Motorsport Games (MSGM) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue reached $7.6 million, up 74% year-over-year, with gross margin expanding to 84.7% from 78.8% a year ago.

• Achieved sixth consecutive quarter of profitability, with H1 2026 GAAP net income of $1.2 million, despite prior year benefiting from non-recurring gains.

• Le Mans Ultimate surpassed 500,000 base game units and 1.2 million DLC units sold, with record player engagement in March and April 2026.

• RaceControl platform is scaling rapidly, now a core recurring revenue driver and strategic asset, with substantial subscription growth.

• Repurchased 904,395 Class A shares, retiring all Class B super voting shares and simplifying capital structure.

Financial highlights

• Q2 2026 revenue was $3.5 million, up 36.6% year-over-year; H1 2026 revenue was $7.6 million, up 74% year-over-year.

• H1 2026 gross profit grew 86.9% to $6.4 million; gross margin expanded to 84.7% from 78.8% in H1 2025.

• GAAP net income was $1.2 million for H1 2026; Q2 2026 net income was $0.4 million.

• Adjusted EBITDA for Q2 2026 was $0.8 million; H1 2026 adjusted EBITDA was $2.2 million, up 122.7% year-over-year.

• Adjusted diluted EPS for Q2 2026 was $0.19 (vs. $0.25 in Q2 2025); H1 2026 was $0.33 (vs. $0.24 in H1 2025).

Outlook and guidance

• No forward guidance provided, but management expresses confidence in continued growth and margin expansion, with ongoing investment in RaceControl and Le Mans Ultimate content.

• Additional US Track Pass content packs planned for September and December 2026, with further content under consideration for 2027.

• Plans to organize the 2026/27 Le Mans Virtual Series and expand esports offerings.

• RaceControl expected to further increase recurring revenue share and deepen player relationships.

• Management expects cash on hand, operations, and credit availability to fund operations for at least one year.