Earnings per share (EPS) of -$0.89, missing the estimated EPS of -$0.48.
Actual revenue was approximately $1.97 million, below the estimated $3.3 million.
Despite financial challenges, Le Mans Ultimate game updates significantly boosted player numbers and consumer sentiment.
Motorsport Games Inc. (NASDAQ:MSGM) is a company that specializes in developing and publishing racing video games. It is known for its popular titles that cater to motorsport enthusiasts. The company competes with other gaming giants in the industry, striving to capture a significant share of the racing game market.
On March 20, 2025, MSGM reported its earnings, revealing an earnings per share (EPS) of -$0.89, which was below the estimated EPS of -$0.48. The company’s actual revenue was approximately $1.97 million, falling short of the estimated $3.3 million. This earnings report was discussed during their Fourth Quarter and Full Year 2024 Earnings Conference Call, where key company figures, including CEO Stephen Hood, addressed the financial performance and strategic direction.
Despite the disappointing earnings, MSGM experienced a revitalizing year with improved revenues and reduced cash burn. A significant highlight was the release of their new title, Le Mans Ultimate, in Early Access. Updates to the game in December 2024 and February 2025 significantly boosted player numbers and consumer sentiment, as highlighted by CEO Stephen Hood. These updates introduced the popular LMGT3 category of cars, featuring renowned manufacturers such as Ferrari, McLaren, and Porsche.
Financially, MSGM has a price-to-earnings (P/E) ratio of approximately 0.83, indicating a relatively low valuation compared to its earnings. The company’s price-to-sales ratio stands at about 0.56, suggesting modest market valuation of its sales. However, the enterprise value to operating cash flow ratio is negative at -1.15, which may indicate challenges in generating cash flow from operations.
MSGM’s debt-to-equity ratio is 0.014, indicating minimal reliance on debt financing. However, the current ratio is approximately 0.49, which may suggest potential liquidity concerns in meeting short-term obligations. Despite these challenges, the earnings yield is around 1.21%, providing insight into the return on investment for shareholders.
