Motorsport Games Reports Q2 2026 Revenue from Le Mans Virtual Esports
Motorsport Games reported $36,277 in esports revenue for the second quarter of 2026, marking the first income from this segment since 2023, as detailed in a quarterly report submitted to the U.S. Securities and Exchange Commission.
This revenue was generated by “facilitating esports events for partners using our Le Mans Ultimate title,” although the report did not specify the partners or events involved. However, expenses exceeded earnings, with costs totaling $42,139, resulting in a gross loss of $5,862. Additionally, the segment incurred $101,172 in development expenses, its first since 2023, when the total development spend for that year was $9,614. The operating loss for the quarter was $115,694, compared to $21,302 the previous year. Motorsport Games indicated it plans to continue pursuing esports partnerships in the latter half of 2026.
The company has acknowledged one esports arrangement linked to the title during this quarter, but it has not confirmed whether this arrangement contributed to the reported revenue. During a first-quarter earnings call in May, the company’s President and CEO mentioned that Logitech selected RaceControl, the multiplayer and subscription platform within Le Mans Ultimate, to power the Logitech G Challenge esports series. The 2026 edition of this competition transitioned from Forza Motorsport to Le Mans Ultimate, featuring a prize pool exceeding $35,000 and six daily qualifying windows from May 5 to July 27, with four of those occurring in the second quarter. However, it remains unclear if this competition was responsible for the quarter’s esports revenue.
The recent developments do not involve the property that initially supported the segment.
The report reiterates a commitment made in three consecutive August filings, with only the season label changing: “Although we did not organize the Le Mans Virtual Series for the 2023/24, 2024/25, or 2025/26 seasons, we currently plan on organizing the 2026/27 Le Mans Virtual Series to commence this year.”
The version filed in August 2025 is nearly identical, mentioning two inactive seasons instead of three and stating that the 2025/26 series would “commence this year.” The report from August 2024 used similar language for the 2024/25 season, which it claimed would “commence later this year.” Each season referenced in these filings has since been added to the list of those not organized by the company.
The season label progresses with each annual cycle, but the deadlines do not.
A year ago, specific timing for the revival was discussed. It was reported that the CEO stated during an earnings presentation, “Now that team events have been incorporated into the product experience, we can accelerate our plan to bring the world’s biggest racing esports event back into focus,” adding that “Le Mans Virtual will be returning, with the final expected to be held next year and early qualifying rounds appearing in Q4 of this year.” However, no qualifying rounds took place in the fourth quarter of 2025, and the latest filing confirms that no 2025/26 season occurred.
The Le Mans Virtual Series began in 2020 as a one-off 24-hour race following the pandemic’s postponement of the real event, then evolved into a multi-round championship for the 2021/22 and 2022/23 seasons, pairing professional racing drivers with sim racing teams. The filings credit the 2022/23 finale with approximately 8.8 million video views, around 27 million minutes watched, and a global audience of 5 million across television and streaming platforms. The rights are held by Le Mans Esports Series Ltd., a joint venture where Motorsport Games owns 51%, alongside the Automobile Club de l’Ouest, the organizer of the 24 Hours of Le Mans.
That 2023 finale was also the last one. Reports indicated that the event faced technical issues and a public outburst from four-time world champion Max Verstappen, which made the organizers hesitant about a return.
The technical problems have not been resolved in the intervening three years.
On February 18, Motorsport Games canceled a planned 24-hour driver-swap test race in Le Mans Ultimate, opting for a 12-hour test instead. An official statement noted, “We’ve identified some unacceptable service issues when running events with 130+ clients connected to servers – which is expected for longer races and 62-car grids like Le Mans. These issues don’t show up in smaller races but become critical at this scale.” The statement also mentioned anomalies with network traffic on high-load servers.
Just days before the quarterly report was filed, it was reported that the 8 Hours of Daytona special event had been postponed by two weeks, seemingly due to technical issues, and that Motorsport Games would prepare for 62-car grids and continuous racing in an upcoming update. The game’s first in-game 24 Hours of Le Mans special event is set for the week of October 20, serving as a crucial test for any televised 24-hour esports final, with roughly ten weeks left in the year.
The financial gap between the peak of the series and the current state is significant. Esports revenue reached $1,179,920 in 2022, accounting for 11.4% of total company revenue, but dropped to $290,172 in 2023. The segment reported no earnings in 2024 or 2025. The $36,277 recorded in the second quarter is about 3% of the 2022 figure and 1% of the company’s $3.5 million in quarterly revenue.
The filing also includes a caution regarding the company’s finances, listing the 2026/27 series among forward-looking statements that may be subject to “the possibility of further adjustments to our product roadmap due to the continuing impact of our liquidity position.” As of June 30, Motorsport Games had $3.9 million in cash and $1.8 million available on a $3 million revolving credit facility.
Neither the earnings release nor the accompanying investor presentation mentioned esports or the Le Mans Virtual Series in their quarterly discussions. The highlights slide credits RaceControl subscriptions, the Le Mans Ultimate version 1.4 release, a record peak in concurrent players, and a share repurchase; the segment’s first revenue in three years was not included. The forward-looking statements slide outlines growth drivers expected to be pursued — RaceControl subscription revenue, new Le Mans Ultimate content, and a console version of the game — without mentioning esports or the series, although the quarterly report filed the same day includes the 2026/27 series among its forward-looking statements.
The company’s corporate description still identifies Motorsport Games as an “award-winning esports partner of choice for the 24 Hours of Le Mans, creating the renowned Le Mans Virtual Series.”
This disclosure comes as the company faces challenges from its shareholders. Motorsport Games implemented a poison pill strategy in July, with a 12.5% trigger and an expiration date of July 20, 2027, and tightened its shareholder meeting rules after a significant stock accumulation by Red Oak Partners. The latest filing introduces a risk factor, previously absent from the company’s annual report and first-quarter filing, warning that an activist campaign seeking to alter “our board composition, leadership, strategic direction, or business mix” could disrupt operations and divert management focus.
It remains uncertain whether the quarter’s esports revenue stemmed from the Logitech competition or other partners, as well as the format, schedule, prize pool, and broadcast arrangements for the 2026/27 Le Mans Virtual Series. Additionally, it is unclear if the Automobile Club de l’Ouest has committed to the revival as a joint-venture partner, or if qualification will occur through Le Mans Ultimate’s paid RaceControl subscription tiers instead of the open format used in 2022/23.
The immediate outcome is that Motorsport Games has demonstrated that third parties are willing to pay for competitions on Le Mans Ultimate, at a scale of tens of thousands of dollars per quarter. The larger question remains whether a company that has faced cancellations or delays for its own endurance test events this year — with the February race explicitly citing server capacity issues — can successfully host a 24-hour, multi-class, broadcast-quality final before the calendar it has already missed three times runs out again.
