Motorsport Games (MSGM) investor relations material

Executive summary

• H1 2026 revenue rose 74% year-over-year to $7.6M; Q2 revenue increased 36.6% to $3.5M.

• Positive GAAP net income continued for a sixth consecutive quarter; H1 net income was $1.2M, versus $5.3M in H1 2025.

• RaceControl subscription revenue grew 348.9% year-over-year to $1.4M in H1, reaching $2.9M ARR.

• Le Mans Ultimate sold over 500,000 base-game units and 1.2M DLC units, with record player engagement.

Financial highlights

• H1 gross profit increased 86.9% to $6.4M; gross margin rose to 84.7% from 78.8%.

• Q2 gross profit was $2.9M, up 35.5% year-over-year, with an 81.8% gross margin.

• H1 adjusted EBITDA rose 122.7% to $2.2M from $1.0M; Q2 adjusted EBITDA was $0.8M versus $1.4M.

• Adjusted diluted EPS was $0.19 in Q2 versus $0.25 a year earlier, and $0.33 for H1 versus $0.24.

• Q2 operating expenses increased 77.3% year-over-year, mainly due to higher payroll, development, and legal costs.

Outlook and guidance

• No forward guidance was offered; results may vary with seasonality, motorsport calendars, and the timing and scale of releases.

• US Track Pass Packs 2 and 3 were expected in September and December; further Le Mans Ultimate content for 2027 was under exploration.

• PlayStation and Xbox development continued as planned, with console expansion intended to broaden reach.

• Continued investment in RaceControl, content, technology, and team; subscriber retention remains a focus, with no year-end ARR target provided.

• Plans included organizing the 2026/27 Le Mans Virtual Series and expanding esports offerings.