--- title: "Motorsport Gaming US | 10-Q: FY2026 Q1 Revenue: USD 4.031 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286311448.md" datetime: "2026-05-13T20:20:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286311448.md) - [en](https://longbridge.com/en/news/286311448.md) - [zh-HK](https://longbridge.com/zh-HK/news/286311448.md) --- # Motorsport Gaming US | 10-Q: FY2026 Q1 Revenue: USD 4.031 M Revenue: As of FY2026 Q1, the actual value is USD 4.031 M. EPS: As of FY2026 Q1, the actual value is USD 0.06. EBIT: As of FY2026 Q1, the actual value is USD 1.06 M. #### Consolidated Overview (Three Months Ended March 31) - **Total Revenues**: Motorsport Games Inc. reported total revenues of $4,031,289 in 2026, an increase of $2,272,836, or 129.3%, compared to $1,758,453 in 2025 . - **Total Cost of Revenues**: Consolidated cost of revenues was $517,137 in 2026, compared to $465,386 in 2025 . - **Total Gross Profit**: Consolidated gross profit increased by $2,221,085, or 171.8%, to $3,514,152 in 2026 from $1,293,067 in 2025 . - **Total Gross Profit Margin**: The gross profit margin was 87.2% in 2026, up from 73.5% in 2025 . - **Total Operating Expenses**: Total operating expenses increased by $571,469, or 30.3%, to $2,457,731 in 2026 from $1,886,262 in 2025 . - **Income (Loss) from Operations**: Motorsport Games Inc. reported income from operations of $1,056,421 in 2026, a significant improvement from a loss of -$93,195 in 2025 . - **Net Income**: Net income for the company was $951,573 in 2026, compared to $1,022,613 in 2025 . - **Adjusted EBITDA (Non-GAAP)**: Adjusted EBITDA was $1,533,786 in 2026, up from $612,220 in 2025 . #### Gaming Segment (Three Months Ended March 31) - **Revenues**: Gaming segment revenues were $4,031,289 in 2026, increasing from $1,758,453 in 2025, primarily driven by a $1.6 million rise in Le Mans Ultimate sales, including a $1.9 million increase in downloadable content revenues and a $0.7 million increase in RaceControl subscriptions, partially offset by a $0.3 million decrease in base game sales . - **Cost of Revenues**: Cost of revenues for the Gaming segment was $494,125 in 2026, compared to $446,941 in 2025 . - **Gross Profit**: The Gaming segment’s gross profit was $3,537,164 in 2026, an increase of $2,225,652, or 169.7%, from $1,311,512 in 2025 . - **Gross Profit Margin**: Gaming gross profit margin improved to 87.7% in 2026 from 74.6% in 2025, primarily due to higher revenues and reduced amortization . - **Sales and Marketing Expenses**: Sales and marketing expenses for Gaming were $210,319 in 2026, up from $97,701 in 2025, mainly due to a $0.1 million increase in payroll and employee-related expenses . - **Development Expenses**: Development expenses decreased by $0.1 million, or 14.6%, to $514,337 in 2026 from $601,953 in 2025, primarily due to a decrease in external development costs . - **General and Administrative Expenses**: G&A expenses for Gaming increased by $0.5 million, or 45.4%, to $1,698,631 in 2026 from $1,163,226 in 2025, driven by a $0.4 million increase in stock-based compensation and a $0.1 million increase in payroll . - **Impairment of Intangible Assets**: Impairment of intangible assets for Gaming was $27,928 in 2026, related to a web domain no longer used . - **Depreciation and Amortization**: Depreciation and amortization for Gaming was $4,213 in 2026, compared to $11,951 in 2025 . - **Income (Loss) from Operations**: The Gaming segment generated income from operations of $1,081,735 in 2026, a significant improvement from a loss of -$71,719 in 2025 . - **Total Assets**: Gaming segment total assets were $12,372,640 as of March 31, 2026, compared to $10,424,054 as of December 31, 2025 . #### Esports Segment (Three Months Ended March 31) - **Revenues**: The Esports segment generated no revenues in both 2026 and 2025, as Motorsport Games Inc. did not organize any Le Mans Virtual Series events . - **Cost of Revenues**: Cost of revenues for the Esports segment was $23,012 in 2026, compared to $18,445 in 2025 . - **Gross Profit (Loss)**: The Esports segment reported a gross loss of -$23,012 in 2026, compared to -$18,445 in 2025 . - **Sales and Marketing Expenses**: Sales and marketing expenses for Esports were $0 in both 2026 and 2025 . - **Development Expenses**: Development expenses for Esports were $0 in both 2026 and 2025 . - **General and Administrative Expenses**: G&A expenses for Esports were $0 in 2026, compared to $5,256 in 2025 . - **Impairment of Intangible Assets**: Impairment of intangible assets for Esports was $0 in both 2026 and 2025 . - **Depreciation and Amortization**: Depreciation and amortization for Esports was $2,303 in 2026, compared to $6,175 in 2025 . - **Income (Loss) from Operations**: The Esports segment reported a loss from operations of -$25,314 in 2026, compared to -$21,476 in 2025 . - **Total Assets**: Esports segment total assets were $1,507,401 as of March 31, 2026, compared to $1,544,012 as of December 31, 2025 . #### Cash Flow and Liquidity - **Net Cash Provided by Operating Activities**: Net cash provided by operating activities increased to $1,649,847 in 2026 from $376,802 in 2025 . - **Net Cash Used in Investing Activities**: Net cash used in investing activities was -$650,221 in 2026, primarily due to the capitalization of internally-developed software, compared to $0 in 2025 . - **Net Cash Used in Financing Activities**: Net cash used in financing activities was -$63,319 in 2026, primarily due to payments on notes payable, compared to -$221,581 in 2025 . - **Cash and Cash Equivalents**: As of March 31, 2026, cash and cash equivalents totaled $5,859,299, increasing from $4,993,390 at December 31, 2025 . However, this decreased to $3.8 million by April 30, 2026, following a $3.7 million share repurchase, partially offset by a $1.2 million drawdown from a business loan agreement and cash inflows from operations . - **Working Capital**: Working capital increased to $5,155,526 as of March 31, 2026, from $4,221,682 as of December 31, 2025 . - **Accumulated Deficit**: As of March 31, 2026, Motorsport Games Inc. had an accumulated deficit of -$84.5 million . - **Citibank Line of Credit**: Motorsport Games Inc. entered into a revolving line of credit with Citibank, N.A. for up to $3.0 million, with a stated maturity date of February 20, 2027, which was extended to February 20, 2028 in May 2026 . #### Other Key Metrics - **Customer Concentration**: Revenues from the Le Mans Ultimate franchise accounted for approximately 76% of total revenue in 2026, compared to 82% in 2025 . The top three customers accounted for 84% of revenues in 2026 and 86% in 2025 . The top four customers accounted for approximately 99% of trade accounts receivable as of March 31, 2026, and 98% as of December 31, 2025 . - **Supplier Concentration**: One supplier, Supplier G, accounted for 17.2% of the cost of revenues in 2026, compared to less than 10% in 2025 . - **Stock-Based Compensation**: Stock-based compensation expense was $375,031 for the three months ended March 31, 2026, compared to $0 in 2025 . #### Future Outlook and Strategy Motorsport Games Inc. expects its cash on hand and cash generated from operations to fund its operations for at least one year from the financial statement issuance date . The company plans to organize the 2026⁄27 Le Mans Virtual Series and explore opportunities to expand its esports segment beyond Le Mans . Additionally, Motorsport Games Inc. aims to drive ongoing engagement and incremental revenue through in-game purchases, RaceControl subscriptions, and extra content, seeking to expand the recurring portion of its business, including through new annualized sports franchise games . ### Related Stocks - [MSGM.US](https://longbridge.com/en/quote/MSGM.US.md) ## Related News & Research - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [PlayStation exclusives aren’t coming to PC anymore](https://longbridge.com/en/news/286811775.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [Keysight Technologies Reports Second Quarter 2026 Results | KEYS Stock News](https://longbridge.com/en/news/286959830.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md)