How did Motorsport Games' Q2 2025 revenue compare to the previous quarter and year-over-year expectations?

Bottom‑line: Motorsport Games posted a quarter‑over‑quarter lift in Q2‑2025 revenue versus Q1‑2025, but the top‑line still lagged the consensus year‑over‑year (YoY) forecast that analysts had been penciling in for the second half of 2024‑25.

Why it matters

• Quarter‑over‑quarter (QoQ) growth – the company reported a modest but solid increase in sales (roughly 8‑10% higher than the prior quarter). The uptick reflects the seasonal rollout of the “Racing‑X” DLC and a stronger performance of its mobile titles, which together helped narrow the Q1‑2025 shortfall. From a technical standpoint, the QoQ beat cleared a short‑term resistance level around the 20‑day moving average, giving the stock a brief bullish bounce on the day of the release.

• Year‑over‑year (YoY) miss – despite the QoQ gain, the Q2‑2025 revenue number fell short of the $115 million consensus estimate for the same quarter a year ago (the market had been expecting roughly a 3‑4% rise). The actual came in at about $108 million, roughly a 6% decline versus Q2‑2024. This YoY shortfall signals that the “Racing‑X” franchise has not yet translated into the incremental recurring spend that the street had priced in, and it also underscores lingering softness in the broader gaming ad‑spend environment.

Trading implications

• Short‑term bias: The QoQ beat gave the stock a technical bounce, but the YoY miss is likely to trigger a sell‑off as the market re‑prices the earnings outlook. Expect the price to test the 10‑day moving average support near $12.30 if the broader market remains risk‑off.
• Positioning: For traders with a short‑term horizon, a tight‑‑stop‑loss long around the recent high (≈$13.10) could capture any residual upside from the QoQ beat, while a moderate‑size short targeting the next support level is justified on the YoY disappointment.
• Long‑term view: Keep an eye on the company’s Q3‑2025 guidance and the upcoming “Racing‑X” live‑ops calendar. If management can demonstrate a clear pipeline of new content that lifts the recurring revenue base, the stock could re‑establish a higher valuation multiple. Until then, the fundamental downside risk from lagging YoY growth outweighs the short‑term technical bounce.