Motorsport Games (MSGM) AI Stock Analysis

• Market Cap: $16.12M
• Dividend Yield: N/A
• Average Volume (3M): 4.45M
• Price to Earnings (P/E): 30.3
• 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: 466,923
• 30 Day Avg. Volume: 4,446,613
• 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: 0.75
• 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: 55 Neutral
• Price Target: $3.00 ▲(6.01% Upside)

Motorsport Games' overall stock score is primarily influenced by its financial performance challenges, including high leverage and cash flow issues. However, recent earnings call highlights, such as improved profitability and revenue growth, provide a positive outlook. Technical indicators suggest moderate bullish momentum, while valuation remains a concern due to a high P/E ratio.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and successful product launches, enhancing long-term business prospects.

Profitability Improvement

Improved profitability reflects effective cost management and operational efficiency, contributing to sustainable financial health.

Cash Flow Improvement

Enhanced cash flow strengthens financial flexibility, supporting future investments and reducing reliance on external financing.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to invest in growth and weather economic downturns.

Cash Flow Challenges

Ongoing cash flow issues may hinder the company's ability to fund operations and invest in strategic initiatives, impacting growth.

NASCAR Revenue Loss

Loss of NASCAR-related revenues reduces diversification and could impact revenue stability, necessitating new revenue streams.

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: Negative
• 200DMA: Positive
• MACD: Positive
• 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 below the 20-day moving average (MA) of 2.89, above the 50-day MA of 2.69, and above the 200-day MA of 2.47, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 27.71 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%
MSGM	55 Neutral	$16.12M	30.33	44.93%	―	11.38%	-94.39%
GIGM	54 Neutral	$16.63M	―	-3.14%	―	10.15%	67.65%
MYPS	44 Neutral	$80.96M	―	-14.82%	―	-17.17%	-51.88%
SKLZ	38 Underperform	$85.56M	―	-41.47%	―	-6.43%	-85.63%

Motorsport Games Corporate Events

Motorsport Games Earnings Call Highlights Profit and Growth

The recent earnings call for Motorsport Games, Inc. was marked by a generally positive sentiment, reflecting significant improvements in profitability, revenue growth, and cash flow. The success of the Le Mans Ultimate title was a key driver of these positive results. Additionally, the initiation of console development and the removal of going concern disclosures were highlighted as positive indicators for the company’s future. Despite the loss of NASCAR-related revenues, the overall sentiment was optimistic, with positive developments outweighing the challenges.

Motorsport Games Reports Strong Q3 2025 Performance

Motorsport Games, Inc. is a developer, publisher, and esports ecosystem provider specializing in racing games, operating within the video game industry and known for its realistic motorsport simulations and partnerships with iconic racing series.

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.

The most recent analyst rating on (MSGM) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Motorsport Games stock, see the MSGM Stock Forecast page.

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.

The most recent analyst rating on (MSGM) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Motorsport Games stock, see the MSGM Stock Forecast page.

Motorsport Games Updates Executive Compensation Packages

On August 29, 2025, Motorsport Games Inc. announced updates to the compensation packages for its executive officers and board members. The Compensation Committee, with insights from Alliant Human Capital, recommended salary increases and bonuses for the CEO and CFO, effective September 1, 2025, while also setting performance metrics for 2025 bonuses. The Board also approved changes to board member compensation, including increased cash retainers and committee-specific fees, but no equity awards were granted due to stockholder approval issues. These changes reflect the company’s efforts to align compensation with market standards and maintain competitive reward structures.

The most recent analyst rating on (MSGM) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Motorsport Games stock, see the MSGM Stock Forecast page.

Motorsport Games Reports Positive Turnaround in Earnings Call

The latest earnings call for Motorsport Games, Inc. paints a picture of a company on the upswing, marked by a positive turnaround. The call highlighted record revenues from the Le Mans Ultimate title, substantial growth in subscription services, and the first-ever positive income from operations. Despite challenges such as the loss of NASCAR revenues and limited cash reserves, the company has shown significant improvements in its financial and operational metrics.