Motorsport Games (NASDAQ:MSGM) reported what management described as a significant turnaround in its fourth quarter and full-year 2025 earnings call, citing record profitability, revenue growth, and improved liquidity driven by the performance of its Le Mans Ultimate title and the expansion of its RaceControl platform.
Fourth-quarter results show sharp year-over-year improvement
Chief Financial Officer Stanley Beckley said fourth-quarter revenue was $3.8 million, up $1.8 million, or 95%, from the same period a year earlier. Beckley attributed the increase primarily to higher digital game sales from Le Mans Ultimate and higher downloadable content (DLC) sales.
Full-year 2025 revenue rose 30%; Le Mans Ultimate and subscriptions offset NASCAR exit
For the full year, Beckley said revenue totaled $11.3 million, up $2.6 million, or 30%, year over year. He said results were driven by a $5.8 million increase from Le Mans Ultimate, particularly DLC sales, and $1.2 million from RaceControl. Those gains were partially offset by a $4.4 million decrease tied to NASCAR-related revenue after the company sold its NASCAR license and stopped selling NASCAR titles at the start of 2025.
Net income for 2025 was $6.8 million, compared with a net loss of $3.1 million in 2024. Adjusted EBITDA was $7.3 million, compared with an adjusted EBITDA loss of $3.9 million in the prior year. Net income attributable to Class A common stock was $1.43 per share, compared with a net loss of $0.94 per share in the prior year.
Liquidity strengthened; cash grew to $6 million by late February
CEO Stephen Hood and Beckley emphasized improved cash generation and balance sheet strength. The company ended 2025 with $5 million in cash and cash equivalents, which increased to $6 million as of February 28, 2026. Beckley said the company generated an average of approximately $300,000 per month in positive cash flow from operations during 2025, citing increased profitability as well as two settlement-related cash inflows: $800,000 from a Wesco Insurance Company settlement in June 2025 and $500,000 from a settlement agreement with HC2 Holdings 2 Inc. in March 2025.
Beckley added that Motorsport Games had no outstanding debt or purchase commitment liabilities and that working capital improved to $4.2 million as of December 31, 2025, from negative working capital of $2.2 million a year earlier. In February 2026, the company secured a $3 million revolving line of credit from Citibank, with no balance outstanding at the time of the call. Hood said the credit facility was intended to support multi-platform plans for Le Mans Ultimate and allow the company to begin initiating development of a new title without “tempering” its plans.
Le Mans Ultimate updates, player growth, and platform features
Hood said 2025 validated the company’s strategic shift toward a smaller, more disciplined development team and a long-term platform strategy centered on Le Mans Ultimate. During 2025, Motorsport Games delivered five major updates to the game in February, June, July, September, and December. The title exited early access in July, and Hood said the company has continued to invest in player experience, content expansion, and improvements to the underlying technology.
He highlighted September’s addition of European Le Mans Series content and December’s release of version 1.2, which added Circuit Paul Ricard and the Ginetta G61 LMP3 race car, while also emphasizing technical investments in proprietary simulation technology. Hood said version 1.2 also introduced online integrity features including Easy Anti-Cheat integration, a driver badge reputation system, and the first phase of LiveSteward, an automated incident detection system.
Additional features discussed included team online championships and Engineer Mode, which allows teammates to manage pit strategy remotely during endurance races. Hood said these additions are designed to deepen engagement and support Le Mans Ultimate’s position as an endurance racing simulation.
Hood also pointed to increased engagement on Steam. Average concurrent players rose from approximately 786 in January 2025 to nearly 3,000 in December 2025. He said momentum continued into 2026, with an all-time peak of over 8,700 concurrent players in January and an average player count exceeding 4,200. Hood said the growth has been “entirely organic,” noting limited marketing investment and ongoing recruiting for marketing talent ahead of the game’s planned expansion to consoles.
RaceControl grows recurring revenue and expands the business model
Management described RaceControl as a key driver of a more stable revenue mix. Hood said RaceControl is Motorsport Games’ proprietary matchmaking and competitive racing platform that powers online play for products including rFactor 2 and Le Mans Ultimate, and includes an optional subscription layer.
By the end of 2025, Hood said RaceControl had over 400,000 registered accounts, more than 26,000 active paying subscribers, and was generating approximately $200,000 in monthly recurring revenue. He added that the first two months of 2026 were among the strongest monthly recurring revenue growth periods to date. Beckley said RaceControl subscriptions represented 11% of total revenue in 2025, compared with less than 1% in 2024, and that the company expects the platform to continue growing.
Hood also described potential business-to-business opportunities for RaceControl, saying it can provide competitive infrastructure for online racing events—such as matchmaking, scheduling, anti-cheat, broadcasting tools, and official classification—and that conversations with brands and rights holders were “encouraging,” though he did not provide additional details.
During the Q&A, management addressed a decline in development costs, noting that the company capitalized about $1.1 million of development costs related to significant upgrades and enhancements, and that payroll costs for developers and contractors were down following restructuring. Hood said artificial intelligence tools are being used in development pipelines to enable rapid iteration and faster delivery of updates, while Beckley noted AI is also used to some extent for answering customer queries.
On console plans, Hood said the PlayStation and Xbox versions are “very much on track,” with timing described as early to mid-2027, as the company evaluates the optimal release window. Beckley said the $3 million revolving credit facility would be “more than sufficient” to fully support porting Le Mans Ultimate to console.
Hood closed by saying the company has moved beyond stabilizing the business and is now focused on scaling its platform model, while beginning to evaluate opportunities to extend that approach to additional future titles and making targeted hires to support that next phase.
About Motorsport Games (NASDAQ:MSGM)
Motorsport Games, Inc is a publicly traded developer and publisher of interactive motorsport entertainment, headquartered in Miami, Florida. The company specializes in creating officially licensed racing simulation titles and managing associated esports competitions. By focusing exclusively on the motorsport genre, Motorsport Games aims to deliver authentic digital experiences that mirror the rules, tracks and vehicles of real-world racing series.
The company’s core activities include the development of video games under licenses from major sanctioning bodies such as NASCAR, the Fédération Internationale de l’Automobile (FIA) and International Motor Sports Association (IMSA).
