Motorsport Games Inc. (NASDAQ:MSGM) shares fell sharply in after-hours trading on Wednesday after the racing game developer reported first-quarter 2026 financial results.
Motorsport Games shares dropped 21.50% to $3.98 in after-hours trading on Wednesday after closing the regular session down 4.70% at $5.07.
Motorsport Games develops racing titles, including Le Mans Ultimate and simulation platform rFactor 2.
Revenue Growth Continues
The company reported first-quarter 2026 revenue of approximately $4 million, up 129.3% year-over-year from $1.8 million. Gross profit rose to $3.5 million from $1.3 million, while gross margin expanded to 87.2% from 73.5%.
Net income remained relatively flat at approximately $1 million compared with the same quarter last year. Earnings attributable to Class A common stock fell to $0.06 per share from $0.33 per share a year earlier.
Adjusted EBITDA improved to $1.5 million from $0.6 million a year earlier.
President and CEO …