Motorsport Games Inc. (NASDAQ: MSGM) reported financial results for the third quarter ended September 30, 2026, announcing a seventh consecutive quarter of profitability. The company generated revenues of approximately $3.8 million for the quarter, an increase of 21.8% compared to the same period in 2025. For the nine months ended September 30, 2026, revenues totaled approximately $11.3 million, representing a 52.3% increase over the prior year and slightly exceeding the company's full-year 2025 revenue total.
Net income for the third quarter was approximately $0.7 million, marking the seventh consecutive quarter of positive net income. Income from operations was $1.2 million, an increase of 52.4% compared to Q3 2025. The company reported a gross profit margin of 88.0% for the third quarter of 2026, up from 80.7% in the same period the previous year. Adjusted EBITDA for the quarter was $1.8 million, an increase of 75.7% year-over-year.
The company highlighted the performance of its Le Mans Ultimate game, which has sold over 2 million combined units of the base game and downloadable content. The game achieved a new all-time peak of 11,941 concurrent players during a 24 Hours of Le Mans Special Event in October. The company also noted that its RaceControl platform generated subscription revenues of approximately $2.0 million for the nine months ended September 30, 2026, an increase of approximately 186.2% compared to the prior year. As of September 30, RaceControl had over 45,000 paid subscribers.
Motorsport Games reported a balance sheet improvement as of September 30, 2026. The company held $5.4 million in cash and cash equivalents, compared to $4.1 million a year earlier. Working capital was reported at $4.2 million, compared to negative $2.2 million as of December 31, 2024. Deferred revenue reached $1.6 million, the highest quarter-end balance since the company's IPO. The company maintains a $3 million revolving line of credit from Citibank, N.A., with $1.2 million drawn as of September 30, 2026.
