Motorsport Games Earnings Call Transcripts
Fiscal Year 2026
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H1 revenue rose 74% to $7.6M, with gross margin at 84.7% and H1 adjusted EBITDA more than doubling to $2.2M. RaceControl subscriptions grew rapidly, while console development and additional US Track Pass content extend the growth roadmap.
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Q1 2026 saw revenues more than double year-over-year, driven by Le Mans Ultimate and RaceControl, with strong recurring revenue growth and improved profitability. Governance was enhanced through share repurchases and equalized voting rights, while new projects and partnerships position the company for future growth.
Fiscal Year 2025
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Record profitability and 30% revenue growth in 2025 were driven by Le Mans Ultimate and RaceControl subscriptions, with strong cash flow and improved liquidity. Expansion to consoles and new titles is planned, supported by a scalable platform and minimal marketing spend.
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Q3 2025 saw a 71.9% revenue increase to $3.1M, driven by Le Mans Ultimate and Race Control, with net income of $0.8M and positive cash flow. Operational profit was achieved for the second consecutive quarter, and console development is underway.
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A proprietary platform and flagship title Le Mans Ultimate have driven a business turnaround, with strong sales, recurring revenue, and the first-ever operating income in Q2 2025. Plans to expand to consoles and deepen industry partnerships position the company for further growth.
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The company has achieved a financial turnaround by focusing on its core racing simulation titles, especially Le Mans Ultimate, which has seen strong sales and recurring revenue from subscriptions. Plans include expanding to consoles, launching new content, and leveraging proprietary technology for growth.
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Q2 2025 saw a major turnaround with revenues up 37.7% and net income doubling year-over-year, driven by Le Mans Ultimate and rapid SaaS growth. Record user engagement, new product features, and settlements contributed to the first-ever positive operating income.
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Q1 2025 saw revenues decline 41.9% year-over-year due to the NASCAR license loss, but net income improved to $1.0 million, aided by cost reductions, legal settlements, and a $2.5 million investment. Le Mans Ultimate and new features are driving future growth.
Fiscal Year 2024
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Le Mans Ultimate drove revenue growth and player engagement, with new subscription and DLC offerings boosting monetization. Despite improved financials and reduced cash burn, liquidity remains a concern, and additional funding is needed to sustain operations.
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Q3 2024 saw a 6.4% revenue increase and a sharply reduced net loss, driven by higher digital game sales and cost optimization. Liquidity remains a concern, with management actively seeking additional funding and strategic alternatives.
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Q2 2024 saw an 8.2% revenue increase to $1.9M, a $2.1M net income, and strong Le Mans Ultimate engagement, with 46% of DLC buyers choosing the Season Pass. Liquidity remains a concern, with additional funding needed to sustain operations.