0001493152-26-009532
SEC filingMotorsport Games Inc. reported a profitable fiscal year 2025, with net income attributable to the company of $6.9 million, a significant improvement from a net loss in the prior year. This turnaround was primarily driven by strong revenue of $11.3 million, which generated a gross profit of $9.2 million, and substantial non-operating gains. Key positive items included a $3.2 million gain from the settlement of license liabilities and $3.4 million in other income. Operating income was $3.2 million. The company ended the year with $5.0 million in cash and cash equivalents, total assets of $12.0 million, and positive operating cash flow of $4.1 million. The balance sheet shows stockholders' equity of $7.6 million. The results reflect successful cost management and the realization of gains from asset sales and liability settlements.
Motorsport Games Inc. achieved a net income attributable to the company of $6.9 million for the fiscal year ending December 31, 2025, marking a significant positive shift from the prior year's net loss. This result was driven by total revenues of $11.3 million and a gross profit of $9.2 million. Income from operations was $3.2 million, bolstered by a $3.2 million gain from the settlement of license liabilities and $1.6 million in other operating income. Further contributing to profitability was $3.4 million in other income, net. The company reported basic and diluted earnings per share of $1.00, based on 4.8 million weighted-average shares outstanding.
The company's revenue of $11.3 million for FY 2025 was derived from its core operations. The document and XBRL data do not provide a breakdown of revenue by segment, product line, or geography. Therefore, the analysis of revenue drivers is limited to the aggregate figure. The cost of revenues was $2.1 million, indicating the company's primary business activities have a relatively low direct cost structure, contributing to the high gross margin.
The company demonstrated strong profitability metrics for the period. The gross margin was 81.4%, calculated from the $9.2 million gross profit on $11.3 million in revenue. The operating margin was 28.3%, derived from $3.2 million in operating income. Total operating expenses were $7.6 million, comprising sales and marketing ($0.6 million), development ($1.8 million), general and administrative ($5.1 million), and depreciation and amortization ($0.05 million). The net income margin, based on net income attributable to Motorsport Games Inc., was 61.1%.
The company generated $4.1 million in net cash from operating activities. Key adjustments to the $6.8 million net income included non-cash gains from liability settlements ($3.2 million) and foreign exchange ($3.3 million), offset by changes in working capital. Investing activities used $1.1 million, primarily for software investment ($1.1 million), partially offset by proceeds from asset sales. Financing activities provided $1.1 million, mainly from equity issuance ($2.3 million net), offset by debt repayments. The year-end cash balance was $5.0 million. Total assets were $12.0 million, with current assets of $7.6 million. Total liabilities were $4.4 million, resulting in a stockholders' equity position of $7.6 million and a current ratio of approximately 2.2.
The provided document content and XBRL data consist solely of the financial statements for FY 2025. No management discussion and analysis (MD&A), commentary on strategic priorities, forward-looking guidance, or explicit risk factors for the upcoming period are included in the input. Therefore, an outlook based on disclosed management perspective or future plans cannot be provided from the available source material.