Q2 2026 Motorsport Games Inc Earnings Call Transcript
Key Points
- 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.
Thank you for standing by, and welcome to Motorsport Games, Inc. Second Quarter 2026 Earnings Call. (Operator Instructions) 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.
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
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