[Management View]
Motorsport Games reported a significant turnaround in Q2 2025, achieving its first-ever income from operations. The company highlighted robust growth in subscription services and premium content sales, particularly from Le Mans Ultimate. Strategic initiatives included esports expansion, console port negotiations, and enhanced control over technology and IP.

[Outlook]
The company plans to expand into new platforms and markets, supported by third-party publishing discussions. Motorsport Games aims to leverage its SaaS model to drive scalable recurring revenues in gaming and esports services.

[Financial Performance]
Revenue for Q2 2025 was $2.6 million, up 37.7% YoY, driven by Le Mans Ultimate sales. Net income increased by 103% YoY to $4.2 million, aided by cost controls and settlement income. Adjusted EBITDA improved to $3.7 million from a loss of $500,000 in the prior year.

[Q&A Highlights]
Question 1: How did the transition from NASCAR affect revenue, and what are the future plans for Le Mans Ultimate?
Answer: NASCAR-related revenues declined by $900,000 due to the exit from sales. Le Mans Ultimate sales increased by $1.3 million, driving overall revenue growth. Future plans include expanding the game with new circuits and vehicle classes, and leveraging esports events for marketing.

Question 2: Can you elaborate on the subscription service growth and its impact on financials?
Answer: Race Control subscription service saw net monthly recurring revenue growth of 296% in June, with a quick ratio peaking at 4.66. This growth contributes significantly to predictable cash flow and strategic investments.

Question 3: What are the implications of the Studio 397 acquisition for Motorsport Games?
Answer: The acquisition ensures full control over technology and IP, enabling further product and platform leverage. This move supports the company's strategic focus on high-quality game development.

Question 4: What are the company's plans regarding console ports and publishing partnerships?
Answer: Motorsport Games is in late-stage negotiations with a third-party studio for Xbox and PlayStation ports. Discussions with potential partners for publishing responsibilities and funding collaborations are ongoing.

[Sentiment Analysis]
Analysts and management expressed optimism about the company's strategic direction and financial turnaround. The tone was positive, highlighting growth opportunities and successful execution of strategic initiatives.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-------------------------|---------|---------|
| Revenue | $2.6M | $1.9M |
| Net Income | $4.2M | $2.1M |
| Adjusted EBITDA | $3.7M | -$0.5M |
| Cash and Cash Equivalents| $2.4M | N/A |

[Risks and Concerns]
Risks include potential delays in console port development and reliance on third-party partnerships for publishing. The transition from NASCAR may impact revenue stability.

[Final Takeaway]
Motorsport Games has demonstrated a successful turnaround with its strategic focus on Le Mans Ultimate and subscription services. The company's expansion into new platforms and markets, supported by SaaS investments, positions it for sustainable growth. The positive financial performance and strategic initiatives indicate a promising future for Motorsport Games in the gaming industry.