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Image source: The Motley Fool. Friday, Aug. 14, 2026 at 5:00 p.m. ET Chief Executive Officer - Stephen Hood Chief Financial Officer - Peter Hansen-Chambers Chief Accounting and Compliance Officer - Stanley Beckley Operator: Thank you for standing by, and welcome to Motorsport Games Inc. Second Quarter 2026 Earnings Call. As a reminder, today's call is being recorded. I would like to now turn the conference over to Ben Rossiter-Turner from Motorsport Games. Please go ahead. Ben Rossiter-Turner: Thank you, and welcome to Motorsport Games Second Quarter 2026 Earnings Conference Call and Webcast. On today's call is Motorsport Games' Chief Executive Officer, Stephen Hood; and Chief Financial Officer, Peter Hansen-Chambers. By now, everyone should have access to the company's second quarter 2026 earnings press release filed today after market close. This is available on the Investor Relations of Motorsport Games website at www.motorsportgames.com. During the course of this call, management may make forward-looking statements within the meaning of U.S. federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Except as required by law, the company undertakes no obligation to update any forward-looking statements made on this call or to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to today's press release and the company's filings with the SEC, including its most recent quarterly report on Form 10-Q for the quarter ended June 30, 2026, for a detailed discussion on certain risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. In today's conference call, we will refer to certain non-GAAP financial measures, such as adjusted EBITDA as we discuss the second quarter 2026 financial results. You will find a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures as well as other related disclosures in the press release issued earlier today, which is also available on the Investor Relations section of Motorsport Games website at www.motorsportgames.com. And now I'd like to turn over the call to Stephen Hood, Chief Executive Officer of Motorsport Games. Stephen? Stephen Hood: Thank you, Ben. Good afternoon, everyone, and thank you for joining the Motorsport Games Second Quarter 2026 Earnings Call. We're now 6 consecutive quarters into proving that this business works. First half revenue was $7.6 million, up 74% year-on-year, and gross margin expanded to almost 85% from just under 79% a year ago. We're not just growing, we're growing more efficiently. We generated positive operating income for the sixth quarter in a row. Le Mans Ultimate and RaceControl remain the 2 engines behind that. And this quarter, RaceControl took another real step forward, which I'll come back to. Le Mans Ultimate player engagement accelerated in this quarter. We spoke last time about the all-time peak of more than 8,800 concurrent players achieved in March. That momentum spiked again. April was our highest ever month for average daily active users, which, as I've said previously, is the number that matters most to us. It tells us players are sticking around, not just appearing for a moment. I'm delighted to say that we've now sold more than 0.5 million units of the base game and more than 1.2 million individual pieces of DLC or downloadable content since launch. That's 0.5 million players enjoying Le Mans Ultimate enough to then go on and spend additionally to extend that experience, an experience that has clearly resonated within the player base we've built. This is the interesting part. Each and every one of those players competing online has an account on RaceControl. They exist within a platform we operate within our ecosystem. That is an advantage to us on several fronts. We can ensure a cleaner onboarding experience for new players, we can communicate with them directly, and we can continue to invest in building the platform. I've said before that RaceControl deserves to be understood not solely as a feature that supports Le Mans Ultimate, but as a stand-alone platform business. And this quarter makes that case better than any quarter before it. Peter, our new CFO, will walk you through just how fast that's scaling, but the short version is this. We're building a unique model in our sector. It's recurring, it's predictable, high margin and isn't seasonally affected by releases as a traditional game release model. It helps us to engage with and retain players, establishing a loyal community. We can monetize the most engaged players and funnel those revenues back into the service and products to improve them further. RaceControl might still be in its infancy, but we believe that it will prove to be an ever more critical component of our distinct entertainment offerings in the future. We believe it's already proving to be a real jewel in our portfolio, amplifying our games in a distinct way versus the competition. On our last call, we talked about wanting to bring content to Le Mans Ultimate that reaches players who aren't already bought into the Le Mans and European racing world. As strong as we are in Europe, understandable given the product title, we know that's not the entire addressable market and that there are great racing experiences outside the laser focus on Le Mans content we've stuck to since launch. In July, after quarter end, we updated the game to version 1.4 and with it added Daytona and Laguna Seca, 2 of the most iconic circuits in American racing as the first part of our newly released U.S. Track Pack. We expect Packs 2 and 3 in September and December, respectively, and we're actively exploring what comes next for Le Mans Ultimate content in 2027. Whilst we do not envisage opening our Le Mans gaming title to completely unrelated racing content, we do believe there are still significant content offerings that can be added to the Le Mans Ultimate experience over at least the next couple of years. To go beyond this, we will need to release a new title. We will have more on that on our next earnings call. For now, let me move on to console progress and how we're shaping up on bringing Le Mans Ultimate to PlayStation and Xbox platforms. On consoles, development of Le Mans Ultimate for PlayStation and Xbox continues as planned. As I said before, this is complex work, bringing a high-fidelity simulation experience to the home console market isn't routine in our industry, but we believe console players are starved of the kind of experience we know we can deliver. Not every player can justify the expense of a suitable gaming PC, let alone a simulator rig complete with the wheel and pedals. Bringing Le Mans Ultimate to console widens our reach and allows us to connect with a market that is genuinely underserved. PC-level simulation experiences are hard to find on console platforms. Arriving on console will be another important milestone in the growth of our company, and the learnings from this project will directly benefit future releases. Before I hand over, a word on our leadership. Peter Hansen-Chambers joined us as Chief Financial Officer effective July 1, and this is his first call with us. He brings a wealth of experience from highly respected games companies, including Codemasters and more recently, Hutch, where he was CFO and Co-CEO. I'm very glad to have him on board. Internally, I have been relaying to our team that in order for us to take the next step on our journey, we need to evaluate how we make progress. So the recovery of Motorsport Games, whilst a wonderful story is not the story. There is still so much more to do, and it's important that everyone in our organization appreciates the energy that will be required to move ahead. Peter's energy, enthusiasm and experience is a key part of our continual evolution. I also want to thank Stanley Beckley for his role in getting this company back on track. We're delighted that he continues with us in his role as Chief Accounting and Compliance Officer. The workload has grown, and it made sense to expand the team so that we can meet the challenge of transitioning from recovery to growth whilst retaining the talent and expertise that help shape our return to form. This strength has allowed us to act opportunistically where we see value for the company's long-term health and value for shareholders. We completed the purchase of a significant amount of Class A common stock from Driven Lifestyle Group, which retired all outstanding Class B shares. Every outstanding share of our common stock now carries equal voting rights. Finally, I want to relay we're increasingly focused on the next stage of growth. I said on our last call that we're in the formative stages of a new long-term project that leverages everything we've built and operate today, our simulation technology, the RaceControl platform, our live service infrastructure, F1 Arcade and the proven underpinnings that power our successful Le Mans Ultimate game, alongside the relationship with our players that we took so much care to build and continue to maintain. The Motorsport Games of today is a boutique game studio, building not just the games, but the entire ecosystem for racing and driving fans. Our long-term bets are paying off, and everything we've experienced this past quarter has reaffirmed our belief that we have the foundations in place to deliver on our road map, the detail of which will be shared on our next earnings call. And with that, I'll hand over to Peter. Peter Hansen-Chambers: Thank you, Stephen, for the kind introduction, and good evening, everyone. It's genuinely exciting to be here. Having spent my first few weeks getting under the hood of the business, I can see real value in what's already been built. Talented people, strong technology and relationships that give us a platform to build from. As with previous earnings calls, I won't be offering forward guidance today. Instead, I'd like to walk through our first half and second quarter results and explain why we believe they represent real progress as we strive to build an exciting, high-performing gaming company that delivers not only for our players today, but for the business long term. Before I get into the numbers, I want to share some context upfront that I think is useful for how you read our results and view the business over time. Le Mans Ultimate is a live service multi-season project that is continuing to grow and evolve in order to engage, retain and grow our player base through the release of new content, features and other improvements. Given the nature of that undertaking, what happens in any given month or quarter is shaped by various factors. There's normal seasonality, the usual impact you'd see around holidays or over the summer, for instance. For us, there's also the real-world motorsport calendar, given many of our players that have an interest in real-world motorsport influencing performance around such events. There's the composition of our own release schedule. Some updates are quick and modest. Others are bigger, more ambitious pieces of work that simply take longer to complete and then land with more impact when they do. Some releases prioritize what the community are telling us, whilst others may be focused on longer-term strategic benefit to the business. All of these factors influence performance at any given time, and therefore, growth will not be a straight line each and every month or quarter-to-quarter. With this in mind, we would encourage everyone to judge our performance over a longer time horizon than any single quarter in isolation to observe our overall performance as we continue to invest and build in the product. It's that ongoing investment and what it unlocks next that gives us real confidence in where this business is heading. I'll start with RaceControl, our free-to-join player platform, which also offers premium subscription tiers because it's increasingly central to the story we want to tell as we transform Motorsport Games. As Stephen mentioned earlier, RaceControl allows us to establish an important direct relationship with our players whilst offering an opportunity for us to promote new content and features. Through RaceControl, we can convert engaged players into premium subscription tiers that offer better value by expanding the experience. At the same time, this SaaS model means we can continue to support investment in new content and features, extending the lifetime of products, all whilst increasing player monetization. Subscription revenue from RaceControl for the first half of 2026 was approximately $1.4 million, up from approximately $0.3 million in the first half of 2025, growth of almost 349% year-on-year. On a run rate basis, RaceControl is now generating annual recurring revenue of approximately $2.9 million, up from $1.2 million for the whole of last year. RaceControl revenues represented 18% of our total revenues for the first half of 2026 versus 7% in the first half of 2025 and less than 1% for the full year 2024. This is particularly impressive given this is happening alongside 74% growth in our total company revenue, not despite a decline in it. Behind those numbers is real subscriber growth. We ended June with over 40,500 paid subscribers, up more than 230% since June last year, all achieved organically. RaceControl is financially lucrative as well as strategically important. It delivers high-margin recurring revenue and increases player lifetime value or LTV. We intend to keep investing in it, both to grow our subscriber base and to deepen engagement with our existing players. That momentum achieved with RaceControl reveals itself in our top line results, too. Revenue has grown every year since 2023, up 25.7% in 2024 and a further 30% in 2025. At the same time, gross profit margin has expanded alongside it from 47.6% to 81.5% over that same period. This is evidence that the business is scaling efficiently as it grows, not just growing. For the first half of 2026 specifically, revenue was $7.6 million, up 74% year-on-year, and gross profit grew even faster at 86.9% to $6.4 million, with gross profit margin expanding further to 84.7% from 78.8% a year ago. That trajectory, consistent revenue growth alongside gross profit margin expansion now across 3.5 years is exactly the kind of compounding progress we want to continue delivering through the rest of 2026 and beyond. Turning to profitability. I'm delighted to share that GAAP net income was positive for a sixth consecutive quarter, representing an impressive achievement for the business. In the first half of 2026, we delivered $1.2 million compared to $5.3 million in the first half of 2025. However, these numbers do not tell the full story. That prior year comparison isn't like-for-like as H1 2025 included a $0.8 million gain from the WESCO settlement agreement and a $0.5 million gain from the HC2 Holdings 2 settlement agreement and a $3.3 million foreign currency exchange gain, which did not recur this year. On an adjusted basis, which we believe is the more meaningful measure of our underlying performance, adjusted EBITDA for the second quarter was $0.8 million for the quarter compared to $1.4 million in Q2 2025. However, it's worth noting that Q2 2025's adjusted EBITDA carries with it the benefits of nonrecurring gains related to discounts negotiated on a few outstanding vendor invoices. We have also continued making investments in expanding our product mix in 2026. If we look at the 6 months ended June 2026, we achieved adjusted EBITDA of $2.2 million, more than double the $1.0 million we generated in the same period last year, growth of approximately 122.7%. With regards to adjusted diluted EPS, we reported $0.19 for the quarter compared to $0.25 a year ago, which was due to the same factors impacting adjusted EBITDA mentioned before. For the 6 months ended June 2026, adjusted diluted EPS was $0.33 compared to $0.24 in H1 2025. Adjusted EBITDA and diluted EPS reconciliations can be found on the Investor Relations section of Motorsport Games website at motorsportgames.com. Turning to the balance sheet. We have continued to generate strong, consistent operating cash flow, averaging approximately $0.5 million per month over the 6 months ended June 30, 2026, driven by increased profitability and the capitalization of internally developed software. As of June 30, 2026, we had cash and cash equivalents of $3.9 million. The year-to-date change in our cash position and working capital is largely explained by capital we deployed during the quarter, most notably the $3.7 million repurchase of Class A shares from Driven Lifestyle Group, which also retired all Class B super voting shares and simplified our capital structure. We view this as a strong use of improving cash generation. We also secured a $3 million revolving credit facility from Citibank in February 2026, of which $1.2 million was drawn down as of June 30, 2026. In May 2026, Citibank extended the maturity of that facility to February 2028, giving us continued flexibility as we invest in growth. Thank you all for your time. And now I will turn the call back to Stephen for closing remarks. Stephen Hood: In closing, the story of the first half of 2026 is straightforward. Le Mans Ultimate continues to grow, RaceControl is proving itself to be a real platform business faster than we might have expected, and our margins and cash generation are moving in the right direction. Six consecutive profitable quarters are not an accident and neither is the pace of RaceControl's growth. The moves we made this quarter on developing new revenue streams, on expanding our addressable audience, on governance, on financing and on the road map, all point in the same direction. We're building something to last and drive long-term shareholder value creation and sustainable profitability. We've got a lot more to share with you on the Q3 call, and I'm looking forward to it. Thank you all for joining us today, and thank you for your interest in Motorsport Games. I'll now hand it back to the operator. Operator: We'll take our first question from Anja Soderstrom with Sidoti & Company. Justin: Peter, this is Justin on for Anja. With the release of the first USA Track Pack in July, can you discuss how that is trending and the road map for additional content releases through the remainder of the year and into 2027? Operator: Peter Hansen-Chambers: Justin, thank you for your question. Yes, I mean, so far, we've seen a very good reaction from our community to that release. It, in fact, has been performing better than we had hoped, which is good. It's been a strong initial release. There had been some anticipation about what we were going to launch. And there's obviously more speculation about what will come. As it stands right now, we're working on additional content that will follow this year. We've got another 2 releases of packs that will come later in the year, date to be confirmed. Justin: Very helpful. Turning to RaceControl, how is recurring revenue building? Can you give us a sense of the growth trajectory you anticipate and maybe where retention is running? Peter Hansen-Chambers: I'm sorry, Justin, can you repeat the question? Justin: Sure. Turning to RaceControl. How is recurring revenue building? And can you give us a sense of the growth trajectory you anticipate and where retention is running? Peter Hansen-Chambers: Yes. Good questions. Yes, at the moment, we've got a run rate of $2.9 million for the year. The attach rate to subscription seems to be relatively consistent, and we're able to forecast that relatively accurately. So we feel quite confident in its continued growth throughout the rest of the year. We're not able to give guidance, obviously, in terms of precisely where that will land come the end of the year. But I think we announced growth of 349% year-on-year, which means it's becoming a much more meaningful part of the business, and we anticipate that will continue. Obviously, this is new for Motorsport Games. It's taken up an increasing focus. There's a specific effort on improving retention. At the moment, we've got specific initiatives in place to ensure that subscribers do continue, and that seems to be working well at this time. So yes, I mean, I think the key thing is for us to continue to keep the game exciting, servicing it with new content and making it an attractive prospect that people can continue to subscribe to. Justin: Last one for me is, Peter, congratulations on the new role. Can you talk about your key priorities in this role? Peter Hansen-Chambers: Sure. Yes. I mean it's great to join the business. I think it's got a great team. I love the product, I love the focus. But I also think we can do much more, and I know that Steve is very ambitious for the business. So it feels like a great place to be. We know that we can achieve a lot more, and we certainly want to try and accomplish that. Yes, I mean there's a number of things internally that we want to try and address. I think first and foremost, I think there's some aspects about sort of how we approach sort of culturally, I mean, ultimately, I want to achieve help us to become a high-performing business, and that's kind of multifaceted and probably require a lot longer to discuss. We have performed very well today, but sort of culturally, it requires a number of other things in order to sort of have the energy to get us to the next phase of the journey. I think Steve said in his talk that we've done well, but this is not the end of the story. This is just sort of part of the sort of just the first chapter, if you like, and it's been an eventful first chapter. So yes, there's a number of things that I think we need to work on to make sure that we've got the foundation for and the energy to sort of take us forward going forward. Operator: We'll move on to Peter Sidoti with Sidoti & Company. Peter Sidoti: Just 2 quick questions. Can you talk about subscriber acquisition costs and also just the competitive environment? Peter Hansen-Chambers: Sure. Peter, so yes, I mean, at the moment, we've been in a great place where we've been able to acquire organically. So obviously, the costs are very low and the margin is very high, which is great. Whether we will experiment with sort of paid acquisition in the future, I don't know. That's not something we're focused on right now. I think right now, I think we feel like although we're doing really well, and I am proud of the results that we've announced in terms of growth, I still think there's scope for us to further grow in terms of converting RaceControl account holders into subscribers. I think we believe the value proposition is strong enough -- and I think we have to experiment with our communication and probably test some things in terms of maybe the way that we package some subscriptions, incentives, et cetera, learning from other industries. I think where we are in terms of that conversion, I would say, is very strong. If you look at sort of mobile free-to-play, which is a part of the game industry I've spent a long time in more recently, sort of traditionally, a successful game would be about 5% of the player base converting, that would be a target. And we are exceeding that right now. So I think we should be proud of it, but I think there's still a way to go before we need to necessarily go down the road of paying to acquire. Operator: And it appears that we have no further questions at this time. I'd be happy to return the call to our host for any closing comments. Ben Rossiter-Turner: [indiscernible] Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Before you buy stock in Motorsport Games, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Motorsport Games wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,189!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,330,956!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 21, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Motorsport Games (MSGM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: First half 2026 revenue was $7.6 million, up 74% year-on-year. Gross Profit: First half 2026 gross profit grew 86.9% to $6.4 million. Gross Margin: Expanded to 84.7% in H1 2026 from 78.8% a year ago. GAAP Net Income: Positive for the sixth consecutive quarter; H1 2026 net income was $1.2 million, compared to $5.3 million in H1 2025 (which included non-recurring gains). Adjusted EBITDA: Q2 2026 was $0.8 million, compared to $1.4 million in Q2 2025; H1 2026 was $2.2 million, up 122.7% from $1.0 million in H1 2025. Adjusted Diluted EPS: $0.19 for Q2 2026, compared to $0.25 a year ago; $0.33 for H1 2026, compared to $0.24 in H1 2025. RaceControl Subscription Revenue: Approximately $1.4 million in H1 2026, up almost 349% year-on-year from $0.3 million in H1 2025. RaceControl Annual Recurring Revenue: Approximately $2.9 million on a run-rate basis, up from $1.2 million for the whole of 2025. RaceControl Paid Subscribers: Over 40,500 as of June 30, 2026, up more than 230% since June 2025. Cash and Cash Equivalents: $3.9 million as of June 30, 2026. Operating Cash Flow: Averaged approximately $0.5 million per month over the six months ended June 30, 2026. Le Mans Ultimate Sales: More than 0.5 million units of the base game and more than 1.2 million individual pieces of DLC sold since launch. Warning! GuruFocus has detected 6 Warning Signs with MSGM. Is MSGM fairly valued? Test your thesis with our free DCF calculator. Release Date: August 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First half 2026 revenue grew 74% year-over-year to $7.6 million, with gross margin expanding to 84.7% from 78.8%. RaceControl subscription revenue surged 349% year-over-year to $1.4 million in H1 2026, with annual recurring revenue run rate reaching $2.9 million. Paid subscribers for RaceControl grew over 230% year-over-year to 40,500, achieved organically with low acquisition costs. GAAP net income remained positive for the sixth consecutive quarter, with adjusted EBITDA more than doubling to $2.2 million in H1 2026. Le Mans Ultimate sold over 0.5 million base game units and 1.2 million DLC pieces, with strong player engagement and a successful U.S. Track Pack launch in July. The company completed a $3.7 million share repurchase, retiring all Class B shares and simplifying its capital structure. Adjusted EBITDA for Q2 2026 declined to $0.8 million from $1.4 million in Q2 2025, partly due to non-recurring vendor discounts in the prior year. Cash and cash equivalents stood at only $3.9 million as of June 30, 2026, with $1.2 million drawn on a $3 million credit facility. The company's growth is not linear, with quarterly performance subject to seasonality, the real-world motorsport calendar, and the timing of content releases. Console development for Le Mans Ultimate on PlayStation and Xbox remains complex and is not yet complete, with no confirmed release date. The company has not provided forward guidance, leaving uncertainty about future revenue and profitability trajectories. The new CFO, Peter Hansen-Chambers, highlighted the need for cultural and operational improvements to achieve the next phase of growth, indicating potential internal challenges. Q: With the release of the first USA Track Pack in July, can you discuss how that is trending and the road map for additional content releases through the remainder of the year and into 2027?A: Stephen Hood (CEO): The reaction from our community to the release has been very good, and it is performing better than we had hoped. We are currently working on additional content that will follow this year, with two more releases of packs planned for later in the year, though specific dates are yet to be confirmed. Q: Turning to RaceControl, how is recurring revenue building? Can you give us a sense of the growth trajectory you anticipate and where retention is running?A: Stephen Hood (CEO): We currently have an annual recurring revenue run rate of $2.9 million. The attach rate to subscriptions is relatively consistent, allowing us to forecast accurately and feel confident in continued growth. While we don't provide formal guidance, we announced 349% year-on-year growth, making it a much more meaningful part of the business. We have specific initiatives in place to improve retention, which are working well, and we aim to keep the game exciting with new content to encourage continued subscriptions. Q: Peter, congratulations on the new role. Can you talk about your key priorities in this role?A: Peter Hansen-Chambers (CFO): It's great to join the business, which has a great team, product, and focus, but we can do much more. My key priority is to help the company become a high-performing business, which is multifaceted. While we have performed well, we need to work on the culture and energy to take us to the next phase of the journey. This is just the first chapter of the story, and we need to ensure we have the foundation to move forward. Q: Can you talk about subscriber acquisition costs and also the competitive environment?A: Stephen Hood (CEO): We have been in a great place, acquiring subscribers organically, which keeps costs very low and margins high. We are not focused on paid acquisition right now. We believe there is still scope to grow by converting RaceControl account holders into subscribers, as our conversion rate is already exceeding the traditional 5% target seen in successful mobile free-to-play games. We plan to experiment with communication and packaging of subscriptions before considering paid acquisition. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved six consecutive quarters of profitability, signaling a successful transition from corporate recovery to a growth-focused operational phase. Revenue growth of 74% year-on-year was driven by the dual engines of Le Mans Ultimate engagement and the rapid scaling of the RaceControl platform. Gross margin expansion to almost 85% reflects increased operational efficiency and a shift toward higher-margin digital and subscription revenue streams. Le Mans Ultimate achieved record player engagement in April, with management emphasizing average daily active users as the primary metric for long-term retention. The RaceControl platform is being repositioned as a standalone SaaS business rather than just a game feature, providing predictable, recurring revenue that is not subject to traditional game release seasonality. Strategic expansion into the North American market via the U.S. Track Pack aims to broaden the addressable audience beyond the core European racing community. Simplified the corporate capital structure by repurchasing Class A shares and retiring all Class B super voting shares, ensuring equal voting rights for all shareholders. Development of Le Mans Ultimate for PlayStation and Xbox remains on schedule, targeting an underserved console market that lacks high-fidelity simulation experiences. The content roadmap for Le Mans Ultimate includes two additional U.S.-themed packs scheduled for release in September and December 2026. Management is evaluating a new long-term project that will leverage existing simulation technology, live service infrastructure, and the RaceControl ecosystem. Future growth strategy involves converting a higher percentage of the existing RaceControl account base into premium subscribers through improved communication and packaging incentives. A new title release is anticipated to be necessary for content expansion beyond the Le Mans license, with more details expected in the Q3 earnings call. Reported annual recurring revenue (ARR) for RaceControl reached approximately $2.9 million, representing 18% of total company revenue in H1 2026. Deployed $3.7 million in capital to repurchase shares from Driven Lifestyle Group to consolidate voting power and simplify governance. Extended the maturity of a $3 million revolving credit facility with Citibank to February 2028 to maintain liquidity for future growth initiatives. Appointed Peter Hansen-Chambers as CFO to lead the transition toward a high-performing business culture following the company's stabilization phase. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted the July release is performing better than internal expectations with strong community anticipation. Confirmed two additional pack releases are slated for later this year, though specific dates remain unconfirmed. Current run rate is $2.9 million with consistent subscription attach rates allowing for accurate forecasting. Management is implementing specific initiatives to improve retention and ensure the value proposition remains attractive through new content. Subscription revenue grew 349% year-on-year, becoming a significantly more meaningful portion of the total business mix. Acquisition is currently 100% organic, resulting in very low costs and high margins. Current conversion rates are exceeding the 5% industry benchmark typical for successful free-to-play models. Management plans to experiment with subscription packaging and incentives before considering paid acquisition channels.

Motorsport Games Reports Second Quarter 2026 Financial Results MIRAMAR, Fla., Aug. 14, 2026 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or “the Company”) today reported financial results for its second quarter ended June 30, 2026. The Company has also posted second quarter 2026 earnings slides highlighting key milestones that occurred during and subsequent to the period, which are accessible on the Company’s investor relations website. “We are delighted to report a sixth consecutive quarter of profitability, with revenues for the first half of the year growing strongly against the same period last year,” commented Stephen Hood, President and Chief Executive Officer of Motorsport Games. “What is particularly pleasing is that our gross margin has expanded alongside that growth. We are not simply growing, we are growing more efficiently, and we believe that is the clearest evidence yet that the transformation of this business is now consistent and repeatable.” “I am also delighted to share that we have now sold more than half a million units of the Le Mans Ultimate base game alongside more than 1.2 million individual pieces of downloadable content. Subsequent to the period, we released Version 1.4, bringing the Daytona and Laguna Seca circuits to Le Mans Ultimate and extending our content beyond the European racing world for the first time. The initial results of this expansion are very promising with the U.S. Track launch date reporting the highest single day revenues since the game’s initial launch in Early Access.” Hood continued, “Furthermore, we believe RaceControl should now be recognized not as a feature that supports Le Mans Ultimate, but as a platform business in its own right. Mid-way through its second year, subscription growth has been substantial, it carries a materially better margin profile than our content business because it runs on infrastructure we operate ourselves, and it is embedded in the daily habits of every one of our players. RaceControl is now central to how we intend to grow, and we look forward to sharing further news on the next stage of growth for the platform on our next earnings call.” Second Quarter 2026 Highlights and Subsequent Business Update During the second quarter of 2026, Motorsport Games continued to grow subscription revenue within its RaceControl platform while investing deliberately in the next phase of the Company’s growth. Generated revenues of $3.5 million in Q2 2026 compared to $2.6 million in Q2 2025, an increase of $0.9 million, or 36.6%; revenues for the six months ended June 30, 2026 were $7.6 million, compared to $4.4 million for the same period in 2025, an increase of $3.2 million or 74.0%. RaceControl subscription revenues grew to approximately $1.4 million for the six months ended June 30, 2026, up from approximately $0.3 million for the same period in 2025, an increase of approximately 348.9%. RaceControl is currently generating approximately $2.9 million in annual recurring revenues, up from approximately $1.2 million for the full year 2025. As of June 30, 2026, RaceControl had more than 40,500 paid subscribers, an increase of more than 230% compared to June 30, 2025, achieved entirely through organic growth. Gross profit margin for the six months ended June 30, 2026 increased to 84.7%, compared to 78.8% for the same period in 2025. Non-GAAP Adjusted diluted net income per share(1) was $0.33 in H1 2026, compared to $0.24 in H1 2025. Released Le Mans Ultimate Version 1.4 in July 2026, featuring new American track packs, including Daytona and Laguna Seca race circuits, along with other game improvements. Le Mans Ultimate has now sold over 500,000 units of the base game and approximately 1.2 million individual downloadable content (DLC) units since launch. Achieved a new all-time peak of more than 8,800 concurrent players in March 2026 following the release of Le Mans Ultimate Version 1.3 and recorded its highest-ever month for average daily active users in April 2026. Completed the repurchase of 904,395 shares of Class A Common Stock from Driven Lifestyle Group LLC, resulting in the retirement of all outstanding shares of Class B Common Stock and the elimination of super-voting rights, simplifying the Company’s capital structure and establishing equal voting rights for all shareholders. Peter Hansen-Chambers was appointed as the Company’s Chief Financial Officer effective July 1, 2026, as the Company works to expand its product portfolio and diversify revenue lines beyond its existing titles. Select Financial Highlights for the Three Months Ended June 30, 2026 Revenues for the second quarter of 2026 were approximately $3.5 million compared to approximately $2.6 million for the same period in the prior year, an increase of approximately $0.9 million, or 36.6%. For the six months ended June 30, 2026, revenues were approximately $7.6 million compared to approximately $4.4 million for the same period in the prior year, an increase of approximately $3.2 million, or 74.0%. Gross profit for the second quarter of 2026 was $2.9 million compared to $2.1 million for the same period in the prior year, an increase of $0.8 million. For the six months ended June 30, 2026, gross profit was $6.4 million compared to $3.4 million for the same period in the prior year, an increase of approximately $3.0 million, or 86.9%, with gross profit margin achieving 84.7%, compared to 78.8% for the same period in the prior year. RaceControl, the Company’s free-to-join player platform which offers premium subscription tiers, generated subscription revenues of approximately $1.4 million for the six months ended June 30, 2026, compared to approximately $0.3 million for the same period in the prior year, an increase of approximately 348.9%, and representing approximately 18.0% of the Company’s total revenues for the six months ended June 30, 2026, compared to approximately 7% for the first half of 2025 and less than 1% for the full year 2024. Net income for the second quarter of 2026 was approximately $0.2 million, compared to approximately $4.2 million for the same period in the prior year, representing the sixth consecutive quarter of positive net income. Q2 2025 net income is comprised of several non-recurring gains unrelated to our core operations, including $2.3 million in gains on foreign exchange rates and a $0.8 million gain from the Wesco Settlement Agreement, neither of which recurred in the current period. The Company also increased its investment in development during the second quarter of 2026, with development expenses nearly tripling year-over-year, primarily reflecting continued investment in growing Le Mans Ultimate and RaceControl with new content and features. On an adjusted basis, which management believes better reflects the Company’s underlying operating performance, the Company remained profitable: Non-GAAP Adjusted diluted net income per share(1) was $0.19 in the second quarter of 2026, compared to $0.25 for the same period in the prior year. However, for the six months ended June 2026, Non-GAAP Adjusted diluted net income per share was $0.33 compared to $0.24 in the same prior year period. The Company’s management believes that these six-month figures provide a more useful overview of the Company’s recent performance given the non-recurring gains in Q2 2025 highlighted above. Adjusted EBITDA(1) for the second quarter of 2026 was $0.8 million compared to Adjusted EBITDA(1) of $1.4 million for the same period in the prior year. The decrease in Adjusted EBITDA is primarily due to the same non-recurring gains, including discounts negotiated on a few outstanding vendor invoices in the prior year, as well as increased expenses this year resulting from the Company’s increased investment in development during the current period, offset by an increase in stock-based compensation. Adjusted EBITDA for the six months ended June 2026 was $2.2 million compared to $1.0 million in the same prior year period, primarily driven by the increase in revenues between the two periods and growth in gross profit margin. Cash Flow and Liquidity During the six months ended June 30, 2026, the Company generated an average positive cash flow from operations of approximately $0.5 million per month, primarily due to increased profitability and the capitalization of internally-developed software. During the second quarter of 2026, the Company also completed the repurchase of 904,395 shares of its Class A Common Stock from Driven Lifestyle Group LLC, resulting in the retirement of all outstanding Class B Common Stock and establishing equal voting rights for all shareholders. Working capital as of June 30, 2026 was $2.9 million, compared to $2.2 million as of June 30, 2025. As of June 30, 2026, the Company had cash and cash equivalents of approximately $3.9 million. The Company maintains a $3 million revolving line of credit from Citibank, N.A., secured in February 2026 and extended in May 2026 to a maturity date of February 20, 2028, of which $1.2 million was drawn as of June 30, 2026. (1)Use of Non-GAAP Financial Measures Adjusted EBITDA and Non-GAAP Adjusted diluted net income per share (the “Non-GAAP Measures”) are not financial measures defined by U.S. generally accepted accounting principles (“U.S. GAAP”). Reconciliations of these Non-GAAP Measures to net income and diluted net income per share, their most directly comparable financial measures, calculated and presented in accordance with U.S. GAAP, are presented in the Appendix to this press release. Adjusted EBITDA, a measure used by management to assess the Company’s operating performance, is defined as EBITDA, which is net income plus interest expense, depreciation and amortization, less income tax benefit (if any), adjusted to exclude: (i) gain from settlement of license liabilities and other agreements; (ii) gain from sale of gaming licenses; (iii) impairment of intangible assets; (iv) loss contingency expenses; (v) loss (gain) on foreign exchange rates; and (vi) stock-based compensation expenses. Non-GAAP Adjusted diluted net income per share, another measure used by management to assess the Company’s operating performance, is defined as diluted net income per share plus depreciation and amortization, adjusted to exclude: (i) gain from settlement of license liabilities and other agreements; (ii) gain from sale of gaming licenses; (iii) impairment of intangible assets; (iv) loss contingency expenses; (v) loss (gain) on foreign exchange rates; and (vi) stock-based compensation expenses. The Company uses the Non-GAAP Measures to manage its business and evaluate its financial performance, as Adjusted EBITDA and Non-GAAP Adjusted diluted net income per share eliminate items that affect comparability between periods that the Company believes are not representative of its core ongoing operating business. Additionally, management believes that using the Non-GAAP Measures is useful to its investors because it enhances investors’ understanding and assessment of the Company’s normalized operating performance and facilitates comparisons to prior periods and its competitors’ results (who may define Adjusted EBITDA and Non-GAAP Adjusted diluted net income per share differently). The Non-GAAP Measures are not recognized terms under U.S. GAAP and do not purport to be an alternative to revenue, income/loss from operations, net income, or cash flows from operations or as a measure of liquidity or any other performance measure derived in accordance with U.S. GAAP. Additionally, the Non-GAAP Measures are not intended to be measures of free cash flows available for management’s discretionary use, as they do not consider certain cash requirements, such as interest payments, tax payments, working capital requirements and debt service requirements. The Non-GAAP Measure have limitations as an analytical tool, and investors should not consider them in isolation or as a substitute for our results as reported under U.S. GAAP. Management compensates for the limitations of using the Non-GAAP Measures by using them to supplement U.S. GAAP results to provide a more complete understanding of the factors and trends affecting the business than would be presented by using only measures in accordance with U.S. GAAP. Because not all companies use identical calculations, the Non-GAAP Measures may not be comparable to other similarly titled measures of other companies. Conference Call and Webcast Details The Company will host a conference call and webcast at 5:00 p.m. ET today, August 14, 2026, to discuss its financial results. The live conference call can be accessed by dialing 1-800-420-1459 or 1-203-518-9861 and using Conference ID “MOTOR”. Alternatively, participants may access the live webcast on the Motorsport Games Investor Relations website at https://ir.motorsportgames.com under “Events.” About Motorsport Games: Motorsport Games is a racing game developer, publisher and esports ecosystem provider of official motorsport racing series. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make racing games that are authentically close to reality. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series including the 24 Hours of Le Mans and the FIA World Endurance Championship, recently releasing Le Mans Ultimate Version 1.4 featuring new cars, updated content and additional improvements. Motorsport Games also owns the industry leading rFactor 2 and KartKraft simulation platforms. rFactor 2 also powers F1® Arcade through a partnership with Kindred Concepts. Motorsport Games is also an award-winning esports partner of choice for the 24 Hours of Le Mans, creating the renowned Le Mans Virtual Series. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure, and every race inspires. For more information about Motorsport Games visit: www.motorsportgames.com Forward-Looking Statements Certain statements in this press release, the related conference call and webcast which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements or information in this press release, the related conference call and webcast that are not statements or information of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the transformation of the business being now consistent and repeatable; and the initial results of the expansion being very promising. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside of the Company’s control and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) difficulties, delays or less than expected results in achieving the Company’s growth plans and continuing the transformation of the business, objectives and expectations, including delays in the release of new game versions and features, the Company’s inability to deliver new products and/or new content or features for existing products, and/or the Company’s inability, in whole or in part, to continue to execute its business strategies and plans, such as due to less than anticipated customer acceptance of its new game titles and/or less than anticipated benefits from its future technologies, the Company experiencing difficulties or the inability to launch its games as planned, less than anticipated performance of the games impacting customer acceptance and sales and/or greater than anticipated costs and expenses to develop and launch its games, including, without limitation, higher than expected labor costs, the Company’s inability to establish partnerships with additional service providers to come onboard to the Company’s ecosystem and, (ii) difficulties, delays in or unanticipated events that may impact the timing and scope of new or planned products, features, events or other offerings; (iii) less than expected benefits from implementing the Company’s management strategies and/or adverse economic, market and geopolitical conditions that negatively impact industry trends, such as significant changes in the labor markets, an extended or higher than expected inflationary environment, a higher interest rate environment, tax increases impacting consumer discretionary spending and/or quantitative easing that results in higher interest rates that negatively impact consumers’ discretionary spending; and (iv) greater than anticipated negative operating cash flows such as due to higher than expected development costs, higher interest rates and/or higher inflation. Factors other than those referred to above could also cause the Company’s results to differ materially from expected results. Additional examples of such risks and uncertainties include, but are not limited to: (i) the Company’s ability (or inability) to maintain existing, and to secure additional, licenses and other agreements with various racing series; (ii) the Company’s ability to successfully manage and integrate any joint ventures, acquisitions of businesses, solutions or technologies; (iii) unanticipated operating costs, transaction costs and actual or contingent liabilities; (iv) the ability to attract and retain qualified employees and key personnel; (v) adverse effects of increased competition; (vi) changes in consumer behavior, including as a result of general economic factors, such as increased inflation, higher energy prices and higher interest rates; (vii) the Company’s inability to protect its intellectual property; and/or (vii) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K filed with the SEC. The Company anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. The Company assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing the Company’s plans and expectations as of any subsequent date. Website and Social Media Disclosure Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website): The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release. Contacts: Investors: [email protected] Media: [email protected] Appendix: The tables below provide reconciliations between net income and adjusted EBITDA, and diluted net income per share and Non-GAAP Adjusted diluted net income per share: Reconciliation between GAAP and Non-GAAP Adjusted diluted net income per share: Reconciliation between GAAP and Non-GAAP Adjusted diluted net income per share: The following tables provide a comparative summary of the Company’s financial results for the periods presented: A photo accompanying this announcement is available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/634258a9-80ef-4911-9ae2-2ef7cae2fe57 A PDF accompanying this announcement is available at:http://ml.globenewswire.com/Resource/Download/36dab9f1-121d-4ae1-8130-dec54131d5c1

Motorsport Games to Report Second Quarter 2026 Financial Results MIRAMAR, Fla., Aug. 07, 2026 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or “the Company”), a racing game developer, publisher and esports ecosystem provider of official motorsport racing series, will report its financial results for the second quarter of 2026 on Friday, August 14, 2026 after market close. Management will host a conference call and webcast on the same day at 5:00 p.m. ET to discuss the results. Participants may access the webcast on the Company’s investor relations website at https://ir.motorsportgames.com under “Events.” This webcast will be available live and remain accessible as a recording for 12 months following the date of the call. The call may also be accessed live by dialing 1-800-420-1459 or 1-203-518-9861 and using Conference ID “MOTOR”. About Motorsport Games:Motorsport Games is a racing game developer, publisher and esports ecosystem provider of official motorsport racing series. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make racing games that are authentically close to reality. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series including the 24 Hours of Le Mans and the FIA World Endurance Championship, recently releasing Le Mans Ultimate Version 1.4 featuring new cars, updated content and additional improvements. Motorsport Games also owns the industry leading rFactor 2 and KartKraft simulation platforms. rFactor 2 also powers F1® Arcade through a partnership with Kindred Concepts. Motorsport Games is also an award-winning esports partner of choice for the 24 Hours of Le Mans, creating the renowned Le Mans Virtual Series. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure, and every race inspires. For more information about Motorsport Games visit: www.motorsportgames.com. Website and Social Media Disclosure: Investors and others should note that the Company announces material financial information to its investors using its investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. The Company uses these channels, as well as social media and blogs, to communicate with its investors and the public about the Company and its products. It is possible that the information the Company posts on its websites, social media and blogs could be deemed to be material information. Therefore, the Company encourages investors, the media and others interested in the Company to review the information it posts on the websites, social media channels and blogs, including the following (which list the Company will update from time to time on its investor relations website): The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release. Contacts:Investors:[email protected] Media:[email protected] A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/48f1df8c-896b-4544-8b57-32a7f7dac864

DraftKings (DKNG) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -59.09%. A quarter ago, it was expected that this company would post earnings of $0.22 per share when it actually produced earnings of $0.2, delivering a surprise of -9.09%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. DraftKings, which belongs to the Zacks Gaming industry, posted revenues of $1.44 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.84%. This compares to year-ago revenues of $1.51 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. DraftKings shares have lost about 36.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While DraftKings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for DraftKings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.11 on $1.42 billion in revenues for the coming quarter and $1.09 on $6.76 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Motorsport Games Inc. (MSGM), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -97.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Motorsport Games Inc.'s revenues are expected to be $2.9 million, up 12% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DraftKings Inc. (DKNG) : Free Stock Analysis Report Motorsport Games Inc. (MSGM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wynn Resorts (WYNN) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $1.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +22.77%. A quarter ago, it was expected that this casino operator would post earnings of $1.18 per share when it actually produced earnings of $1.25, delivering a surprise of +5.93%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Wynn, which belongs to the Zacks Gaming industry, posted revenues of $1.86 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.92%. This compares to year-ago revenues of $1.74 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Wynn shares have lost about 18.3% since the beginning of the year versus the S&P 500's gain of 11%. While Wynn has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Wynn was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.87 on $1.82 billion in revenues for the coming quarter and $4.49 on $7.46 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Motorsport Games Inc. (MSGM), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -97.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Motorsport Games Inc.'s revenues are expected to be $2.9 million, up 12% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report Motorsport Games Inc. (MSGM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Shares of Motorsport Games Inc. MSGM have declined 11.6% since reporting first-quarter 2026 results, underperforming the S&P 500 index’s 0.3% return. Despite the post-earnings weakness, the stock has rallied 12.7% over the past month, ahead of the S&P 500’s 5% growth, reflecting continued investor interest in the company’s turnaround efforts and improving operating performance. Motorsport Games reported first-quarter 2026 revenues of $4 million, a 129.3% surge from the $1.8 million generated in the year-ago quarter. Gross profit climbed to $3.5 million from $1.3 million a year earlier, while the gross margin expanded sharply to 87.2% from 73.5%. Net income was roughly unchanged year over year at $1 million, although the prior-year quarter benefited from a $0.5-million reimbursement tied to the Innovate Settlement Agreement. Earnings came in at 6 cents per share, down from 33 cents in the prior-year period. Adjusted EBITDA rose to $1.5 million from $0.6 million a year ago, reflecting stronger operating leverage and improved profitability. Motorsport Games Inc. price-consensus-eps-surprise-chart | Motorsport Games Inc. Quote The company attributed much of its growth to continued momentum from its Le Mans Ultimate racing title and expansion of its RaceControl subscription platform. Management highlighted accelerating player engagement during the quarter, noting that the March release of Le Mans Ultimate Version 1.3 drove record activity levels, including a peak of more than 8,800 concurrent players. The Version 1.3 update added Circuit de Barcelona-Catalunya, the Duqueine D09 LMP3 race car, additional track layouts and Logitech Trueforce support, while introducing performance enhancements. Management said that the update was well received by players and represented another step toward eventual console deployment through improvements to the game’s user interface framework. The strong top-line performance also translated into improved operating results. Income from operations reached $1.1 million from an operating loss of approximately $93,000 in the prior-year quarter. Development expenses declined to about $514,000 from roughly $602,000 last year, while general and administrative expenses increased to $1.7 million from $1.2 million. Management emphasized that the company established greater financial stability after several years of restructuring and cost rationalization efforts. The quarter marked another period of positive operating income and cash flow. Motorsport Games generated an average positive operating cash flow of $0.5 million per month in the quarter, driven primarily by higher profitability and capitalization of internally developed software. Working capital improved to $5.2 million as of March 31, 2026, from $4.2 million at the end of 2025. The company also strengthened its liquidity profile through a $3-million revolving line of credit secured with Citibank in February 2026. As of March 31, no borrowings were outstanding under the facility, although by April 30, the company had drawn $1.2 million. Citibank subsequently extended the facility's maturity date to Feb. 20, 2028. Cash and cash equivalents totaled $5.9 million at the quarter-end. That figure declined to $3.8 million in April following a sizable share repurchase transaction. Chief executive officer Stephen Hood said that the company’s recent results demonstrate that its technology platform, development approach and community engagement strategy can support a “profitable, scalable business.” Management said that it is now evaluating the next phase of growth, including plans to expand the company’s portfolio and bring Le Mans Ultimate to consoles. Hood also pointed to the company’s stronger financial footing as evidence of progress in transforming the business. While management did not provide formal financial guidance, executives expressed confidence in sustaining momentum through continued product development, platform expansion and title opportunities. In the first quarter and shortly thereafter, Motorsport Games undertook several capital structure initiatives. On April 22, 2026, the company entered a share repurchase agreement with Driven Lifestyle Group LLC, purchasing 904,395 shares of Class A common stock for $3.7 million. The transaction also resulted in the cancellation of all outstanding Class B common stock. The company said the repurchase reflects its improved financial position and enhances ownership and strategic influence for remaining shareholders. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Motorsport Games Inc. (MSGM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Motorsport Games (NASDAQ:MSGM) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below. Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more. Access the full call at https://viavid.webcasts.com/starthere.jsp?ei=1759831&tp_key=d67d345298 Motorsport Games reported Q1 2026 revenues of $4 million, more than double year-on-year, driven by increased sales of Le Mans Ultimate and Race Control subscriptions. Player engagement for Le Mans Ultimate continues to grow, with a record 8,800 concurrent players, and further updates are planned to coincide with real-world events. Race Control, a proprietary platform, is becoming a significant revenue stream, with monthly recurring revenues exceeding $0.2 million, and is gaining traction with major partners like Genesis and Logitech. The company repurchased shares from Driven Lifestyle Group, retired Class B shares, and secured a $3 million credit facility from Citibank, strengthening corporate governance and financial flexibility. Future plans include bringing Le Mans Ultimate to PlayStation and Xbox, further investment in simulation technology, and developing a new project leveraging existing platforms and partnerships. OPERATOR for standing by and welcome to Motorsport Games Inc. First Quarter 2026 Earnings Call as a reminder, today's conference is being recorded. I would like to turn the conference over to Ben Rossiter Turner from Motorsport Games. Please go ahead. Thank you and welcome TO Motorsport Games First Quarter 2026 Earnings Conference Call and webcast. On today's call is Motorsport Games Chief Executive Officer Stephen Hood and Chief Financial Officer Stanley Beckley. By now everyone should have access to the company's first quarter 2026 earnings press release filed today after markets close. This is available on the Investor Relations section of Motorsport Games [email protected]. during the course of this call, management may make forward looking statements with within the meaning of US Federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward looking statements. Except as required by law, the Company undertakes no obligation to update any forward looking statement made on this call or to update or alter its forward looking statements, whether as a result of new information, future events or otherwise. Please refer to today's press release and the Company's filings with the SEC, including its most recent quarterly report on Form 10Q for the quarter ended March 31, 2026 for a detailed discussion on certain risks that could cause actual results to differ materially from those expressed or implied in any forward looking statements made today. In today's conference call we will refer to certain non GAAP financial measures such as adjusted EBITDA as we discuss the first quarter 2026 financial results. You will find a reconciliation of these non GAAP measures to their most directly comparable GAAP measures as well as other related disclosures. In the press release issued earlier today, which is also available on the Investor Relations section of Motorsport Games [email protected]. and now I'd like to turn over the call to Stephen Hood, Chief Executive Officer of Motorsport Games. Stephen Hood (Chief Executive Officer) Stephen thank you Ben Good afternoon everyone and thank you for joining The Motorsport Games first quarter 2026 earnings call. We have started 2026 from a position of real financial strength. Revenues of $4 million in Q1 have more than doubled year on year. We have once again generated positive operating income, posted significantly improved adjusted EBITDA and continue to grow our cash position from operations. The ongoing delivery of Le Mans ultimate content or downloadable content or DLC plus the ever improving monetization of race control are key to those revenues. The financial independence we have now built driven principally by the consistent commercial success our primary gaming title, Le Mans ultimate, and the recurring revenue we are generating through racecontrol is what has given us the ability to act decisively in the early weeks of this quarter, both for the benefit of all our shareholders and to set the company up for its next stage of growth. I will come back to that shortly. First on Le Mans ultimate, player engagement continues to accelerate. On March 31st we once again recorded a new all time player peak, more than 8,800 concurrent players on Steam. This new peak was determined around the release of version 1.3, introducing Circuit de Barcelona, Catalonia, the Ducane LMP3 race car and Logitech Trueforce support. This growth in player numbers is not a one off. We have consistently reported player growth since Launch. In the first quarter of 2025 we had a peak of 4,000 players and an average of just over 1,300. Peak concurrent players grew 118% year over year. However, the metric we track most closely is average concurrent users because it strips out the spikes from content releases and shows whether people are actually sticking around. That number grew 169%. The floor is rising, not just the ceiling. Looking ahead to the second quarter, we have an update planned for release in June to coincide with The Real World 24 Hours of Le Mans, the highlight of the World Endurance Championship upon which our game is based. The persistent cadence of meaningful improvements that has defined our work over the past two years continues and continues to be funded by the company's own operating performance. I want to take a moment to speak about Race Control specifically because I think it deserves to be understood not just as a feature supporting Le Mans ultimate, but as a standalone platform business in its own right. Race Control is our proprietary matchmaking, competition and live service platform. It is the infrastructure layer that powers organized racing for our community and increasingly our for those partners who want to reach that community. Monthly recurring revenues have exceeded $0.2 million, and the first three months of 2026 have been among the strongest periods of growth we have seen since launch. But what excites us the most is not where Race Control is today, it is how quickly it can add meaningfully to our growth profile. As we continue to lay in features and functionality, the roadmap ahead is substantial, and each addition compounds the platform's value to both our players and our commercial partners. What makes Race Control particularly attractive from a financial perspective is its margin profile. As a platform business built on infrastructure we already own and operate, incremental revenue carries significantly more favorable EBITDA contribution than our content business. It is in the truest sense a high quality revenue stream, recurring, scalable and deeply embedded in the daily behavior of our most engaged players. Beyond direct subscription revenue, Race Control is becoming the activation layer of choice for automotive manufacturers, motorsport series and global consumer brands seeking direct engagement with a highly targeted, highly passionate audience. Our recent collaboration with Genesis, the luxury automotive brand and WEC newcomer, demonstrates what that looks like in practice, and we are delighted that Logitech, one of the world's leading gaming hardware manufacturers, has chosen RaceControl as a platform to power the Logitech G Challenge Esports series. These are not peripheral partnerships, they are a validation that that race control has become an infrastructure that serious organizations want to access. The combination of Le Mans Ultimate's ongoing commercial momentum, RaceControl's growing recurring revenue layer, and our consistent operating profitability provides us with useful flexibility going forwards. Progress on bringing Le Mans Ultimate to PlayStation and Xbox in collaboration with our development partners continues as planned. We are deepening investment in our proprietary simulation technology which is the long term retention engine for the core of our market. We are strengthening the team with targeted hires across engineering platform and strategic leadership and we are in the formative stages of preparing a new long term project. This new title will leverage everything we have built from our simulation technology, our live service infrastructure, our race control platform and the community relationships we have cultivated through our popular racing game Le Mans Ultimate. This is not a speculative greenfield project, but one that is being designed to take another giant stride in the company's output with the same accessible discipline that has defined our reemergence as a premier racing game developer. We believe this represents a significant long term value creation opportunity and we look forward to sharing more in due course on console. Specifically, our exact timing for the release of Le Mans ultimate remains subject to further development progress. The work undertaken is complex. Realistically, we expect to announce more details and launch as we enter 2027. As we move into the latter stages of the project and build confidence in our expected launch window. As previously mentioned, we are taking a careful quality first approach and plan to select the best release window rather than deliver out of financial necessity. Our existing and future player base is very vocal about their desire for a console release for Le Mans ultimate and we are pleased to confirm that development is progressing well. I would now like to turn to a series of corporate actions we executed in the past few weeks which mark a significant step forward for the company. We repurchased 904,395 shares of our Class A common stock from Driven Lifestyle Group llc. As part of that transaction, all Class B shares which had carried a 10 times voting advantage were retired, meaning every share now holds equal voting power. Shareholders also approved an expansion of the awards available under our employee equity plan, giving us an important tool to incentivise and retain the people driving our growth. Before I hand over to Stanley, I want to step back and reflect on what this moment represents for Motorsport Games. The corporate actions we executed this quarter, the repurchase of shares from Driven Lifestyle, the retirement of Class B voting rights, the Citibank credit facility, are not simply transactional steps. They are a direct reflection of how far this company has come. And I want to take a moment to thank Driven Lifestyle. They were with us at inception and their early support was critical in getting multiple games to where we are today. Their decision to retain a minority shareholding in the company is not only a vote of confidence in our future, it was also a pragmatic outcome from our balance sheet. By retaining an equity stake rather than a full cash exit, we were able to achieve the same strategic result. The retirement of all Class B supervoting shares and the return of equal voting rights to all shareholders, while deploying less cash to do so. These actions also point forward our strength in financial position, built from operations, has given us the ability to act decisively. We have returned greater ownership and strategic influence to the company, secured additional flexibility through the Citibank facility and positioned ourselves for the next phase of growth. Everything we have built has been purposeful. The simulation technology, the live service infrastructure, race control, the community, the commercial partnerships. We have been building a foundation, one that we continue to advance, all whilst demonstrating its value, supporting products like Le Mans Ultimate. We are not yet in a position to share the full detail of what that foundation will support next. But I want to be direct. We have a product roadmap we believe has the potential to drive very meaningful revenue and profit growth in 2027 and beyond. And we expect to discuss it in detail on our Q3 earnings call. What I can tell you today is that our next stage of growth will not require us to start from scratch. It will leverage everything we have already proven. Our technology, our platform, our audience and our operational discipline. The risk profile of what comes next is fundamentally different from the traditional game development bet because the foundation is already in existence and generating returns. We look forward to telling you much more. For now, I'll hand over to Stanley Beckley, our Chief Financial Officer. Stanley Beckley (Chief Financial Officer) Thank you, Stephen and good evening, everyone. As with previous earnings calls, I won't be offering any forward looking guidance today. Instead I will focus on providing an update on our financial results and highlights from the first quarter of 2026. Revenues for the quarter were 4.0 million, up by 2.3 million or 129.3% when compared to the same period in the prior year. The increase in revenues was Primarily due to a 1.6 million increase from sales of Le Mans ultimate and a 0.7 million increase in race Control subscriptions compared to the same prior year period. Monthly recurring revenues for Race Control subscriptions now exceed 0.2 million. Management plans to grow this important revenue stream as we continue to diversify our product mix and work towards our goal of becoming a multi format and multi title video game developer and publisher. Net income for the first quarter of 2026 and 2025 was approximately $1.0 million respectively. Net income attributable to Class A common stock was 0.06 per share for the first quarter of 2026 compared to net income per share of 0.33 for the same period in the prior year. We are reporting adjusted EBITDA of 1.5 million for the first quarter of 2026 compared to $0.6 million for the same period in the prior year. The improvement in adjusted EBITDA of 0.9 million was primarily due to the same factors driving the previously discussed change in net income for the first quarter of 2026 when compared to the same period in the prior year, as well as an increase in stock based compensation compared to the prior year period as it relates to liquidity. As of March 31, 2026 we had cash and cash equivalents of 5.9 million which decreased to 3.8 million as of April 2026 due to the Company's 3.7 million repurchase of its shares from Driven Lifestyle Group LLC on April 22, 2026 partially offset by cash inflows from operations. Management believes that this share repurchase from Driven Lifestyle will strengthen our corporate governance structure and position the company for its next stage of growth whilst underscoring our confidence in our business and liquidity position. During the three months ended March 31, 2026, we generated an average positive cash flow from operations of approximately 0.5 million per month. That was primarily due to increased profitability and the capitalization through internally developed software. We currently have no purchase commitment liabilities. Furthermore, our working Capital as of March 31, 2026 was 5.2 million versus 4.2 million as of December 31, 2025. Underscoring a much improved balance sheet and liquidity, position management remains confident in the company's product roadmap as we work towards porting Le Mans ultimate on console over the next several months. We also secured a 3 million revolving line of credit from Citibank in February 2026. As of March 31, 2026, there was no amount owed to Citibank under the revolving line of Credit. As of April 30, 2026, there was $1.2 million owed to Citibank under this evolving line of credit. Thank you all for your time. And now I will turn the call back to Stephen for closing remarks. Stephen Hood (Chief Executive Officer) In closing, the story of Q1 is a simple one. Le Mans ultimate continues to grow. Our financial position continues to strengthen, and that strength is now actively translating into action for our shareholders. That means meaningfully improved governance for the long term health of the business. It means continued investment in our team, our technology and the opportunities we are now in a position to pursue. We are no longer running multiple games from a position of necessity. We are running it from a position of strength, with options, with conviction, and with a clear sense of where we are taking this company. The future we are building is not just for the next quarter, it is for the next decade. Thank you all for joining us today. I look forward to updating you on our continued progress. Now hand it back to the operator. OPERATOR Thank you. If you'd like to ask a question, press Star one on your keypad. To leave the queue at any time, press Star two. Once again, that is Star one to ask a question. And our first question today will come from Anja Soderstrom with Sidoti and Company. Your line is now open. Please go ahead. Alex Hi, this is Alex on for Anja. Thanks for taking questions. My first question is on the Le mans ultimate version 1.3 that you mentioned. It drew a record 8800 player peak in March, which is an impressive milestone. And I'm curious, how has engagement trended since the launch? And could you talk a little bit about what the roadmap may look like for the remainder of 2026? Hi Alex, it's Stephen. Thank you for your question. I think to be perfectly honest, it's trending upward. We talked specifically not just about the peaks, but actually the average concurrence, the stickiness of the product and what we've seen over the history of the product, and certainly since 1.3 remains true, is that with more content and more exposure, we're building a record number of Players that are sticking around, buying the content and participating. We've seen that groundswell starting to follow the product. We haven't proactively really spent marketing dollars in trying to accelerate that. So it's really organic growth of those player numbers. We do have new content packs that are planned for this year, which will be no surprise to anybody. They've proven very popular every time we add more cars, more track content and expand. The game offering, which is built around Le Mans and the World Endurance Championship by its nature is quite singular. We found that we reach new players, so we have an idea and a concept for new track content that will reach additional markets. Because typically we found we're incredibly strong in Europe, which is no surprise given Le Mans history and its location, and we've dined out very well on that. But in order to take this game internationally, we're starting to look at additional content that would attract people that aren't naturally bought into the Le Mans concept or European content. So we have got more things to reveal in the future, but I'm quite excited about that. I think it will keep climbing. Great context. Thank you. And you spoke about this in the prepared remarks a little bit. You know that Reis Control continues to expand as, as another, you know, recurring revenue driver. Could you tell us a little bit about where you see recurring revenue, you know, as a percentage of total business going and, you know, over the next 12 months or so? Yes. Stanley Beckley (Chief Financial Officer) Hi Alex, I can take that. So we currently don't provide forward looking guidance, but I can speak about how well risk control is done. And in Q1 2026, for example, it was a bigger share of our revenues. Q1 2026 source generated risk control subscription revenues of 0.8 million, which was 19% of the total revenues of 4 million for the quarter compared to Race Control subscriptions only, accounting for 6% of our revenues in Q1 2025. So I can't speak too much about where we see it going in terms of specific numbers, but we do expect it to continue growing as the game becomes more popular and more units are sold. But we are getting to the point where revenue stream is more diversified with risk control subscriptions encompassing a greater share of our total revenues. Stephen Hood (Chief Executive Officer) Got it. Thanks for sharing. And last one from us. Can you talk a little bit about the Formula one opportunity, you know, what you're doing there today and how you see it evolving and you know, what sort of pipeline and other related revenue opportunities look like for that. Alex, I guess this one was probably for me, the Formula one Opportunity, I think is always interesting. Formula One is a huge motorsport world over international markets. It's a no brainer for us to be interested in that space. That's one of the reasons why we were more than happy to provide our technology to power Formula one Arcade. So every arcade venue and every activity that they provide around the world and all their facilities, including the new pop up facilities, is powered by technology owned by and operated by Motorsport Games. That technology actually powers Le Mans Ultimate, a later version of that technology anyhow. So one of the reasons we did that was to overcome this concept that our technology, as a boutique sim racing software developer, which is what we are today, very specialized software company, can produce something that is accessible for a much larger market. Because people typically think that sim racing software is the preserve of maybe kid in a bedroom with a simulator rig. This is the kind of stuff I have at home. But anybody can walk in off the street and enjoy our technology in an F1 arcade venue. From grandma to 10 year old kids, to mum, dad, friends, it's a family entertainment experience powered by simracing software. That foot in the door. With F1 Arcade, the group behind that and Liberty who are part of that operation, it's just part of our strategy to build our relationship with Formula one, demonstrate the viability of the software, the advantage and the power of the software. I mean, bear in mind F1 Arcade chose not to use the official Formula One game, but instead chose Motorsport games software software produced by our developer, Studio397. And that is a crucial kind of positive step in building relationship, surfacing the technology and really enabling our engineers to provide Formula One through F1 Arcade cutting edge software. And whilst there is an exclusive agreement in place with Electronic Arts at the moment, like any software developer, we would be interested in expanding our offerings in the future. F1 Arcade is set to grow, but we're exploring possibilities about what we could support in terms of single seater racing in the future. One element of which could be Formula One. So I think it would be speculation right now. There isn't anything definitive, but we'd certainly be interested in expanding our offering. Thank you for all the background. That's all from us. OPERATOR Thank you at this time. There are no further questions in queue. This will bring us to the end of The Motorsport Games first quarter 2026 earnings call. We appreciate your time and participation. You may now disconnect. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: MOTORSPORT GAMES (MSGM): Free Stock Analysis Report This article Transcript: Motorsport Games Q1 2026 Earnings Conference Call originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. 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