Transcript: Motorsport Video games Q1 2026 Earnings Convention Name

Motorsport Video games (NASDAQ:MSGM) reported first-quarter monetary outcomes on Wednesday. The transcript from the corporate’s first-quarter earnings name has been supplied under.

Benzinga APIs present real-time entry to earnings name transcripts and monetary information. Go to https://www.benzinga.com/apis/ to study extra.

Entry the total name at https://viavid.webcasts.com/starthere.jsp?ei=1759831&tp_key=d67d345298

Abstract

Motorsport Video games reported Q1 2026 revenues of $4 million, greater than double year-on-year, pushed by elevated gross sales of Le Mans Final and Race Management subscriptions.

Participant engagement for Le Mans Final continues to develop, with a report 8,800 concurrent gamers, and additional updates are deliberate to coincide with real-world occasions.

Race Management, a proprietary platform, is changing into a major income stream, with month-to-month recurring revenues exceeding $0.2 million, and is gaining traction with main companions like Genesis and Logitech.

The corporate repurchased shares from Pushed Life-style Group, retired Class B shares, and secured a $3 million credit score facility from Citibank, strengthening company governance and monetary flexibility.

Future plans embrace bringing Le Mans Final to PlayStation and Xbox, additional funding in simulation know-how, and growing a brand new challenge leveraging current platforms and partnerships.

Full Transcript

OPERATOR

for standing by and welcome to Motorsport Video games Inc. First Quarter 2026 Earnings Name as a reminder, at this time’s convention is being recorded. I wish to flip the convention over to Ben Rossiter Turner from Motorsport Video games. Please go forward. Thanks and welcome TO Motorsport Video games First Quarter 2026 Earnings Convention Name and webcast. On at this time’s name is Motorsport Video games Chief Government Officer Stephen Hood and Chief Monetary Officer Stanley Beckley. By now everybody ought to have entry to the corporate’s first quarter 2026 earnings press launch filed at this time after markets shut. That is out there on the Investor Relations part of Motorsport Video games website@www.motorsportgames.com. in the course of the course of this name, administration might make ahead wanting statements with throughout the that means of US Federal securities legal guidelines. These statements are based mostly on administration’s present expectations and beliefs and contain dangers and uncertainties that would trigger precise outcomes to vary materially from these described in these ahead wanting statements. Besides as required by legislation, the Firm undertakes no obligation to replace any ahead wanting assertion made on this name or to replace or alter its ahead wanting statements, whether or not on account of new data, future occasions or in any other case. Please check with at this time’s press launch and the Firm’s filings with the SEC, together with its most up-to-date quarterly report on Kind 10Q for the quarter ended March 31, 2026 for an in depth dialogue on sure dangers that would trigger precise outcomes to vary materially from these expressed or implied in any ahead wanting statements made at this time. In at this time’s convention name we are going to check with sure non GAAP monetary measures equivalent to adjusted EBITDA as we focus on the primary quarter 2026 monetary outcomes. You’ll find a reconciliation of those non GAAP measures to their most immediately comparable GAAP measures in addition to different associated disclosures. Within the press launch issued earlier at this time, which can be out there on the Investor Relations part of Motorsport Video games website@www.motorsportgames.com. and now I would like to show over the decision to Stephen Hood, Chief Government Officer of Motorsport Video games.

Stephen Hood (Chief Government Officer)

Stephen thanks Ben Good afternoon everybody and thanks for becoming a member of The Motorsport Video games first quarter 2026 earnings name. We’ve got began 2026 from a place of actual monetary power. Revenues of $4 million in Q1 have greater than doubled yr on yr. We’ve got as soon as once more generated optimistic working revenue, posted considerably improved adjusted EBITDA and proceed to develop our money place from operations. The continued supply of Le Mans final content material or downloadable content material or DLC plus the ever enhancing monetization of race management are key to these revenues. The monetary independence we have now now constructed pushed principally by the constant industrial success our main gaming title, Le Mans final, and the recurring income we’re producing by means of racecontrol is what has given us the flexibility to behave decisively within the early weeks of this quarter, each for the good thing about all our shareholders and to set the corporate up for its subsequent stage of progress. I’ll come again to that shortly. First on Le Mans final, participant engagement continues to speed up. On March thirty first we as soon as once more recorded a brand new all time participant peak, greater than 8,800 concurrent gamers on Steam. This new peak was decided across the launch of model 1.3, introducing Circuit de Barcelona, Catalonia, the Ducane LMP3 race automotive and Logitech Trueforce assist. This progress in participant numbers shouldn’t be a one off. We’ve got constantly reported participant progress since Launch. Within the first quarter of 2025 we had a peak of 4,000 gamers and a median of simply over 1,300. Peak concurrent gamers grew 118% yr over yr. Nevertheless, the metric we monitor most carefully is common concurrent customers as a result of it strips out the spikes from content material releases and exhibits whether or not individuals are truly sticking round. That quantity grew 169%. The ground is rising, not simply the ceiling. Waiting for the second quarter, we have now an replace deliberate for launch in June to coincide with The Actual World 24 Hours of Le Mans, the spotlight of the World Endurance Championship upon which our recreation relies. The persistent cadence of significant enhancements that has outlined our work over the previous two years continues and continues to be funded by the corporate’s personal working efficiency. I need to take a second to discuss Race Management particularly as a result of I believe it deserves to be understood not simply as a characteristic supporting Le Mans final, however as a standalone platform enterprise in its personal proper. Race Management is our proprietary matchmaking, competitors and stay service platform. It’s the infrastructure layer that powers organized racing for our neighborhood and more and more our for these companions who need to attain that neighborhood. Month-to-month recurring revenues have exceeded $0.2 million, and the primary three months of 2026 have been among the many strongest intervals of progress we have now seen since launch. However what excites us probably the most shouldn’t be the place Race Management is at this time, it’s how rapidly it could add meaningfully to our progress profile. As we proceed to put in options and performance, the roadmap forward is substantial, and every addition compounds the platform’s worth to each our gamers and our industrial companions. What makes Race Management significantly engaging from a monetary perspective is its margin profile. As a platform enterprise constructed on infrastructure we already personal and function, incremental income carries considerably extra favorable EBITDA contribution than our content material enterprise. It’s within the truest sense a top quality income stream, recurring, scalable and deeply embedded within the day by day habits of our most engaged gamers. Past direct subscription income, Race Management is changing into the activation layer of alternative for automotive producers, motorsport sequence and world shopper manufacturers searching for direct engagement with a extremely focused, extremely passionate viewers. Our current collaboration with Genesis, the luxurious automotive model and WEC newcomer, demonstrates what that appears like in apply, and we’re delighted that Logitech, one of many world’s main gaming {hardware} producers, has chosen RaceControl as a platform to energy the Logitech G Problem Esports sequence. These are usually not peripheral partnerships, they’re a validation that that race management has turn out to be an infrastructure that severe organizations need to entry. The mix of Le Mans Final’s ongoing industrial momentum, RaceControl’s rising recurring income layer, and our constant working profitability offers us with helpful flexibility going forwards. Progress on bringing Le Mans Final to PlayStation and Xbox in collaboration with our growth companions continues as deliberate. We’re deepening funding in our proprietary simulation know-how which is the long run retention engine for the core of our market. We’re strengthening the group with focused hires throughout engineering platform and strategic management and we’re within the formative phases of getting ready a brand new long run challenge. This new title will leverage every little thing we have now constructed from our simulation know-how, our stay service infrastructure, our race management platform and the neighborhood relationships we have now cultivated by means of our standard racing recreation Le Mans Final. This isn’t a speculative greenfield challenge, however one that’s being designed to take one other big stride within the firm’s output with the identical accessible self-discipline that has outlined our reemergence as a premier racing recreation developer. We consider this represents a major long run worth creation alternative and we stay up for sharing extra in the end on console. Particularly, our actual timing for the discharge of Le Mans final stays topic to additional growth progress. The work undertaken is complicated. Realistically, we count on to announce extra particulars and launch as we enter 2027. As we transfer into the latter phases of the challenge and construct confidence in our anticipated launch window. As beforehand talked about, we’re taking a cautious high quality first strategy and plan to pick the very best launch window somewhat than ship out of monetary necessity. Our current and future participant base may be very vocal about their need for a console launch for Le Mans final and we’re happy to substantiate that growth is progressing properly. I’d now like to show to a sequence of company actions we executed previously few weeks which mark a major step ahead for the corporate. We repurchased 904,395 shares of our Class A standard inventory from Pushed Life-style Group llc. As a part of that transaction, all Class B shares which had carried a ten instances voting benefit have been retired, that means each share now holds equal voting energy. Shareholders additionally authorized an growth of the awards out there underneath our worker fairness plan, giving us an necessary software to incentivise and retain the folks driving our progress. Earlier than I hand over to Stanley, I need to step again and replicate on what this second represents for Motorsport Video games. The company actions we executed this quarter, the repurchase of shares from Pushed Life-style, the retirement of Class B voting rights, the Citibank credit score facility, are usually not merely transactional steps. They’re a direct reflection of how far this firm has come. And I need to take a second to thank Pushed Life-style. They have been with us at inception and their early assist was vital in getting a number of video games to the place we’re at this time. Their determination to retain a minority shareholding within the firm shouldn’t be solely a vote of confidence in our future, it was additionally a realistic end result from our steadiness sheet. By retaining an fairness stake somewhat than a full money exit, we have been capable of obtain the identical strategic end result. The retirement of all Class B supervoting shares and the return of equal voting rights to all shareholders, whereas deploying much less money to take action. These actions additionally level ahead our power in monetary place, constructed from operations, has given us the flexibility to behave decisively. We’ve got returned larger possession and strategic affect to the corporate, secured extra flexibility by means of the Citibank facility and positioned ourselves for the subsequent part of progress. All the pieces we have now constructed has been purposeful. The simulation know-how, the stay service infrastructure, race management, the neighborhood, the industrial partnerships. We’ve got been constructing a basis, one which we proceed to advance, all while demonstrating its worth, supporting merchandise like Le Mans Final. We’re not but ready to share the total element of what that basis will assist subsequent. However I need to be direct. We’ve got a product roadmap we consider has the potential to drive very significant income and revenue progress in 2027 and past. And we count on to debate it intimately on our Q3 earnings name. What I can inform you at this time is that our subsequent stage of progress won’t require us to begin from scratch. It’ll leverage every little thing we have now already confirmed. Our know-how, our platform, our viewers and our operational self-discipline. The chance profile of what comes subsequent is essentially totally different from the standard recreation growth wager as a result of the inspiration is already in existence and producing returns. We stay up for telling you way more. For now, I am going to hand over to Stanley Beckley, our Chief Monetary Officer.

Stanley Beckley (Chief Monetary Officer)

Thanks, Stephen and good night, everybody. As with earlier earnings calls, I will not offer any ahead wanting steerage at this time. As a substitute I’ll concentrate on offering an replace on our monetary outcomes and highlights from the primary quarter of 2026. Revenues for the quarter have been 4.0 million, up by 2.3 million or 129.3% when in comparison with the identical interval within the prior yr. The rise in revenues was Primarily because of a 1.6 million improve from gross sales of Le Mans final and a 0.7 million improve in race Management subscriptions in comparison with the identical prior yr interval. Month-to-month recurring revenues for Race Management subscriptions now exceed 0.2 million. Administration plans to develop this necessary income stream as we proceed to diversify our product combine and work in the direction of our objective of changing into a multi format and multi title online game developer and writer. Internet revenue for the primary quarter of 2026 and 2025 was roughly $1.0 million respectively. Internet revenue attributable to Class A standard inventory was 0.06 per share for the primary quarter of 2026 in comparison with internet revenue per share of 0.33 for a similar interval within the prior yr. We’re reporting adjusted EBITDA of 1.5 million for the primary quarter of 2026 in comparison with $0.6 million for a similar interval within the prior yr. The development in adjusted EBITDA of 0.9 million was primarily because of the identical components driving the beforehand mentioned change in internet revenue for the primary quarter of 2026 when in comparison with the identical interval within the prior yr, in addition to a rise in inventory based mostly compensation in comparison with the prior yr interval because it pertains to liquidity. As of March 31, 2026 we had money and money equivalents of 5.9 million which decreased to three.8 million as of April 2026 because of the Firm’s 3.7 million repurchase of its shares from Pushed Life-style Group LLC on April 22, 2026 partially offset by money inflows from operations. Administration believes that this share repurchase from Pushed Life-style will strengthen our company governance construction and place the corporate for its subsequent stage of progress while underscoring our confidence in our enterprise and liquidity place. In the course of the three months ended March 31, 2026, we generated a median optimistic money stream from operations of roughly 0.5 million per thirty days. That was primarily because of elevated profitability and the capitalization by means of internally developed software program. We at the moment haven’t any buy dedication liabilities. Moreover, our working Capital as of March 31, 2026 was 5.2 million versus 4.2 million as of December 31, 2025. Underscoring a a lot improved steadiness sheet and liquidity, place administration stays assured within the firm’s product roadmap as we work in the direction of porting Le Mans final on console over the subsequent a number of months. We additionally secured a 3 million revolving line of credit score from Citibank in February 2026. As of March 31, 2026, there was no quantity owed to Citibank underneath the revolving line of Credit score. As of April 30, 2026, there was $1.2 million owed to Citibank underneath this evolving line of credit score. Thanks all on your time. And now I’ll flip the decision again to Stephen for closing remarks.

Stephen Hood (Chief Government Officer)

In closing, the story of Q1 is an easy one. Le Mans final continues to develop. Our monetary place continues to strengthen, and that power is now actively translating into motion for our shareholders. Meaning meaningfully improved governance for the long run well being of the enterprise. It means continued funding in our group, our know-how and the alternatives we at the moment are ready to pursue. We’re not working a number of video games from a place of necessity. We’re working it from a place of power, with choices, with conviction, and with a transparent sense of the place we’re taking this firm. The longer term we’re constructing is not only for the subsequent quarter, it’s for the subsequent decade. Thanks all for becoming a member of us at this time. I stay up for updating you on our continued progress. Now hand it again to the operator.

OPERATOR

Thanks. If you would like to ask a query, press Star one in your keypad. To depart the queue at any time, press Star two. As soon as once more, that’s Star one to ask a query. And our first query at this time will come from Anja Soderstrom with Sidoti and Firm. Your line is now open. Please go forward.

Alex

Hello, that is Alex on for Anja. Thanks for taking questions. My first query is on the Le mans final model 1.3 that you simply talked about. It drew a report 8800 participant peak in March, which is a formidable milestone. And I am curious, how has engagement trended for the reason that launch? And will you speak a little bit bit about what the roadmap might seem like for the rest of 2026? Hello Alex, it is Stephen. Thanks on your query. I believe to be completely sincere, it is trending upward. We talked particularly not simply in regards to the peaks, however truly the common concurrence, the stickiness of the product and what we have seen over the historical past of the product, and positively since 1.3 stays true, is that with extra content material and extra publicity, we’re constructing a report variety of Gamers which are sticking round, shopping for the content material and collaborating. We have seen that groundswell beginning to observe the product. We’ve not proactively actually spent advertising and marketing {dollars} in attempting to speed up that. So it is actually natural progress of these participant numbers. We do have new content material packs which are deliberate for this yr, which can be no shock to anyone. They’ve confirmed very fashionable each time we add extra automobiles, extra monitor content material and increase. The sport providing, which is constructed round Le Mans and the World Endurance Championship by its nature is kind of singular. We discovered that we attain new gamers, so we have now an thought and an idea for brand spanking new monitor content material that can attain extra markets. As a result of sometimes we discovered we’re extremely robust in Europe, which isn’t any shock given Le Mans historical past and its location, and we have dined out very properly on that. However with the intention to take this recreation internationally, we’re beginning to have a look at extra content material that might appeal to folks that are not naturally purchased into the Le Mans idea or European content material. So we have now bought extra issues to disclose sooner or later, however I am fairly enthusiastic about that. I believe it’s going to maintain climbing. Nice context. Thanks. And also you spoke about this within the ready remarks a little bit bit. You already know that Reis Management continues to increase as, as one other, , recurring income driver. May you inform us a little bit bit about the place you see recurring income, , as a share of complete enterprise going and, , over the subsequent 12 months or so? Sure.

Stanley Beckley (Chief Monetary Officer)

Hello Alex, I can take that. So we at the moment do not present ahead wanting steerage, however I can discuss how properly danger management is finished. And in Q1 2026, for instance, it was a much bigger share of our revenues. Q1 2026 supply generated danger management subscription revenues of 0.8 million, which was 19% of the overall revenues of 4 million for the quarter in comparison with Race Management subscriptions solely, accounting for six% of our revenues in Q1 2025. So I am unable to converse an excessive amount of about the place we see it going by way of particular numbers, however we do count on it to proceed rising as the sport turns into extra standard and extra models are bought. However we’re attending to the purpose the place income stream is extra diversified with danger management subscriptions encompassing a larger share of our complete revenues.

Stephen Hood (Chief Government Officer)

Bought it. Thanks for sharing. And final one from us. Are you able to speak a little bit bit in regards to the Components one alternative, , what you are doing there at this time and the way you see it evolving and , what kind of pipeline and different associated income alternatives seem like for that. Alex, I assume this one was in all probability for me, the Components one Alternative, I believe is at all times fascinating. Components One is a big motorsport world over worldwide markets. It is a no brainer for us to be all for that house. That is one of many the reason why we have been very happy to offer our know-how to energy Components one Arcade. So each arcade venue and each exercise that they supply around the globe and all their services, together with the brand new pop up services, is powered by know-how owned by and operated by Motorsport Video games. That know-how truly powers Le Mans Final, a later model of that know-how anyhow. So one of many causes we did that was to beat this idea that our know-how, as a boutique sim racing software program developer, which is what we’re at this time, very specialised software program firm, can produce one thing that’s accessible for a a lot bigger market. As a result of folks sometimes assume that sim racing software program is the protect of possibly child in a bed room with a simulator rig. That is the sort of stuff I’ve at residence. However anyone can stroll in off the road and luxuriate in our know-how in an F1 arcade venue. From grandma to 10 yr previous children, to mum, dad, buddies, it is a household leisure expertise powered by simracing software program. That foot within the door. With F1 Arcade, the group behind that and Liberty who’re a part of that operation, it is simply a part of our technique to construct our relationship with Components one, show the viability of the software program, the benefit and the facility of the software program. I imply, keep in mind F1 Arcade selected to not use the official Components One recreation, however as an alternative selected Motorsport video games software program software program produced by our developer, Studio397. And that may be a essential sort of optimistic step in constructing relationship, surfacing the know-how and actually enabling our engineers to offer Components One by means of F1 Arcade innovative software program. And while there may be an unique settlement in place with Digital Arts in the mean time, like every software program developer, we’d be all for increasing our choices sooner or later. F1 Arcade is ready to develop, however we’re exploring prospects about what we may assist by way of single seater racing sooner or later. One aspect of which might be Components One. So I believe it will be hypothesis proper now. There is not something definitive, however we might definitely be all for increasing our providing. Thanks for all of the background. That is all from us.

OPERATOR

Thanks at the moment. There aren’t any additional questions in queue. It will deliver us to the tip of The Motorsport Video games first quarter 2026 earnings name. We respect your time and participation. Chances are you’ll now disconnect.

Disclaimer: This transcript is supplied for informational functions solely. Whereas we attempt for accuracy, there could also be errors or omissions on this automated transcription. For official firm statements and monetary data, please check with the corporate’s SEC filings and official press releases. Company individuals’ and analysts’ statements replicate their views as of the date of this name and are topic to vary with out discover.

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus limitless entry to cutting-edge instruments and methods to realize an edge within the markets.

Get the newest inventory evaluation from Benzinga:

This text Transcript: Motorsport Games Q1 2026 Earnings Conference Call initially appeared on Benzinga.com

© 2026 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.