Motorsport Games Inc. (NASDAQ: MSGM) announced a share repurchase of 904,395 shares of its Class A Common Stock from Driven Lifestyle Group LLC. The repurchase was executed under a share repurchase agreement dated April 22, 2026 and consummated on April 23, 2026, with an average purchase price of $4.11 per share.
The transaction also marks the retirement of all Class B shares, which previously carried a 10‑fold voting advantage. By eliminating the dual‑class structure, Motorsport Games is equalizing voting rights for all shareholders, a move that strengthens corporate governance and aligns management incentives with shareholder interests.
Motorsport Games has recently turned to profitability, reporting gross profit margins of 81 % over the last twelve months. Revenue in the fourth quarter of 2025 rose 95 % year‑over‑year, driven largely by the success of the “Le Mans Ultimate” franchise. The company’s price‑to‑earnings ratio remains low, ranging from 2.74× to 2.86×, suggesting potential undervaluation. In the past three months, insiders have sold approximately $1.3 million of shares, while shareholders approved an increase in awards under the employee equity plan and the exercise of warrants issued in 2024.
Stephen Hood, President and Chief Executive Officer, said, “This share repurchase is a direct reflection of how far Motorsport Games has come. Our strengthened financial position has given us the ability to act, returning greater ownership and strategic influence to the Company and ultimately to the benefit of all shareholders.” He added, “We are grateful to Driven Lifestyle for their support at the Company’s inception. It is a source of great encouragement that they have elected to retain a minority shareholding in the Company.”
The buyback reduces the company’s outstanding share count, which is expected to lift earnings per share and enhance shareholder value. The move signals confidence in the company’s long‑term trajectory, underscoring a commitment to returning capital while pursuing growth opportunities such as the continued expansion of its gaming portfolio.
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