Motorsport Games(MSGM) - 2025 Q3 - Quarterly Results

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]