Motorsport Games 2025 Q3 Earnings Record Net Income Surges 234.1%

Motorsport Games (NASDAQ: MSGM) delivered a resounding earnings beat, with net income surging 234.1% year-over-year to $768,537, reversing a $573,025 loss in 2024 Q3. The company exceeded expectations with 71.9% revenue growth to $3.1 million and profitability driven by Le Mans Ultimate. Management raised no new guidance but reiterated its console port timeline for late 2026 to early 2027.

Revenue

Motorsport Games’ total revenue skyrocketed 71.9% to $3.1 million in 2025 Q3, up from $1.8 million in 2024 Q3. This growth was fueled by the success of Le Mans Ultimate, which saw 37.7% revenue growth for the quarter. The company’s gross margin expanded to 80.7%, up from 60.2% in the prior year, reflecting improved cost management and operational efficiency.

Earnings/Net Income

The company returned to profitability with EPS of $0.14, reversing a $0.18 loss per share in 2024 Q3. Net income reached $768,537, a 234.1% positive swing from the previous year’s loss. This marked a record high for Q3 net income in five years, underscoring the company’s improved financial health and operational discipline. The EPS and net income figures reflect a strong turnaround in profitability.

Post-Earnings Price Action Review

The stock price of Motorsport Games experienced significant volatility post-earnings. While the stock plummeted 17.89% during the latest trading day, it surged 60.21% during the most recent full trading week and 47.83% month-to-date. This volatility highlights the market’s mixed reaction to the earnings report, with short-term traders capitalizing on the sharp price swings.

CEO Commentary

Stephen Hood, President and CEO, emphasized sustained revenue growth driven by Le Mans Ultimate, noting record player engagement metrics post-Version 1.0 release. He highlighted the company’s financial stability, enabling strategic advancements, and announced early production of a Le Mans Ultimate console port for PlayStation and Xbox, with a delivery window of late 2026 to early 2027. Hood expressed confidence in the company’s market fit and future opportunities.

Guidance

The company expects to continue leveraging its technology to advance its ecosystem, with a focus on the Le Mans Ultimate console port. Management anticipates sustained profitability and operational efficiency, supported by improved financial stability. While no specific quantitative guidance was provided, the console port timeline remains a key strategic milestone.

Additional News

1. Console Port Progress: Motorsport Games confirmed early production for the Le Mans Ultimate console port, targeting PlayStation and Xbox release between late 2026 and early 2027.

2. Related-Party Credit Line Termination: The company terminated a $12 million related-party line of credit with majority shareholder Driven Lifestyle Group LLC on Nov. 5, 2025, eliminating potential conflicts and simplifying its capital structure.

3. Esports Partnerships: Motorsport Games announced collaborations with major esports organizations to enhance competitive gaming offerings, aiming to boost engagement and visibility for its racing titles.

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