MSGM · Motorsport Games Inc.

Motorsport Games Inc. delivered a standout Q1 2026 with revenues surging 129.3% year-over-year to $4.0 million, driven by strong momentum in Le Mans Ultimate and expansion of the RaceControl subscription platform, as highlighted by CEO Stephen Hood. Gross profit more than doubled to $3.5 million, with margins expanding dramatically to 87.2% from 73.5%, reflecting improved cost efficiencies and scalable product performance. While GAAP net income held steady at $1.0 million, Adjusted EBITDA rose sharply to $1.5 million from $0.6 million, underscoring core operating improvements after adjusting for one-time items like prior-year settlement gains and this year's intangible impairment and stock-based compensation. The release of Le Mans Ultimate Version 1.3 in March, featuring Circuit de Barcelona-Catalunya, Duqueine D09 LMP3 car, and Logitech Trueforce support, drove an all-time peak of over 8,800 concurrent players, validating the company's development cadence and community engagement strategy. Financial stability enabled strategic moves: a $3.0 million Citibank revolving line in February (maturity extended to 2028), positive operational cash flow of $0.5 million monthly, and a $3.7 million share repurchase from Driven Lifestyle Group LLC on April 22, cancelling all Class B shares and enhancing shareholder control. Cash dipped from $5.9 million at quarter-end to $3.8 million post-repurchase, offset by a $1.2 million loan draw. Management emphasized portfolio expansion, including console ports for Le Mans Ultimate, positioning for scalable growth in racing simulations and esports.