MeritValue

Motorsport Games Inc.

MSGMdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Motorsport Games Inc. earns about -854% on equity, but has diluted owners by 313% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$15.1M1$10.3M2$6.91M3$8.69M4$11.3M4
Net income−$33.2M5−$36M6−$14.3M7−$2.75M8$6.93M8
Operating cash flow−$20.9M9−$19.5M10−$13.7M11−$2.84M12$4.07M12
Capital expenditure$754,30213$292,44614$31,65315$25,01516$12,06716
Free cash flow (derived)−$21.7M9−$19.8M10−$13.7M11−$2.86M12$4.06M12
Total debt—————
Cash & equivalents$17.8M17$979,30618$1.68M19$859,27120$4.99M20
Diluted shares—1.2M2.6M2.9M4.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$14
your share of equity
Profit it earned you last year
$14.31
Free cash flow it threw off
$8.39
Debt you’d be carrying
—

10 shares is a claim on $14 of net worth that earned you $14.31 and generated $8.39 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-854% avg · 5y
FY21 -90%FY22 -2347%FY23 -1382%FY24 -555%FY25 102%

It earned an average -854% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+313% shares · 5y

Share count is up 313% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$6.71
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001493152-23-008878 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-24-012233 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001493152-25-011033 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001493152-26-009532 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001493152-23-008878 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001493152-24-012233 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001493152-25-011033 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001493152-26-009532 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001493152-23-008878 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001493152-24-012233 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001493152-25-011033 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001493152-26-009532 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001493152-23-008878 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001493152-24-012233 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001493152-25-011033 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001493152-26-009532 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001493152-23-008878 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001493152-24-012233 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001493152-25-011033 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001493152-26-009532 (CashAndCashEquivalentsAtCarryingValue)