Motorsport Games Reports Third Quarter 2026 Financial Results
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Rhea-AI Summary
Motorsport Games (NASDAQ: MSGM) reported third-quarter 2026 revenue of $3.8 million, extending its run of positive net income to seven quarters. Revenue rose 21.8% year over year, while operating income increased 52.4% to $1.2 million and gross margin reached 88.0%, versus 80.7%. Net income fell to approximately $0.7 million from approximately $0.8 million, mainly reflecting a $0.5 million tax provision. Income attributable to Motorsport Games was approximately $0.3 million, or $0.07 per share, versus approximately $0.8 million, or $0.14.
Nine-month revenue rose 52.3% to approximately $11.3 million. RaceControl subscription revenue grew approximately 186.2% to approximately $2.0 million, with more than 45,000 paid subscribers at September 30. Cash stood at approximately $5.4 million, after a $3.7 million second-quarter share repurchase and approximately $0.9 million from August warrant exercises.
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Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointSecond-quarter repurchases returned $3.7 million through the purchase of 904,395 Class A shares. 19% of market cap
- Moderate pointThird-quarter revenue rose 21.8% year over year to approximately $3.8 million, also increasing 6.7% sequentially.
- Moderate pointThird-quarter gross profit increased 32.8% to $3.3 million; margin expanded to 88.0% from 80.7%.
- Moderate pointThird-quarter operating income rose 52.4% to $1.2 million, marking six consecutive quarters of positive operating income.
- Moderate pointRaceControl nine-month subscription revenue increased approximately 186.2% to approximately $2.0 million, representing approximately 17.3% of revenue versus approximately 9.2%.
- Moderate pointRaceControl annual recurring revenue reached approximately $3.4 million, up from approximately $2.9 million at June 30, 2026.
- Moderate pointThird-quarter pretax income rose 47.0% to $1.1 million from $0.8 million a year earlier.
- Moderate pointThird-quarter adjusted EBITDA rose 75.7% to $1.8 million, versus $1.0 million a year earlier and $0.8 million sequentially.
- Moderate pointNine-month operating cash flow increased to approximately $4.1 million from $2.8 million, reflecting profitability and software capitalization.
- Moderate pointTotal stockholders' equity increased to $8.2 million from $1.2 million at December 31, 2024.
- Moderate pointAugust warrant exercises generated approximately $0.9 million and reduced outstanding warrants. 4.6% of market cap
- Moderate pointCitibank revolving credit provides $3 million in funding capacity, with maturity extended to February 20, 2028. 15% of market cap
14 minor points
- Minor pointNine-month revenue increased 52.3% to approximately $11.3 million versus the same period in 2025.
- Minor pointNine-month gross profit increased 64.1% to $9.7 million; margin expanded to 85.8% from 79.6%.
- Minor pointNine-month operating income reached $2.9 million versus $2.7 million, despite $1.6 million of prior-year other operating income not recurring.
- Minor pointRaceControl paid subscribers exceeded 45,000 at September 30, 2026, growing more than 157% year over year organically.
- Minor pointLe Mans Ultimate surpassed 2 million combined base-game and individual downloadable-content unit sales by October 31, 2026.
- Minor pointLe Mans Ultimate Version 1.4 delivered the game's biggest downloadable-content launch-day revenue following its July 28, 2026 release.
- Minor pointThird-quarter development expense fell to $0.1 million from $0.4 million, reflecting tax relief and greater development-cost capitalization.
- Minor pointInternally developed software capitalization reached $1.7 million versus $0.7 million over nine months, reflecting continued development investment.
- Minor pointNine-month adjusted EBITDA increased 99.0% to $4.0 million, compared with $2.0 million a year earlier.
- Minor pointNon-GAAP adjusted diluted earnings per share reached $0.19 versus $0.18 quarterly and $0.51 versus $0.45 over nine months.
- Minor pointCash increased to approximately $5.4 million at September 30, 2026, from $4.1 million a year earlier.
- Minor pointWorking capital increased to $4.2 million at September 30, 2026, from $3.0 million a year earlier.
- Minor pointAccounts payable decreased to $0.4 million from $3.0 million at December 31, 2024.
- Minor pointDeferred revenue reached $1.6 million versus $1.1 million a year earlier, the highest quarter-end balance since the IPO.
Negative
- Moderate pointThird-quarter net income declined to approximately $0.7 million from approximately $0.8 million, despite seven consecutive profitable quarters.
- Moderate pointAugust warrant exercises issued 414,747 Class A shares, diluting existing holders.
- Moderate pointCitibank revolving credit had $1.2 million drawn as of September 30, 2026. 6.1% of market cap
- Minor pointThird-quarter attributable net income fell to approximately $0.3 million, or $0.07 per share, from approximately $0.8 million, or $0.14.
- Minor pointThird-quarter income tax provision of $0.5 million related to Dutch subsidiary Studio397 reduced net income.
- Minor point. Forward-looking: it has not happened yet and may not happen.UK Video Games Tax Relief reduced development expense by approximately $0.69 million; future claim timing and amounts will vary.
News Explained
The completed warrant exercise added 414,747 shares; the $3 million credit line had $1.2 million drawn as of September 30, 2026.
In its third-quarter results, Motorsport Games reported that the August warrant exercise had already issued 414,747 Class A shares for approximately
As of
Key Figures
- Q3 revenue
- Approximately $3.8 million vs. approximately $3.1 million; up 21.8%
- Q3 2026 vs. Q3 2025
- Nine-month revenue
- Approximately $11.3 million vs. approximately $7.4 million; up 52.3%
- Nine months ended September 30, 2026 vs. the same period in 2025
- Net income attributable to Motorsport Games
- Approximately $0.3 million vs. approximately $0.8 million
- Q3 2026 vs. Q3 2025
- Income from operations
- $1.2 million vs. $0.8 million; up 52.4%
- Q3 2026 vs. Q3 2025
- Gross profit margin
- 88.0% vs. 80.7%
- Q3 2026 vs. Q3 2025
- Adjusted EBITDA
- $1.8 million vs. $1.0 million; up 75.7%
- Q3 2026 vs. Q3 2025
- Cash flow from operations
- Approximately $4.1 million vs. $2.8 million
- Nine months ended September 30, 2026 vs. the same period in 2025
- Cash and cash equivalents
- Approximately $5.4 million vs. $4.1 million
- As of September 30, 2026 vs. September 30, 2025
Previous Earnings Reports
-
Q2 revenue grew, net income marked a sixth profitable quarter, and RaceControl ARR reached approximately $2.9 million.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted ebitda financial
annual recurring revenues (arr) financial
deferred revenue financial
warrants financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MIRAMAR, Fla., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or “the Company”) today reported financial results for its third quarter ended September 30, 2026. The Company has also posted third quarter 2026 earnings slides highlighting key milestones that occurred during and subsequent to the period, which are accessible on the Company’s investor relations website.
Stephen Hood, President and Chief Executive Officer of Motorsport Games commented “It is pleasing to again extend our profitability streak, now to seven consecutive quarters. Our gross margin has continued to expand alongside that growth, so we are generating more revenue and with more of every dollar generated staying inside the business.”
“We’re pleased to share that our Le Mans Ultimate game has now passed two million unit sales. More than 520,000 players own the base game and have bought 1.5 million pieces of downloadable content. During the quarter we brought yet more content to Le Mans Ultimate that reaches beyond the Le Mans and European racing audience with our second installment of the U.S. Track Pass, which is expected to be completed with Pack 3 in December 2026 offering two more popular circuits. Subsequent to the period, we’re also pleased to share that our recent 24 Hours of Le Mans Special Event in October helped set a new all-time peak of 11,941 concurrent players on the game – up more than 3,000 on the previous record. During this event we ran multiple simultaneous 24-hour events for players, entirely run on our RaceControl platform.”
Hood continued, “In December, the updated version of RaceControl’s web portal at racecontrol.gg will run entirely on our own technology, allowing players to engage with our ecosystem on mobile, tablet and desktop wherever they are, and adding new features to delight our players. We believe owning and operating the whole platform will give us complete control and faster development, protecting a head start that we believe is significant. RaceControl is already central to what we offer, and it will continue to form the backbone of our online player experience for years to come.”
“It is clear to see that the business is improving its financial position and our recovery is complete. The focus is now on using that momentum to power the next stage of growth, building a larger, more diversified business.
Peter Hansen-Chambers, Chief Financial Officer, added, “The balance sheet is where our progress is clearest. We ended September with
Third Quarter 2026 Highlights and Subsequent Business Update
During the third quarter of 2026, Motorsport Games continued to grow revenue and profitability. It expanded Le Mans Ultimate content through the release of new downloadable content (DLC), continued to invest in new product, while strengthening its balance sheet and positioning the Company for longer term growth.
- Generated revenues of
$3.8 million in Q3 2026 compared to$3.1 million in Q3 2025, an increase of$0.7 million , or21.8% ; revenues for the nine months ended September 30, 2026 were$11.3 million , compared to$7.4 million for the same period in 2025, an increase of$3.9 million or52.3% and slightly exceeding the Company’s full-year 2025 revenues of$11.3 million . - RaceControl subscription revenues grew to approximately
$2.0 million for the nine months ended September 30, 2026, up from approximately$0.7 million for the same period in 2025, an increase of approximately186.2% . RaceControl is currently on track to generate approximately$3.4 million in annual recurring revenues (ARR), up from approximately$2.9 million as of June 30, 2026. As of September 30, 2026, RaceControl had more than 45,000 paid subscribers, an increase of more than157% compared to September 30, 2025, achieved entirely through organic growth. - Released Le Mans Ultimate Version 1.4 on July 28, 2026, featuring U.S. Track Pack 1, including Daytona International Speedway and WeatherTech Raceway Laguna Seca race circuits. It achieved the biggest downloadable content launch-day revenue in the history of Le Mans Ultimate.
- Released Le Mans Ultimate Version 1.4.2 on September 22, 2026, featuring U.S. Track Pack 2, including Michelin Raceway Road Atlanta and the Streets of Long Beach race circuits, along with race car liveries and other game improvements.
- As of October 31, 2026, Le Mans Ultimate has now sold over 2 million combined units of the base game and individual DLC units since launch.
- Achieved a new all-time peak record of 11,941 concurrent players for Le Mans Ultimate during a 24 Hours of Le Mans Special Event, run entirely through the Company’s proprietary RaceControl platform during October 23-24, 2026.
- Reported net income of
$0.7 million in Q3 2026, the seventh consecutive quarter of positive net income. Income from operations was$1.2 million , compared to$0.8 million in Q3 2025, an increase of52.4% . - Gross profit margin for the third quarter of 2026 increased to
88.0% , compared to80.7% for the same period in 2025. Gross profit margin for the nine months ended September 30, 2026 increased to85.8% , compared to79.6% for the same period in 2025. - Adjusted EBITDA(1) was
$1.8 million in Q3 2026, compared to$1.0 million in Q3 2025, an increase of75.7% . For the nine months ended September 30, 2026, Adjusted EBITDA(1) was$4.0 million , compared to$2.0 million for the same period in 2025, an increase of99.0% . - Non-GAAP Adjusted diluted net income per share(1) was
$0.51 during the nine months ended September 30, 2026, compared to$0.45 during the same period in the prior year. - Strengthened the balance sheet: cash and cash equivalents of
$5.4 million as of September 30, 2026, compared to$4.1 million a year earlier; working capital of$4.2 million , compared to negative$2.2 million as of December 31, 2024; and deferred revenue of$1.6 million , the highest quarter-end balance since the Company’s IPO. - Issued 414,747 shares of Class A Common Stock in August 2026 upon the exercise of outstanding warrants, generating proceeds of approximately
$0.9 million to support the Company’s operations and further simplifying its capital structure by reducing the number of outstanding warrants.
Select Financial Highlights for the Three Months Ended September 30, 2026
Revenues for the third quarter of 2026 were approximately
Gross profit for the third quarter of 2026 was
RaceControl, the Company’s free-to-join player platform which offers premium subscription tiers, generated subscription revenues of approximately
Income from operations for the third quarter of 2026 was
Net income for the third quarter of 2026 was approximately
Adjusted EBITDA(1) for the third quarter of 2026 was
Cash Flow and Liquidity
During the nine months ended September 30, 2026, the Company generated positive cash flow from operations of approximately
(1)Use of Non-GAAP Financial Measures
Adjusted EBITDA and Non-GAAP Adjusted diluted net income per share (the “Non-GAAP Measures”) are not financial measures defined by U.S. generally accepted accounting principles (“U.S. GAAP”). Reconciliations of these Non-GAAP Measures to net income and diluted net income per share, their most directly comparable financial measures, calculated and presented in accordance with U.S. GAAP, are presented in the Appendix to this press release.
Adjusted EBITDA, a measure used by management to assess the Company’s operating performance, is defined as EBITDA, which is net income plus interest expense, provision for income taxes, depreciation and amortization, less income tax benefit (if any), adjusted to exclude: (i) gain from settlement of license liabilities and other agreements; (ii) gain from sale of gaming licenses; (iii) impairment of intangible assets; (iv) loss contingency expenses; (v) loss (gain) on foreign exchange rates; (vi) expenses related to the implementation of a Share Rights Plan; and (vii) stock-based compensation expenses.
Non-GAAP Adjusted diluted net income per share, another measure used by management to assess the Company’s operating performance, is defined as diluted net income per share plus depreciation and amortization, adjusted to exclude: (i) gain from settlement of license liabilities and other agreements; (ii) gain from sale of gaming licenses; (iii) impairment of intangible assets; (iv) loss contingency expenses; (v) loss (gain) on foreign exchange rates; (vi) expenses related to the implementation of a Share Rights Plan; and (vii) stock-based compensation expenses.
The Company uses the Non-GAAP Measures to manage its business and evaluate its financial performance, as Adjusted EBITDA and Non-GAAP Adjusted diluted net income per share eliminate items that affect comparability between periods that the Company believes are not representative of its core ongoing operating business. Additionally, management believes that using the Non-GAAP Measures is useful to its investors because it enhances investors’ understanding and assessment of the Company’s normalized operating performance and facilitates comparisons to prior periods and its competitors’ results (who may define Adjusted EBITDA and Non-GAAP Adjusted diluted net income per share differently).
The Non-GAAP Measures are not recognized terms under U.S. GAAP and do not purport to be an alternative to revenue, income/loss from operations, net income, or cash flows from operations or as a measure of liquidity or any other performance measure derived in accordance with U.S. GAAP. Additionally, the Non-GAAP Measures are not intended to be measures of free cash flows available for management’s discretionary use, as they do not consider certain cash requirements, such as interest payments, tax payments, working capital requirements and debt service requirements. The Non-GAAP Measure have limitations as an analytical tool, and investors should not consider them in isolation or as a substitute for our results as reported under U.S. GAAP. Management compensates for the limitations of using the Non-GAAP Measures by using them to supplement U.S. GAAP results to provide a more complete understanding of the factors and trends affecting the business than would be presented by using only measures in accordance with U.S. GAAP. Because not all companies use identical calculations, the Non-GAAP Measures may not be comparable to other similarly titled measures of other companies.
Conference Call and Webcast Details
The Company will host a conference call and webcast at 5:00 p.m. ET today, November 12, 2026, to discuss its financial results. The live conference call can be accessed by dialing 1-800-420-1459 or 1-203-518-9861 and using Conference ID “MOTOR”. Alternatively, participants may access the live webcast on the Motorsport Games Investor Relations website at https://ir.motorsportgames.com under “Events.”
About Motorsport Games:
Motorsport Games is a racing game developer, publisher and esports ecosystem provider of official motorsport racing series. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make racing games that are authentically close to reality. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series including the 24 Hours of Le Mans and the FIA World Endurance Championship, recently releasing Le Mans Ultimate Version 1.4.2 featuring new circuits, updated content and additional improvements. Motorsport Games also owns the industry leading rFactor 2 and KartKraft simulation platforms. rFactor 2 also powers F1® Arcade through a partnership with Kindred Concepts. Motorsport Games is also an award-winning esports partner of choice for the 24 Hours of Le Mans, creating the renowned Le Mans Virtual Series. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure, and every race inspires.
For more information about Motorsport Games visit: www.motorsportgames.com.
Forward-Looking Statements
Certain statements in this press release, the related conference call and webcast which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements or information in this press release, the related conference call and webcast that are not statements or information of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the release of Pack 3 to the Le Mans Ultimate U.S. Track Pack in December 2026; racecontrol.gg running entirely on the Company’s own technology starting in December, and players engaging with the Company’s ecosystem on mobile, tablet and desktop; the Company protecting a head start by pursuing complete control over and faster development of its platform; RaceControl continuing to form the backbone of the Company’s online player experience; the Company’s business successfully self-maintaining its finances; the Company’s next stage of growth and building a larger, more diversified business; the Company using its balance sheet to invest and see returns; the Company continuing to claim UK Video Games Tax Relief; making racing games that are authentically close to reality; and building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure, and every race inspires.
All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside of the Company’s control and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) difficulties, delays or less than expected results in achieving the Company’s growth plans and continuing the transformation of the business, objectives and expectations, including delays in the release of new game versions and features, the Company’s inability to deliver new products and/or new content or features for existing products, and/or the Company’s inability, in whole or in part, to continue to execute its business strategies and plans, such as due to less than anticipated customer acceptance of its new game titles and/or less than anticipated benefits from its future technologies, the Company experiencing difficulties or the inability to launch its games as planned, less than anticipated performance of the games impacting customer acceptance and sales and/or greater than anticipated costs and expenses to develop and launch its games, including, without limitation, higher than expected labor costs, the Company’s inability to establish partnerships with additional service providers to come onboard to the Company’s ecosystem and, (ii) difficulties, delays in or unanticipated events that may impact the timing and scope of new or planned products, features, events or other offerings; (iii) less than expected benefits from implementing the Company’s management strategies and/or adverse economic, market and geopolitical conditions that negatively impact industry trends, such as significant changes in the labor markets, an extended or higher than expected inflationary environment, a higher interest rate environment, tax increases impacting consumer discretionary spending and/or quantitative easing that results in higher interest rates that negatively impact consumers’ discretionary spending; and (iv) greater than anticipated negative operating cash flows such as due to higher than expected development costs, higher interest rates and/or higher inflation.
Factors other than those referred to above could also cause the Company’s results to differ materially from expected results. Additional examples of such risks and uncertainties include, but are not limited to: (i) the Company’s ability (or inability) to maintain existing, and to secure additional, licenses and other agreements with various racing series; (ii) the Company’s ability to successfully manage and integrate any joint ventures, acquisitions of businesses, solutions or technologies; (iii) unanticipated operating costs, transaction costs and actual or contingent liabilities; (iv) the ability to attract and retain qualified employees and key personnel; (v) adverse effects of increased competition; (vi) changes in consumer behavior, including as a result of general economic factors, such as increased inflation, higher energy prices and higher interest rates; (vii) the Company’s inability to protect its intellectual property; and/or (viii) local, industry and general business and economic conditions.
Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K filed with the SEC. The Company anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. The Company assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing the Company’s plans and expectations as of any subsequent date.
Website and Social Media Disclosure
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):
| Websites | Social Media | |
| motorsportgames.com | Twitter: @msportgames | |
| Instagram: msportgames | ||
| Facebook: Motorsport Games | ||
| LinkedIn: Motorsport Games | ||
The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.
Contacts:
Investors:
Investors@motorsportgames.com
Media:
PR@motorsportgames.com
Appendix:
The tables below provide reconciliations between net income and adjusted EBITDA, and diluted net income per share and Non-GAAP Adjusted diluted net income per share:
| Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | |||||||
| Net income | $ | 678,127 | $ | 768,537 | ||||
| Interest expense, net | 23,922 | 1,434 | ||||||
| Provision for taxes | 451,870 | - | ||||||
| Depreciation and amortization (1) | 192,629 | 289,396 | ||||||
| EBITDA | 1,346,548 | 1,059,367 | ||||||
| Loss (gain) on foreign exchange rates | 190,998 | (31,655 | ) | |||||
| Expenses related to the implementation of a Share Rights Plan | 158,653 | - | ||||||
| Stock-based compensation | 109,877 | - | ||||||
| Adjusted EBITDA | $ | 1,806,076 | $ | 1,027,712 | ||||
| (1) | Includes |
Reconciliation between GAAP and Non-GAAP Adjusted diluted net income per share:
| Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | |||||||
| Diluted net income per share | $ | 0.06 | $ | 0.14 | ||||
| Depreciation and amortization | 0.04 | 0.05 | ||||||
| Loss (gain) on foreign exchange rates | 0.04 | (0.01 | ) | |||||
| Expenses related to the implementation of a Share Rights Plan | 0.03 | - | ||||||
| Stock-based compensation | 0.02 | - | ||||||
| Non-GAAP Adjusted diluted net income per share | $ | 0.19 | $ | 0.18 | ||||
| Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | |||||||
| Net income | $ | 1,872,899 | $ | 6,029,322 | ||||
| Interest expense, net | 43,018 | 19,184 | ||||||
| Provision for taxes | 451,870 | - | ||||||
| Depreciation and amortization (1) | 605,727 | 795,387 | ||||||
| EBITDA | 2,973,514 | 6,843,893 | ||||||
| Gain from settlement of purchase commitment liabilities | - | (175,460 | ) | |||||
| Gain from HC2 Holdings 2 Inc. Settlement Agreement | - | (500,000 | ) | |||||
| Gain from Wesco Settlement Agreement | - | (800,000 | ) | |||||
| Impairment of intangible assets | 27,928 | - | ||||||
| Loss (gain) on foreign exchange rates | 364,664 | (3,334,533 | ) | |||||
| Expenses related to the implementation of a Share Rights Plan | 158,653 | - | ||||||
| Stock-based compensation | 522,552 | - | ||||||
| Adjusted EBITDA | $ | 4,047,311 | $ | 2,033,900 | ||||
| (1) | Includes |
Reconciliation between GAAP and Non-GAAP Adjusted diluted net income per share:
| Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | |||||||
| Diluted net income per share | $ | 0.19 | $ | 1.32 | ||||
| Depreciation and amortization | 0.11 | 0.17 | ||||||
| Gain from settlement of purchase commitment liabilities | - | (0.04 | ) | |||||
| Gain from HC2 Holdings 2 Inc. Settlement Agreement | - | (0.11 | ) | |||||
| Gain from Wesco Settlement Agreement | - | (0.17 | ) | |||||
| Impairment of intangible assets | 0.01 | - | ||||||
| Loss (gain) on foreign exchange rates | 0.07 | (0.72 | ) | |||||
| Expenses related to the implementation of a Share Rights Plan | 0.03 | - | ||||||
| Stock-based compensation | 0.10 | - | ||||||
| Non-GAAP Adjusted diluted net income per share | $ | 0.51 | $ | 0.45 | ||||
The following tables provide a comparative summary of the Company’s financial results for the periods presented:
| MOTORSPORT GAMES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues [1] | $ | 3,775,429 | $ | 3,100,018 | $ | 11,346,680 | $ | 7,450,311 | ||||||||
| Cost of revenues | 451,429 | 597,817 | 1,612,994 | 1,518,090 | ||||||||||||
| Gross profit | 3,324,000 | 2,502,201 | 9,733,686 | 5,932,221 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 237,005 | 136,024 | 638,674 | 360,032 | ||||||||||||
| Development | 112,589 | 418,912 | 1,364,154 | 1,291,208 | ||||||||||||
| General and administrative [2] | 1,749,092 | 1,142,867 | 4,769,104 | 3,176,389 | ||||||||||||
| Impairment of intangible assets | - | - | 27,928 | - | ||||||||||||
| Depreciation and amortization | 7,520 | 9,450 | 21,347 | 39,273 | ||||||||||||
| Total operating expenses | 2,106,206 | 1,707,253 | 6,821,207 | 4,866,902 | ||||||||||||
| Other operating income | - | 4,000 | - | 1,608,497 | ||||||||||||
| Income from operations | 1,217,794 | 798,948 | 2,912,479 | 2,673,816 | ||||||||||||
| Interest expense, net | (23,922 | ) | (1,434 | ) | (43,018 | ) | (19,184 | ) | ||||||||
| Other (expense) income, net | (63,875 | ) | (28,977 | ) | (544,692 | ) | 3,374,690 | |||||||||
| Income before provision for income taxes | 1,129,997 | 768,537 | 2,324,769 | 6,029,322 | ||||||||||||
| Provision for income taxes | 451,870 | - | 451,870 | - | ||||||||||||
| Net income | 678,127 | 768,537 | 1,872,899 | 6,029,322 | ||||||||||||
| Less: Net income (loss) attributable to non-controlling interest | 349,739 | (20,759 | ) | 827,221 | (59,432 | ) | ||||||||||
| Net income attributable to Motorsport Games Inc. | $ | 328,388 | $ | 789,296 | $ | 1,045,678 | $ | 6,088,754 | ||||||||
| Net income attributable to Class A common stock per share: | ||||||||||||||||
| Basic | $ | 0.07 | $ | 0.14 | $ | 0.21 | $ | 1.32 | ||||||||
| Diluted | $ | 0.06 | $ | 0.14 | $ | 0.19 | $ | 1.32 | ||||||||
| Weighted-average shares of Class A common stock outstanding: | ||||||||||||||||
| Basic [3] | 4,841,894 | 5,456,286 | 5,017,342 | 4,615,460 | ||||||||||||
| Diluted | 5,365,317 | 5,456,286 | 5,367,166 | 4,615,460 | ||||||||||||
| [1] | Includes related party revenues of |
| [2] | Includes related party expenses of |
| [3] | Includes weighted average pre-funded warrant shares. |
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PDF available: http://ml.globenewswire.com/Resource/Download/7a4f5a57-6340-4cac-a5f3-13209d367716
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Motorsport Games' third-quarter 2026 revenue and earnings?
Motorsport Games generated approximately $3.8 million in revenue and approximately $0.7 million in net income in the third quarter of 2026. Revenue increased 21.8% year over year, while net income declined from approximately $0.8 million. Net income attributable to Motorsport Games was approximately $0.3 million, or $0.07 per share.
What development plans did Motorsport Games outline for RaceControl and Le Mans Ultimate?
Motorsport Games expects the updated RaceControl web portal to run entirely on its own technology in December 2026. The company also expects to complete the U.S. Track Pass with Pack 3 in December 2026, adding two more circuits.