Motorsport Games (MSGM)
NASDAQ:MSGM
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Motorsport Games
(NASDAQ:MSGM)
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Rating:72Outperform
Price Target:
$5.00
▲(76.68% Upside)
Action:ReiteratedDate:03/17/26
The score is driven primarily by the 2025 financial turnaround (profitability, positive free cash flow, and low leverage) and supportive technical trend/momentum. Valuation is a positive tailwind due to the very low P/E, while the overall rating is tempered by the historical volatility of results and the identified NASCAR revenue loss.
Positive Factors
Profitability Turnaround
A sustained move to high gross and net margins across 2025 indicates the company has a structurally profitable cost and monetization model for its core titles. Consecutive profitable quarters improve internal funding capacity for development and reduce dependence on external financing over the next several quarters.
Negative Factors
Historic Profit/Cash Volatility
The sharp one-year turnaround follows years of losses and cash burn, highlighting earnings and cash-flow volatility. Such swings imply execution and revenue risks remain; investors need multiple quarters of consistent free cash flow to consider the margin profile and profitability durable across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
A sustained move to high gross and net margins across 2025 indicates the company has a structurally profitable cost and monetization model for its core titles. Consecutive profitable quarters improve internal funding capacity for development and reduce dependence on external financing over the next several quarters.
Read all positive factors
Motorsport Games (MSGM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.46M
Dividend YieldN/A
Average Volume (3M)465.11K
Price to Earnings (P/E)4.6
Beta (1Y)-0.64
Revenue Growth11.38%
EPS Growth-94.39%
CountryUS
Employees22
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.15
Shares Outstanding5,078,450
10 Day Avg. Volume86,980
30 Day Avg. Volume465,105
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.26
Price to Sales (P/S)1.36
P/FCF Ratio3.78
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit1.71
Enterprise Value/Ebitda5.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.92
Revenue Forecast (FY)$18.80M
Motorsport Games Business Overview & Revenue Model
Company Description
Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers video games for game consoles, personal computer, and mobile platforms through...
How the Company Makes Money
Motorsport Games primarily generates revenue from (1) sales of its racing video games (digital downloads and, where applicable, physical retail units) and (2) post-launch monetization tied to those games, such as downloadable content (DLC) and oth...
Motorsport Games Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in profitability, revenue growth, and cash flow, driven by the success of the Le Mans Ultimate title. The initiation of console development and removal of going concern disclosures were also positive indicators. However, the loss of NASCAR-related revenues was a notable challenge. Overall, the positive developments significantly outweigh the lowlights.Positive Updates
Profit Generation Phase
Motorsport Games has entered a profit generation phase, reporting operational profit for the second consecutive quarter.
Negative Updates
NASCAR-Related Revenue Loss
There was a $1 million decrease in NASCAR-related revenues due to the company no longer being authorized to sell the gaming title starting in 2025.
Read all updates
Q3-2025 Updates
Positive
Negative
Profit Generation Phase
Motorsport Games has entered a profit generation phase, reporting operational profit for the second consecutive quarter.
Read all positive updates
Company Guidance
During Motorsport Games' Third Quarter 2025 Earnings Call, significant positive metrics were shared, highlighting the company's continued success and growth. Revenues for the quarter increased by $1.3 million, or 71.9%, compared to the previous year, largely driven by a $1.8 million boost from Le Mans Ultimate sales, which included DLCs. The company reported a net income of $0.8 million, a stark improvement from a net loss of $0.6 million in the same period last year, marking a notable $1.4 million turnaround. This quarter marked the second consecutive quarter of generating income from operations, with the adjusted EBITDA reaching $1.1 million, up from $0.1 million the previous year. Cash and cash equivalents also showed growth, increasing from $4.1 million as of September 30, 2025, to $4.5 million by October 31, 2025. This financial recovery is attributed to strategic restructuring, the expansion of the Le Mans Ultimate gaming product, and the success of the RaceControl platform, culminating in the removal of prior going concern disclosures from their financial reports.Motorsport Games Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.30M | 8.69M | 6.91M | 10.32M | 15.08M |
| Gross Profit | 9.16M | 5.46M | 3.29M | 5.36M | 7.55M |
| EBITDA | 2.76M | -337.88K | -11.43M | -33.63M | -31.42M |
| Net Income | 6.93M | -2.75M | -14.32M | -35.99M | -33.16M |
Balance Sheet | |||||
| Total Assets | 11.97M | 6.27M | 9.76M | 18.90M | 50.70M |
| Cash, Cash Equivalents and Short-Term Investments | 4.99M | 859.27K | 1.68M | 979.31K | 17.82M |
| Total Debt | 17.57K | 47.41K | 198.67K | 997.83K | 119.02K |
| Total Liabilities | 4.39M | 5.04M | 7.67M | 16.99M | 12.72M |
| Stockholders Equity | 6.78M | 496.26K | 1.04M | 1.53M | 36.72M |
Cash Flow | |||||
| Free Cash Flow | 4.06M | -2.86M | -13.71M | -19.81M | -21.70M |
| Operating Cash Flow | 4.07M | -2.84M | -12.92M | -19.52M | -20.94M |
| Investing Cash Flow | -1.12M | 1.18M | 4.21M | -292.45K | -14.39M |
| Financing Cash Flow | 1.06M | 834.05K | 9.94M | 1.71M | 49.26M |
Motorsport Games Technical Analysis
Positive
2.83
Price Trends
3.86
Positive
3.40
Positive
3.15
Positive
Market Momentum
0.12
Positive
51.68
Neutral
45.59
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 below the 20-day moving average (MA) of 4.18, below the 50-day MA of 3.86, and below the 200-day MA of 3.15, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 45.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSGM.
Motorsport Games Risk Analysis
Motorsport Games disclosed 70 risk factors in its most recent earnings report. Motorsport Games reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Motorsport Games Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $23.46M | 4.57 | 44.93% | ― | 11.38% | -94.39% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | $16.47M | -11.10 | -3.14% | ― | 10.15% | 67.65% | |
49 Neutral | $57.61M | -2.86 | -15.36% | ― | -17.17% | -51.88% | |
45 Neutral | $36.11M | -1.76 | -45.42% | ― | -8.99% | -117.83% |
* Communication Services Sector Average
MSGM
Motorsport Games
4.06
2.95
265.77%
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SKLZ
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MYPS
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0.45
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-65.73%
Motorsport Games Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Motorsport Games Reports Profitable 2025 and Growth Momentum
Positive
Mar 10, 2026
Motorsport Games reported that 2025 marked a turnaround year, with the March 10, 2026 release showing the company swung from a net loss of $3.0 million in 2024 to net income of $6.8 million, or $1.43 per share, on full-year revenue of $11.3 millio...
Private Placements and Financing
Motorsport Games Secures $3 Million Revolving Credit Facility
Neutral
Feb 25, 2026
On February 20, 2026, Motorsport Games Inc. entered into a business loan agreement with Citibank, securing a revolving line of credit of up to $3 million at a floating interest rate tied to Adjusted Term SOFR plus 2.250%, with a maturity date of F...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.