Revenue growth remains highly erratic, fluctuating between -53.7% and 129.3%, while non-operating items frequently distort net margins despite a peak gross margin of 87.0% in 2026Q1.
| Sales/Revenue | 13.57M | 11.3M | 8.69M | 6.91M | 10.32M | 15.08M | 19.05M | 11.85M | 14.76M |
| Revenue Growth % | 82.97% | 30.05% | 25.73% | -33.08% | -31.51% | -20.84% | 60.71% | -19.69% | - |
| Cost of Goods Sold | 2.2M | 2.14M | 3.23M | 3.62M | 4.96M | 7.53M | 6.6M | 4.89M | 5.6M |
| COGS % of Revenue | - | 18.94% | 37.13% | 52.4% | 48.04% | 49.94% | 34.63% | 41.25% | 37.95% |
| Gross Profit | 11.37M | 9.16M | 5.46M | 3.29M | 5.36M | 7.55M | 12.45M | 6.96M | 9.16M |
| Gross Margin % | 83.8% | 81.06% | 62.87% | 47.6% | 51.96% | 50.06% | 65.37% | 58.75% | 62.05% |
| Gross Profit Growth % | - | 67.67% | 66.05% | -38.68% | -28.92% | -39.38% | 78.83% | -23.97% | - |
| Operating Expenses | 8.55M | 7.52M | 7.21M | 19.66M | 40.39M | 42.07M | 12.45M | 12.14M | 9.85M |
| OpEx % of Revenue | - | 66.54% | 83.01% | 284.54% | 391.21% | 279.08% | 65.36% | 102.42% | 66.72% |
| Selling, General & Admin | 6.4M | 5.76M | 7.62M | 11.06M | 19.94M | 31.85M | 7.74M | 6.38M | 6.05M |
| SG&A % of Revenue | - | 50.96% | 87.74% | 160.03% | 193.1% | 211.3% | 40.63% | 53.81% | 41.02% |
| Research & Development | -87.62K | 1.76M | 3.38M | 7.24M | 10.42M | 9.62M | 4.65M | 4.78M | 3.79M |
| R&D % of Revenue | - | 15.58% | 38.89% | 104.74% | 100.9% | 63.82% | 24.41% | 40.37% | 25.71% |
| Other Operating Expenses | 5.45K | 0 | -3.79M | 1.37M | 10.04M | 597.3K | 61.58K | 976.64K | 0 |
| Operating Income | 2.82M | 1.64M | -1.75M | -16.37M | -35.03M | -34.53M | 1.15K | -5.18M | -689.21K |
| Operating Margin % | 20.76% | 14.52% | -20.14% | -236.94% | -339.25% | -229.02% | 0.01% | -43.68% | -4.67% |
| Operating Income Growth % | - | 193.74% | 89.31% | 53.26% | -1.45% | -3010270.71% | 100.02% | -651.02% | - |
| EBITDA | 3.86M | 2.76M | 839.59K | -14.26M | -32.96M | -32.74M | 721.33K | -4.31M | -227.72K |
| EBITDA Margin % | 28.47% | 24.45% | 9.66% | -206.32% | -319.28% | -217.18% | 3.79% | -36.4% | -1.54% |
| EBITDA Growth % | 139.73% | 229.03% | 105.89% | 56.75% | -0.68% | -4639.08% | 116.72% | -1794.53% | - |
| D&A (Non-Cash Add-back) | 1.05M | 1.12M | 2.59M | 2.12M | 2.06M | 1.79M | 720.18K | 861.87K | 461.49K |
| EBIT | 1.69M | 1.64M | -2.93M | -13.55M | -35.69M | -33.2M | 37.64K | -5.76M | -1.13M |
| Net Interest Income | -8.98K | -18.79K | -120.76K | -772.99K | -1.15M | -504.16K | -717.5K | 35.73K | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 1.34K | 35.73K | 26.25K |
| Interest Expense | 8.98K | 18.79K | 120.76K | 772.99K | 1.15M | 504.16K | 718.84K | 0 | 0 |
| Other Income/Expense | 3.71M | 4.96M | -1.3M | 2.05M | -1.81M | 821.91K | -681K | -579.45K | 8.38K |
| Pretax Income | 6.53M | 6.6M | -3.05M | -14.32M | -36.84M | -33.7M | -679.85K | -5.76M | -1.15M |
| Pretax Margin % | 48.11% | 58.41% | -35.09% | -207.29% | -356.82% | -223.57% | -3.57% | -48.57% | -7.82% |
| Income Tax | -245.26K | -245.26K | 0 | 0 | 0 | 0 | 0 | 0 | -2.32K |
| Effective Tax Rate % | -3.76% | -3.72% | 0% | 0% | 0% | 0% | 0% | 0% | 0.2% |
| Net Income | 6.2M | 6.93M | -2.75M | -14.32M | -35.99M | -33.16M | -1.76M | -3.56M | -2.01M |
| Net Margin % | 45.71% | 61.32% | -31.69% | -207.29% | -348.59% | -219.97% | -9.22% | -30.08% | -13.63% |
| Net Income Growth % | 989.19% | 351.66% | 80.78% | 60.2% | -8.53% | -1787.8% | 50.71% | -77.26% | - |
| Net Income (Continuing) | 6.77M | 6.84M | -3.05M | -14.32M | -36.84M | -33.7M | -679.85K | -5.76M | -1.15M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.51M | 805.55K | 729.74K | 1.05M | 369.69K | 1.26M | 2.65M | 6.68M | 8.87M |
| EPS (Diluted) | 1.13 | 1.43 | -0.94 | -5.06 | -30.73 | -29.10 | -1.76 | -1.69 | -1.15 |
| EPS Growth % | 36462.5% | 252.13% | 81.42% | 83.53% | -5.6% | -1553.41% | -4.14% | -46.96% | - |
| EPS (Basic) | - | 1.43 | -0.94 | -5.06 | -30.73 | -29.10 | -1.76 | -1.69 | -1.15 |
| Diluted Shares Outstanding | 5.48M | 4.84M | 2.92M | 2.58M | 1.17M | 1.17M | 1.03M | 1.75M | 1.75M |
| Basic Shares Outstanding | 5.46M | 4.84M | 2.92M | 2.58M | 1.17M | 1.17M | 1.03M | 1.75M | 1.75M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
License Portfolio Expiration Risk
As reported in financial statements, MSGM experienced a significant 129.3% revenue surge in 2026Q1, yet this follows a highly erratic historical trend where quarterly growth rates fluctuated wildly between -53.7% and 129.3%, suggesting that revenue is driven by unpredictable release cycles rather than a stable, compounding base.
The extreme variance in top-line performance indicates that the company lacks a recurring revenue stream, leaving it entirely dependent on the timing of new title launches. Investors should monitor whether this volatility reflects genuine market demand or merely the lumpy recognition of licensing-related milestones.
Based on the provided figures, MSGM maintains a high gross margin profile, peaking at 87.0% in 2026Q1, yet the massive, frequent divergence between operating and net margins suggests that non-operating items are masking the underlying profitability of the core gaming and esports business segments.
While the high gross margin is characteristic of digital software distribution, the inability to consistently convert this into positive operating income suggests significant inefficiencies in managing fixed licensing costs. The recurring gap between operating and net margins warrants deep skepticism regarding the sustainability of reported bottom-line results.
According to recent SEC filings, the company's net income frequently decouples from operating performance, as evidenced by the 164.3% net margin in 2025Q2, which appears to be driven by non-operating gains rather than operational success, casting doubt on the quality of reported earnings per share.
The presence of large, non-recurring income items suggests that the company's reported profitability is not reflective of its core business health. Analysts should adjust for these anomalies to determine the true cash-generating capability of the firm, as the current figures likely overstate operational performance.
As indicated by the recent divestiture of the NASCAR license, MSGM's business model faces severe structural risks, as the company's primary competitive moat is tied to exclusive licensing agreements that appear increasingly difficult to maintain or monetize effectively in a competitive, high-cost development environment.
The loss of key intellectual property suggests that the company's long-term terminal value is under significant pressure. Without a diversified portfolio or a pivot to a more sustainable technology-licensing model, the firm may struggle to justify its fixed-cost structure against a shrinking base of licensed racing content.
Quick answers to the most common questions about buying MSGM stock.
For fiscal year 2025, Motorsport Games Inc. (MSGM) reported total revenue of $11.3M. This represents a 23.4% decline compared to $14.8M in 2018.
Motorsport Games Inc. (MSGM) is profitable, generating $6.9M in net income for the fiscal year ending 2025 with a net profit margin of 61.3%.
Motorsport Games Inc. (MSGM) reported an operating income of $1.6M, resulting in an operating profit margin of 14.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Motorsport Games Inc. (MSGM) generated $9.2M in gross profit for the year, representing a gross profit margin of 81.1%. This demonstrates the company's core pricing power and production efficiency.