Motorsport Games Inc. (MSGM) Earnings
Motorsport Games Inc. is expected to report next earnings on August 13, 2026 (in NaN days), with a consensus EPS estimate of $-12.90. MSGM has beaten EPS estimates in 5 of its last 7 reported quarters (average surprise +54.7% over the last four).
| 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% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 13, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Core Product Growth and Engagement - Le Mans Ultimate has delivered consistent organic player growth since launch, with no significant marketing spend to date. Peak concurrent players on Steam reached a new all-time high of over 8,800 in March 2026 following the release of version 1.3, representing an 118% YoY increase. Average concurrent users, a key metric for sustained engagement, grew 169% YoY, demonstrating rising long-term player retention rather than just one-off content release spikes. - Race Control, originally a supporting feature for Le Mans Ultimate, is now positioned as a standalone high-margin platform business. It provides proprietary matchmaking, competition, and live service infrastructure for organized sim racing, with strong revenue growth and a favorable margin profile, as incremental revenue uses existing infrastructure and delivers higher EBITDA contribution than core content sales. It also attracts commercial partnerships with automotive and gaming brands seeking access to Motorsport Games' highly engaged audience, with recent confirmed partnerships with Genesis and Logitech for the Logitech G Challenge esports series. ### Development Pipeline - Porting Le Mans Ultimate to PlayStation and Xbox consoles is progressing as planned, with a quality-first release approach. Management expects to share full details and launch the console version in early 2027, as the development work is complex and the company does not need to rush release for financial reasons. - The company is in the early planning stages of a new long-term gaming title that will leverage existing built assets, including simulation technology, the Race Control platform, live service infrastructure, and existing community relationships. This is not a speculative greenfield project, and is designed to deliver meaningful growth with lower risk than traditional new game development. Full details will be shared on the Q3 2026 earnings call. - The company continues to deepen investment in proprietary simulation technology and make targeted hires across engineering, platform, and strategic leadership roles to support long-term growth. ### Corporate Governance and Capital Actions - The company repurchased 904,395 Class A common shares from Driven Lifestyle Group LLC, and retired all outstanding Class B super-voting shares (which previously carried 10x voting power). All outstanding shares now have equal voting rights, improving corporate governance for all shareholders. Driven Lifestyle retained a minority stake in the company, allowing Motorsport Games to achieve the strategic goal of equal voting while deploying less cash than a full repurchase would have required. - The company secured a $3 million revolving credit facility from Citibank in February 2026, adding additional financial flexibility. As of March 31, 2026, no amount was drawn on the facility, with $1.2 million drawn as of April 30, 2026. - Shareholders approved an expansion of the employee equity incentive plan to help retain and incentivize team members driving company growth.
Guidance
- Management did not provide formal forward-looking financial guidance for 2026/2027 in this call, beyond high-level directional commentary. - Race Control revenue contribution is expected to continue growing, increasing the share of recurring, high-margin revenue in the company's total mix and supporting greater revenue diversification. - Le Mans Ultimate organic player growth is expected to continue through 2026, supported by planned new content packs including new tracks designed to expand the game's audience beyond its core stronghold in Europe. - Full details of the company's new long-term product roadmap are expected to be shared at the Q3 2026 earnings call, with meaningful revenue and profit growth expected from the new pipeline starting in 2027.
Segment performance
Motorsport Games operates two core product segments: Le Mans Ultimate (core gaming title) and Race Control (subscription platform). For Q1 2026, total company revenue was $4.0 million, up 129.3% year-over-year (YoY). 1) Le Mans Ultimate: Revenue increased $1.6 million YoY, contributing 81% of total Q1 2026 revenue, or $3.2 million. 2) Race Control: Q1 2026 subscription revenue totaled $0.8 million, growing $0.7 million YoY, and contributing 19% of total Q1 2026 revenue. This is up from 6% revenue contribution in Q1 2025. Monthly recurring revenue (MRR) for Race Control now exceeds $0.2 million. For the overall company, Q1 2026 adjusted EBITDA was $1.5 million, up from $0.6 million in Q1 2025; net income was approximately $1.0 million, matching the prior year period. As of March 31, 2026, the company held $5.9 million in cash and cash equivalents, with positive average monthly operating cash flow of $0.5 million.
Risks & headwinds
- Console launch timing for Le Mans Ultimate remains uncertain, as development is complex and the release date is subject to continued progress against quality benchmarks. - The development of the new unannounced title is still in early formative stages, with no definitive timeline or confirmed commercial prospects disclosed. - Any future expansion into Formula One branded consumer gaming content is currently speculative, as Electronic Arts holds an exclusive agreement for Formula One consumer rights at this time. - All forward-looking statements regarding future product performance and growth are inherently uncertain, and actual results could differ materially from management expectations due to unforeseen risks, as detailed in the company's SEC filings.
Analyst Q&A
Q: Following the record peak player count for Le Mans Ultimate version 1.3, how has engagement trended post-launch, and what is the content roadmap for 2026?
A: Engagement continues to trend upward, with sustained growth in average concurrent player counts demonstrating organic retention of new players driven by content updates, with no paid marketing spent to date. Multiple new content packs with additional cars and tracks are planned for 2026, with new tracks targeted at expanding the game's audience beyond its core European market.
Q: What is the expected growth trajectory for Race Control recurring revenue as a percentage of total revenue over the next 12 months?
A: Management does not provide specific forward guidance for future revenue breakdowns, but confirmed that Race Control's revenue share has grown rapidly from 6% of total revenue in Q1 2025 to 19% in Q1 2026, and expects this share to continue growing as Le Mans Ultimate's player base expands, leading to a more diversified overall revenue mix for the company.
Q: How is Motorsport Games approaching the Formula One market opportunity, and what related pipeline opportunities exist?
A: Motorsport Games currently provides its proprietary simulation technology to power all global F1 Arcade venues, demonstrating that its core sim racing technology can deliver an accessible experience for casual users, not just dedicated enthusiasts. F1 Arcade selected Motorsport Games' technology over the official EA Formula One game, which has helped build relationships with Formula One stakeholders. While any future consumer Formula One game opportunity is currently speculative due to EA's existing exclusive rights, the company is exploring opportunities to expand single-seater racing offerings long-term.