Motorsport Games books its first esports revenue since 2023

After two full years without a dollar from competition, Motorsport Games has esports revenue again. The company's quarterly report for April to June 2026, filed with the US Securities and Exchange Commission on August 14, shows US$36,277 in its esports segment, the first revenue that part of the business has recorded since 2023, according to The Esports Advocate, which read the filing the same day.

The sum is small and it came at a loss. The same filing repeats a promise the company has made before: a new season of the Le Mans Virtual Series, the endurance sim racing competition it runs with the organizer of the 24 Hours of Le Mans, is planned to start this year.

Motorsport Games is a Nasdaq-listed developer based in Miramar, Florida. Its main product is Le Mans Ultimate, the officially licensed simulation of the 24 Hours of Le Mans and the FIA World Endurance Championship. The company reports esports as a segment of its own in its accounts, with its revenue, its costs and its operating result shown separately from the game business.

Motorsport Games Form 10-Q for the quarter ended June 30, 2026, filed August 14, 2026, as reported by The Esports Advocate.

What the esports line earned

The filing describes where the money came from in general terms: the company facilitated esports events for partners on Le Mans Ultimate. It does not name those partners, The Esports Advocate notes, and the company says it will keep pursuing esports partnerships in the second half of 2026.

The revenue did not cover the cost of earning it. The cost of revenues for the segment was US$42,139, so the esports line closed the quarter with a gross loss of US$5,862, meaning direct costs were higher than the sales they produced. On top of that came US$101,172 of development expense, the first the segment has carried since 2023.

The 10-Q is the quarterly report a US-listed company files with the Securities and Exchange Commission, and Motorsport Games uses it to break out its esports line. Taken together, the segment's operating loss for the quarter was US$115,694. A year earlier, when there was no esports revenue at all, the loss was US$21,302. The segment lost more in the quarter it started earning again than in the quarter it earned nothing: its new costs were larger than its new revenue.

Set against the whole company, the esports line is a sliver. Motorsport Games reported total revenue of US$3,539,962 for the second quarter, so esports accounted for about 1% of the quarter's sales.

A segment that once mattered more

The esports line has been bigger. In 2022, it brought in US$1,179,920, or 11.4% of the company's revenue that year, according to the figures The Esports Advocate drew from the company's filings. The total fell to US$290,172 in 2023. In 2024 and 2025 the segment recorded no revenue.

The Le Mans Virtual Series ran over the same years. The competition began in 2020 as a single 24-hour virtual race, then ran as a season of several rounds in 2021/22 and again in 2022/23, pairing professional racing drivers with sim racing teams, The Esports Advocate recalls. The finale of the 2022/23 season, held in 2023, was the last event of the series.

The season that keeps being announced

The 10-Q again sets out a plan for the 2026/27 Le Mans Virtual Series to start this year. The company lists the plan among its forward-looking statements, the part of a filing that describes intentions and expectations rather than results.

The wording is familiar to anyone who has followed the company's reports. The Esports Advocate notes that this is the third August in a row in which a quarterly filing has promised a new season for the same year. In August 2025, the outlet recalls, Stephen Hood, the company's president and chief executive, pointed to early qualifying rounds in the fourth quarter of 2025. None ran, and the new filing confirms that no 2025/26 season took place.

The rights to the series sit in a joint venture with the Automobile Club de l'Ouest, the organizer of the 24 Hours of Le Mans. The filing states that Motorsport Games' share of that venture was raised to 51% from 45% in January 2021. In its own description, the company presents itself as the esports partner of the 24 Hours of Le Mans and the creator of the Le Mans Virtual Series.

Where the partner revenue may have come from

The filing does not identify the events behind the US$36,277, and the company has not said which partners paid for them. One event of the period does run on the company's technology. Logitech chose RaceControl, the online racing and subscription platform built into Le Mans Ultimate, to power its Logitech G Challenge, The Esports Advocate reports. The 2026 edition moved from Forza Motorsport to Le Mans Ultimate, with a prize pool of more than US$35,000 and qualifying from May 5 to July 27, a window that overlaps the quarter. The company has not said whether that competition produced the revenue.

The same platform has had trouble carrying long races. On February 18, the company called off a 24-hour test race in Le Mans Ultimate and ran a 12-hour test instead, citing service issues with more than 130 connected clients, according to the outlet. Another special event, the 8 Hours of Daytona, was pushed back by two weeks, the outlet adds.

The rest of the business

The esports figures sit inside a company that has been growing on the game itself. Motorsport Games said in its results release of August 14 that second-quarter revenue rose 36.6%, to US$3.5 million from US$2.6 million a year earlier. The filing gives the exact amounts: US$3,539,962 against US$2,591,840. For the first half of the year, revenue reached US$7,571,251, against US$4,350,293 in the first six months of 2025, after a first quarter of about US$4.0 million.

Gross profit for the second quarter was US$2.9 million, up from US$2.1 million. For the first six months, the gross margin, gross profit as a share of revenue, was 84.7%, against 78.8% a year earlier.

Profit was lower than a year earlier. Net income came to US$243,199 for the quarter, against US$4,238,172 in the second quarter of 2025. The release explains the gap: the 2025 figure included non-recurring gains, among them foreign exchange gains and a gain on a settlement with Wesco. Adjusted EBITDA, a measure of operating profit before interest, taxes, depreciation and some other items, fell to US$0.8 million from US$1.4 million, which the company attributes to those prior-year gains and to higher development spending. Stephen Hood described the quarter as the company's sixth consecutive profitable one. Over the first six months, net income was US$1,194,772, against US$5,260,785 in the first half of 2025. The share of second-quarter net income attributable to Motorsport Games itself, after the part that belongs to noncontrolling interests, the outside holders of stakes in its subsidiaries, was US$401,463, against US$4,258,400.

Le Mans Ultimate drives those numbers. The base game has sold more than 500,000 units and about 1.2 million units of downloadable content, the company said. Version 1.4, released in July 2026, added two American circuits, Daytona and Laguna Seca. Version 1.3 had brought a peak of more than 8,800 players connected at the same time in March 2026, and April was the game's best month yet for average daily active users.

RaceControl is the other engine. Subscription revenue reached about US$1.4 million in the first half of 2026, against about US$0.3 million a year earlier. The company puts the platform's annual recurring revenue, the yearly value of its subscriptions at the current rate, at about US$2.9 million, with more than 40,500 paid subscribers at June 30. Hood said RaceControl should be viewed as a platform business in its own right.

Cash, credit and the dates ahead

Any new season would be financed from a modest balance sheet. Cash and cash equivalents stood at US$3,946,341 on June 30, 2026. Under its credit agreement with Citibank, a revolving line of US$3 million, the company owed US$1.2 million and had US$1.8 million of capacity still available, according to the filing.

The quarter also changed the company's governance. Its Class B shares were retired, ending their super-voting rights, and Peter Hansen-Chambers became chief financial officer on July 1, 2026, the results release said. In July, the board adopted a stockholder rights plan, a defense against anyone building control of the company on the open market, at a time when Red Oak Partners held a stake of about 11%.

The next fixed date on the calendar is in the game rather than in esports. The in-game 24 Hours of Le Mans special event, open to Le Mans Ultimate players, is scheduled for the week of October 20, according to The Esports Advocate. For the Le Mans Virtual Series itself, the filing offers an intention and no date. Hood said the company would share news on the next stage of growth for RaceControl on its next earnings call.

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