Motorsport Games Inc (MSGM) AI Stock Analysis

Motorsport Games Inc., based in Miami, Florida, develops and publishes multi-platform racing video games across the United States. Structured into Gaming and Esports segments, the company offers titles for game consoles, PCs, and mobile devices through retail outlets and digital distribution channels, delivering full-game releases and downloadable content. In addition to game development, the company operates in the esports arena by organizing and hosting tournaments, competitions, and events centered around its licensed racing games. It also collaborates with third-party developers and publishers to manage racing esports initiatives, fostering competitive gaming environments and community engagement across its platforms.

After annual revenue declined from $15.1M in FY2021 to $6.9M in FY2023, Motorsport Games rebounded with revenue of $8.7M in FY2024 and $11.3M in FY2025, representing 30.0% growth. Gross margin improved from 50.1% in FY2021 to 81.1% in FY2025, while operating margin shifted from -229.0% to 14.5%. Net income turned positive at $6.9M in FY2025 after a net loss of -$2.8M in FY2024 and -$36.0M in FY2022. For the trailing twelve months ended June 30, 2026, revenue stood at $14.5M with an operating margin of 18.0%. In the latest quarter ended June 30, 2026, quarterly revenue increased 36.6% year-over-year, while quarterly earnings declined 90.2%.

As of June 30, 2026, Motorsport Games held $3.9M in cash and short-term investments against total debt of $1.4M, resulting in net cash of $2.5M. Total assets stood at $11.3M and shareholders' equity was $3.9M, yielding a current ratio of 1.85 and a debt-to-equity ratio of 0.37. The company generated $4.1M in operating cash flow and free cash flow in FY2025, while spending $12,067 on capital expenditures. Over five years, the company's share count increased 378.8%.

Motorsport Games trades at a trailing P/E of 14.8x and a forward P/E of 4.0x, both lower than the median of its US-listed Communication Services peers at 16.2x and 14.1x, respectively. Its enterprise value of $17.4M represents an EV/EBITDA of 4.9x, compared to the peer median of 10.0x, while its price-to-sales ratio of 1.8x sits above the peer median of 0.8x. Over the past year, the stock gained 135.1%, outperforming the S&P 500 return of 16.8%. However, its five-year return of -96.2% trails the S&P 500 gain of 83.0%.

One analyst covers Motorsport Games for the next fiscal year. The mean price target is $9.00, representing upside of 60.1% from the last close of $5.62 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $15.4M and EPS of $0.65. For the next fiscal year, estimates project revenue of $23.3M and EPS of $1.09. Motorsport Games has recorded 4 EPS beats over the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Motorsport Games Inc (MSGM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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