Motorsport Games Inc. Class A Common Stock (MSGM)

FairStock Score: 95/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable competitive advantages, conservative finances, and a price that leaves room for error. Motorsport Games is understandable: it develops racing games for PCs and runs esports around those titles. The latest filed figures show a genuine turnaround. Revenue rose from $6.9M in FY2023 to $8.7M in FY2024 and $11.3M in FY2025. Net income went from -$14.3M in FY2023 to -$2.8M in FY2024 to $6.9M in FY2025. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.5M and net income $401,463. That is progress, but the quality is questionable. In fiscal Q2 2025, the quarter ended 2025-06-30, net income was $4.3M, so the latest Q2 profit fell sharply even as revenue rose. The supplied profit growth figure is -69.66%, a warning that the turnaround is uneven. The balance sheet ratios are mixed: D/E 0.27 is modest, but the Altman Z-Score is -6.84, suggesting financial distress risk. FairStock's Piotroski F-Score is 6/9, and free cash flow is $4.4M, a 15.6% FCF yield. Those are positives. Yet the competitive moat is thin: 26 employees, licensed racing titles, and a hit-driven industry. At $5.42 on 2026-10-13, the FairStock P/E is 18.07 and P/B is 5.83; the Graham Number is $2.51, leaving a negative margin of safety of -115.94%. The Lynch category is TURNAROUND because it returned to profit after losses within the last three years. I would want sustained profits and a lower price before calling it a bargain.

In plain English: Motorsport Games makes and publishes racing video games, including Le Mans Ultimate and rFactor 2, and runs related esports events. The business has grown revenue and moved from losses to profits, but profits are small and uneven. At the latest close, the shares look expensive compared with the company's current profits and accounting value, even though it produces some free cash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer