Motorsport Games (NASDAQ:MSGM) Posts Quarterly Earnings Results

Motorsport Games (NASDAQ:MSGM) posted its quarterly earnings results on Friday. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.02 by $0.17, FiscalAI reports. Motorsport Games had a net margin of 45.70% and a return on equity of 87.43%.

Here are the key takeaways from Motorsport Games’ conference call:

• First-half revenue rose 74% year over year to $7.6 million, while gross margin expanded to 84.7% from 78.8%; the company also reported its sixth consecutive quarter of positive GAAP net income.
• RaceControl continued its rapid growth, with first-half subscription revenue increasing nearly 349% to approximately $1.4 million, annual recurring revenue reaching $2.9 million, and paid subscribers exceeding 40,500.
• Le Mans Ultimate surpassed 500,000 base-game sales and 1.2 million DLC sales, with player engagement accelerating; the US Track Pass featuring Daytona and Laguna Seca reportedly launched above management’s expectations.
• Development of PlayStation and Xbox versions of Le Mans Ultimate remains on plan, but management emphasized that bringing the high-fidelity simulation to consoles is complex and did not provide a launch date.
• Cash was $3.9 million at quarter-end after the company spent $3.7 million repurchasing Class A shares and had drawn $1.2 million of a $3 million revolving credit facility, limiting near-term financial flexibility despite positive operating cash flow.

Motorsport Games Trading Down 0.9%

MSGM stock traded down $0.04 during midday trading on Friday, hitting $4.44. The company had a trading volume of 93,675 shares, compared to its average volume of 37,088. The stock has a market cap of $18.51 million, a price-to-earnings ratio of 3.79, a PEG ratio of 0.78 and a beta of 1.71. Motorsport Games has a 52 week low of $2.11 and a 52 week high of $5.56. The stock’s 50 day moving average price is $4.30 and its 200 day moving average price is $4.17.

Insider Activity at Motorsport Games

In other Motorsport Games news, major shareholder Red Oak Partners, Llc purchased 27,744 shares of the stock in a transaction on Tuesday, June 30th. The stock was acquired at an average price of $3.95 per share, with a total value of $109,588.80. Following the transaction, the insider directly owned 285,611 shares of the company’s stock, valued at approximately $1,128,163.45. This trade represents a 10.76% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders have bought 43,681 shares of company stock worth $175,344 over the last ninety days. Corporate insiders own 4.59% of the company’s stock.

Hedge Funds Weigh In On Motorsport Games

Hedge funds have recently made changes to their positions in the business. XTX Topco Ltd bought a new position in shares of Motorsport Games during the fourth quarter valued at approximately $34,000. HRT Financial LP purchased a new position in Motorsport Games during the 4th quarter valued at $37,000. State Street Corp bought a new position in Motorsport Games in the 4th quarter worth $39,000. Finally, Dimensional Fund Advisors LP bought a new position in Motorsport Games in the 3rd quarter worth $46,000. 1.66% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Wall Street Zen cut shares of Motorsport Games from a “strong-buy” rating to a “buy” rating in a research report on Sunday, June 7th. Zacks Research upgraded shares of Motorsport Games to a “hold” rating in a research report on Wednesday, July 1st. Finally, Weiss Ratings upgraded shares of Motorsport Games from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, July 10th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat, Motorsport Games presently has a consensus rating of “Hold”.

About Motorsport Games

Motorsport Games, Inc is a publicly traded developer and publisher of interactive motorsport entertainment, headquartered in Miami, Florida. The company specializes in creating officially licensed racing simulation titles and managing associated esports competitions. By focusing exclusively on the motorsport genre, Motorsport Games aims to deliver authentic digital experiences that mirror the rules, tracks and vehicles of real-world racing series.

The company’s core activities include the development of video games under licenses from major sanctioning bodies such as NASCAR, the Fédération Internationale de l’Automobile (FIA) and International Motor Sports Association (IMSA).