MSGMNasdaqServices-Prepackaged SoftwareUS GAAP · USD

Motorsport Games Inc.

Motorsport Games Inc. develops and publishes racing video games for console, PC, and mobile platforms, with a business rooted in motorsport-themed interactive entertainment. The company also monetizes esports-related activities, software development services for racing simulators, and a subscription-based matchmaking/online racing platform called RaceControl.

Revenue11.3m USD
+30.0 %y/y
Operating profit (EBIT)3.2m USD
+285.7 %y/y
EBIT margin28.8%
+48.9 ppy/y
Net income6.9m USD
+351.7 %y/y
Free cash flow4.1m USD
+241.8 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-40-20020m USD2020: 19 m USD2020: EBIT 0.00 m USD20202021: 15 m USD2021: EBIT -35 m USD20212022: 10 m USD2022: EBIT -35 m USD20222023: 6.9 m USD2023: EBIT -16 m USD20232024: 8.7 m USD2024: EBIT -1.7 m USD20242025: 11 m USD2025: EBIT 3.2 m USD2025113.2
RevenueOperating profit (EBIT)

Business

Share of revenue
Video games70 %

Full racing game titles sold digitally or physically across console, PC, and mobile platforms.

Extra content and updates15 %

Paid and free add-on content, patches, and future downloadable content tied to released games.

Software development services10 %

Outsourced code and content development work for racing simulators and related customers.

Subscription services3 %

RaceControl matchmaking and online racing subscription access launched in late 2024.

Esports activities2 %

Curated esports events, sponsorships, and participation-fee related offerings when active.

Products

Reported · share of revenue
44.0%39.6%10.0%FY2025100 %
  • Ingame Revenues44.0 %
  • Digital Game Sales39.6 %
  • Subscription and Circulation10.0 %
  • Software Development4.5 %
  • Other1.9 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company sells primarily to consumers who buy racing games and related content on digital storefronts or physical channels. It also serves racing-simulator and esports-related customers through development services, event curation, and online racing subscriptions. Platform operators such as Apple, Google, Sony, Microsoft, Steam, and other storefronts are important distribution partners because they control access to end users and fee structures.

Consumer racing gamers

Buy full games and extra content for console, PC, and mobile play because the company monetizes motorsport-themed entertainment directly from end users.

Digital platform users

Purchase through storefronts such as Steam, PlayStation Store, Xbox Store, Nintendo eShop, App Store, and Google Play, which are critical for reach and monetization.

Racing simulator customers

Buy outsourced code and content development services for simulator-related projects and racing software needs.

Esports and sponsorship counterparties

Engage with curated esports events and sponsorship opportunities when the company operates racing competitions.

Subscription users

Subscribe to RaceControl for matchmaking and online racing functionality, a newer recurring-revenue offering.

Strategy

The company is trying to broaden beyond one-time game sales by adding subscriptions, simulator development services, and selective esports-related monetization. Management also emphasizes improving product quality, expanding brand awareness, and increasing the number of players to support a more durable revenue base. Because larger competitors have more resources, execution depends on focused product development and efficient use of capital.

Grow the player baseShort term

More players improve monetization potential across games, content, and online services.

Build recurring revenueMedium term

Subscriptions and services can reduce dependence on hit-driven game launches.

Strengthen product quality and featuresMedium term

Better games and online features help retain users against larger competitors.

Geography

Motorsport Games is a U.S.-based company, but its products are distributed globally through international digital storefronts and gaming platforms. The business is exposed to platform policies, pricing, and fee structures across major markets rather than relying on a single domestic channel. Its esports and online services also depend on third-party cloud and broadband infrastructure, which can be located outside the company’s control.

Risks

Motorsport Games faces the typical risks of a small game publisher: intense competition, hit-driven demand, and dependence on third-party distribution platforms. Company-specific risks include cyber threats, advertising-content exposure, limited operating history, and the need to remediate internal control weaknesses while preserving access to capital and Nasdaq listing compliance.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Intense competition in interactive entertainment and esports1Limited operating history and execution risk2Cybersecurity and platform disruption3Internal control and Nasdaq compliance risk4Advertising content and regulatory exposure5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Intense competition in interactive entertainment and esportsImpact: HighLikelihood: High

    Larger publishers can outspend the company on development, marketing, and licensing.

    ExposureGame salesEsportsUser acquisition
  2. Limited operating history and execution riskImpact: HighLikelihood: High

    The company has a short track record and must prove it can grow users and revenue.

    ExposureStrategic planningForecastingCapital allocation
  3. Cybersecurity and platform disruptionImpact: HighLikelihood: Medium

    The company relies on online infrastructure and third-party cloud/broadband partners.

    ExposureRaceControlOnline gameplayUser dataPlatform uptime
  4. Internal control and Nasdaq compliance riskImpact: HighLikelihood: Medium

    Reported material weaknesses and listing compliance issues can affect investor confidence and financing.

    Exposure: Financial reporting and market access

  5. Advertising content and regulatory exposureImpact: MediumLikelihood: Low

    Third-party advertisers may deliver objectionable content without pre-approval.

    Exposure: In-game advertising within franchises

Accounting

Judgemental items
Revenue recognition and performance obligations

Games, extra content, services, and subscriptions may be recognized at different times.

Impact: Can shift revenue between periods and affect comparability

Principal versus agent accounting

Storefront sales are generally netted unless the company is principal, as with some mobile platforms.

Impact: Changes reported revenue and cost of revenues

Deferred revenue and offering periods

Subscription and content delivery timing affects when cash becomes revenue.

Impact: Impacts quarterly revenue and balance sheet liabilities

Stock-based compensation valuation

Management must estimate fair value assumptions for equity awards.

Impact: Affects operating expenses and earnings

Valuation allowance on deferred tax assets

Loss history and uncertain profitability can require reserve adjustments.

Impact: Can materially affect tax expense and equity

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026