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MSGM

Motorsport Games Inc.

MSGM

Motorsport Games Inc. • NASDAQ
$2.79 ▼ -1.41% (-0.04)
Market Cap $14.17 M
52w High $5.41
52w Low $0.73
Dividend Yield 0%
P/E 6.64
Volume 23.00K
Outstanding Shares 5.08M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $3.1M ▲ $1.703M ▲ $789.296K ▼ 25.461% ▼ $0.14 ▼ $1.497M ▼
Q2-2025 $2.592M ▲ $168.89K ▼ $4.258M ▲ 164.3% ▲ $0.82 ▲ $4.497M ▲
Q1-2025 $1.758M ▼ $1.386M ▼ $1.041M ▲ 59.203% ▲ $0.33 ▲ $1.288M ▲
Q4-2024 $1.974M ▲ $1.564M ▼ $-3.854M ▼ -195.275% ▼ $-1.2 ▼ $-2.015M ▼
Q3-2024 $1.803M $3.018M $9.827K 0.545% $0.003 $23.238K

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $4.129M ▲ $10.101M ▲ $3.306M ▲ $5.853M ▲
Q2-2025 $2.365M ▲ $8.154M ▲ $2.584M ▼ $4.819M ▲
Q1-2025 $1.05M ▲ $6.064M ▼ $4.647M ▼ $648.436K ▲
Q4-2024 $859.271K ▲ $6.268M ▼ $5.042M ▲ $496.258K ▼
Q3-2024 $750.995K $6.973M $4.802M $4.093M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $768.537K ▼ $2.057M ▲ $-306.886K ▲ $-150K ▼ $1.763M ▲ $1.75M ▲
Q2-2025 $4.238M ▲ $-30.474K ▼ $-370K ▼ $1.804M ▲ $1.315M ▲ $-30.474K ▼
Q1-2025 $1.041M ▲ $305.221K ▲ $0 ▼ $-150K ▼ $191.131K ▲ $305.221K ▲
Q4-2024 $-3.854M ▼ $-2.141M ▼ $1.207M ▲ $0 ▼ $108.276K ▼ $-2.141M ▼
Q3-2024 $-573.025K $671.817K $0 $884.051K $221.557K $671.817K

Revenue by Products

Product Q3-2024Q1-2025Q2-2025Q3-2025
Gaming
Gaming
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement MSGM’s income statement tells the story of a very small, still-fragile business that has been in turnaround mode. Revenue has stayed very low over the last several years and hasn’t really scaled, which suggests the company is still searching for a sustainable commercial footing rather than operating at full, mature game-publisher scale. Historically, the company posted meaningful losses, reflected in deeply negative earnings per share. More recently, losses appear to have narrowed to roughly break-even at the operating and net income level, helped by cost cutting and restructuring. That shift is encouraging, but it rests on a very small revenue base, so profitability looks fragile and highly sensitive to any slip in sales or increase in spending. Overall, the trend is from heavy losses toward much tighter cost control, but with a business that is still subscale and exposed to volatility in game performance and licensing outcomes.

Balance Sheet

Balance Sheet The balance sheet is very light, which is typical for a small, asset‑lean software business but also highlights financial vulnerability. Total assets have shrunk from earlier years, and reported cash is minimal. On the positive side, there is virtually no debt, so the company is not burdened by interest payments or large scheduled repayments. However, equity is also thin, meaning there is not much of a buffer to absorb operating setbacks or delays in new releases. In practical terms, MSGM looks financially tight: not weighed down by leverage, but also without a large capital cushion. It likely has limited room for big missteps or prolonged weak performance without needing fresh capital or some form of strategic transaction.

Cash Flow

Cash Flow Cash flow historically shows a pattern of cash burn from operations, consistent with a business investing heavily relative to its small revenue base. Operating and free cash flow have been negative for several years, though the scale of that burn appears to have moderated more recently. Capital expenditure is negligible, which fits a software and content‑driven model where the main investment is staff and development rather than physical assets. That also means there is little flexibility to cut traditional “capex” if conditions worsen; most spending reductions would have to come from people, projects, or marketing. Overall, the company has been relying on external capital and tight cost control rather than self‑funding growth from its own cash generation. Any setback in sales or delay in releases could quickly pressure liquidity.

Competitive Edge

Competitive Edge MSGM operates in a tough corner of the gaming world: high‑fidelity racing simulation, where expectations are high and the player base is relatively niche. Within that niche, however, it has some important advantages. The company controls valuable motorsport licenses, most notably for the 24 Hours of Le Mans and the World Endurance Championship. These exclusive rights give it a unique claim on fans of those series and act as a barrier to direct, like‑for‑like competitors. Its rFactor 2 technology powers professional and semi‑professional sim racing, is used in Formula E and at F1 Arcade venues, and has a strong reputation among serious sim racers. This credibility supports a loyal, if specialized, community and underpins the company’s esports activities. The flip side is scale. MSGM competes indirectly with giants like Electronic Arts and Sony, which have much deeper pockets for development, marketing, and licensing. MSGM’s strength is depth in a specific simulation niche, not breadth across the wider racing or sports game markets. Its competitive position is therefore differentiated but narrow, and highly dependent on executing well on a small number of core titles and relationships.

Innovation and R&D

Innovation and R&D Innovation is one of MSGM’s clear bright spots. The company’s core simulation engine, derived from rFactor 2, is widely respected for its physics and tire modeling, giving it a strong technical base that is hard for new entrants to replicate quickly. Features like dynamic track evolution (“Real Road”), changing weather and lighting, and support for advanced hardware such as VR headsets create a level of realism that appeals strongly to dedicated sim racers. The open, moddable nature of rFactor 2 also encourages community‑driven content, effectively extending the life and richness of the platform at low direct cost. On top of the game technology, MSGM is building infrastructure around competition and engagement: the RaceControl platform, esports events, and partnerships such as Coach Dave Academy for setups and training. These are attempts to turn individual games into an ongoing ecosystem. Future innovation efforts seem focused on continued development of Le Mans Ultimate, expanding onto consoles, and further enhancing online and esports features. The constraint is financial: with limited resources, the company must prioritize carefully, and any delay or technical misstep can have an outsized impact given how central a few key projects are to its prospects.

Summary

MSGM is a highly specialized, small‑scale player in the racing game and sim racing market. Its financial history shows a move from heavy losses toward tighter control and near break‑even results, but on a very modest revenue base that leaves little room for error. The balance sheet is light and essentially unlevered, but also thinly capitalized, which heightens sensitivity to any operational setbacks. What sets the company apart is not size, but focus and technology. Its simulation engine, exclusive Le Mans and WEC licenses, and deep engagement with the hardcore sim racing community and esports give it a distinctive, if narrow, position. Innovation around physics, dynamic track conditions, VR, mod support, and the RaceControl ecosystem are notable strengths. At the same time, MSGM operates against much larger competitors, with limited financial resources and continued dependence on a small number of titles and partnerships. The story is one of a technically strong, niche specialist trying to stabilize and scale under tight financial constraints, where execution and careful capital management are critical to its future trajectory.

NEWS

November 6, 2025 · 4:10 PM UTC

Motorsport Games Reports Third Quarter 2025 Financial Results

Read more