Motorsport Games (NASDAQ:MSGM) Issues Quarterly Earnings Results

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

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

Shares of NASDAQ MSGM traded down $0.07 during midday trading on Thursday, reaching $4.28. The company’s stock had a trading volume of 65,120 shares, compared to its average volume of 78,940. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.85 and a current ratio of 1.85. The company has a market cap of $17.86 million, a P/E ratio of 9.95, a P/E/G ratio of 0.58 and a beta of 2.03. The business’s 50 day moving average price is $4.73 and its two-hundred day moving average price is $4.30. Motorsport Games has a fifty-two week low of $2.46 and a fifty-two week high of $5.65.

Wall Street Analyst Weigh In

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

Insider Activity

In related news, major shareholder Red Oak Partners, Llc purchased 23,143 shares of Motorsport Games stock in a transaction that occurred on Thursday, August 20th. The shares were acquired at an average price of $3.86 per share, with a total value of $89,331.98. Following the completion of the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders purchased 72,779 shares of company stock valued at $283,660 in the last three months. 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.