Motorsport Games Inc.
- Open
- 4.42
- Day high
- 4.64
- Day low
- 4.42
- Prev close
- 4.68
- Volume
- 3K
- Mkt cap
- $19M
- P/E (TTM)
- 4.0
- EPS (TTM)
- $1.17
- P/B
- 2.7
- P/S
- 1.4
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$3.5M over the last 3 months (6 open-market buys, 1 sale)
Motorsport Games Inc. (MSGM) is a Technology company listed on NASDAQ. The stock is up 36% over the past year. Over the trailing 3 months, insiders filed 6 open-market buys and 1 sale (SEC Form 4).
Motorsport Games Inc. (MSGM) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MSGM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 13, 2026 | — | $0.07 | — | $4M | — |
| Mar 10, 2026 | — | $0.15 | — | $4M | — |
| Nov 6, 2025 | — | $0.14 | — | $3M | — |
| Aug 13, 2025 | — | $0.82 | — | $3M | — |
| May 9, 2025 | — | $0.33 | — | $2M | — |
| Mar 20, 2025 | $-0.48 | $-0.89 | -85.4% | $2M | -40.2% |
| Nov 14, 2024 | $-0.63 | $0.00 | +100.5% | $2M | -9.9% |
| Aug 9, 2024 | $0.69 | $0.87 | +26.1% | $2M | +4.5% |
| Apr 1, 2024 | $-1.74 | $1.35 | +177.6% | $2M | -15.2% |
| Aug 21, 2023 | $-1.86 | $-1.54 | +17.2% | $2M | +21.6% |
| May 11, 2023 | $-3.35 | $-2.33 | +30.4% | $2M | +29.1% |
| Mar 24, 2023 | $3.73 | $-4.17 | -211.8% | $4M | -8.7% |
MSGM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 6, 2026 | Red Oak Partners, LLC10 percent owner | Buy | 4,529 | $4.14 |
| Jul 6, 2026 | Red Oak Partners, LLC10 percent owner | Buy | 2,062 | $4.07 |
| Jul 6, 2026 | Red Oak Partners, LLC10 percent owner | Buy | 1,138 | $4.07 |
| Jul 6, 2026 | Red Oak Partners, LLC10 percent owner | Buy | 8,208 | $4.14 |
| Jul 2, 2026 | Red Oak Partners, LLC10 percent owner | Buy | 9,865 | $3.95 |
| Jul 2, 2026 | Red Oak Partners, LLC10 percent owner | Buy | 17,879 | $3.95 |
| Apr 27, 2026 | ZOI MIKE10 percent owner | Sell | 904,395 | $4.11 |
| Mar 12, 2026 | ZOI MIKE10 percent owner | Sell | 31,131 | $4.51 |
| Mar 9, 2026 | ZOI MIKE10 percent owner | Sell | 24,720 | $4.84 |
| Mar 9, 2026 | ZOI MIKE10 percent owner | Sell | 90,900 | $4.49 |
| Mar 9, 2026 | ZOI MIKE10 percent owner | Sell | 29,224 | $4.70 |
| Mar 4, 2026 | ZOI MIKE10 percent owner | Sell | 11,675 | $3.77 |
| Mar 4, 2026 | ZOI MIKE10 percent owner | Sell | 6,500 | $3.74 |
| Mar 4, 2026 | ZOI MIKE10 percent owner | Sell | 40,535 | $4.03 |
| Feb 27, 2026 | ZOI MIKE10 percent owner | Sell | 9,603 | $3.71 |
Source: MSGM SEC Form 4 filings, latest Jul 6, 2026. For informational purposes only — not investment advice.
See the full MSGM insider & 13F page →Motorsport Games Inc. company profile
Overview
Motorsport Games Inc. (NASDAQ:MSGM) is a Miami-based video game developer and publisher founded in 2018 that specializes in racing simulation games. The company operates as a subsidiary of Motorsport Network LLC and went public in January 2021. Motorsport Games focuses on developing multi-platform racing titles based on major motorsport franchises and organizing esports competitions around these properties. The company has undergone significant restructuring in recent years, including workforce reductions and strategic refocusing, while transitioning from multiple racing game franchises to concentrate primarily on its Le Mans Ultimate title.
Business
Motorsport Games operates in the video game industry, specifically within the racing simulation genre. Racing simulation games are specialized video games that attempt to realistically recreate the experience of driving race cars, featuring accurate physics engines, real-world racing circuits, and authentic motorsport series. These games differ from arcade-style racing games by emphasizing realistic handling, damage models, and racing strategies that mirror actual motorsport competitions. The company operates through two primary business segments: **Gaming Segment (Primary Revenue Driver - approximately 85-90% of total revenue):** This segment develops and publishes racing video games for multiple platforms including PC, PlayStation, Xbox, and Nintendo Switch. The company's flagship product is Le Mans Ultimate, a racing simulation game based on the World Endurance Championship and the famous 24 Hours of Le Mans race. Le Mans Ultimate features authentic race cars, official circuits, and realistic endurance racing mechanics including driver swaps and cooperative gameplay. The company also maintains rFactor 2, a professional-grade racing simulation platform used by real racing teams for driver training and setup development. **Esports Segment (approximately 10-15% of total revenue):** This segment organizes and facilitates competitive gaming tournaments and events using the company's racing games. The esports division creates virtual racing competitions that mirror real-world motorsport events, including the 24 Hours of Le Mans Virtual, which brings together professional race car drivers and sim racing enthusiasts in a combined competition format. The company previously held licenses for NASCAR and INDYCAR racing games but has since divested these properties to focus resources on Le Mans Ultimate development. Additionally, Motorsport Games provides software licensing services to entertainment venues, notably supplying racing simulation software to F1 Arcade locations.
Revenue model
Motorsport Games generates revenue through multiple streams within its gaming ecosystem. The primary revenue model consists of direct game sales, where customers purchase full games through digital platforms like Steam and Epic Games Store, as well as physical retail channels for console versions. Le Mans Ultimate, priced as a premium simulation title, represents the company's main revenue generator through initial game purchases. The company has developed a downloadable content (DLC) strategy that extends the revenue lifecycle of its games. This includes season passes, additional car models, new racing circuits, and content updates. For Le Mans Ultimate, the company reports that 46% of customers purchase season passes (significantly higher than the industry average of 5-10%), and 13% of users buy additional content beyond the base game, indicating strong customer engagement and willingness to pay for premium content. A newer revenue stream is the subscription service model through the RaceControl platform, which offers enhanced features for online racing, including advanced matchmaking, AI-powered race storytelling, and premium community features. This service launched with over 100,000 user registrations and generated $120,000 in its first 21 days, approaching 6,000 active subscribers. The company also earns revenue through software licensing, providing racing simulation technology to third-party venues such as F1 Arcade locations, and through esports event organization, where it manages virtual racing competitions and tournaments. Several factors influence the company's profit margins. Positive margin drivers include the high gross margins typical of digital game sales (often 70-80% after platform fees), the recurring nature of DLC and subscription revenues, and the scalability of digital distribution. However, margins face pressure from intense competition in the racing game market, the high costs of securing motorsport licenses, significant upfront development investments, and the need for ongoing content updates and technical support. The company's small scale also limits its ability to spread fixed costs across a large revenue base, making it vulnerable to revenue fluctuations.
Competitive moat
Motorsport Games operates in a highly competitive market with limited sustainable competitive advantages. The company's primary moat lies in its exclusive licensing relationships with major motorsport organizations, particularly its partnership with the Automobile Club de l'Ouest (ACO) for Le Mans and World Endurance Championship content. These licenses provide temporary exclusivity for authentic racing experiences that competitors cannot replicate, creating differentiation in a crowded market. However, this moat is relatively weak for several reasons. First, licensing agreements are time-limited and renewable, meaning the company must continuously invest to maintain these relationships and faces the risk of losing key licenses to competitors with deeper pockets. The company previously lost its NASCAR license to iRacing, demonstrating this vulnerability. Second, the racing simulation market is dominated by well-established competitors like iRacing, Codemasters (owned by Electronic Arts), and Kunos Simulazioni, all of which have larger development budgets, more extensive game portfolios, and stronger market positions. The company's technical capabilities in simulation technology through rFactor 2 provide some differentiation, as this platform is used by professional racing teams for training and development. However, this advantage is limited by the company's small scale and resource constraints compared to larger competitors. Potential disruption comes from multiple sources: major gaming publishers could acquire competing licenses or develop superior racing simulations with larger budgets; established competitors like iRacing continue to expand their content offerings; and new technologies such as virtual reality or cloud gaming could shift the competitive landscape. The company's financial constraints also limit its ability to compete effectively in licensing bidding wars or to invest in cutting-edge technology development. Overall, while Motorsport Games has carved out a niche in endurance racing simulation, its competitive position remains precarious due to its small scale, limited resources, and dependence on renewable licensing agreements in a market dominated by larger, better-funded competitors.
Risks & safety
The company presents significant financial risk with very limited margin of safety: **Liquidity and Solvency Risk:** - Current ratio of 0.59 indicates insufficient current assets to cover short-term liabilities - Cash position of $1.05 million against current liabilities of $4.6 million creates immediate liquidity concerns - Monthly cash burn recently reduced to approximately $0.1-0.2 million, providing roughly 5-10 months of runway - Total liabilities ($4.6 million) exceed total assets ($6.1 million), indicating negative book value risk **Debt and Capital Structure:** - Low debt-to-equity ratio of 0.06 suggests minimal traditional debt burden - However, high current liabilities relative to assets indicate operational funding challenges - Recent $2.5 million investment from Pimax provides temporary relief but insufficient for long-term stability **Valuation Metrics:** - Extremely low P/E ratio of 0.80 reflects recent profitability but inconsistent earnings history - EV/EBITDA of 1.13 appears attractive but based on volatile, small-scale operations - Price-to-book ratio of 5.16 suggests overvaluation relative to tangible assets **Other Considerations:** - Revenue volatility and dependence on single game title (Le Mans Ultimate) creates concentration risk - Small market capitalization of $14 million limits access to capital markets - History of significant losses and cash burn raises going-concern questions
Recent development
Over the past few years, Motorsport Games has undergone a dramatic strategic transformation focused on survival and repositioning. The company executed a major restructuring initiative that included closing its Australian development studio, reducing global workforce by 40%, and achieving $6.7 million in annualized cost savings. This restructuring was necessitated by significant financial losses and cash burn that threatened the company's viability. The most significant strategic pivot involved divesting major gaming licenses to focus resources on a single flagship title. The company sold its NASCAR license to iRacing for $3 million and discontinued development of INDYCAR games, representing a shift from a multi-franchise strategy to concentrated development efforts. This decision allowed the company to focus its limited resources on Le Mans Ultimate, which has become the cornerstone of its business model. Product development efforts have centered on expanding Le Mans Ultimate's capabilities and monetization potential. The company successfully launched the game in early access, exceeding initial sales targets by selling 55,000 copies against an 18,000 target. Key feature developments include innovative cooperative gameplay modes, real-time driver swap functionality, and save-and-resume race features that differentiate the title in the endurance racing simulation market. The company has also developed new revenue streams through the RaceControl platform, which serves as both a community hub and subscription service. This platform generated over 100,000 user registrations and launched a subscription service that exceeded expectations with 6,000 active subscribers generating $120,000 in its first three weeks. Recent developments include securing a $2.5 million investment from Pimax, a VR hardware company, which provides both capital and potential strategic synergies for VR racing experiences. The company is also exploring console ports for Le Mans Ultimate and considering expansion of its game portfolio, though these initiatives remain contingent on securing additional funding and maintaining financial stability.
MSGM company profile · for informational purposes only — not investment advice.
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