Motorsport Games (MSGM) Q4 2025 earnings summary

Executive summary

• Achieved record profitability in 2025 with 30% year-over-year revenue growth, consistent positive quarterly cash flow, and a significant turnaround from the prior year, driven by Le Mans Ultimate and disciplined development.

• Q4 2025 revenues reached $3.8 million, up 95% year-over-year, with net income of $0.8 million, reversing a net loss of $2.9 million in Q4 2024.

• Full-year 2025 net income was $6.8 million, compared to a net loss of $3.0 million in 2024; EPS for 2025 was $1.43 versus a loss of $0.94 in 2024.

• Player engagement and subscriber growth accelerated, with RaceControl platform and Le Mans Ultimate Version 1.2 update enhancing offerings.

• Focus shifted from stabilization to scaling the business, expanding to new platforms and titles, and investing in technology and talent.

Financial highlights

• Q4 2025 revenues were $3.8 million, up 95% year-over-year; full-year 2025 revenues reached $11.3 million, up 30%.

• Q4 2025 net income was $800,000, compared to a net loss of $2.9 million in Q4 2024; full-year net income was $6.8 million versus a net loss of $3.0 million in 2024.

• Adjusted EBITDA for Q4 2025 was $1.9 million (vs. a loss of $2.5 million prior year); full-year adjusted EBITDA was $7.3 million (vs. a loss of $3.9 million prior year).

• Gross profit for Q4 2025 was $3.3 million (margin 85%); full-year gross profit was $9.2 million (81.5%).

• Generated $4.1 million in cash from operations in 2025; cash and cash equivalents were $5 million at year-end, rising to $6 million by February 2026.

Outlook and guidance

• No formal forward-looking guidance provided, but 2026 is positioned as the next growth stage with plans to scale the platform, add talent, and expand the product portfolio.

• Console launch of Le Mans Ultimate targeted for early to mid-2027, expected to significantly expand the addressable market.

• Ongoing investment in marketing talent, proprietary technology, and product quality to support future growth.