Motorsport Games posts profitable first quarter

It’s been a long time coming, but Motorsport Games has posted a profit of just over $1 million in a quarter – the first since Q2 2024.

The Q1 2025 results reveal net income of £1,022,613, despite revenues dipping 41.9% year-on-year, primarily due to a lack of NASCAR back catalogue sales.

Motorsport Games is no longer able to continue selling its prior NASCAR games since December 2024, part of a licensing agreement with both the sport and current custodians, iRacing.

The outfit, owners of Studio 397 and the Le Mans Ultimate sim racing title, dramatically cut costs, including a spate of redundancies last year, contributing to the results.

Net revenues directly from Le Mans Ultimate were “$0.4 million higher,” according to its CEO, Stephen Hood. This is despite the initial early access launch being in Q1 2024.

It also received an extra $500,000 to cover legal fees from 2 Corp – the former owner of 704Games and the NASCAR Heat series took Motorsport Games to court in Delaware over alleged fraud, but lost the case and has now paid this compensation.

These operating figures exclude the $2.5 million received from Pimax. The Chinese VR headset creators invested in the company in April, after the end of Q1, appointing Huang Guoquan as a board member. Share prices rose from $1.12 to $2.75 at the news.

That means Motorsport Games has $3.1 million in cash and cash equivalents as of 30th April 2025, which has increased from $1.1 million on 31st March.

It will now look to invest these funds, and it is expecting the cash levels to consequently fall.

“The company expects to have a net cash outflow from operations for the foreseeable future, as it continues to develop its product portfolio and invest in developing new video game titles,” said Stanley Beckley, Motorsport Games’ Chief Financial Officer.

Following the positive results, Motorsport Games has confirmed it hopes for console news “soon” and an “exciting” roadmap to be released after the upcoming June game update.