Motorsport Games(MSGM -11.24%) reported second quarter 2025 results on August 13, 2025, achieving its first-ever operating income. Revenues were $2.6 million (up 37.7% year-over-year). Net income was $4.2 million (up 103% year-over-year). Key developments included the public release of Le Mans Ultimate 1.0, rapid SaaS-scale growth in subscription revenue via the Race Control platform, with net monthly recurring revenue (MRR) growth of 296% in June and annual recurring revenue (ARR) of approximately $972,000 as of that month, and progress toward a console expansion with potential new publishing partnerships.

Le Mans Ultimate drives record revenue and user growth

The studio’s primary racing title delivered peak user engagement metrics in June, accelerating after the February initial launch and driving record game revenue in June 2025 outside the debut month of February 2024. These results came despite the absence of NASCAR license revenues, which had been a significant historical contributor.

"The month of June, viewed in isolation outside of the original product release month of February 2024, delivered record game revenues. Additionally, the game set new concurrent and daily active user records, demonstrating strong continued interest in the product and the 24 Hours of Le Mans upon which we base our licensed gaming experience."
-- Stephen Hood, Chief Executive Officer

This surge validates the stickiness and broader appeal of Le Mans Ultimate, supporting confidence in the franchise’s longevity and in the company's ability to drive recurring monetization independent of licensed event timing.

Race Control SaaS revenue expands rapidly for Motorsport Games

Subscription-based revenue, previously marginal, is now a meaningful part of the business with monthly recurring revenue (MRR) reaching approximately $81,000 in June and annual recurring revenue (ARR) of approximately $972,000 as of June, following the Race Control platform’s rollout and the launch of player-focused features and perks. The quick ratio, a SaaS metric reflecting subscriber additions versus churn, peaked at 4.66 in June, despite a limited early-stage manpower investment.

"Growth has been rapid, with net monthly recurring revenue or MRR growth at 296% in June alone. More impressive is our quick ratio, a measure of new subscribers versus churn subscribers, of 4.66 at our highest peak in June. We believe anything over four to be a significant indicator of growth, and this despite the service and manpower focus being in its early stage life cycle. We believe these statistics prove that our subscription product is incredibly sticky, adding value to our players and resulting in net revenue retention that exceeds business models that simply rely on unit sales."
-- Stephen Hood, Chief Executive Officer

This transformation signals a shifting business model towards higher-margin, predictable revenue streams and increases company resilience to volatile unit-based sales cycles typical in gaming.

Motorsport Games achieves first positive operating income in Q2 2025

The company achieved operating profitability with income from operations of $2 million, marking an inflection after cumulative historical losses, even after adjusting for $1.1 million in non-recurring income. Adjusted EBITDA was $3.7 million, compared to an adjusted EBITDA loss of $500,000 in the same period of the prior year, reflecting disciplined cost management, new DLC content, and insurance settlements.

"After adjusting for other non-recurring other operating income of $1.1 million, Q2 2025 was the first quarter in the company's history that income from operations was generated."
-- Stanley Beckley, Chief Financial Officer

This operational milestone validates prior strategic pivots away from lower-margin, high-royalty licenses.

Looking ahead

Management did not provide concrete forward-looking quantitative guidance for future quarters. The company referenced continued development focus on Le Mans Ultimate, expanding Race Control features, and potential new publishing partnerships for additional upfront funding and distribution leverage. No near-term financial targets were issued during the call.