Motorsport Games (MSGM) AI Stock Analysis

• Market Cap: $17.68M
• Dividend Yield: N/A
• Average Volume (3M): 3.99M
• Price to Earnings (P/E): 33.3
• Beta (1Y): -0.67
• Revenue Growth: 11.38%
• EPS Growth: -94.39%
• Country: US
• Employees: 22
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.14
• Shares Outstanding: 5,078,450
• 10 Day Avg. Volume: 88,881
• 30 Day Avg. Volume: 3,991,239
• PEG Ratio: 0.02
• Price to Book (P/B): 7.89
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -1.37
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 2.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1.75
• Revenue Forecast (FY): $14.40M

• Rating: 50 Neutral
• Price Target: $2.50 ▼(-11.66% Downside)

Motorsport Games' overall stock score reflects significant financial challenges and mixed technical indicators. However, recent earnings call highlights and corporate events show promising strategic developments, particularly in profitability and market expansion. The stock's valuation is moderate, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful product expansion, particularly with the Le Mans Ultimate title.

Profitability Improvement

Achieving net income reflects operational improvements and strategic success, enhancing long-term financial stability.

Console Market Expansion

Entering the console market can significantly broaden the customer base and revenue streams, supporting future growth.

Negative Factors

High Leverage

High leverage poses risks to financial flexibility and increases vulnerability to economic downturns, impacting long-term stability.

Cash Flow Challenges

Negative cash flows indicate inefficiencies in operations, potentially hindering investment in growth opportunities and financial health.

NASCAR Revenue Loss

Loss of NASCAR-related revenue reduces diversification and can impact overall revenue stability, necessitating new growth strategies.

Motorsport Games Business Overview & Revenue Model

Company Description

Motorsport Games (MSGM) is a global racing game developer and publisher, focused on creating immersive gaming experiences centered around motorsport. The company operates primarily in the interactive entertainment sector, specializing in the development of high-quality racing simulations and arcade-style racing games. Its core products include officially licensed titles based on renowned motorsport brands and series, such as NASCAR and Le Mans, alongside various eSports initiatives that engage racing enthusiasts and gamers alike.

How the Company Makes Money

Motorsport Games generates revenue through multiple streams, primarily from the sale of video games across various platforms, including digital downloads and physical copies. The company benefits from licensing agreements with major motorsport organizations, allowing it to produce games featuring authentic branding and vehicles, which enhances their appeal and marketability. Additionally, MSGM earns money through in-game purchases, downloadable content (DLC), and expansion packs that provide players with new features, vehicles, and tracks. The company also pursues revenue through eSports events and sponsorships, capitalizing on the growing popularity of competitive gaming in the motorsport sector. Strategic partnerships with automotive brands and sponsorship deals further contribute to its earnings, as well as potential revenue from advertising and merchandising related to their gaming franchises.

Motorsport Games Financial Statement Overview

Summary

Motorsport Games faces significant financial challenges, including persistent losses, high leverage, and cash flow issues. Despite some positive signs in gross profit margins and slight improvements in cash management, overall stability and profitability remain concerns.

Income Statement

Motorsport Games has struggled to maintain consistent revenue growth, with revenue declining from 2020 to 2021 and then improving slightly in subsequent years. The company has consistently posted negative net income, indicating ongoing profitability challenges. While gross profit margin has shown some resilience, EBIT and EBITDA margins remain weak, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows high leverage with a fluctuating but generally negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is concerning, though it has improved slightly with decreased total debt. The company's equity ratio is weak, reflecting a low proportion of equity financing relative to total assets.

Cash Flow

Cash flow management remains a significant challenge, as indicated by consistently negative operating and free cash flows. The operating cash flow to net income ratio suggests inefficiencies in converting income into cash flow. While there has been some improvement in free cash flow growth, overall cash flow performance is poor, necessitating further improvements in operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.42M	8.69M	6.91M	10.32M	15.08M	19.05M
Gross Profit	6.84M	5.46M	3.29M	5.36M	7.55M	12.45M
EBITDA	5.27M	-337.88K	-11.43M	-33.63M	-31.42M	757.82K
Net Income	2.23M	-2.75M	-14.32M	-35.99M	-33.16M	-1.76M
Balance Sheet
Total Assets	10.10M	6.27M	9.76M	18.90M	50.70M	17.39M
Cash, Cash Equivalents and Short-Term Investments	4.13M	859.27K	1.68M	979.31K	17.82M	3.99M
Total Debt	26.12K	47.41K	198.67K	997.83K	119.02K	10.85M
Total Liabilities	3.31M	5.04M	7.67M	16.99M	12.72M	15.77M
Stockholders Equity	5.85M	496.26K	1.04M	1.53M	36.72M	-1.03M
Cash Flow
Free Cash Flow	-115.32K	-2.86M	-13.71M	-19.81M	-21.70M	3.92M
Operating Cash Flow	191.44K	-2.84M	-12.92M	-19.52M	-20.94M	4.05M
Investing Cash Flow	529.74K	1.18M	4.21M	-292.45K	-14.39M	-1.80M
Financing Cash Flow	1.50M	834.05K	9.94M	1.71M	49.26M	-225.85K

Motorsport Games Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSGM, the sentiment is Positive. The current price of 2.83 is above the 20-day moving average (MA) of 2.77, above the 50-day MA of 2.70, and above the 200-day MA of 2.59, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.88 is Neutral, neither overbought nor oversold. The STOCH value of 70.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSGM.

Motorsport Games Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GIGM	54 Neutral	$16.58M	-13.09	-3.14%	―	10.15%	67.65%
MSGM	50 Neutral	$17.68M	33.26	44.93%	―	11.38%	-94.39%
SKLZ	46 Neutral	$73.43M	-1.00	-48.34%	―	-8.99%	-117.83%
MYPS	46 Neutral	$83.00M	―	-14.82%	―	-17.17%	-51.88%

Motorsport Games Corporate Events

Motorsport Games Reports Strong Q3 2025 Financial Results

Motorsport Games reported its financial results for the third quarter of 2025, showing a significant improvement in revenue and profitability compared to the previous year. The company’s revenue increased by 71.9% to $3.1 million, and it achieved a net income of $0.8 million, driven by the success of its Le Mans Ultimate title and the release of new content. The company also announced plans for a console port of Le Mans Ultimate, expected between late 2026 and early 2027, indicating a strategic expansion into the console gaming market.

Motorsport Games Stockholders Reject Key Proposals

On October 24, 2025, Motorsport Games Inc. held a Special Meeting of Stockholders where two proposals were voted on, both of which were not approved by the stockholders. The first proposal, concerning the exercise of warrants to purchase shares of Class A common stock, was rejected, as was the second proposal, which sought to adjourn the meeting for further proxy solicitation if necessary. The outcome of these votes may affect the company’s ability to execute certain financial strategies, potentially impacting its market positioning and stakeholder interests.