MSGM
Motorsport Games Inc.
Next earnings Aug 11, 2026
Last earnings -4.7% on 2026-05-13
$4.31
▲ +7.75%$4.31▲ +49.65%
over 1Y
L $2.19H $5.32
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+7.7%
1W+8.8%
1M+3.9%
3M+9.9%
YTD+41.8%
1Y+49.7%
Buy
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 7 analysts
Sell
Micro-cap racing-game turnaround: first profitable year, cash-generative and deleveraged, at ~1.8x sales — cheap enough to own with eyes open.
Revenue $11.3M · FY2025
The read
Quality fundamentals and an attractive price line up (~1161% below fair value) — the rarer case where both the business and the entry look good.
MSGM has genuinely turned. After four straight years of heavy losses (net income of -$33.2M / -$36.0M / -$14.3M / -$2.75M in FY2021–2024), FY2025 delivered $11.3M revenue (+30.0%), $3.25M operating income (+285.7%), and $4.07M of operating cash flow (+243.5%) against a trivial $12.1K of capex. The balance sheet inflected with it: cash jumped to $4.99M (+481.1%), stockholders' equity swung positive to $6.78M, and liabilities/equity sits at a comfortable 0.65x. At $20.9M market cap that is ~1.8x sales and roughly 5x free cash flow — a cheap price for an 81.5% gross-margin software business that just returned to growth and self-funding. The MD&A explains the driver: Le Mans Ultimate hit Version 1.0 on July 22, 2025 after early access, with a steady DLC cadence (five 2024 packs plus ELMS Packs 1–2 through December 2025), and the franchise now sells almost entirely through high-margin digital channels (Steam 64%, Genba 18%).
The catch is that the headline earnings flatter the story. Net income of $6.93M and the 61.3% 'net margin' sit well above the $3.25M of operating income, so roughly $3.7M of the profit is below-the-line and non-operating — treat operating income (~$3.25M) as the real earnings power and the P/E of 3.0 as misleading. Revenue, at $11.3M, is still below the FY2021 level of $15.1M, and the business is dangerously concentrated: Le Mans Ultimate is 78% of revenue (up from 34%), while console revenue collapsed from 45% to 2% of sales, so the whole story now rides on one PC franchise whose revenue is lumpy and release-timing dependent. The MD&A itself frames results as swinging on 'the timing of our product releases and the commercial success of those titles.'
Is MSGM a buy? The one-page verdict, explained →
The options angle
model · matches our verdictBull call spread~60d expiry
- Long call 4.5 @ ~0.34 est
- Short call 4.5 @ ~0.34 est
debit $0max +$0max $0
BUY verdict with defined risk: the short call finances part of the long one; max loss is the net debit.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $15.1M | $10.3M | $6.91M | $8.69M | $11.3M |
| Gross profit | $7.55M | $5.36M | $3.29M | $5.46M | $9.20M |
| Operating income | -$34.5M | -$35.0M | -$16.4M | -$1.75M | $3.25M |
| Net income | -$33.2M | -$36.0M | -$14.3M | -$2.75M | $6.93M |
| Diluted EPS | — | $30.73 | -$5.56 | -$0.94 | $1.43 |
| Net margin | -220.0% | -348.6% | -207.3% | -31.7% | 61.3% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$13.0M
EV / EBITDA3.0
EV / Sales1.2
EV / FCF3.2
P / FCF4.4
PEG (trailing)0.01
Earnings yield38.5%
FCF yield22.6%
Quality & risk
ROIC (est.)37.9%
Free cash flow$4.06M
Total debt—
Net cash$4.99M
Altman Z-Score-5.20 distress
Piotroski F-Score5/8
Capital returns
Buyback yield—
Dividend yield (est.)—
Shareholder yield—
Shares Δ YoY+65.7%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has been improving.
- 8-K Officer / director change2026-06-26
Officer/director change disclosed (Item 5.02)
- 8-K Officer / director change2026-06-18
Entered material agreement creating a new direct debt obligation
- 8-K Material agreement2026-06-18
Entered material agreement creating a new direct debt obligation
- 8-K Material event2026-05-26
Charter amended, modifying rights of common stockholders
- 8-K Earnings results2026-05-13
Q1 2026 10-Q sustains profitability, Le Mans Ultimate driving sales
- 10-Q Quarterly report2026-05-13
Q1 2026 10-Q sustains profitability, Le Mans Ultimate driving sales
- 8-K Material event2026-04-24
Modified security-holder rights plus other material event
- DEF 14A Proxy statement2026-03-16
- 10-K Annual report2026-03-10
FY25 first-ever profit: NI $6.93M, rev +30%, EPS $1.43; liquidity risk noted
Recent filings
all on EDGAR ↗4Period ending 2026-06-302026-07-02open ↗3Period ending 2026-06-302026-07-02open ↗SCHEDULE 13G/AFiling2026-07-02open ↗3Period ending 2026-07-012026-07-01open ↗8-KPeriod ending 2026-06-252026-06-26open ↗8-KPeriod ending 2026-06-122026-06-18open ↗8-KPeriod ending 2026-06-152026-06-18open ↗SCHEDULE 13GFiling2026-06-12open ↗8-KPeriod ending 2026-05-242026-05-26open ↗10-QPeriod ending 2026-03-312026-05-13open ↗8-KPeriod ending 2026-05-132026-05-13open ↗DEF 14CPeriod ending 2026-05-042026-05-04open ↗
Frequently asked
- Is Motorsport Games Inc. (MSGM) a buy?
- MSGM currently carries a Buy rating with 3/5 conviction, derived from its latest SEC filings. Micro-cap racing-game turnaround: first profitable year, cash-generative and deleveraged, at ~1.8x sales — cheap enough to own with eyes open.
- What is MSGM's fair value?
- A Modified-Graham model based on MSGM's SEC fundamentals estimates a fair value of about $54.34. It is an estimate from reported earnings, not a price target.
- Is MSGM overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, MSGM currently appears undervalued relative to its SEC-grounded earnings power.
- What is Motorsport Games Inc.'s quality score?
- MSGM scores 87.72432108626198/100 (grade A) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001821175, latest 10-Q filed 2026-05-13) · EODHD · Proprietary analysis · as of 7/4/2026, 5:01:20 AM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jul 4, 2026, 1:01 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.