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what it is
Motorsport Games makes racing video games, sim tech, and esports content tied to official motorsport licenses.
how it gets paid
Last year Motorsport Games made $11M in revenue.
why it's growing
Revenue grew 30.0% last year. Gross margin was 79.6%. Gross margin → money left after direct costs → so what: this business kept nearly 80 cents of each sales dollar.
what just happened
The headline was simple: Revenue hit $7M, up 140% vs. prior year, and EPS reached $1.32.
At a glance
C+ balance sheet — struggling to keep the lights on
-$2.05 fy2024 eps est
$9M fy2024 rev est
28.2% operating margin
1.2 beta
xvary composite: 23/100 — weak
What they do
Motorsport Games makes racing video games, sim tech, and esports content tied to official motorsport licenses.
This business wins with niche obsession, not scale. You do not need to beat every game publisher when you own official motorsport rights like Le Mans and run rFactor 2 simulation tech used by partners such as F1 Arcade. The company has just 22 employees, so one hit title can move the whole income statement fast.
How they make money
$11M
annual revenue · their business grew +30.0% last year
total revenue
$11M
+30.0%
The products that matter
licensed racing simulation
Le Mans Ultimate
$5.8M revenue increase driver
This title drove a $5.8M revenue increase in 2025 and sits at the center of the move from a $3.0M loss to a $6.8M profit. The quiet part: if you are underwriting the turnaround, you are underwriting this game.
the key title
multiplayer and esports layer
RaceControl Platform
part of the $11M revenue base
RaceControl is supposed to add recurring software-like revenue, but this snapshot does not break out a standalone number. You should treat it as a strategy line, not a proven engine.
recurring revenue hope
planned platform expansion
Console Ports
no revenue yet disclosed
Management points to console as the route beyond the current PC audience. No revenue contribution is disclosed here. Until that changes, this is a future pitch, not a present result.
execution test
Key numbers
$7M
quarterly revenue
That is 64% of the full-year $11M total. One quarter did most of the year's work.
79.6%
gross margin
Gross margin → money left after direct costs → so what: the product economics are strong if demand holds.
-$2.05
FY2024 EPS
EPS → profit per share → so what: the business still lost money for the year despite a profitable latest quarter.
$24M
market cap
This company is tiny. Small wins can move the stock fast, and small mistakes can do the same.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
C+ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for MSGM right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The headline was simple: Revenue hit $7M, up 140% vs. prior year, and EPS reached $1.32.
The quarter looked huge next to the full-year numbers. Annual revenue was $11M, so the latest quarter alone produced about 64% of the year's sales, while gross margin reached 79.6%.
$7M
revenue
$1.32
eps
79.6%
gross margin
the number that mattered
Gross margin was 79.6%. Gross margin → money left after direct costs → so what: this business kept nearly 80 cents of each sales dollar before overhead.
source: company earnings report, 2026
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What could go wrong
MSGM's risk profile is unusually concentrated because the 2025 rebound ran through one game, one small revenue base, and one already-thin balance sheet. If you own it, you are not betting on a portfolio of titles. You are betting that the recent hit was the start of something repeatable.
high
Le Mans Ultimate concentration
The 2025 rebound was powered by a $5.8M revenue increase linked to one game. If engagement fades or monetization slows, the headline profit can disappear fast.
directly threatens the $6.8M profit story
med
console expansion still needs proof
Console ports are the obvious route to a larger audience, but no revenue from that expansion is disclosed here. If launch timing slips or uptake disappoints, the company stays tied to a niche PC base.
keeps growth pinned near an $11M revenue business
med
license dependency
Official motorsport licenses are not decoration here. They are the product. If a key license weakens, gets delayed, or becomes more expensive, future releases lose value immediately.
puts future releases and catalog relevance at risk
high
microcap funding stress
A C+ balance sheet and 5 / 100 price stability are a rough pair. Small publishers do not get many misses before financing becomes the main story.
capital pressure can overpower operating progress
With $11M in annual revenue, there is almost no room here for a failed release, a delayed port, or a weaker license slate.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue after the Le Mans spike
Revenue grew 30.0% last year. The next reports need to show the new base holds, not that 2025 was a one-release sugar high.
risk
license durability
This catalog works because official motorsport branding matters. Any sign of strain around key licenses would change the thesis quickly.
calendar
next earnings release
You want the next report to show profit was not a one-quarter illusion. For a company this small, one update can reset the whole narrative.
trend
console port follow-through
Management's expansion case points to console. Until it shows up in disclosed revenue, it stays a thesis point, not operating proof.
Analyst rankings
coverage
thin
No formal ranking data is shown in this snapshot. in human-speak, wall street is barely looking at this name.
signal quality
low
When coverage is sparse, price moves often follow headlines and liquidity more than orderly estimate changes. You should assume noisier signals here.
source: institutional data
Institutional activity
institutional ownership data for MSGM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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