Forensic Analysis · Technology / Software · as of Sep 4, 2026
Motorsport Games Inc. (MSGM)
A forensic read on Motorsport Games Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-17.4
Distress distance
Watch
Earnings quality
6
Forensic signals
102.2%
ROE
30.0%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Motorsport Games Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -17.4, placing it in the Distress zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+150.4%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +150.4% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by payables paid down 69% against -35% in cost of sales and receivables up +55% against revenue +30%. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 193% of net operating assets, against an accruals ratio of 150.4%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.
7% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 7% of revenue and 19% of free cash flow in FY2025 — about $0.16 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 39.5% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
-$12.4M
FY2023–FY2025
Cash burn vs. reported loss.Over FY2023–FY2025, the company reported a cumulative net loss of $10.1M against operating cash flow of -$12.4M. Cash burn ran heavier than the reported loss — something outside net income (working capital, a cash item not in the P&L) is consuming cash faster than the loss alone implies.
Key fundamentals
Latest Revenue$11.3M
Revenue Growth YoY+30.0%
Revenue CAGR (3yr)+3.0%
Net Margin61.3%
Free Cash Flow$4.1M
Return on Equity102.2%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Motorsport Games Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 4, 2026. Forensic signals flag probability, not certainty.
60d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 46 to 60 days FY2024→FY2025 (receivables +55% vs revenue +30%). Across FY2021–FY2025 the day count ran 2824 → 129 → 67 → 46 → 60 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Receivables grew, but deferred revenue grew +190% over the same period too — rising alongside rising unearned revenue reads as upfront billing on multi-period contracts, not slipping collections.
n/m (stock split)
FY2022–FY2025
Share count (stock split).Diluted share count changed +313% over the last 3 years to FY2025, but that includes a large one-time change around FY2023 consistent with a stock split or reverse split, not gradual buybacks or issuance — a split changes the count with NO effect on any holder's proportional ownership, so the raw +60.5%/yr figure isn't a real buyback/dilution read here.
$5M
FY2022–FY2022
Goodwill impairments.Took $5M of goodwill writedowns across 1 year (FY2022 ($5M)). Writedowns mean past acquisitions underperformed what was paid for them.
Motorsport Games Inc. (MSGM) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy