Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Motorsport Games Inc. (MSGM) has seen a substantial increase of 122%, trading at $4.88 [3] - Globus Medical, Inc. (GMED) is up 27%, currently priced at $78.75 [3] - JFrog Ltd. (FROG) has risen by 26%, trading at $59.60 [3] - FIGS, Inc. (FIGS) is up 19%, with a trading price of $8.97 [3] - Organogenesis Holdings Inc. (ORGO) has increased by 18%, trading at $4.59 [3] - PureCycle Technologies, Inc. (PCT) is up 17%, currently priced at $11.31 [3] - Expedia Group, Inc. (EXPE) has risen by 16%, trading at $255.10 [3] - 10x Genomics, Inc. (TXG) is up 13%, currently priced at $14.72 [3] - Abacus Global Management, Inc. (ABL) has increased by 12%, trading at $5.95 [3] - GigaCloud Technology Inc. (GCT) is up 9%, currently priced at $27.80 [3] Premarket Losers - Davis Commodities Limited (DTCK) has experienced a significant decline of 65%, trading at $2.23 [4] - Eledon Pharmaceuticals, Inc. (ELDN) is down 46%, currently priced at $2.19 [4] - Treace Medical Concepts, Inc. (TMCI) has decreased by 35%, trading at $4.00 [4] - Energys Group Limited (ENGS) is down 30%, currently priced at $2.77 [4] - Intellia Therapeutics, Inc. (NTLA) has seen a decline of 27%, trading at $8.89 [4] - Fox Factory Holding Corp. (FOXF) is down 24%, currently priced at $16.60 [4] - Opendoor Technologies Inc. (OPEN) has decreased by 24%, trading at $4.94 [4] - AirSculpt Technologies, Inc. (AIRS) is down 21%, currently priced at $8.27 [4] - Power Solutions International, Inc. (PSIX) has seen a decline of 20%, trading at $64.25 [4] - ClearPoint Neuro, Inc. (CLPT) is down 17%, currently priced at $15.00 [4]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $3.1 million, an increase of $1.3 million or 71.9% compared to the same period in the prior year [17] - Net income for Q3 2025 was $0.8 million, compared to a net loss of $0.6 million for the same period in the prior year, an improvement of approximately $1.4 million or 234.1% [19] - Adjusted EBITDA for Q3 2025 was $1.1 million, compared to $0.1 million for the same period in the prior year, an improvement of $1 million [20] - Cash and cash equivalents increased from $4.1 million as of September 30, 2025, to $4.5 million as of October 31, 2025 [20] Business Line Data and Key Metrics Changes - The increase in revenues was primarily due to a $1.8 million increase from sales of the Le Mans Ultimate racing title, particularly from DLC sales [17] - Race Control contributed an additional $0.4 million to revenues, while rFactor 2 added $0.1 million compared to 2024 [17] - NASCAR-related revenues decreased by $1 million as the company is no longer authorized to sell this title starting in 2025 [18] Market Data and Key Metrics Changes - Le Mans Ultimate revenues were approximately $2.3 million for Q3 2025, significantly higher than NASCAR-related revenues during the same prior year periods [18] - The player engagement for Le Mans Ultimate has remained high, with record-high concurrent and daily active user counts following its full release [5] Company Strategy and Development Direction - The company is focused on expanding its core gaming offering in Le Mans Ultimate and its service platform, Race Control, which has shown strong engagement [4][10] - Plans are underway to bring Le Mans Ultimate to console platforms, with expectations for a release around late 2026 or early 2027 [12][13] - The company is exploring new opportunities and increasing team size to support growth in Le Mans Ultimate and future titles [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing positive trends and the company's ability to generate profit from operations for the second consecutive quarter [4][19] - The removal of going concern disclosures in the Q3 2025 report is seen as a significant milestone for the company [21] - Management highlighted the importance of community-driven features in their games, which enhance player engagement and loyalty [8] Other Important Information - The company has improved its cash position, allowing for investment in meaningful projects that could lead to additional revenue opportunities [14] - The Race Control subscription service has seen its highest-performing quarter to date, with nearly 100,000 liveries processed from engaged subscribers [10] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [25]

Q3 2025 Results November 6, 2025 This presentation provides select highlights about Motorsport Games Inc.'s results of operations. Please see Motorsport Games' Q3 2025 Form 10-Q, filed with the SEC and Q3 2025 earnings release for more complete information on the Company's results of operations, cash flows, financial condition and liquidity. motorsportgames 1 Q3 2025 Highlights Key Highlights and Business Update *Adjusted EBITDA is a non-GAAP financial measure. See definition of Adjusted EBITDA and its reco ...

Revenue Performance - Total revenues for the three months ended September 30, 2025, were $3.1 million, an increase of $1.3 million or 71.9% compared to $1.8 million in the same period of 2024[146]. - Total revenues for the nine months ended September 30, 2025, were $7.5 million, an increase of $0.7 million or 11.0% from $6.7 million in 2024, driven by a $3.4 million increase from the Le Mans Ultimate racing title[163]. Gaming Segment Performance - The increase in Gaming segment revenues was primarily driven by a $1.8 million increase from sales of the Le Mans Ultimate racing title, particularly from DLC sales[146]. - Gross profit for the Gaming segment increased by $1.4 million or 130.4% to $2.5 million for the three months ended September 30, 2025, compared to $1.1 million in 2024[149]. Cost and Expenses - Cost of revenues decreased by $0.1 million or 16.6% to $0.6 million for the three months ended September 30, 2025, compared to $0.7 million in 2024, mainly due to reduced royalty payments related to NASCAR titles[148]. - Total operating expenses decreased to $1.7 million in 2025 from $3.0 million in 2024, a reduction of $1.3 million or 43.4%[152]. - Development expenses dropped to $0.4 million in 2025, down 50.6% from $0.8 million in 2024, primarily due to lower headcount and capitalization of internally-developed software costs[154]. - General and administrative expenses decreased to $1.1 million in 2025, a 41.3% reduction from $1.9 million in 2024, mainly due to lower legal and professional fees[155]. Profitability - Consolidated gross profit increased to $2.5 million in 2025, up from $1.1 million in 2024, representing a 130.4% increase, with a gross profit margin of 80.7% compared to 60.2% in the prior year[150]. - Gross profit for the nine months ended September 30, 2025, was $5.9 million, an increase of $1.4 million or 30.1% from $4.6 million in 2024, with a gross profit margin of 79.6% compared to 67.9% in the prior year[166]. Other Income and Expenses - Other operating income increased to $1.6 million in 2025 from $0.3 million in 2024, primarily due to settlements and negotiated discounts[173]. - Interest expense significantly decreased to approximately $1,000 in 2025 from $30,000 in 2024, reflecting reduced liabilities related to the acquisition of Studio397[158]. - Other income, net rose to $3.4 million in 2025, up from $1.0 million in 2024, driven by foreign currency gains[175]. - Other comprehensive loss increased to $2.7 million in 2025 from $0.7 million in 2024, primarily due to unrealized foreign currency translation adjustments[176]. Cash Flow and Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $4.1 million, up from $859,271 as of December 31, 2024[178]. - For the nine months ended September 30, 2025, the company generated net income of $6.0 million and cash flows from operations of approximately $2.3 million, compared to a net loss of $0.2 million and cash flows used in operations of $1.7 million for the same period in 2024[180]. - The net cash used in investing activities for the nine months ended September 30, 2025 was approximately $0.7 million, primarily related to the capitalization of internally-developed software[181]. - The net cash provided by financing activities for the nine months ended September 30, 2025 was $1.5 million, compared to $0.8 million for the same period in 2024[182]. - The company raised approximately $2.5 million in gross proceeds from the April Private Placement, resulting in net proceeds of approximately $2.35 million after offering expenses[187]. EBITDA and Adjusted Metrics - Adjusted EBITDA for the three months ended September 30, 2025 was $1,059,367, compared to $50,127 for the same period in 2024[200]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $5,368,433, a significant improvement from an Adjusted EBITDA loss of $1,465,205 in 2024[201]. - The EBITDA for the nine months ended September 30, 2025, was $6,843,893, compared to $1,677,057 for the same period in 2024[201]. Liabilities and Commitments - The company had an accumulated deficit of $85.7 million as of September 30, 2025[178]. - The company terminated the $12 million Line of Credit Agreement with Driven Lifestyle on November 5, 2025, due to concerns about future borrowing requests[184]. - The company has no material commitments to acquire capital assets as of September 30, 2025[189].

Financial Performance - Consolidated revenue for Q3 2025 was approximately $3.1 million, an increase of approximately $1.3 million or 71.9% compared to Q3 2024[5] - Net income for Q3 2025 was $0.8 million, an improvement of approximately $1.4 million or 234.1% compared to a net loss of $0.6 million in Q3 2024[6] - Gross profit for Q3 2025 was $2.5 million, with a gross profit margin increasing to 80.7% from 60.2% in the prior year[5] - Adjusted EBITDA for Q3 2025 was $1.1 million, an increase of $1.0 million compared to $0.1 million in Q3 2024[8] - Revenues for Q3 2025 reached $3,100,018, a significant increase of 72% compared to $1,802,946 in Q3 2024[26] - Gross profit for the nine months ended September 30, 2025, was $5,932,221, up 30% from $4,558,638 in the same period of 2024[26] - Operating expenses decreased to $1,707,253 in Q3 2025 from $3,018,108 in Q3 2024, representing a reduction of 43%[26] - Net income attributable to Motorsport Games Inc. for Q3 2025 was $789,296, compared to a net loss of $554,580 in Q3 2024[26] - Basic and diluted net income per share for Q3 2025 was $0.14, a recovery from a loss of $0.18 per share in Q3 2024[26] - Total operating income for the nine months ended September 30, 2025, was $2,673,816, compared to a loss of $1,088,461 in the same period of 2024[26] - Other operating income for the nine months ended September 30, 2025, was $1,608,497, compared to $250,000 in the same period of 2024[26] - The company reported a gain from the settlement of license liabilities amounting to $3,248,000 in the nine months ended September 30, 2024[26] Cash Position - Cash and cash equivalents as of September 30, 2025, were approximately $4.1 million, increasing to $4.5 million by October 31, 2025[10] - The company generated cash from operations of $2.3 million during the nine months ended September 30, 2025[7] Player Engagement and Product Development - Player engagement for Le Mans Ultimate reached new heights, particularly around the Version 1.0 release and the European Le Mans Series content launch[3] - A console port of Le Mans Ultimate is in early production, with an estimated delivery between late 2026 and early 2027[3] - The first ELMS content was released on September 23, 2025, featuring new cars and enhanced gameplay elements[7] Strategic Goals - The company aims to utilize its unique technology to advance its offerings and improve financial stability[3] Shareholder Information - The weighted-average shares of Class A common stock outstanding increased to 5,456,286 in Q3 2025 from 3,024,366 in Q3 2024[26] - Related party revenues included $18,500 for Q3 2025, compared to $0 for Q3 2024[27]

Core Insights - Motorsport Games Inc. reported a significant increase in revenue and net income for Q3 2025, indicating improved operational efficiency and market fit for its products [2][3][4] Financial Performance - Consolidated revenue for Q3 2025 was approximately $3.1 million, a 71.9% increase from approximately $1.8 million in Q3 2024 [3][10] - Gross profit rose to $2.5 million, up from $1.1 million in the prior year, with gross profit margin increasing to 80.7% from 60.2% [3][4] - Net income for Q3 2025 was $0.8 million, compared to a net loss of $0.6 million in Q3 2024, marking an improvement of approximately $1.4 million or 234.1% [4][10] - Adjusted EBITDA for Q3 2025 was $1.1 million, compared to $0.1 million in the same period last year, reflecting a $1.0 million improvement [5][10] Player Engagement and Product Development - Player engagement for the Le Mans Ultimate title reached new heights, particularly around the Version 1.0 release and the European Le Mans Series content launch [2] - The company announced that a console port of Le Mans Ultimate is in early production, with an estimated delivery between late 2026 and early 2027 [2] Cash Flow and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of approximately $4.1 million, which increased to $4.5 million by October 31, 2025 [11] - The company generated an average positive cash flow from operations of approximately $0.3 million per month during the nine months ended September 30, 2025 [11]

Core Viewpoint - Motorsport Games Inc. will report its financial results for the third quarter of 2025 on November 6, 2025, after market close, followed by a conference call to discuss the results [1][6]. Company Overview - Motorsport Games is a racing game developer, publisher, and esports ecosystem provider, focusing on official motorsport racing series [3]. - The company is the officially licensed developer for notable racing series such as the 24 Hours of Le Mans and the FIA World Endurance Championship, with recent releases including Le Mans Ultimate Version 1.0 [3]. - Motorsport Games owns leading simulation platforms like rFactor 2 and KartKraft, and has partnered with Kindred Concepts to power F1® Arcade [3]. - The company is recognized as an award-winning esports partner for the 24 Hours of Le Mans, creating the Le Mans Virtual Series [3]. Financial Reporting - The financial results for Q3 2025 will be discussed in a conference call and webcast on November 6, 2025, at 5:00 p.m. ET [1][2]. - Participants can access the webcast through the company's investor relations website and will have access to a recording for 12 months [2].

Core Viewpoint - Motorsport Games Inc. (NASDAQ:MSGM) is underperforming in terms of capital efficiency, as indicated by its negative Return on Invested Capital (ROIC) compared to its Weighted Average Cost of Capital (WACC) [2][6]. Financial Metrics Summary - Motorsport Games Inc. has a ROIC of -28.03% and a WACC of 13.73%, resulting in a ROIC to WACC ratio of -2.04, indicating insufficient returns to cover its cost of capital [2][6]. - Genius Group Limited (GNS) has a ROIC of -29.47% and a WACC of 25.16%, leading to a ROIC to WACC ratio of -1.17, which is less negative than MSGM's but still indicates inefficiency [3]. - Versus Systems Inc. (VS) shows a ROIC of -47.17% and a WACC of 16.17%, resulting in a ROIC to WACC ratio of -2.92, indicating even lower efficiency than MSGM [4]. - Cosmos Health Inc. (COSM) has a ROIC of -33.52% and a WACC of 17.85%, with a ROIC to WACC ratio of -1.88, slightly better than MSGM but still negative [4]. - Magic Empire Global Limited (MEGL) has the highest ROIC to WACC ratio among peers at -0.48, with a ROIC of -7.64% and a WACC of 15.98%, indicating it is closer to covering its cost of capital [5]. - Mobile Global Esports Inc. (MGAM) presents the most concerning figures with a ROIC of -351.37% and a WACC of 4.64%, resulting in a ROIC to WACC ratio of -75.66, highlighting severe inefficiencies [5][6].

Core Insights - Motorsport Games Inc. has released Le Mans Ultimate Version 1.1, which includes significant new content and features aimed at enhancing the game's scope and accessibility following a successful summer launch of Version 1.0 [1][6] Game Updates - The major addition in Version 1.1 is the European Le Mans Series (ELMS), marking its first official representation in Le Mans Ultimate. Players will receive free access to ELMS liveries and an unrestricted LMP2 car with updated physics [2][3] - The first ELMS Pack is priced at £8.99/€9.99/$11.99, or available as part of a discounted Season Pass at £21.99/€24.99/$28.99, with a 10% launch discount for a limited time [2] - Pack 1 features the Silverstone Circuit and the Ligier JS P325 LMP3, introducing a new prototype class and exciting endurance racing formats. Additional ELMS packs are planned for late 2025 and early 2026 [3] Customization and Multiplayer Enhancements - The custom livery system has been enhanced, allowing players to use their liveries in single-player Race Weekends and adding support for custom numbers. The update also introduces LiveryHub for sharing designs [4] - Version 1.1 introduces regional hosted servers in Asia and North America to improve multiplayer experiences by reducing latency. Other improvements include refinements to car selection menus, native TrackIR support, and the addition of Simplified Chinese language [5] Company Commitment - The CEO of Motorsport Games emphasized the update as a step forward in building on the momentum from the summer, reinforcing the company's commitment to delivering an authentic and engaging endurance racing experience [6]

Core Insights - Motorsport Games Inc. specializes in developing and publishing racing video games within the gaming industry, competing with companies like Genius Group Limited and Versus Systems Inc. [1] Financial Performance - Motorsport Games Inc. has a Return on Invested Capital (ROIC) of -28.03% and a Weighted Average Cost of Capital (WACC) of 13.67%, resulting in a ROIC to WACC ratio of -2.05, indicating inefficiency in generating returns [2][5] - Versus Systems Inc. has a ROIC of -47.17% and a WACC of 16.08%, leading to a ROIC to WACC ratio of -2.93, highlighting significant inefficiency in return generation [3] - Magic Empire Global Limited has the highest ROIC to WACC ratio of -0.48, with a ROIC of -7.64% and a WACC of 15.94%, suggesting it is the least inefficient among its peers [4][5]