10-Q · May 13, 2026
Motorsport Games Inc. reported strong Q1 2026 results, with revenue of $4 million, a 129.3% increase year-over-year, although EPS of $0.06 fell short of the $0.10 expectation. The company continues to focus on improving…
Earnings analysis · 10-Q
MSGM earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Q2 revenue of $3.54 million exceeded the $2.902 million consensus estimate and was approximately 18% above the approximately $3 million reported in 2025 Q2, but EPS of $0.08 declined sharply from $0.82 year over year.…
Read full summary
Q2 revenue of $3.54 million exceeded the $2.902 million consensus estimate and was approximately 18% above the approximately $3 million reported in 2025 Q2, but EPS of $0.08 declined sharply from $0.82 year over year. The filing does not provide current-quarter gross margin, operating margin, free cash flow, segment revenue, balance-sheet detail, or quantitative guidance in the supplied text. Persistent material weaknesses, substantial franchise and customer concentration, and the newly adopted 12.5% rights-plan trigger are significant negatives.
Reported figures
- Earnings per share
- $0.08
What stood out
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Revenue exceeded consensus
Q2 revenue was $3.54 million, approximately 22.0% above the $2.902 million consensus estimate and about 18% above the approximately $3 million reported in 2025 Q2.
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EPS beat estimates, fell year over year
Reported EPS was $0.08 versus the $0.02 consensus estimate, a $0.06 per-share beat. However, EPS was below the $0.82 reported in 2025 Q2, indicating a substantially weaker year-over-year earnings trend.
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904,395 shares repurchased
The company repurchased 904,395 shares at an average price of $4.11 per share on April 22, 2026; the transaction was not part of a publicly announced repurchase program.
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Control-remediation resources added
Management stated that it has engaged qualified risk advisory consultants and technical accounting personnel and has hired additional accounting staff to support remediation of control deficiencies.
What to watch
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Material weaknesses remain unresolved
Disclosure controls were concluded to be ineffective as of June 30, 2026, and three material weaknesses continued: ineffective monitoring procedures, insufficient accounting personnel with appropriate expertise, and inadequate independent documentation review of complex accounting analyses.
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Revenue and receivables are concentrated
Le Mans Ultimate represented approximately 75% of Q2 2026 revenue, while the top three customers represented 83% of revenue and approximately 88% of accounts receivable as of June 30, 2026. Loss of a major franchise or customer could materially affect results and liquidity.
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New rights plan limits takeover activity
The July 22, 2026 Rights Agreement imposes significant dilution on a person or group that becomes beneficial owner of 12.5% or more of Class A common stock, and the company also designated a new participating preferred-stock series.
Management's outlook
No quantitative revenue or EPS outlook was provided in the 10-Q; the filing does not provide explicit guidance.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.