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Motorsport Games

MSGM
67
Electronic Gaming & Multimedia · Technology
Price
$3.96
+0.15 (+4.08%)
Market Cap
$21.4M
Exchange
NASDAQ Capital Market
Winston Score
67
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Exceptional
Growth
Mixed
Cash Flow
Exceptional
Stability
Mixed
Valuation
Good

Share count rising — dilution

+315.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.2M (2021) → 4.8M (2025)

Winston Score History

The full picture

Motorsport Games is a video game company that makes racing games based on real motorsport licenses. Its most well-known titles are tied to official racing series, including NASCAR and Le Mans, and it sells games to racing fans and console/PC gamers around the world. The company sits in the competitive electronic gaming industry and is notable for holding official licenses from major motorsport organizations.

The company earns money by selling games directly to players and through downloadable content, with a high gross margin suggesting relatively low production costs per sale. It operates primarily in North America and Europe, and its main competitive advantage is the exclusive or official licenses it holds — competitors cannot legally make games using those same real-world racing brands. However, the company is very small, and its biggest risk is losing or failing to renew those licenses, which would remove the core reason players choose its games over other racing titles.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+36.6% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

-90.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$2M/ year

Declining (-48% vs prior year)

15.6% of revenue

In line with sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

85.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$4M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

Motorsport Games is growing revenue at 37% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
81.8%
Premium pricing power — 81.8% gross margin
Profit after running costs
Operating Margin
18.0%
Healthy — 18.0% operating margin
Return on the money invested
ROCE
29.3%
Exceptional — 29.3% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+78.6%
Fast-growing sales (+78.6% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
232%
Turns 232% of profit into real cash
Spare cash per sale
FCF Margin
32.2%
Converts sales into free cash efficiently (32.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.31
Conservative — low debt load (0.31)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
9.2x
Attractive valuation — P/E 9.2

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-10.0
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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