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:Reiterated
Date:05/15/26
MSGM scores well primarily on improved financial performance (profit and cash-flow turnaround with low leverage) and a supportive technical trend (price above key moving averages with positive MACD). The score is tempered by execution/visibility risks highlighted on the earnings call (no formal guidance, liquidity impact from the repurchase and subsequent revolver draw, and uncertain console timing) and only moderate valuation support (P/E ~17.7 with no dividend yield provided).
Positive Factors
Cash generation turnaround
Motorsport Games has shifted from multi-year cash burn to consistent positive operating and free cash flow. Durable cash generation supports reinvestment in content, funds recurring-op model work, and reduces dependency on external financing, improving resilience over the next 2–6 months.
Negative Factors
Console timing uncertainty
Delayed or uncertain console launches can materially postpone large, durable revenue pools and broader market exposure. Console availability is a structural growth driver for AAA-adjacent titles; timing ambiguity impairs visibility into multi-quarter revenue scaling and platform diversification.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation turnaround
Motorsport Games has shifted from multi-year cash burn to consistent positive operating and free cash flow. Durable cash generation supports reinvestment in content, funds recurring-op model work, and reduces dependency on external financing, improving resilience over the next 2–6 months.
Read all positive factors
Motorsport Games (MSGM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.00M
Dividend YieldN/A
Average Volume (3M)465.11K
Price to Earnings (P/E)17.7
Beta (1Y)-0.48
Revenue Growth82.97%
EPS Growth21220.00%
CountryUS
Employees22
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)1.17
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 Cap0.69
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit1.58
Enterprise Value/Ebitda6.59
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 by selling racing video games it publishes (digital downloads and, where applicable, physical retail sales) across PC and console platforms. A second major revenue stream is post-launch monetization, in...
Motorsport Games Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: robust revenue growth (+129.3% YoY), significant engagement gains for Le Mans Ultimate (peak +118% YoY; average +169% YoY), accelerating recurring revenue from RaceControl (MRR > $0.2M; RaceControl = 19% of revenue), and materially improved adjusted EBITDA (+$0.9M). These achievements were balanced against near-term liquidity effects from a $3.7M share repurchase that reduced cash balances, EPS compression, uncertainty on console timing, and some increased stock-based compensation. Overall, the company framed the quarter as a transition to stronger governance, recurring revenue, and a foundation for future growth.Positive Updates
Revenue Growth
Total revenues of $4.0 million in Q1 2026, up $2.3 million or 129.3% year-over-year, driven primarily by Le Mans Ultimate sales (+$1.6M) and RaceControl subscriptions (+$0.7M).
Negative Updates
Cash Decline After Share Repurchase
Cash and cash equivalents decreased from $5.9 million as of March 31, 2026 to $3.8 million in April 2026 following a $3.7 million repurchase, a cash decline of $2.1 million (≈35.6% from the March balance).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenues of $4.0 million in Q1 2026, up $2.3 million or 129.3% year-over-year, driven primarily by Le Mans Ultimate sales (+$1.6M) and RaceControl subscriptions (+$0.7M).
Read all positive updates
Company Guidance
Management said it would not provide formal forward-looking guidance today but outlined timing and strategic milestones while citing many Q1 metrics: revenues were $4.0M (up $2.3M or 129.3% YoY) driven by a $1.6M increase in Le Mans Ultimate sales and $0.7M higher RaceControl subscriptions; RaceControl subscription revenue was $0.8M in Q1 (19% of total) with MRR > $0.2M; adjusted EBITDA was $1.5M vs $0.6M a year ago; net income was approximately $1.0M with net income per Class A $0.06 (vs $0.33); peak concurrent players topped >8,800 on March 31 (+118% YoY) and average concurrent users grew 169%; cash and cash equivalents were $5.9M at March 31 (down to $3.8M in April after a $3.7M repurchase of 904,395 shares and retirement of Class B super‑voting shares), average operating cash inflow was ~$0.5M/month in Q1, working capital was $5.2M (vs $4.2M at year‑end), and the company has a $3.0M Citibank revolver (no draw at Mar 31, $1.2M drawn at Apr 30); management plans a June update for Le Mans Ultimate, expects to provide console timing as they enter 2027, and will discuss a new project and 2027 growth plans on the Q3 call.Motorsport Games Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.57M | 11.30M | 8.69M | 6.91M | 10.32M | 15.08M |
| Gross Profit | 11.37M | 9.16M | 5.46M | 3.29M | 5.36M | 7.55M |
| EBITDA | 2.74M | 2.76M | -337.88K | -11.43M | -33.63M | -31.42M |
| Net Income | 6.20M | 6.93M | -2.75M | -14.32M | -35.99M | -33.16M |
Balance Sheet | ||||||
| Total Assets | 13.88M | 11.97M | 6.27M | 9.76M | 18.90M | 50.70M |
| Cash, Cash Equivalents and Short-Term Investments | 5.86M | 4.99M | 859.27K | 1.68M | 979.31K | 17.82M |
| Total Debt | 8.72K | 17.57K | 47.41K | 198.67K | 997.83K | 119.02K |
| Total Liabilities | 5.32M | 4.39M | 5.04M | 7.67M | 16.99M | 12.72M |
| Stockholders Equity | 7.05M | 6.78M | 496.26K | 1.04M | 1.53M | 36.72M |
Cash Flow | ||||||
| Free Cash Flow | 4.64M | 4.06M | -2.86M | -13.71M | -19.81M | -21.70M |
| Operating Cash Flow | 5.42M | 4.07M | -2.84M | -12.92M | -19.52M | -20.94M |
| Investing Cash Flow | -1.77M | -1.12M | 1.18M | 4.21M | -292.45K | -14.39M |
| Financing Cash Flow | 1.15M | 1.06M | 834.05K | 9.94M | 1.71M | 49.26M |
Motorsport Games Technical Analysis
Positive
2.83
Price Trends
4.26
Positive
3.91
Positive
3.36
Positive
Market Momentum
0.19
Positive
54.67
Neutral
38.73
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 4.49, below the 50-day MA of 4.26, and below the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 38.73 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 64 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 | $26.00M | 17.71 | 153.14% | ― | 82.97% | 21220.00% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $63.08M | -1.40 | -15.65% | ― | -15.86% | -16.59% | |
50 Neutral | $97.86M | -0.94 | -55.16% | ― | 21.25% | -77.13% | |
46 Neutral | $16.03M | -4.51 | -3.14% | ― | 16.97% | 34.07% |
* Communication Services Sector Average
MSGM
Motorsport Games
4.70
1.81
62.63%
GIGM
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1.41
-0.03
-1.74%
NCTY
The9
5.33
-6.94
-56.56%
GDC
GD Culture Group
0.14
-2.03
-93.36%
SKLZ
Skillz
6.60
0.21
3.29%
MYPS
PLAYSTUDIOS
0.47
-1.03
-68.53%
Motorsport Games Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Motorsport Games Reports Strong Q1 Growth and Stability
Positive
May 13, 2026
Motorsport Games reported on May 13, 2026, that first-quarter 2026 revenue rose 129.3% year on year to $4.0 million, driven by strong performance of its Le Mans Ultimate title and growing RaceControl subscriptions, while maintaining net income of ...
Stock BuybackPrivate Placements and FinancingRegulatory Filings and ComplianceShareholder Meetings
Motorsport Games Shareholders Approve Exercisability of Warrants
Positive
Apr 24, 2026
At its April 23, 2026 Annual Meeting of Stockholders, Motorsport Games obtained shareholder approval for the exercisability of warrants issued on July 29, 2024 to purchase up to 949,310 shares of Class A common stock under Nasdaq rules. The warran...
Business Operations and StrategyExecutive/Board ChangesStock BuybackRegulatory Filings and ComplianceShareholder Meetings
Motorsport Games Repurchase Shifts Control, Governance Updated
Positive
Apr 23, 2026
On April 22, 2026, Motorsport Games entered into a share repurchase agreement with Driven Lifestyle Group to buy back 904,395 Class A shares at $4.11 each, triggering the cancellation of all Class B shares held by Driven Lifestyle and shifting con...
Shareholder Meetings
Motorsport Games Adjourns 2026 Shareholder Meeting for Quorum
Negative
Apr 21, 2026
On April 21, 2026, Motorsport Games reconvened its 2026 annual meeting of shareholders but adjourned it without conducting any business because a quorum of common stockholders was not present or represented by proxy. The meeting is scheduled to re...
Business Operations and StrategyShareholder Meetings
Motorsport Games Adjourns Annual Meeting Amid Quorum Shortfall
Negative
Apr 17, 2026
Motorsport Games Inc., a racing game developer, publisher and esports ecosystem provider focused on officially licensed motorsport series and simulation platforms such as rFactor 2 and KartKraft, continues to build out its portfolio around marquee...
Business Operations and StrategyExecutive/Board Changes
Motorsport Games Strengthens Leadership With New CEO, CFO
Positive
Apr 2, 2026
On March 27, 2026, Motorsport Games appointed Stephen Hood as chief executive officer under a new employment agreement that sets a £378,000 base salary, a performance-based bonus opportunity equal to 50% of salary, and potential equity awards...
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.