Free cash flow generation is highly inconsistent, oscillating from a 56.5% margin in 2025Q3 to a negative 108.4% margin in 2024Q4, reflecting significant volatility in cash conversion efficiency.
| Cash from Operations | 5.42M | 4.07M | -2.84M | -12.92M | -19.52M | -20.94M | 4.05M | -4.42M | -902.22K |
| Operating CF Margin % | - | 36.05% | -32.67% | -186.93% | -189.07% | -138.91% | 21.28% | -37.34% | -6.11% |
| Operating CF Growth % | 922.27% | 243.51% | 78.03% | 33.83% | 6.79% | -616.65% | 191.6% | -390.44% | - |
| Net Income | 6.2M | 6.84M | -3.05M | -13.05M | -36.84M | -33.7M | -1.76M | -5.76M | -2.01M |
| Depreciation & Amortization | 1.05M | 1.12M | 2.59M | 2.12M | 2.06M | 1.79M | 720.18K | 861.87K | 461.49K |
| Stock-Based Compensation | 789.35K | 789.35K | 152.96K | 957.3K | 714.52K | 9.73M | 0 | 0 | 546.55K |
| Deferred Taxes | 0 | -270.1K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.59M | -3.47M | -2.46M | -130.46K | 12.93M | 3.26M | 1.49M | 1.24M | 2.41M |
| Working Capital Changes | -969.58K | -945.54K | -71.49K | -2.81M | 1.62M | -2.01M | 3.6M | -769.91K | -444.19K |
| Change in Receivables | -1.32M | 13K | -718.46K | 1.58M | 1.23M | -3.25M | 642.73K | 56.34K | -325.83K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -255.38K | 0 |
| Change in Payables | -1.56M | -2.1M | 2.17M | -1.64M | 525.29K | 944.53K | -1.74M | -565.29K | -73.7K |
| Cash from Investing | -1.77M | -1.12M | 1.18M | 4.21M | -292.45K | -14.39M | -1.8M | -592.63K | 1.21M |
| Capital Expenditures | -662.29K | -12.07K | -25.02K | -31.65K | -292.45K | -754.3K | -236.75K | -108.29K | -23.88K |
| CapEx % of Revenue | 4.88% | 0.11% | 0.29% | 0.46% | 2.83% | 5% | 1.24% | 0.91% | 0.16% |
| Acquisitions | 0 | 0 | 6.5K | 0 | 0 | -13.63M | -1.32M | -484.33K | 1.23M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -740.75K | -1.11M | 1.2M | 4.24M | 0 | 0 | 0 | -484.33K | 1.23M |
| Cash from Financing | 1.15M | 1.06M | 834.05K | 9.94M | 1.71M | 49.26M | -225.85K | 3.56M | 3.69M |
| Debt Issued (Net) | -63.32K | -440.17K | 0 | -262.5K | -362.5K | -227.93K | 361.14K | 0 | 0 |
| Equity Issued (Net) | 2.25M | 2.25M | 884.05K | 11.05M | 38.69K | 63.66M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.04M | -750K | -50K | -850K | 2.04M | -14.17M | -587K | 3.56M | 3.69M |
| Net Change in Cash | 4.81M | 4.13M | -815.94K | 695.9K | -16.84M | 13.83M | 2.03M | -1.45M | 4M |
| Free Cash Flow | 4.64M | 4.06M | -2.86M | -13.71M | -19.81M | -21.7M | 3.92M | -4.53M | -926.1K |
| FCF Margin % | 34.22% | 35.94% | -32.96% | -198.35% | -191.9% | -143.92% | 20.56% | -38.25% | -6.28% |
| FCF Growth % | 371.49% | 241.84% | 79.11% | 30.83% | 8.68% | -653.95% | 186.4% | -389.49% | - |
| FCF per Share | 0.85 | 0.84 | -0.98 | -5.32 | -16.91 | -18.62 | 3.80 | -2.60 | -0.53 |
| FCF Conversion (FCF/Net Income) | 0.75x | 0.59x | 1.03x | 0.90x | 0.54x | 0.63x | -2.31x | 1.24x | 0.45x |
| Interest Paid | 1.43K | 0 | 0 | 0 | 190.27K | 804.67K | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
License Portfolio Expiration Risk
According to the provided financial data, MSGM exhibits extreme volatility in cash conversion, with the OCF/NI ratio swinging from a high of 68.36 in 2024Q3 to a negative -0.76 in 2023Q4, indicating that reported net income is a poor proxy for actual cash generation.
The frequent, massive divergence between net income and operating cash flow suggests that non-operating accounting adjustments are heavily influencing the bottom line. Investors should interpret these fluctuations as a sign that core operational cash flow remains highly unstable and disconnected from the company's reported profitability metrics.
As reported in financial statements, MSGM's free cash flow trajectory is highly inconsistent, oscillating between a peak margin of 56.5% in 2025Q3 and a deep negative margin of -108.4% in 2024Q4, reflecting the company's struggle to maintain a predictable cash-generative business model.
This volatility suggests that the company's cash flow is heavily dependent on the timing of specific licensing milestones or one-time events rather than recurring operational success. The inability to sustain positive free cash flow over consecutive periods warrants significant caution regarding the company's long-term liquidity profile.
Based on reported figures, working capital changes have been a primary driver of cash flow variance, with swings ranging from a $1.0M inflow in 2025Q3 to a $2.8M outflow in 2023Q4, highlighting the company's sensitivity to timing differences in receivables and payables management.
These erratic shifts in working capital suggest that the company may be struggling to manage its cash conversion cycle effectively, potentially due to the lumpy nature of its licensing and development contracts. Such instability often forces the company to rely on external financing or equity dilution to bridge operational gaps.
As indicated by historical filings, MSGM's capital expenditure as a percentage of revenue has fluctuated significantly, reaching as high as 43.6% in 2023Q4 before dropping to near-zero levels in subsequent periods, reflecting an inconsistent approach to long-term asset investment and software development.
The lack of a consistent capital expenditure pattern suggests that the company may be deferring necessary development costs or that its investment strategy is reactive rather than strategic. This inconsistency makes it difficult to assess the company's commitment to maintaining its competitive moat through sustained R&D investment.
Quick answers to the most common questions about buying MSGM stock.
Motorsport Games Inc. (MSGM) generated $4.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Motorsport Games Inc. (MSGM) generated $4.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Motorsport Games Inc. (MSGM) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.