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Motorsport Games (MSGM)
NASDAQ:MSGM
US Market
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EarningsQ2 2026 Earnings Report

Motorsport Games (MSGM) Q2 2026 Earnings Report

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MSGM Q2 2026 EPS Results

Actual EPS$0.19
Consensus EPS$0.02
Beat/MissBeat by +$0.17
One Year Ago EPS$0.82

MSGM Q2 2026 Revenue Results

Actual Revenue$3.54M
Expected Revenue$2.90M
Beat/MissBeat by +$636.96K
YoY Revenue Growth+36.58%

Earnings Announcement Details

QuarterQ2 2026
Date08/14/2026
TimeAfter Close
Conference CallFriday, August 14, 2026
MSGM Upcoming Earnings
Motorsport Games's next earnings date is estimated for November 13, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MSGM Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 14, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call highlights strong and accelerating underlying business trends: substantial revenue growth (+74% YoY H1), steep expansion of gross margins (~84.7%), rapid scaling of RaceControl recurring revenue (+349% YoY) and organic subscriber growth (+230% YoY). The company has sustained profitability for six consecutive quarters and is executing on content and platform roadmaps including U.S. track content and console ports. Headwinds are largely related to comparability with prior year nonrecurring gains (which compress some quarterly metrics), a Q2 adjusted EBITDA decline versus an exceptionally good prior quarter, a reduced cash balance after a $3.7 million share repurchase, and the inherent execution risks of scaling a nascent SaaS platform and porting to consoles. Overall, the positive operational and recurring‑revenue momentum materially outweighs the concerns highlighted.
Company Guidance
Management explicitly declined to give formal forward guidance but provided directional commentary and many operating metrics: RaceControl subscription revenue was ~ $1.4M in H1 2026 (up ~349% YoY), with a current run rate/ARR of ~ $2.9M (vs $1.2M for full-year 2025), >40,500 paid subscribers (up >230% YoY) and RaceControl now ~18% of H1 revenue; total company H1 revenue was $7.6M (up 74% YoY) with gross profit $6.4M (up 86.9%) and gross margin 84.7% (vs 78.8% a year ago); adjusted EBITDA was $0.8M in Q2 (Q2 2025: $1.4M) and $2.2M for H1 (vs $1.0M, +122.7%), adjusted diluted EPS was $0.19 in Q2 ($0.25 prior year) and $0.33 for H1 ($0.24 prior year), GAAP net income remained positive for a sixth consecutive quarter with H1 GAAP net income $1.2M (vs $5.3M last year driven by nonrecurring gains), operating cash flow averaged ≈ $0.5M/month, cash and cash equivalents were $3.9M at June 30, 2026, the company repurchased $3.7M of Class A shares (retiring Class B super-voting shares), and it has a $3M Citibank revolver with $1.2M drawn (maturity extended to Feb 2028); product roadmap commentary included the July v1.4 U.S. Track Pack (Daytona, Laguna Seca) with Packs 2 and 3 expected in September and December, consoles development “continues as planned,” and management said RaceControl is expected to be a recurring, predictable, high‑margin growth engine but declined to quantify year‑end targets.
Strong Revenue Growth
First half revenue was $7.6 million, up 74% year‑over‑year, showing material top‑line expansion driven by live service momentum.
High and Expanding Gross Margins
Gross margin increased to approximately 84.7% (from 78.8% a year ago) with gross profit of $6.4 million for H1 2026, indicating the business is scaling more efficiently.
Recurring Revenue Platform (RaceControl) Scaling Rapidly
RaceControl subscription revenue in H1 2026 was about $1.4 million versus $0.3 million in H1 2025 (+~349% YoY). Run rate ARR is ~ $2.9 million (up from $1.2 million for all of last year). RaceControl represented 18% of total revenues in H1 2026 vs 7% in H1 2025.
Rapid Subscriber Growth
Paid subscribers ended June at over 40,500, up more than 230% year‑over‑year, achieved organically, improving lifetime value and recurring revenue visibility.
Sustained Profitability
GAAP net income was positive for a sixth consecutive quarter; adjusted EBITDA for the six months ended June 2026 was $2.2 million, up ~122.7% versus $1.0 million in H1 2025.
Strong Player Engagement and Product Traction
Le Mans Ultimate achieved an all‑time concurrent peak of >8,800 players in March; April was the highest month for average daily active users. Over 0.5 million base game units sold and more than 1.2 million DLC pieces sold since launch.
Product Roadmap and Content Expansion
Released U.S. Track Pack (Daytona and Laguna Seca) in July post quarter; Packs 2 and 3 expected in September and December, supporting expansion beyond European content and console development for PlayStation and Xbox is progressing as planned.
Balance Sheet Actions and Financing
Completed $3.7 million repurchase of Class A shares (retiring Class B super‑voting shares), simplifying capital structure; secured a $3.0 million revolving credit facility (maturity extended to Feb 2028; $1.2 million drawn at June 30).

MSGM Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 13, 2026
2026 (Q3)
0.08 / -
0.14
2026 (Q2)
0.02 / 0.19
0.82-76.83% (-0.63)
2026 (Q1)
- / 0.06
0.33-81.82% (-0.27)
2025 (Q4)
- / 0.15
-0.89117.08% (+1.04)
2025 (Q3)
- / 0.14
0
Aug 13, 2025
2025 (Q2)
- / 0.82
0.87-5.75% (-0.05)
2025 (Q1)
- / 0.33
-0.6155.00% (+0.93)
2024 (Q4)
- / -0.89
1.35-165.93% (-2.24)
2024 (Q3)
- / 0.00
-1.28
2024 (Q2)
0.69 / 0.87
-3.02128.81% (+3.89)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed