"2025 was a breakthrough year for Motorsport Games," commented Stephen Hood, President and Chief Executive Officer. "Over the past two years we have reshaped the company around a clear strategy: focus on a smaller, disciplined team, build on technology we own, and deliver an authentic, engaging racing experience players genuinely value. The results are now clear. We have delivered multiple consecutive quarters of positive operating income, strengthened our cash position and established Le Mans Ultimate as one of the leading PC racing simulations with a rapidly growing global community and subscription platform."
Hood continued, "Our Version 1.2 release in December capped an exceptional year of product development. Alongside new European Le Mans Series content including Circuit Paul Ricard and the Ginetta LMP3 race car, we delivered major advancements to the simulation itself, ranging from enhanced RealRoad track simulation to Easy Anti-Cheat integration and new competitive features such as Online Team Championships. Player engagement has responded strongly, with average concurrent players on Steam growing more than fivefold through the year, reaching an all-time peak of 8,740 concurrent players in January 2026 according to SteamDB."
"With the turnaround phase behind us, we are now focused on scaling the platform we have built, adding to the team with exceptional talent, continuing to invest in our technology and exploring opportunities to expand our product portfolio. 2026 represents the next stage of growth for Motorsport Games and we are excited about the opportunities ahead."
Fourth Quarter 2025 and Subsequent Business Update
Revenues of $3.8 million in Q4 2025 compared to revenues of $2.0 million in Q4 2024, an improvement of $1.8 million or 94.9%;
Net income attributable to Class A common stock was $1.43 per share in fiscal year 2025, compared to net loss per share of $0.94 in fiscal year 2024;
Generated cash from operations of $4.1 million in fiscal year 2025;
Generated net income of $6.8 million in fiscal year 2025;
Released Le Mans Ultimate Version 1.2 update which included the Paul Ricard racing circuit, Ginetta LMP3 race car, alongside physics overhaul, online competition refinement and team online championships; and
Secured a $3 million revolving line of credit from Citibank N.A.
Financial Results for the Three Months Ended December 31, 2025
Revenue for the fourth quarter of 2025 was $3.8 million compared to $2.0 million for the same period in the prior year, an increase of $1.8 million, or 94.9%. Gross profit was $3.3 million compared to $0.9 million for the same period in the prior year, an increase of $2.4 million, while gross profit margin increased to 85.0% from 45.8%.
Net income for the fourth quarter of 2025 was $0.8 million, compared to net loss $2.9 million for the same period in the prior year, an increase of $3.7 million. The increase in net income is driven by an increase in sales of our Le Mans Ultimate racing title, particularly downloadable content ("DLC") sales. Consequently, net income attributable to Class A common stock was $0.15 per share for the fourth quarter of 2025, compared to net loss per share of $0.89 in the same prior year period.
Adjusted EBITDA (1) for the fourth quarter of 2025 was $1.9 million, compared to Adjusted EBITDA loss(1) of $2.5 million in the prior year. The reasons for the increase in Adjusted EBITDA are the same as those discussed in respect of the change in net income for the year and comparative period.
The following table provides a reconciliation from net income (loss) to Adjusted EBITDA(1) for the fourth quarter of 2025 and 2024, respectively:
Three Months EndedDecember 31, 2025
Three Months EndedDecember 31, 2024
Net income (loss)
$
815,575
$
(2,879,131
)
Interest (income) expense, net
(398
)
30,277
Depreciation and amortization (1)
326,772
833,920
EBITDA
1,141,949
(2,014,934
)
Gain on sale of NASCAR License
-
(500,000
)
Stock-based compensation
789,352
47,221
Adjusted EBITDA
$
1,931,301
$
(2,467,713
)
(1
)
Includes $319,000 and $809,281 of amortization expenses included in cost of revenues for the three months ended December 31, 2025 and 2024, respectively.
Financial Results for the Year Ended December 31, 2025
Revenues for the full year 2025 were $11.3 million compared to $8.7 million for the prior year, an increase of $2.6 million, or 30.0%. Gaming segment revenues represented 100% of the Company's total 2025 and 2024 revenues, The increase in Gaming segment revenues was primarily due to a $5.8 million increase in 2025 from sales of our Le Mans Ultimate racing title released in February 2024, particularly DLC sales, which were higher compared to 2024, and $1.2 million from RaceControl, offset by a $4.4 million decrease in revenues in 2025 related to NASCAR, a gaming title the company decided to sell so that we might concentrate our efforts elsewhere. As a result, we were not selling the NASCAR titles from the start of 2025. We did not organize a Le Mans Virtual Series event in 2025 or 2024, resulting in no earned sponsorship or events revenue in 2025 and 2024 in our Esports segment. Consolidated gross profit was $9.2 million for the full year 2025 compared to $5.5 million for the prior year period, an increase of $3.7 million, while gross profit margin increased to 81.5% from 62.9%.
Net income for the full year 2025 was $6.8 million, or $1.43 per share, compared to a net loss of $3.0 million, or $0.94 per share, for the same period in the prior year, an improvement of $9.8 million, or $2.37 per share. Higher revenues, lower cost of goods sold and operating expenses were key contributors to the increase in net income for the full year 2025 when compared to the prior year period.
Adjusted EBITDA(1) was $7.3 million for the full year 2025, compared to Adjusted EBITDA loss(1) of $3.9 million for the same period in prior year, an improvement of $11.2 million. The increase in Adjusted EBITDA(1) was primarily due to the same factors driving the previously discussed change in net income for the full year 2025 when compared to the prior year period, as well as the reduction in non-recurring gains being excluded from Adjusted EBITDA.
The following table provides a reconciliation from net income (loss) to Adjusted EBITDA (1) for the fiscal years ended December 31, 2025 and 2024, respectively:
Year Ended December 31, 2025
Year Ended December 31, 2024
Net income (loss)
$
6,844,897
$
(3,048,071
)
Interest expense, net
18,786
120,757
Depreciation and amortization (1)
1,122,159
2,589,437
EBITDA
7,985,842
(337,877
)
Gain from settlement of license liabilities
-
(3,248,000
)
Gain on sale of NASCAR License
-
(500,000
)
Gain from settlement of purchase commitment liabilities
(175,460
)
-
Gain from Settlement Agreement
(500,000
)
-
Gain from Wesco Settlement Agreement
(800,000
)
-
Stock-based compensation
