Motorsport Games Reports Third Quarter 2025 Financial Results

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]