TLDR
- Motorsport Games posted Q3 2025 earnings of 14 cents per share, reversing a 18-cent loss from the prior year quarter.
- Q3 revenue reached $3.1 million, up 71.9% year-over-year, powered by Le Mans Ultimate’s July launch.
- Shares rocketed 122% in pre-market trading with volume surging to 22 million shares from a 14,000 daily average.
- Console versions of Le Mans Ultimate are in early production for PlayStation and Xbox, targeting late 2026 or early 2027.
- Financial metrics show mixed signals with strong liquidity but an Altman Z-Score of -9.94 indicating distress.
Motorsport Games delivered a surprise profit in the third quarter of 2025, sending shares soaring more than 122% in pre-market trading Friday. The racing game developer reported earnings of 14 cents per share for Q3 2025.
This represents a turnaround from the 18-cent per share loss posted in the same quarter last year. The earnings performance exceeded expectations and triggered heavy trading activity.
Revenue for the quarter totaled $3.1 million. This marked a 71.9% increase compared to the $1.8 million reported in Q3 2024.
The revenue growth stemmed largely from Le Mans Ultimate, the official game of the FIA World Endurance Championship. The title launched on July 22, 2025, and earned “Mostly Positive” reviews on Steam.
Trading volume exploded following the earnings announcement. Approximately 22 million shares traded hands versus the three-month daily average of 14,000 shares.
Console Expansion Underway
President and CEO Stephen Hood addressed the company’s forward strategy in the earnings release. He highlighted improving financial stability as a key milestone.
“With improving financial stability, we believe the Company now has the ability to forge a new path utilizing the unique technology we own,” Hood stated. The company confirmed console development for Le Mans Ultimate is now in early production.
PlayStation and Xbox versions are planned for release between late 2026 and early 2027. The expansion into console gaming represents a major growth opportunity for the developer.
Year-to-date, the stock has climbed 63.43%. Over the past 12 months, shares have gained 73.81%.
Financial Health Metrics
The company maintains a current ratio of 1.85 and a debt-to-equity ratio of 0.01. These figures point to solid liquidity and minimal debt exposure.
However, the Altman Z-Score of -9.94 places the company in the financial distress zone. This metric suggests potential bankruptcy risk within two years.
The company’s three-year revenue growth rate stands at -39.2%, reflecting earlier difficulties. Gross margin reached 66.68% but has declined an average of 1.6% annually.
Motorsport Games carries a market cap of $12.65 million. The stock’s beta of 4.52 indicates high volatility compared to the broader market.
Valuation metrics include a P/E ratio of 8.33, P/S ratio of 0.99, and P/B ratio of 2.31. The RSI of 37.38 suggests the stock is nearing oversold levels.
Analyst Outlook
Institutional ownership sits at 2.66% while insider ownership totals 4.44%. One insider purchased 7,000 shares over the past three months.
Le Mans Ultimate revenue specifically increased 37.7% during the quarter. The company continues focusing on SaaS initiatives and console expansion as primary growth strategies.
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