Motorsport Games (MSGM) Stock: Races Higher With 122% Surge On Strong Earnings

TLDR

• Motorsport Games reported Q3 2025 earnings of 14 cents per share, a turnaround from the -18 cents per share loss in Q3 2024.
• Revenue jumped 71.9% year-over-year to $3.1 million, driven by the success of Le Mans Ultimate, which launched on July 22, 2025.
• The stock surged 122.37% in pre-market trading on Friday with heavy volume of 22 million shares traded versus a 14,000 daily average.
• The company announced a console port of Le Mans Ultimate is in early production, targeting late 2026 to early 2027 release for PlayStation and Xbox.
• Despite the earnings beat, the company maintains an Altman Z-Score of -9.94, indicating financial distress concerns.

Motorsport Games stock jumped over 122% in pre-market trading Friday after the racing game developer reported its first profit in years. The company posted earnings of 14 cents per share for the third quarter of 2025.

Motorsport Games Inc., MSGM

This marked a dramatic shift from the 18-cent loss per share recorded in the same period last year. The earnings beat came as a surprise to investors who had watched the stock decline 4.78% the previous day.

Revenue reached $3.1 million for the quarter. That represented a 71.9% increase from the $1.8 million reported in Q3 2024.

The revenue growth came primarily from Le Mans Ultimate, the official game of the FIA World Endurance Championship. The game launched on July 22, 2025, and has received “Mostly Positive” reviews on Steam.

Trading volume exploded on the news. Around 22 million shares changed hands compared to the typical three-month daily average of just 14,000 shares.

The stock has now gained 63.43% year-to-date. Over the past 12 months, shares are up 73.81%.

Console Expansion Plans

Stephen Hood, President and CEO, discussed the company’s future direction in the earnings release. He pointed to improving financial stability as a key factor.

The company plans to bring the game to PlayStation and Xbox gaming consoles. Current estimates put the delivery window between late 2026 and early 2027.

The company’s gross margin stands at 66.68%. However, this metric has been declining at an average rate of 1.6% per year.

Financial Health Indicators

The company maintains a current ratio of 1.85 and a debt-to-equity ratio of 0.01. These numbers suggest solid liquidity and low debt levels.

However, the Altman Z-Score tells a different story. At -9.94, this metric places Motorsport Games in the distress zone.

This score suggests potential bankruptcy risk within the next two years. The company’s three-year revenue growth rate of -39.2% reflects past challenges.

Motorsport Games trades with a market capitalization of $12.65 million. The stock carries a beta of 4.52, indicating high volatility relative to the broader market.

The P/E ratio sits at 8.33, while the P/S ratio is 0.99. The P/B ratio comes in at 2.31.

Institutional ownership remains low at 2.66%. Insider ownership stands at 4.44%.

One insider bought 7,000 shares over the past three months. The RSI of 37.38 indicates the stock is approaching oversold territory.

The company operates in the Communication Services sector within the Interactive Media industry. It combines video game development with esports competitions and racing content.

Revenue from Le Mans Ultimate specifically increased 37.7% in the quarter. The company continues to focus on SaaS initiatives and console expansion as key growth drivers.

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