.
• Console Development: Work is underway to bring Le Mans Ultimate to consoles (PlayStation and Xbox), with expectations for a release around late 2026 or early 2027.
• eSports Engagement: The return of the Le Mans Virtual series is anticipated to enhance marketing and sales opportunities.

3. Forward Guidance and Outlook

• Management expressed optimism about continued growth and profitability, with plans to expand the team and explore new titles.
• The company aims to leverage its current momentum to develop a multi-format publishing strategy, enhancing its market presence.

4. Bad News, Challenges, or Points of Concern

• NASCAR Revenue Loss: The company faced a $1 million revenue decline from NASCAR-related sales, as it is no longer authorized to sell this title.
• Operational Risks: Although cash flow has improved, the company remains cautious about future investments and market conditions.
• Competitive Pressures: The gaming industry is highly competitive, and maintaining user engagement and market share will be critical.

5. Notable Q&A Insights

• There were no questions from participants during the call, indicating either satisfaction with the information provided or a lack of immediate concerns from analysts.

Overall, Motorsport Games demonstrated significant financial recovery and strategic growth in Q3 2025, with a focus on expanding its product offerings and enhancing user engagement through innovative features and services.