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Motorsport Games Inc Financials

MSGM
Source SEC Filings (10-K/10-Q) Updated Mar 31, 2026 Currency USD FYE December

This page shows Motorsport Games Inc (MSGM) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI MSGM FY2025

FY2025 shows cost compression and margin expansion turning a still-small revenue base into cash-generating profitability.

On a revenue base of only $11.3M, operating income swung by about $19.6M over a short span, pointing to a different cost structure rather than scale doing the heavy lifting. Free cash flow of $4.1M nearly matched operating cash flow of $4.1M, a sign that the turnaround had real cash conversion and was not being consumed by reinvestment.

The biggest operating change was in gross margin: it reached 81.5% from 62.9% a year earlier, so each dollar of revenue carried far more contribution before overhead. With both SG&A and R&D lower in dollars, the company appears to have built a leaner overhead base around a smaller business rather than needing much higher sales to break even.

The balance sheet also changed character: cash rose to $5.0M from $859K, giving management more room to absorb volatility without immediate outside financing. Liquidity no longer looks squeezed, because current assets of $7.6M comfortably exceeded current liabilities of $3.4M, reversing the short-term funding pressure visible in prior years.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 35 / 100
Financial Profile 35/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Motorsport Games Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
0

Motorsport Games Inc has an operating margin of 28.8%, meaning the company retains $29 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -20.1% the prior year.

Growth
80

Motorsport Games Inc's revenue surged 30.0% year-over-year to $11.3M, reflecting rapid business expansion. This strong growth earns a score of 80/100.

Leverage
89

Motorsport Games Inc carries a low D/E ratio of 0.65, meaning only $0.65 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 89/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
42

Motorsport Games Inc's current ratio of 2.25 indicates adequate short-term liquidity, earning a score of 42/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
0

Motorsport Games Inc's free cash flow margin of 35.9% results in a low score of 0/100. Capital expenditures of $12K absorb a large share of operating cash flow.

Returns
0

Motorsport Games Inc generates a 102.3% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -554.7% the prior year.

Altman Z-Score Distress
-5.10

Motorsport Games Inc scores -5.10, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($18.7M) relative to total liabilities ($4.4M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Piotroski F-Score Neutral
5/9

Motorsport Games Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Mixed
0.59x

For every $1 of reported earnings, Motorsport Games Inc generates $0.59 in operating cash flow ($4.1M OCF vs $6.9M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Interest Coverage Safe
172.9x

Motorsport Games Inc earns $172.9 in operating income for every $1 of interest expense ($3.2M vs $19K). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue
$11.3M
YoY+30.0%
5Y CAGR-9.9%

Motorsport Games Inc generated $11.3M in revenue in fiscal year 2025. This represents an increase of 30.0% from the prior year.

EBITDA
$4.4M
YoY+420.6%
5Y CAGR+43.4%

Motorsport Games Inc's EBITDA was $4.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 420.6% from the prior year.

Net Income
$6.9M
YoY+351.7%

Motorsport Games Inc reported $6.9M in net income in fiscal year 2025. This represents an increase of 351.7% from the prior year.

EPS (Diluted)
$1.43
YoY+252.1%

Motorsport Games Inc earned $1.43 per diluted share (EPS) in fiscal year 2025. This represents an increase of 252.1% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$4.1M
YoY+241.8%
5Y CAGR+0.7%

Motorsport Games Inc generated $4.1M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 241.8% from the prior year.

Cash & Debt
$5.0M
YoY+481.1%
5Y CAGR+4.6%

Motorsport Games Inc held $5.0M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
N/A

Margins & Returns

Gross Margin
81.5%
YoY+18.6pp
5Y CAGR+16.1pp

Motorsport Games Inc's gross margin was 81.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 18.6 percentage points from the prior year.

Operating Margin
28.8%
YoY+48.9pp
5Y CAGR+28.8pp

Motorsport Games Inc's operating margin was 28.8% in fiscal year 2025, reflecting core business profitability. This is up 48.9 percentage points from the prior year.

Net Margin
61.3%
YoY+93.0pp
5Y CAGR+70.5pp

Motorsport Games Inc's net profit margin was 61.3% in fiscal year 2025, showing the share of revenue converted to profit. This is up 93.0 percentage points from the prior year.

Return on Equity
102.3%
YoY+657.0pp

Motorsport Games Inc's ROE was 102.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 657.0 percentage points from the prior year.

Capital Allocation

R&D Spending
$1.8M
YoY-47.9%
5Y CAGR-17.7%

Motorsport Games Inc invested $1.8M in research and development in fiscal year 2025. This represents a decrease of 47.9% from the prior year.

Share Buybacks
N/A
Capital Expenditures
$12K
YoY-51.8%
5Y CAGR-38.5%

Motorsport Games Inc invested $12K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 51.8% from the prior year.

MSGM Income Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Revenue $4.0M+4.8% $3.8M+24.1% $3.1M+19.6% $2.6M+47.4% $1.8M-10.9% $2.0M+9.5% $1.8M-4.2% $1.9M
Cost of Revenue $517K-10.1% $575K-3.8% $598K+31.4% $455K-2.3% $465K-56.5% $1.1M+49.4% $717K-7.1% $772K
Gross Profit $3.5M+7.4% $3.3M+30.8% $2.5M+17.1% $2.1M+65.3% $1.3M+43.2% $903K-16.9% $1.1M-2.1% $1.1M
R&D Expenses $514K+9.7% $469K+12.0% $419K+55.0% $270K-55.1% $602K+0.7% $598K-29.6% $849K-2.3% $869K
SG&A Expenses $1.7M-13.2% $2.0M+71.2% $1.1M+32.1% $865K-26.0% $1.2M-12.4% $1.3M-31.5% $1.9M+37.9% $1.4M
Operating Income $1.1M+83.7% $575K-28.0% $799K-59.4% $2.0M+2211.8% -$93K+85.9% -$661K+65.8% -$1.9M-193.8% $2.1M
Interest Expense $3K+905.3% -$398-127.8% $1K-69.7% $5K-63.6% $13K-57.0% $30K+1.4% $30K+0.4% $30K
Income Tax N/A N/A N/A N/A N/A N/A N/A N/A
Net Income $316K-62.4% $839K+6.3% $789K-81.5% $4.3M+309.0% $1.0M+139.4% -$2.6M-375.9% -$555K-126.3% $2.1M
EPS (Diluted) $0.06 N/A $0.14-82.9% $0.82+148.5% $0.33 N/A $-0.18-123.4% $0.77

MSGM Balance Sheet

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Total Assets $13.9M+16.0% $12.0M+18.5% $10.1M+23.9% $8.2M+34.5% $6.1M-3.3% $6.3M-10.1% $7.0M-3.3% $7.2M
Current Assets $9.1M+19.5% $7.6M+19.6% $6.3M+33.4% $4.8M+75.0% $2.7M-2.8% $2.8M+18.6% $2.4M+8.3% $2.2M
Cash & Equivalents $5.9M+17.3% $5.0M+20.9% $4.1M+74.5% $2.4M+125.2% $1.1M+22.2% $859K-21.9% $1.1M+266.7% $300K
Inventory N/A N/A N/A N/A N/A N/A N/A N/A
Accounts Receivable $2.3M+1.0% $2.2M+50.4% $1.5M-6.2% $1.6M+83.3% $868K-40.0% $1.4M+61.9% $894K+6.5% $840K
Goodwill N/A N/A N/A N/A N/A N/A N/A N/A
Total Liabilities $5.3M+21.3% $4.4M+32.7% $3.3M+28.0% $2.6M-44.4% $4.6M-7.8% $5.0M+75.1% $2.9M-31.1% $4.2M
Current Liabilities $3.9M+16.1% $3.4M+2.1% $3.3M+28.2% $2.6M-44.5% $4.6M-7.7% $5.0M N/A $4.1M
Long-Term Debt N/A N/A N/A N/A N/A N/A N/A N/A
Total Equity $7.1M+4.1% $6.8M+15.8% $5.9M+21.5% $4.8M+643.1% $648K+30.7% $496K-87.9% $4.1M-4.9% $4.3M
Retained Earnings -$84.5M+0.4% -$84.9M+1.0% -$85.7M+0.9% -$86.5M+4.7% -$90.7M+1.1% -$91.8M-6.3% -$86.3M0.0% -$86.4M

MSGM Cash Flow Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Operating Cash Flow $1.6M-5.2% $1.7M-15.4% $2.1M+2115.9% -$102K-127.1% $377K+134.6% -$1.1M-60.0% -$680K+2.2% -$696K
Capital Expenditures $22K+163.1% $8K N/A N/A N/A -$130 $0 N/A
Free Cash Flow $1.6M-6.0% $1.7M N/A N/A N/A -$1.1M-60.0% -$680K N/A
Investing Cash Flow -$650K-45.8% -$446K-45.3% -$307K N/A N/A $1.2M $0 N/A
Financing Cash Flow -$63K+85.6% -$440K-193.4% -$150K-108.0% $1.9M+946.2% -$222K $0-100.0% $884K $0
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks N/A N/A N/A N/A N/A N/A N/A N/A

MSGM Financial Ratios

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Gross Margin 87.2%+2.1pp 85.0%+4.3pp 80.7%-1.7pp 82.5%+8.9pp 73.5%+27.8pp 45.8%-14.5pp 60.3%+1.3pp 59.0%
Operating Margin 26.2%+11.3pp 14.9%-10.8pp 25.8%-50.2pp 75.9%+81.2pp -5.3%+28.2pp -33.5%+73.6pp -107.1%-216.6pp 109.4%
Net Margin 7.8%-14.0pp 21.8%-3.7pp 25.5%-138.8pp 164.3%+105.1pp 59.2%+192.9pp -133.7%-103.0pp -30.8%-142.7pp 111.9%
Return on Equity 4.5%-7.9pp 12.4%-1.1pp 13.5%-74.9pp 88.4%-72.2pp 160.5%+692.4pp -531.9%-518.3pp -13.6%-62.5pp 48.9%
Return on Assets 2.3%-4.7pp 7.0%-0.8pp 7.8%-44.4pp 52.2%+35.1pp 17.2%+59.3pp -42.1%-34.2pp -8.0%-37.2pp 29.2%
Current Ratio 2.32+0.1 2.25+0.3 1.92+0.1 1.85+1.3 0.59+0.0 0.56 N/A 0.53
Debt-to-Equity 0.76+0.1 0.65+0.1 0.56+0.0 0.54-6.6 7.17-3.0 10.16+9.5 0.70-0.3 0.97
FCF Margin 40.4%-4.6pp 45.0% N/A N/A N/A -55.1%-17.4pp -37.7% N/A

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Frequently Asked Questions

Motorsport Games Inc (MSGM) reported $11.3M in total revenue for fiscal year 2025. This represents a 30.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Motorsport Games Inc (MSGM) revenue grew by 30% year-over-year, from $8.7M to $11.3M in fiscal year 2025.

Yes, Motorsport Games Inc (MSGM) reported a net income of $6.9M in fiscal year 2025, with a net profit margin of 61.3%.

Motorsport Games Inc (MSGM) reported diluted earnings per share of $1.43 for fiscal year 2025. This represents a 252.1% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Motorsport Games Inc (MSGM) had EBITDA of $4.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

Motorsport Games Inc (MSGM) had a gross margin of 81.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Motorsport Games Inc (MSGM) had an operating margin of 28.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Motorsport Games Inc (MSGM) had a net profit margin of 61.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Motorsport Games Inc (MSGM) has a return on equity of 102.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Motorsport Games Inc (MSGM) generated $4.1M in free cash flow during fiscal year 2025. This represents a 241.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Motorsport Games Inc (MSGM) generated $4.1M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Motorsport Games Inc (MSGM) had $12.0M in total assets as of fiscal year 2025, including both current and long-term assets.

Motorsport Games Inc (MSGM) invested $12K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Motorsport Games Inc (MSGM) invested $1.8M in research and development during fiscal year 2025.

Motorsport Games Inc (MSGM) had a current ratio of 2.25 as of fiscal year 2025, which is generally considered healthy.

Motorsport Games Inc (MSGM) had a debt-to-equity ratio of 0.65 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Motorsport Games Inc (MSGM) had a return on assets of 57.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Motorsport Games Inc (MSGM) has an Altman Z-Score of -5.10, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Motorsport Games Inc (MSGM) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Motorsport Games Inc (MSGM) has an earnings quality ratio of 0.59x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Motorsport Games Inc (MSGM) has an interest coverage ratio of 172.9x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Motorsport Games Inc (MSGM) scores 35 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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