AI-extracted from the 10-Q filed 2026-08-14 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Motorsport Games posted Q2 revenue of $3.5M, up 36.6% YoY, driven by Le Mans Ultimate sales and RaceControl subscriptions, with gross margin of 81.8%.
Biggest Revenue Drivers
Gaming$3.5M+35.2% YoY
Increase primarily driven by $0.6M higher Le Mans Ultimate sales and $0.4M increase in RaceControl subscriptions
Esports$36KNew in period
Revenue from facilitating esports events for partners using Le Mans Ultimate title
Biggest Revenue Drivers
Total revenue: $3.5M+36.6% YoY
Gaming$3.5M+35.2% YoY
Increase primarily driven by $0.6M higher Le Mans Ultimate sales and $0.4M increase in RaceControl subscriptions
Esports$36KNew in period
Revenue from facilitating esports events for partners using Le Mans Ultimate title
Largest Expense Items
General and administrative$1.3M+52.8% YoY
Driven by $0.3M increase in payroll and employee-related expenses and $0.1M increase in legal and professional fees
Development$0.7M+172.7% YoY
Increase primarily driven by $0.3M increase in payroll and $0.1M increase in web hosting costs
Sales and marketing$191K+51.5% YoY
Increase primarily driven by $0.1M increase in payroll and employee-related expenses
Margins: Gross margin was 81.8% in Q2 2026 versus 82.4% in Q2 2025, reflecting higher revenues but partially offset by increases in web hosting, development and license fees. Gaming segment maintained strong 82.8% gross margin.
Watch Items from the Filing
Three customers represent 83.3% of Q2 2026 revenues (Customer D 54.6%, Customer H 18.1%, Customer I 10.6%), creating significant concentration risk.
Le Mans Ultimate franchise accounts for approximately 75% of Q2 2026 total revenue; reliance on limited franchise could create vulnerability.
Company has $3.9M cash and $1.2M drawn on $3.0M Citibank line of credit (maturity Feb 2028); management states liquidity sufficient for at least one year.
Material weaknesses in internal controls over financial reporting remain unresolved as of June 30, 2026, relating to monitoring procedures, accounting personnel sufficiency, and documentation of complex analyses.
Company adopted poison pill (stockholders rights plan) and amended bylaws on July 22, 2026, restricting acquisitions and stockholder actions, potentially limiting upside.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Motorsport Games Inc. (MSGM): stock profile, AI score and financials
Motorsport Games Inc. (MSGM) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores MSGM at 69.3/100 on a composite quality score built from its SEC filings, placing it at rank #261 of 2,925 stocks — the top 10% of the AI-ranked universe. Based on the latest XBRL financial filings (Q2 2026), Motorsport Games Inc. reports quarterly revenue of $3.5M, net income of $401.5K, an operating margin of 18.0%. Top institutional holders of MSGM by reported 13-F value include CITADEL ADVISORS, JANE STREET GROUP, RENAISSANCE TECHNOLOGIES, based on the most recent SEC filings. MSGM trades on the Nasdaq exchange and files with the SEC under CIK 1821175. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate MSGM daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Motorsport Games Inc. directly from SEC EDGAR.