Record Revenue Growth and …

Release Date: August 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Motorsport Games Inc (NASDAQ:MSGM) reported a significant increase in revenues, up by 37.7% compared to the same period in the prior year, driven by strong sales of the Le Mans Ultimate racing title.

• The company achieved a milestone by generating income from operations for the first time in its history, with a reported income of $2 million in Q2 2025.

• The subscription service, Race Control, showed impressive growth with a net monthly recurring revenue growth of 296% in June, indicating strong player engagement and retention.

• Motorsport Games Inc (NASDAQ:MSGM) successfully launched version 1.0 of Le Mans Ultimate, setting new records for concurrent and daily active users, demonstrating sustained interest beyond the real-world race event.

• The company is in late-stage negotiations for a console port of Le Mans Ultimate, potentially expanding its audience to Microsoft Xbox and Sony PlayStation platforms.

• Motorsport Games Inc (NASDAQ:MSGM) experienced a decrease in NASCAR-related revenues by $0.9 million, as they are no longer authorized to sell this gaming title starting in 2025.

• Despite the revenue increase, the company still faces cash flow pressures, with cash and cash equivalents at $2.8 million as of July 31, 2025.

• The company is reliant on the success of Le Mans Ultimate, which may pose a risk if the game fails to maintain its current momentum.

• There is uncertainty regarding the outcome of negotiations with potential partners for publishing responsibilities and funding for the console port.

• The company has not provided any forward-looking guidance, which may leave investors uncertain about future performance and strategic direction.

Q: Can you provide an update on the performance and future plans for Le Mans Ultimate? A: Stephen Hood, CEO: Le Mans Ultimate has seen significant updates, including team and driver swap races, which have been well-received. The game set new records for concurrent and daily active users, especially after the release of version 1.0. We are in late-stage negotiations for a console port and exploring partnerships for publishing to expand our audience. The game has driven a 37.7% increase in revenue compared to the previous year.

Q: How has the subscription service, Race Control, performed since its launch? A: Stephen Hood, CEO: Race Control has over 200,000 registered accounts and has shown rapid growth with a 296% increase in monthly recurring revenue in June. The quick ratio peaked at 4.66, indicating strong growth and retention. This service is a key revenue line and provides predictable cash flow, allowing for strategic investments.