Motorsport Games Inc. (MSGM) Earnings
Motorsport Games Inc. is expected to report next earnings on November 5, 2026 (in NaN days), with a consensus EPS estimate of $0.08. MSGM has beaten EPS estimates in 6 of its last 7 reported quarters (average surprise +222.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 14, 2026 | $0.02 | $0.19 | +850.0% | $4M | +18.2% |
| May 13, 2026 | — | $0.07 | — | $4M | — |
| Mar 10, 2026 | — | $0.15 | — | $4M | — |
| Nov 6, 2025 | — | $0.14 | — | $3M | — |
| Aug 13, 2025 | — | $0.82 | — | $3M | — |
| May 9, 2025 | — | $0.33 | — | $2M | — |
| Mar 20, 2025 | $-0.48 | $-0.89 | -85.4% | $2M | -40.2% |
| Nov 14, 2024 | $-0.63 | $0.00 | +100.5% | $2M | -9.9% |
| Aug 9, 2024 | $0.69 | $0.87 | +26.1% | $2M | +4.5% |
| Apr 1, 2024 | $-1.74 | $1.35 | +177.6% | $2M | -15.2% |
| Aug 21, 2023 | $-1.86 | $-1.54 | +17.2% | $2M | +21.6% |
| May 11, 2023 | $-3.35 | $-2.33 | +30.4% | $2M | +19.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 14, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Core Business Performance & Milestones * The company has delivered six consecutive quarters of positive operating income and GAAP net income, demonstrating a sustained profitable turnaround * Le Mans Ultimate achieved record player engagement in Q2 2026, with April posting an all-time high for average daily active users, signaling strong long-term player retention * All outstanding super-voting Class B shares have been retired after the company repurchased a significant block of Class A common stock from Driven Lifestyle Group; all outstanding common stock now carries equal voting rights, simplifying the company's capital structure * New CFO Peter Hansen-Chambers joined the company on July 1, 2026, bringing extensive gaming industry experience to support the transition from recovery to sustained growth - Product Development & Roadmap * After quarter-end in July 2026, Le Mans Ultimate was updated to version 1.4, adding the iconic American circuits Daytona and Laguna Seca as the first release of the new US Track Pass; two additional US Track Pass content packs are scheduled for September and December 2026 * Development of the console (PlayStation and Xbox) port of Le Mans Ultimate continues on schedule; bringing the high-fidelity simulation experience to console will open the game to a large underserved market of players who do not own high-end gaming PCs * Management expects Le Mans Ultimate can support significant new content additions for at least the next two years, with an all-new full title planned beyond that timeframe * A new long-term strategic project leveraging the company's existing simulation technology, Race Control platform, live service infrastructure and player community is in formative stages, with full details to be shared on a future call - Strategic Positioning * Race Control is positioned as a standalone high-margin recurring revenue platform, not just a supporting feature for Le Mans Ultimate; all Le Mans Ultimate online players have Race Control accounts, allowing direct player communication, improved onboarding, and incremental monetization of engaged users * The company's unique ecosystem model (core game + recurring subscription platform) delivers more predictable, higher-margin revenue than the traditional episodic game release model, with revenue reinvested into ongoing product improvements
Guidance
Management did not provide formal quantitative forward guidance on this call, consistent with prior practice. Key qualitative forward-looking observations include: * Management is confident that Race Control's strong organic growth trajectory will continue through the remainder of 2026, as the platform becomes an increasingly meaningful contributor to total company revenue * The console launch of Le Mans Ultimate is expected to be a major growth milestone, with development learnings that will benefit all future product releases * Management reaffirmed confidence in the company's current foundational positioning to deliver on its long-term product and growth roadmap, with full roadmap details to be shared on the Q3 2026 earnings call
Segment performance
Motorsport Games operates two core product segments: Le Mans Ultimate (the company's flagship racing game) and Race Control (the standalone player subscription platform). For the first half (H1) of 2026, total company revenue was $7.6 million, representing 74% year-over-year (YoY) growth. Race Control generated $1.4 million in subscription revenue in H1 2026, up 349% YoY from $0.3 million in H1 2025, and contributed 18% of total company revenue (up from 7% in H1 2025 and less than 1% in full-year 2024). Race Control ended Q2 2026 with an annual recurring revenue run rate of $2.9 million, up from $1.2 million for full-year 2025, and had over 40,500 paid subscribers, up 230% YoY, all organic growth. Le Mans Ultimate, the core game segment, has sold over 500,000 base game units and over 1.2 million individual downloadable content (DLC) units since launch, and drives user traffic to the Race Control platform. The overall company gross profit margin expanded to 84.7% in H1 2026, up from 78.8% YoY.
Risks & headwinds
No specific material risks or ongoing operational failures were explicitly discussed on this call. Management noted in the standard forward-looking statement disclaimer that actual future results may differ materially from expectations due to unidentified risks and uncertainties, and directed investors to the company's public SEC filings for a full discussion of known risk factors.
Analyst Q&A
Q: After the July release of the first Le Mans Ultimate US Track Pack, how is the pack performing, and what is the content roadmap through the end of 2026 and into 2027? /
A: Management reports that the first US Track Pack has outperformed internal expectations, with a very positive reaction from the player community. Two additional US content packs are confirmed for release later in 2026, with specific dates still to be finalized. The company is actively exploring additional content for Le Mans Ultimate in 2027.
Q: What is the current growth trajectory for Race Control recurring revenue, and how is subscriber retention performing? /
A: Race Control currently has a $2.9 million annual recurring revenue run rate, with a consistent subscription attach rate that allows for accurate forecasting. Management is confident the platform's strong growth will continue for the rest of the year. Active initiatives are in place to improve subscriber retention, and these initiatives are already showing positive early results.
Q: What are your top priorities as the new CFO of Motorsport Games? /
A: My core priority is to help the company transition from its successful turnaround phase to become a high-performing sustained growth business. This includes building on the company's existing strong cultural and operational foundations to put in place the structures and energy needed to deliver on the next chapter of growth, aligned with CEO Stephen Hood's ambitious goals for the business.
Q: What are your current subscriber acquisition costs for Race Control, and how would you describe the current competitive environment for your products? /
A: All Race Control subscriber growth to date has been organic, so subscriber acquisition costs are very low and margins are very high. Management currently sees significant remaining room to grow conversion of existing Race Control account holders to paid subscriptions before exploring paid user acquisition. The company is currently exceeding the 5% paid conversion rate benchmark for successful free-to-play gaming products.