Motorsport Games (MSGM) investor relations material

Business model and product strategy

• Develops, publishes, and operates a proprietary platform for racing games, enabling direct customer engagement and monetization through subscriptions and content sales.

• Focuses on controlling the full user experience, simplifying access, and integrating services for sim racing enthusiasts.

• Key products include rFactor 2 and Le Mans Ultimate, with the latter recently reaching version 1.0 and positioned as the flagship title.

• Le Mans Ultimate leverages official licensing and a joint venture with the ACO, offering unique endurance racing experiences and squad-based gameplay.

• RaceControl backend platform supports over 250,000 accounts and is central to user engagement and monetization.

Product performance and market reception

• Le Mans Ultimate has sold over 240,000 units with strong content attach rates and minimal marketing spend.

• Regular content updates drive user engagement and record-breaking concurrent player numbers, often surpassing peaks tied to real-world racing events.

• RaceControl introduced a subscription model, generating nearly $1 million in annual recurring revenue within eight months.

• PC gaming focus leverages high-end hardware trends, with all sales channeled through the Steam platform.

• Technology is recognized by industry leaders, powering F1 Arcade venues and attracting partnerships with Liberty Media and Kindred Concepts.

Financial performance and turnaround

• Significant operating losses in prior years, with losses as high as $16 million in Q1 2022 and negative EPS of $12.97.

• Cost-cutting and revenue focus led to first-ever operating income in Q2 2025, with net income of $4.2 million and 37.7% revenue growth year-over-year.

• Positive cash flow from operations in H1 2025, with monthly cash burn reduced to under $0.1 million and no debt as of June 2025.

• $2.35 million raised from a private offering with Pimax, strengthening the balance sheet.