MSGM — Motorsport Games Inc.

Motorsport Games, Inc. (MSGM) Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $3.1 million, up 71.9% year-over-year, primarily driven by $1.8 million from Le Mans Ultimate sales, particularly DLCs.
• Net Income: $0.8 million, a significant improvement from a net loss of $0.6 million in Q3 2024.
• Net Income per Share: $0.14, compared to a loss of $0.18 per share in the prior year.
• Adjusted EBITDA: $1.1 million, up from $0.1 million in Q3 2024.
• Cash Position: Increased from $4.1 million as of September 30, 2025, to $4.5 million by October 31, 2025.
• Operational Profit: Reported for the second consecutive quarter, marking a turnaround from previous losses.

2. Strategic Updates and Business Highlights

• Le Mans Ultimate: Successfully exited Steam Early Access and achieved record user engagement and sales, with ongoing expansions including new DLCs and features like driver swaps.
• RaceControl Platform: Achieved its highest performing quarter, processing nearly 100,000 deliveries and enhancing user engagement through new features.
• Console Development: Announced plans to develop a console version of Le Mans Ultimate, with expectations for a release in late 2026 or early 2027.
• eSports Series: Plans to revive the Le Mans Virtual eSports series, which previously attracted over 10 million viewers, leveraging the popularity of the core game.

3. Forward Guidance and Outlook

• Management expressed optimism about continued growth, with a focus on expanding the Le Mans Ultimate franchise and enhancing the RaceControl platform.
• No specific forward-looking financial guidance was provided, but the company is exploring new opportunities and investments to support growth.

4. Bad News, Challenges, or Points of Concern

• NASCAR Revenue Loss: The company reported a $1 million decrease in NASCAR-related revenues due to the loss of the license, although this has been offset by gains from Le Mans Ultimate.
• Operational Risks: The company acknowledged ongoing risks and uncertainties that could affect future performance, particularly in the context of competitive pressures in the gaming industry.

5. Notable Q&A Insights

• There were no questions from participants during the call, indicating either a lack of immediate concerns or a focus on the positive developments shared by management.

Overall, Motorsport Games demonstrated a strong recovery in Q3 2025, with significant revenue growth and a return to profitability, while also laying the groundwork for future expansion into console gaming and eSports. However, the loss of NASCAR revenues and the competitive landscape remain areas to watch.