Motorsport Games (NASDAQ:MSGM) Issues Earnings Results

Motorsport Games (NASDAQ:MSGM) announced its quarterly earnings results on Thursday. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.08 by $0.11, FiscalAI reports. The company had revenue of $3.78 million during the quarter, compared to analyst estimates of $3.79 million. Motorsport Games had a return on equity of 41.13% and a net margin of 16.15%.

Here are the key takeaways from Motorsport Games’ conference call:

• Third-quarter revenue rose 21.8% year over year to $3.8 million, gross margin increased to 88%, and adjusted EBITDA grew 75.7% to $1.8 million. Motorsport Games reported its seventh consecutive profitable quarter.
• RaceControl subscription revenue increased 186% to about $2 million for the first nine months, with more than 45,000 paid subscribers and October annualized recurring revenue of about $3.4 million. The company brought its portal fully in-house, which management said will also end a 10% revenue share with its former technology partner.
• Le Mans Ultimate surpassed 2 million sales across game copies and downloadable content; its first American content pack set a record for launch-day DLC sales. A playable console version is ready ahead of schedule, with a release planned for 2027.
• Operating cash flow reached $4.1 million for the first nine months, and the company ended September with $5.4 million in cash and $4.2 million in working capital. Management said the stronger balance sheet gives it room to invest for growth.
• Management acknowledged the business remains largely driven by one title and provided no forward guidance. Plans to diversify through new products and partnerships are underway, but specifics and signed agreements have not yet been announced.

Motorsport Games Price Performance

MSGM opened at $4.28 on Friday. Motorsport Games has a twelve month low of $2.46 and a twelve month high of $5.65. The firm has a market cap of $17.85 million, a price-to-earnings ratio of 9.95, a PEG ratio of 0.58 and a beta of 2.03. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 0.23. The company has a fifty day simple moving average of $4.73 and a 200 day simple moving average of $4.30.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Weiss Ratings upgraded Motorsport Games from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, September 11th. Wall Street Zen upgraded shares of Motorsport Games to a “buy” rating in a report on Saturday, September 26th. Finally, Zacks Research cut shares of Motorsport Games from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 19th. Two investment analysts have rated the stock with a Hold rating. According to MarketBeat.com, Motorsport Games currently has a consensus rating of “Hold”.

Insider Buying and Selling

In other news, major shareholder Red Oak Partners, Llc acquired 23,143 shares of the business’s stock in a transaction on Thursday, August 20th. The shares were purchased at an average price of $3.86 per share, for a total transaction of $89,331.98. Following the acquisition, the insider directly owned 333,410 shares of the company’s stock, valued at $1,286,962.60. This represents a 7.46% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In the last quarter, insiders have acquired 72,779 shares of company stock valued at $283,660. Insiders own 4.59% of the company’s stock.

Motorsport Games Company Profile

Motorsport Games Inc. (NASDAQ: MSGM) is a video game developer and publisher focused on racing and motorsport entertainment. The company creates and distributes racing games for consoles and personal computers, and supports related online, competitive and esports experiences. Its portfolio has included officially licensed motorsport titles and racing technology platforms. Motorsport Games has been associated with products such as Le Mans Ultimate , the official game of the FIA World Endurance Championship, and rFactor 2 , a racing simulation platform developed by its Studio 397 business.