Q2 2026 Motorsport Games Inc Earnings Call

August 14, 2026

Operator 2: Please stand by. Your meeting is about to begin. Thank you for standing by, and welcome to Motorsport Games Inc. Q2 2026 Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. To register to ask a question at any time, please press star one on your telephone keypad. To withdraw yourself from the queue, you may press star two on your telephone keypad. As a reminder, today's call is being recorded. I would like to now turn the conference over to Ben Rossiter-Turner from Motorsport Games. Please go ahead.

Operator: Thank you for standing by, and welcome to Motorsport Games Inc. Q2 2026 Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. To register to ask a question at any time, please press star one on your telephone keypad. To withdraw yourself from the queue, you may press star two on your telephone keypad. As a reminder, today's call is being recorded. I would like to now turn the conference over to Ben Rossiter-Turner from Motorsport Games. Please go ahead.

Speaker #1: At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. To register to ask a question at any time, please press star one on your telephone keypad.

Speaker #1: To withdraw yourself from the queue, you may press star two on your telephone keypad. As a reminder, today's call is being recorded. I would now like to turn the conference over to Ben Rossiter-Turner from Motorsport Games.

Speaker #1: Please go ahead.

Speaker #2: Thank you, and welcome to Motorsport Games' second quarter 2026 earnings conference call and webcast. On today's call are Motorsport Games Chief Executive Officer Stephen Hood and Chief Financial Officer Peter Hansen Chambers.

Ben Rossiter-Turner: Thank you, and welcome to Motorsport Games' Q2 2026 Earnings Conference Call and Webcast. On today's call is Motorsport Games' Chief Executive Officer, Stephen Hood, and Chief Financial Officer, Peter Hansen-Chambers. By now, everyone should have access to the company's Q2 2026 earnings press release filed today after market close. This is available on the investor relations of Motorsport Games website at www.motorsportgames.com. During the course of this call, management may make forward-looking statements within the meaning of US federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements.

Speaker #2: By now, everyone should have access to the company's second quarter 2026 earnings press release, filed today after market close. This is available on the Investor Relations section of the Motorsport Games website at www.motorsportgames.com.

Speaker #2: During the course of this call, management may make forward-looking statements within the meaning of U.S. federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements.

Ben Rossiter-Turner: These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Except as required by law, the company undertakes no obligation to update any forward-looking statements made on this call or to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Speaker #2: Except as required by law, the company undertakes no obligation to update any forward-looking statement made on this call, or to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Ben Rossiter-Turner: Except as required by law, the company undertakes no obligation to update any forward-looking statements made on this call or to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to today's press release and the company's filings with the SEC, including its most recent quarterly report on Form 10-Q for the quarter ended 30 June 2026, for a detailed discussion on certain risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. In today's conference call, we will refer to certain non-GAAP financial measures, such as the adjusted EBITDA as we discuss the Q2 2026 financial results.

Speaker #2: Please refer to today's press release and the company's filings with the SEC, including its most recent quarterly report on Form 10-Q for the quarter ended June 30, 2026, for a detailed discussion on certain risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.

Ben Rossiter-Turner: Please refer to today's press release and the company's filings with the SEC, including its most recent quarterly report on Form 10-Q for the quarter ended 30 June 2026, for a detailed discussion on certain risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. In today's conference call, we will refer to certain non-GAAP financial measures, such as the adjusted EBITDA as we discuss the Q2 2026 financial results.

Speaker #2: In today's conference call, we will refer to certain non-GAAP financial measures, such as adjusted EBITDA, as we discuss the second quarter 2026 financial results.

Speaker #2: You will find a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures, as well as other related disclosures, in the press release issued earlier today. This is also available on the Investor Relations section of the Motorsport Games website at www.motorsportgames.com.

Ben Rossiter-Turner: You will find a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures as well as other related disclosures in the press release issued earlier today which is also available on the investor relations section of Motorsport Games website at www.motorsportgames.com. Now I'd like to turn over the call to Stephen Hood, Chief Executive Officer of Motorsport Games. Stephen.

Speaker #2: And now, I'd like to turn over the call to Stephen Hood, Chief Executive Officer of Motorsport Games. Stephen.

Speaker #3: Thank you, Ben. Good afternoon, everyone, and thank you for joining the Motorsport Games Q2 2026 earnings call. We're now six consecutive quarters into proving that this business works.

Stephen Hood: Thank you, Ben. Good afternoon, everyone, and thank you for joining the Motorsport Games Q2 2026 earnings call. We're now six consecutive quarters into proving that this business works. H1 revenue was $7.6 million, up 74% year-on-year, and gross margin expanded to almost 85% from just under 79% a year ago. We're not just growing, we're growing more efficiently. We generated positive operating income for the sixth quarter in a row. Le Mans Ultimate and RaceControl.gg remain the two engines behind that, and this quarter, RaceControl.gg took another real step forward, which I'll come back to. Le Mans Ultimate player engagement accelerated in this quarter. We spoke last time about the all-time peak of more than 8,800 concurrent players achieved in March. That momentum spiked again.

Stephen Hood: Thank you, Ben. Good afternoon, everyone, and thank you for joining the Motorsport Games Q2 2026 Earnings Call. We're now six consecutive quarters into proving that this business works. H1 revenue was $7.6 million, up 74% year-on-year, and gross margin expanded to almost 85% from just under 79% a year ago. We're not just growing, we're growing more efficiently. We generated positive operating income for the sixth quarter in a row. Le Mans Ultimate and RaceControl remain the two engines behind that, and this quarter, RaceControl.gg took another real step forward, which I'll come back to.

Speaker #3: First half revenue was $7.6 million, up 74% year over year, and gross margin expanded to almost 85% from just under 79% a year ago.

Speaker #3: We're not just growing; we're growing more efficiently. We generated positive operating income for the sixth quarter in a row. Le Mans Ultimate and Race Control remain the two engines behind that, and this quarter, Race Control took another real step forward, which I'll come back to.

Speaker #3: Le Mans Ultimate player engagement accelerated in this quarter. We spoke last time about the all-time peak of more than 8,800 concurrent players achieved in March.

Stephen Hood: Le Mans Ultimate player engagement accelerated in this quarter. We spoke last time about the all-time peak of more than 8,800 concurrent players achieved in March. That momentum spiked again. April was our highest ever month for average daily active users, which as I've said previously, is the number that matters most to us. It tells us players are sticking around, not just appearing for a moment. I'm delighted to say that we've now sold more than half a million units of the base game and more than 1.2 million individual pieces of DLC or downloadable content since launch.

Speaker #3: That momentum spiked again. April was our highest-ever month for average daily active users, which, as I've said previously, is the number that matters most to us.

Stephen Hood: April was our highest ever month for average daily active users, which as I've said previously, is the number that matters most to us. It tells us players are sticking around, not just appearing for a moment. I'm delighted to say that we've now sold more than half a million units of the base game and more than 1.2 million individual pieces of DLC or downloadable content since launch. That's half a million players enjoying Le Mans Ultimate enough to then go on and spend additionally to extend that experience. An experience that has clearly resonated within the player base we've built. Here's the interesting part. Each and every one of those players competing online has an account on RaceControl.gg. They exist within a platform we operate within our ecosystem. That is an advantage to us on several fronts.

Speaker #3: It tells us players are sticking around, not just appearing for a moment. I'm delighted to say that we've now sold more than 500,000 units of the base game and more than 1.2 million individual pieces of DLC, or downloadable content, since launch.

Speaker #3: That's half a million players enjoying Le Monde Ultimate enough to then go on and spend additionally to extend that experience—an experience that has clearly resonated within the player base we've built.

Stephen Hood: That's half a million players enjoying Le Mans Ultimate enough to then go on and spend additionally to extend that experience. An experience that has clearly resonated within the player base we've built. Here's the interesting part. Each and every one of those players competing online has an account on RaceControl.gg. They exist within a platform we operate within our ecosystem. That is an advantage to us on several fronts. We can ensure a cleaner onboarding experience for new players, we can communicate with them directly, and we can continue to invest in building the platform.

Speaker #3: Here's the interesting part: each and every one of those players competing on LIME has an account on Race Control. They exist within a platform we operate, within our ecosystem.

Speaker #3: That is an advantage to us on several fronts. We can ensure a cleaner onboarding experience for new players, we can communicate with them directly, and we can continue to invest in building the platform.

Stephen Hood: We can ensure a cleaner onboarding experience for new players, we can communicate with them directly, and we can continue to invest in building the platform. I've said before that RaceControl.gg deserves to be understood not solely as a feature that supports Le Mans Ultimate, but as a standalone platform business, and this quarter makes that case better than any quarter before it. Peter, our new CFO, will walk you through just how fast that's scaling, but the short version is this: we're building a unique model in our sector. It's recurring, it's predictable, high margin, and isn't seasonally affected by releases as a traditional game release model. It helps us to engage with and retain players, establishing a loyal community. We can monetize the most engaged players and funnel those revenues back into the service and products to improve them further.

Speaker #3: I've said before that Race Control deserves to be understood not solely as a feature that supports Le Mans Ultimate, but as a standalone platform business.

Stephen Hood: I've said before that RaceControl.gg deserves to be understood not solely as a feature that supports Le Mans Ultimate, but as a standalone platform business, and this quarter makes that case better than any quarter before it. Peter, our new CFO, will walk you through just how fast that's scaling, but the short version is this: we're building a unique model in our sector. It's recurring, it's predictable, high margin, and isn't seasonally affected by releases as a traditional game release model. It helps us to engage with and retain players, establishing a loyal community.

Speaker #3: And this quarter makes that case better than any quarter before it. Peter, our new CFO, will walk you through just how fast that's scaling.

Speaker #3: But the short version is this: We're building a unique model in our sector. It's recurring, it's predictable, high-margin, and it isn't seasonally affected by releases as a traditional game release model.

Speaker #3: It helps us to engage with and retain players, establishing a loyal community. We can monetize the most engaged players and funnel those revenues back into the service and products to improve them further.

Stephen Hood: We can monetize the most engaged players and funnel those revenues back into the service and products to improve them further. RaceControl.gg might still be in its infancy, but we believe that it will prove to be an ever more critical component of our distinct entertainment offerings in the future. We believe it's already proving to be a real jewel in our portfolio, amplifying our games in a distinct way versus the competition. On our last call, we talked about wanting to bring content to Le Mans Ultimate that reaches players who aren't already bought into the Le Mans and European racing world.

Speaker #3: Race Control might still be in its infancy, but we believe that it will prove to be an ever more critical component of our distinct entertainment offerings in the future.

Stephen Hood: RaceControl.gg might still be in its infancy, but we believe that it will prove to be an ever more critical component of our distinct entertainment offerings in the future. We believe it's already proving to be a real jewel in our portfolio, amplifying our games in a distinct way versus the competition. On our last call, we talked about wanting to bring content to Le Mans Ultimate that reaches players who aren't already bought into the Le Mans and European racing world. As strong as we are in Europe, understandable given the product title, we know that's not the entire addressable market, and that there are great racing experiences outside the laser focus on Le Mans content we've stuck to since launch.

Speaker #3: We believe it's already proving to be a real jewel in our portfolio, amplifying our games in a distinct way versus the competition. On our last call, we talked about wanting to bring content to Le Mans Ultimate that reaches players who aren’t already bought into the Le Mans and European racing world.

Speaker #3: As strong as we are in Europe—understandable, given the product title—we know that's not the entire addressable market and that there are great racing experiences outside the laser focus on Le Mans content we've stuck to since launch.

Stephen Hood: As strong as we are in Europe, understandable given the product title, we know that's not the entire addressable market, and that there are great racing experiences outside the laser focus on Le Mans content we've stuck to since launch. In July, after quarter end, we updated the game to version 1.4, and with it added Daytona and Laguna Seca, two of the most iconic circuits in American racing, as the first part of our newly released US Track Pass. We expect packs 2 and 3 in September and December respectively, and we're actively exploring what comes next for Le Mans Ultimate content in 2027.

Speaker #3: In July, after quarter-end, we updated the game to version 1.4 and, with it, added Daytona and Laguna Seca—two of the most iconic circuits in American racing—as the first part of our newly released US Track Pass.

Stephen Hood: In July, after quarter end, we updated the game to version 1.4, and with it added Daytona and Laguna Seca, two of the most iconic circuits in American racing, as the first part of our newly released US Track Pass. We expect packs 2 and 3 in September and December respectively, and we're actively exploring what comes next for Le Mans Ultimate content in 2027. Whilst we do not envisage opening our Le Mans gaming title to completely unrelated racing content, we do believe there are still significant content offerings that can be added to the Le Mans Ultimate experience over at least the next couple of years. To go beyond this, we will need to release a new title. We will have more on that on our next earnings call.

Speaker #3: We expect packs 2 and 3 in September and December, respectively, and we're actively exploring what comes next for Le Mans Ultimate content in 2027.

Speaker #3: While we do not envisage opening our Le Mans gaming title to completely unrelated racing content, we do believe there are still significant content offerings that can be added to the Le Mans Ultimate experience over at least the next couple of years.

Stephen Hood: Whilst we do not envisage opening our Le Mans gaming title to completely unrelated racing content, we do believe there are still significant content offerings that can be added to the Le Mans Ultimate experience over at least the next couple of years. To go beyond this, we will need to release a new title. We will have more on that on our next earnings call. For now, let me move on to console progress and how we're shaping up on bringing Le Mans Ultimate to PlayStation and Xbox platforms. On consoles, development of Le Mans Ultimate for PlayStation and Xbox continues as planned.

Speaker #3: To go beyond this, we will need to release a new title. We will have more on that in our next earnings call. For now, let me move on to console progress and how we're shaping up on bringing Le Mans Ultimate to PlayStation and Xbox platforms.

Stephen Hood: For now, let me move on to console progress and how we're shaping up on bringing Le Mans Ultimate to PlayStation and Xbox platforms. On consoles, development of Le Mans Ultimate for PlayStation and Xbox continues as planned. I've said before, this is complex work, bringing a high-fidelity simulation experience to the home console market isn't routine in our industry. But we believe console players are starved of the kind of experience we know we can deliver. Not every player can justify the expense of a suitable gaming PC, let alone a simulator rig complete with a wheel and pedals. Bringing Le Mans Ultimate to console widens our reach and allows us to connect with a market that is genuinely underserved. PC-level simulation experiences are hard to find on console platforms.

Speaker #3: On consoles, development of Le Monde Ultimate for PlayStation and Xbox continues as planned. I've said before, this is complex work—bringing a high-fidelity simulation experience to the home console market isn't routine in our industry.

Stephen Hood: I've said before, this is complex work, bringing a high-fidelity simulation experience to the home console market isn't routine in our industry. But we believe console players are starved of the kind of experience we know we can deliver. Not every player can justify the expense of a suitable gaming PC, let alone a simulator rig complete with a wheel and pedals. Bringing Le Mans Ultimate to console widens our reach and allows us to connect with a market that is genuinely underserved. PC-level simulation experiences are hard to find on console platforms.

Speaker #3: But we believe console players are starved for the kind of experience we know we can deliver. Not every player can justify the expense of a suitable gaming PC, let alone a simulated rig complete with a wheel and pedals.

Speaker #3: Bringing Le Monde Ultimate to console widens our reach and allows us to connect with a market that is genuinely underserved. PC-level simulation experiences are hard to find on console platforms.

Speaker #3: Arriving on console will be another important milestone in the growth of our company, and the learnings from this project will directly benefit future releases.

Stephen Hood: Arriving on console will be another important milestone in the growth of our company, and the learnings from this project will directly benefit future releases. Before I hand over, a word on our leadership. Peter Hansen-Chambers joined us as Chief Financial Officer effective 1 July, and this is his first call with us. He brings a wealth of experience from highly respected games companies including Codemasters and more recently Hutch, where he was CFO and co-CEO. I am very glad to have him on board. Internally, I have been relaying to our team that in order for us to take the next step on our journey, we need to evaluate how we make progress. For the recovery of Motorsport Games, whilst a wonderful story, is not the story.

Speaker #3: Before I hand over, a word on our leadership. Peter Hansen Chambers joined us as Chief Financial Officer, effective July 1st, and this is his first call with us.

Speaker #3: He brings a wealth of experience from highly respected games companies, including Codemasters, and more recently Hutch, where he was CFO and co-CEO. I'm very glad to have him on board.

Stephen Hood: I am very glad to have him on board. Internally, I have been relaying to our team that in order for us to take the next step on our journey, we need to evaluate how we make progress. For the recovery of Motorsport Games, whilst a wonderful story, is not the story. There is still so much more to do, and it is important that everyone in our organization appreciates the energy that will be required to move ahead. Peter's energy, enthusiasm, and experience is a key part of our continual evolution. I also want to thank Stanley Beckley for his role in getting this company back on track.

Speaker #3: Internally, I had been relaying to our team that, in order for us to take the next step on our journey, we need to evaluate how we make progress.

Speaker #3: The recovery of most sport games, while a wonderful story, is not the story. There is still so much more to do, and it's important that everyone in our organization appreciates the energy that will be required to move ahead.

Stephen Hood: There is still so much more to do, and it is important that everyone in our organization appreciates the energy that will be required to move ahead. Peter's energy, enthusiasm, and experience is a key part of our continual evolution. I also want to thank Stanley Beckley for his role in getting this company back on track. We are delighted that he continues with us in his role as Chief Accounting and Compliance Officer. The workload has grown, and it made sense to expand the team so that we can meet the challenge of transitioning from recovery to growth whilst retaining the talent and expertise that helped shape our return to form. This strength has allowed us to act opportunistically where we see value for the company's long-term health and value for shareholders.

Speaker #3: Peter's energy, enthusiasm, and experience are a key part of our continual evolution. I also want to thank Stanley Beckley for his role in getting this company back on track.

Speaker #3: We're delighted that he continues with us in his role as Chief Accounting and Compliance Officer. The workload has grown, and it made sense to expand the team so that we can meet the challenge of transitioning from recovery to growth, whilst retaining the talent and expertise that helped shape our return to form.

Stephen Hood: We are delighted that he continues with us in his role as Chief Accounting and Compliance Officer. The workload has grown, and it made sense to expand the team so that we can meet the challenge of transitioning from recovery to growth whilst retaining the talent and expertise that helped shape our return to form. This strength has allowed us to act opportunistically where we see value for the company's long-term health and value for shareholders.

Speaker #3: This strength has allowed us to act opportunistically where we see value for the company's long-term health and value for shareholders. We completed the purchase of a significant amount of Class A common stock from Driven Lifestyle Group, which retired all outstanding Class B shares. Every outstanding share of our common stock now carries equal voting rights.

Stephen Hood: We completed the purchase of a significant amount of Class A common stock from Driven Lifestyle Group, which retired all outstanding Class B shares. Every outstanding share of our common stock now carries equal voting rights. Finally, I want to relay we are increasingly focused on the next stage of growth. I said on our last call that we are in the formative stages of a new long-term project that leverages everything we have built and operate today. Our simulation technology, the RaceControl.gg platform, our live service infrastructure, F1 Arcade, and the proven underpinnings that power our successful Le Mans Ultimate game. Alongside the relationship with our players that we took so much care to build and continue to maintain. The Motorsport Games of today is a boutique game studio, building not just the games, but the entire ecosystem for racing and driving fans.

Speaker #3: Finally, I want to relay that we're increasingly focused on the next stage of growth. I said on our last call that we're in the formative stages of a new long-term project that leverages everything we've built and operate today.

Speaker #3: Our simulation technology, the Race Control platform, our live service infrastructure, F1 Arcade, and the proven underpinnings that power our successful Le Mans Ultimate game—alongside the relationship with our players, which we took so much care to build and continue to maintain.

Stephen Hood: Our simulation technology, the RaceControl.gg platform, our live service infrastructure, F1 Arcade, and the proven underpinnings that power our successful Le Mans Ultimate game. Alongside the relationship with our players that we took so much care to build and continue to maintain. The Motorsport Games of today is a boutique game studio, building not just the games, but the entire ecosystem for racing and driving fans.

Speaker #3: Motorsport Games is a boutique game studio building not just the games, but the entire ecosystem for racing and driving fans.

Speaker #3: Our long-term bets are paying off, and everything we've experienced this past quarter has reaffirmed our belief that we have the foundations in place to deliver on our roadmap.

Stephen Hood: Our long-term bets are paying off, and everything we have experienced this past quarter has reaffirmed our belief that we have the foundations in place to deliver on our roadmap, the detail of which will be shared on our next earnings call. With that, I will hand over to Peter.

Speaker #3: The details of which will be shared on our next earnings call. And with that, I'll hand over to Peter.

Speaker #2: Thank you, Stephen, for the kind introduction, and good evening, everyone.

Peter Hansen-Chambers: Thank you, Stephen, for the kind introduction, and good evening, everyone. It's genuinely exciting to be here. Having spent my first few weeks getting under the hood of the business, I can see real value in what's already been built. Talented people, strong technology, and relationships that give us a platform to build from. As with previous earnings calls, I won't be offering forward guidance today. Instead, I'd like to walk through our H1 and Q2 results and explain why we believe they represent real progress as we strive to build an exciting, high-performing gaming company that delivers not only for our players today, but for the business long term. Before I get into the numbers, I want to share some context up front that I think is useful for how you read our results and view the business over time.

Speaker #3: It's genuinely exciting to be here, having spent my first few weeks getting under the hood of the business. I can see real value in what's already been built.

Speaker #3: Talented people, strong technology, and relationships that give us a platform to build from. As with previous earnings calls, I won't be offering forward guidance today.

Peter Hansen-Chambers: As with previous earnings calls, I won't be offering forward guidance today. Instead, I'd like to walk through our H1 and Q2 results and explain why we believe they represent real progress as we strive to build an exciting, high-performing gaming company that delivers not only for our players today, but for the business long term. Before I get into the numbers, I want to share some context up front that I think is useful for how you read our results and view the business over time.

Speaker #3: Instead, I'd like to walk through our first-half and second-quarter results, and explain why we believe they represent real progress as we strive to build an exciting, high-performing gaming company that delivers not only for our players today, but for the business long term.

Speaker #3: Before I get into the numbers, I want to share some context up front that I think is useful for how you read our results and view the business over time.

Speaker #3: Le Monde Ultimate is a live-service, multi-season project that is continuing to grow and evolve in order to engage, retain, and grow our player base through the release of new content, features, and other improvements.

Peter Hansen-Chambers: Le Mans Ultimate" is a live service multi-season project that is continuing to grow and evolve in order to engage, retain, and grow our player base through the release of new content, features, and other improvements. Given the nature of that undertaking, what happens in any given month or quarter is shaped by various factors. There's normal seasonality, the usual impact you'd see around holidays or over the summer, for instance. For us, there's also the real-world motorsport calendar, given many of our players will have an interest in real-world motorsport influencing performance around such events. There's the composition of our own release schedule. Some updates are quick and modest. Others are bigger, more ambitious pieces of work that simply take longer to complete and then land with more impact when they do.

Speaker #3: Given the nature of that undertaking, what happens in any given month or quarter is shaped by various factors. There's normal seasonality—the usual impact you see around holidays, or over the summer, for instance.

Speaker #3: For us, there's also the real-world motorsport calendar. Given that many of our players have an interest in real-world motorsport, it influences performance around such events.

Speaker #3: There's the composition of our own release schedule. Some updates are quick and modest; others are bigger, more ambitious pieces of work that simply take longer to complete and then land with more impact when they do.

Peter Hansen-Chambers: There's the composition of our own release schedule. Some updates are quick and modest. Others are bigger, more ambitious pieces of work that simply take longer to complete and then land with more impact when they do. Some releases prioritize what the community are telling us, whilst others may be focused on longer-term strategic benefit to the business. All of these factors influence performance at any given time, and therefore growth will not be a straight line each and every month or quarter to quarter.

Speaker #3: Some releases prioritize what the community are telling us, while others may be focused on longer-term strategic benefit to the business. All of these factors influence performance at any given time and, therefore, growth will not be a straight line each and every month or quarter to quarter.

Peter Hansen-Chambers: Some releases prioritize what the community are telling us, whilst others may be focused on longer-term strategic benefit to the business. All of these factors influence performance at any given time, and therefore growth will not be a straight line each and every month or quarter to quarter. With this in mind, we would encourage everyone to judge our performance over a longer time horizon than any single quarter in isolation to observe our overall performance as we continue to invest and build in the product. It's that ongoing investment and what it unlocks next that gives us real confidence in where this business is heading. I'll start with RaceControl.gg, our free-to-join player platform, which also offers premium subscription tiers because it's increasingly central to the story we want to tell as we transform Motorsport Games.

Speaker #3: With this in mind, we would encourage everyone to judge our performance over a longer time horizon, rather than any single quarter in isolation, and to observe our overall performance as we continue to invest and build in the product.

Peter Hansen-Chambers: With this in mind, we would encourage everyone to judge our performance over a longer time horizon than any single quarter in isolation to observe our overall performance as we continue to invest and build in the product. It's that ongoing investment and what it unlocks next that gives us real confidence in where this business is heading. I'll start with RaceControl.gg, our free-to-join player platform, which also offers premium subscription tiers because it's increasingly central to the story we want to tell as we transform Motorsport Games.

Speaker #3: It's that ongoing investment and what it unlocks next that gives us real confidence in where this business is heading. I'll start with Race Control.

Speaker #3: Our free-to-join player platform, which also offers premium subscription tiers, is increasingly central to the story we want to tell as we transform Motorsport Games.

Speaker #3: As Stephen mentioned earlier, Race Control allows us to establish an important, direct relationship with our players, while also offering an opportunity to promote new content and features.

Peter Hansen-Chambers: As Stephen mentioned earlier, RaceControl.gg allows us to establish an important direct relationship with our players whilst offering an opportunity for us to promote new content and features. Through RaceControl.gg, we can convert engaged players into premium subscription tiers that offer better value by expanding the experience. At the same time, this SaaS model means we can continue to support investment in new content and features extending the lifetime of products, all whilst increasing player monetization. Subscription revenue from RaceControl.gg for the H1 2026 was approximately $1.4 million, up from approximately $0.3 million in the H1 2025. Growth of almost 349% year-on-year. On a run rate basis, RaceControl.gg is now generating annual recurring revenue of approximately $2.9 million, up from $1.2 million for the whole of last year.

Speaker #3: Through Race Control, we can convert engaged players into premium subscription tiers that offer better value by expanding the experience. At the same time, this SaaS model means we can continue to support investment in new content and features, extending the lifetime of products.

Speaker #3: All whilst increasing player monetization. Subscription revenue from Race Control for the first half of 2026 was approximately $1.4 million, up from approximately $0.3 million in the first half of 2025.

Peter Hansen-Chambers: Subscription revenue from RaceControl.gg for the H1 2026 was approximately $1.4 million, up from approximately $0.3 million in the H1 2025. Growth of almost 349% year-on-year. On a run rate basis, RaceControl.gg is now generating annual recurring revenue of approximately $2.9 million, up from $1.2 million for the whole of last year. RaceControl revenues represented 18% of our total revenues for H1 2026 versus 7% in H1 2025, and less than 1% for the full year 2024. This is particularly impressive given this is happening alongside 74% growth in our total company revenue, not despite a decline in it.

Speaker #3: Growth of almost 349% year on year. On a run-rate basis, Race Control is now generating annual recurring revenue of approximately $2.9 million, up from $1.2 million for the whole of last year.

Speaker #3: Race Control revenues represented 18% of our total revenues for the first half of 2026, versus 7% in the first half of 2025, and less than 1% for the full year 2024.

Peter Hansen-Chambers: RaceControl revenues represented 18% of our total revenues for H1 2026 versus 7% in H1 2025, and less than 1% for the full year 2024. This is particularly impressive given this is happening alongside 74% growth in our total company revenue, not despite a decline in it. Behind those numbers is real subscriber growth. We ended June with over 40,500 paid subscribers, up more than 230% since June last year, all achieved organically. RaceControl is financially lucrative as well as strategically important. It delivers high margin, recurring revenue, and increases player lifetime value or LTV. We intend to keep investing in it, both to grow our subscriber base and to deepen engagement with our existing players. That momentum achieved with RaceControl reveals itself in our top-line results too.

Speaker #3: This is particularly impressive, given that this is happening alongside 74% growth in our total company revenue—not despite a decline in it. Behind those numbers is real subscriber growth.

Peter Hansen-Chambers: Behind those numbers is real subscriber growth. We ended June with over 40,500 paid subscribers, up more than 230% since June last year, all achieved organically. RaceControl is financially lucrative as well as strategically important. It delivers high margin, recurring revenue, and increases player lifetime value or LTV. We intend to keep investing in it, both to grow our subscriber base and to deepen engagement with our existing players. That momentum achieved with RaceControl reveals itself in our top-line results too.

Speaker #3: We ended June with over 40,500 paid subscribers, up more than 230% since June last year, all achieved organically. Race Control is financially lucrative as well as strategically important.

Speaker #3: It delivers high-margin, recurring revenue and increases player lifetime value, or LTV. We intend to keep investing in it, both to grow our subscriber base and to deepen engagement with our existing players.

Speaker #3: That momentum achieved with Race Control reveals itself in our top-line results, too. Revenue has grown every year since 2023, up 25.7% in 2024 and a further 30% in 2025.

Peter Hansen-Chambers: Revenue has grown every year since 2023, up 25.7% in 2024 and a further 30% in 2025. At the same time, gross profit margin has expanded alongside it from 47.6% to 81.5% over that same period. This is evidence that the business is scaling efficiently as it grows, not just growing. For H1 2026, specifically, revenue was $7.6 million, up 74% year-on-year, and gross profit grew even faster at 86.9% to $6.4 million, with gross profit margin expanding further to 84.7% from 78.8% a year ago. That trajectory, consistent revenue growth alongside gross profit margin expansion now across three and a half years, is exactly the kind of compounding progress we want to continue delivering through the rest of 2026 and beyond. Turning to profitability.

Speaker #3: At the same time, gross profit margin has expanded alongside it, from 47.6% to 81.5% over that same period. This is evidence that the business is scaling efficiently as it grows.

Speaker #3: Not just growing. For the first half of 2026 specifically, revenue was $7.6 million, up 74% year on year. Gross profit grew even faster—up 86.9% to $6.4 million.

Speaker #3: With gross profit margin expanding further to 84.7% from 78.8% a year ago, that trajectory—consistent revenue growth alongside gross profit margin expansion, now crossed three and a half years—is exactly the kind of compounding progress we want to continue delivering through the rest of 2026 and beyond.

Peter Hansen-Chambers: That trajectory, consistent revenue growth alongside gross profit margin expansion now across three and a half years, is exactly the kind of compounding progress we want to continue delivering through the rest of 2026 and beyond. Turning to profitability. I am delighted to share that GAAP net income was positive for a sixth consecutive quarter, representing an impressive achievement for the business. In H1 2026, we delivered $1.2 million compared to $5.3 million in H1 2025. However, these numbers do not tell the full story.

Speaker #3: Turning to profitability, I’m delighted to share that GAAP net income was positive for a sixth consecutive quarter, representing an impressive achievement for the business.

Peter Hansen-Chambers: I am delighted to share that GAAP net income was positive for a sixth consecutive quarter, representing an impressive achievement for the business. In H1 2026, we delivered $1.2 million compared to $5.3 million in H1 2025. However, these numbers do not tell the full story. That prior year comparison is not like for like as H1 2025 included a $0.8 million gain from the West Coast settlement agreement and a $0.5 million gain from the HC II Holdings 2 settlement agreement and a $3.3 million foreign currency exchange gain, which did not recur this year. On an adjusted basis, which we believe is the more meaningful measure of our underlying performance, adjusted EBITDA for Q2 was $0.8 million for the quarter compared to $1.4 million in Q2 2025.

Speaker #3: In the first half of 2026, we delivered $1.2 million compared to $5.3 million in the first half of 2025. However, these numbers do not tell the full story.

Speaker #3: That prior year comparison isn't like-for-like, as H1 2025 included a $0.8 million gain from the West Coast settlement agreement, and a $0.5 million gain from the HC2 Holdings 2 settlement agreement.

Peter Hansen-Chambers: That prior year comparison is not like for like as H1 2025 included a $0.8 million gain from the West Coast settlement agreement and a $0.5 million gain from the HC II Holdings 2 settlement agreement and a $3.3 million foreign currency exchange gain, which did not recur this year. On an adjusted basis, which we believe is the more meaningful measure of our underlying performance, adjusted EBITDA for Q2 was $0.8 million for the quarter compared to $1.4 million in Q2 2025.

Speaker #3: And a 3.3 million foreign currency exchange gain which did not recur this year. On an adjusted basis, which we believe is the more meaningful measure of our underlying performance, adjusted EBITDA for the second quarter was 0.8 million for the quarter compared to $1.4 million in Q2 2025.

Speaker #3: However, it's worth noting that Q2 2025's adjusted EBITDA included the benefits of non-recurring gains related to discounts negotiated on a few outstanding vendor invoices.

Peter Hansen-Chambers: However, it is worth noting that Q2 2025 suggested EBITDA carried with it the benefits of non-recurring gains related to discounts negotiated on a few outstanding vendor invoices. We have also continued making investments in expanding our product mix in 2026. If we look at the six months ended June 2026, we achieved adjusted EBITDA of $2.2 million, more than double the $1 million we generated in the same period last year, growth of approximately 122.7%. With regards to adjusted diluted EPS, we reported $0.19 for the quarter compared to $0.25 a year ago, which was due to the same factors impacting adjusted EBITDA I mentioned before. For the six months ended June 2026, adjusted diluted EPS was $0.33 compared to $0.24 in H1 2025. Adjusted EBITDA and diluted EPS reconciliations could be found on the investors relations section of Motorsport Games website at motorsportgames.com.

Speaker #3: We have also continued making investments in expanding our product mix in 2026. If we look at the six months ended June 2026, we achieved adjusted EBITDA of $2.2 million.

Speaker #3: More than double the $1 million we generated in the same period last year, a growth of approximately 122.7%. With regards to adjusted diluted EPS, we reported $0.19 for the quarter compared to $0.25 a year ago.

Peter Hansen-Chambers: With regards to adjusted diluted EPS, we reported $0.19 for the quarter compared to $0.25 a year ago, which was due to the same factors impacting adjusted EBITDA I mentioned before. For the six months ended June 2026, adjusted diluted EPS was $0.33 compared to $0.24 in H1 2025. Adjusted EBITDA and diluted EPS reconciliations could be found on the investors relations section of Motorsport Games website at motorsportgames.com.

Speaker #3: This was due to the same factors impacting adjusted EBITDA I mentioned before. For the six months ended June 2026, adjusted diluted EPS was $0.33 compared to $0.24 in H1 2025.

Speaker #3: Adjusted EBITDA and diluted EPS reconciliations can be found on the investor relations section of the Motorsport Games website at motorsportgames.com. Moving to the balance sheet, we have continued to generate strong, consistent operating cash flow.

Peter Hansen-Chambers: We have continued to generate strong, consistent operating cash flow, averaging approximately $0.5 million per month over the 6 months ended 30 June 2026, driven by increased profitability and the capitalization of internally developed software. As of 30 June 2026, we had cash and cash equivalents of $3.9 million. The year-to-date change in our cash position and working capital is largely explained by capital we deployed during the quarter, most notably a $3.7 million repurchase of Class A shares from Driven Lifestyle Group, which also retired all Class B super voting shares and simplified our capital structure. We view this as a strong use of improving cash generation. We also secured a $3 million revolving credit facility from Citibank in February 2026, of which $1.2 million was drawn down of 30 June 2026.

Speaker #3: Averaging approximately $0.5 million per month over the six months ended June 30, 2026, driven by increased profitability and the capitalization of internally developed software.

Speaker #3: As of June 30, 2026, we had cash and cash equivalents of $3.9 million. The year-to-date change in our cash position and working capital has largely been explained by capital we deployed during the quarter.

Peter Hansen-Chambers: The year-to-date change in our cash position and working capital is largely explained by capital we deployed during the quarter, most notably a $3.7 million repurchase of Class A shares from Driven Lifestyle Group, which also retired all Class B super voting shares and simplified our capital structure. We view this as a strong use of improving cash generation. We also secured a $3 million revolving credit facility from Citibank in February 2026, of which $1.2 million was drawn down of 30 June 2026.

Speaker #3: Most notably, a $3.7 million repurchase of Class A shares from Driven Lifestyle Group, which also retired all Class B supervoting shares and simplified our capital structure.

Speaker #3: We view this as a strong use of improving cash generation. We also secured a $3 million revolving credit facility from Citibank in February 2026, of which $1.2 million was drawn down as of June 30, 2026.

Speaker #3: In May 2026, Citibank extended the maturity of that facility to February 2028, giving us continued flexibility as we invest in growth. Thank you all for your time, and now I will turn the call back to Stephen for closing remarks.

Peter Hansen-Chambers: In May 2026, Citibank extended the maturity of that facility to February 2028, giving us continued flexibility as we invest in growth. Thank you all for your time. I will turn the call back to Stephen for closing remarks. In closing, the story of the H1 2026 is straightforward. Le Mans Ultimate continues to grow. RaceControl.gg is proving itself to be a real platform business faster than we might have expected, and our margins and cash generation are moving in the right direction. Six consecutive profitable quarters are not an accident, and neither is the pace of RaceControl.gg's growth. The moves we made this quarter on developing new revenue streams, on expanding our addressable audience, on governance, on financing, and on the roadmap, all point in the same direction. We are building something to last and drive long-term shareholder value creation and sustainable profitability.

Speaker #1: In closing, the story of the first half of 2026 is straightforward. Lamont ultimately continues to grow, Race Control is proving itself to be a real platform business faster than we might have expected, and our margins and cash generation are moving in the right direction.

Stephen Hood: In closing, the story of the H1 2026 is straightforward. Le Mans Ultimate continues to grow. RaceControl.gg is proving itself to be a real platform business faster than we might have expected, and our margins and cash generation are moving in the right direction. Six consecutive profitable quarters are not an accident, and neither is the pace of RaceControl.gg's growth. The moves we made this quarter on developing new revenue streams, on expanding our addressable audience, on governance, on financing, and on the roadmap, all point in the same direction.

Speaker #1: Six consecutive profitable quarters are not an accident, and neither is the pace of Race Control's growth. The moves we made this quarter on developing new revenue streams, on expanding our addressable audience, on governance, on financing, and on the roadmap all point in the same direction.

Speaker #1: We're building something to last and drive long-term shareholder value creation and sustainable profitability. We've got a lot more to share with you on the Q3 call, and I'm looking forward to it.

Stephen Hood: We are building something to last and drive long-term shareholder value creation and sustainable profitability. We have got a lot more to share with you on the Q3 call, and I am looking forward to it. Thank you all for joining us today, and thank you for your interest in Motorsport Games. I will now hand it back to the operator.

Stephen Hood: We have got a lot more to share with you on the Q3 call, and I am looking forward to it. Thank you all for joining us today, and thank you for your interest in Motorsport Games. I will now hand it back to the operator.

Speaker #1: Thank you all for joining us today, and thank you for your interest in Motorsport Games. I'll now hand it back to the operator.

Speaker #2: Thank you. If you would like to ask a question at this time, please press star 1 on your telephone keypad. To withdraw yourself from the queue, you may press star 2.

Operator 2: Thank you. If you would like to ask a question at this time, please press star 1 on your telephone keypad. To withdraw yourself from the queue, you may press star 2. Once again, that is star 1 to ask a question. We will pause for just a moment to allow everyone a chance to join the queue. Thank you. We will take our first question from Anja Soderstrom with Sidoti & Company. Please go ahead. Your line is open.

Operator: Thank you. If you would like to ask a question at this time, please press star 1 on your telephone keypad. To withdraw yourself from the queue, you may press star 2. Once again, that is star 1 to ask a question. We will pause for just a moment to allow everyone a chance to join the queue. Thank you. We will take our first question from Anja Soderstrom with Sidoti & Company. Please go ahead. Your line is open.

Speaker #2: Once again, that is star 1 to ask a question, and we'll pause for just a moment to allow everyone a chance to join the queue.

Speaker #2: Thank you. We'll take our first question from Anya Soderstrom with Sadody & Company. Please go ahead, your line is open.

Speaker #4: Hi Stephen and Peter, this is Justin on for Anya. Thanks for taking questions. With the release of the first USA Track Pack in July, can you discuss how that is trending and the roadmap for additional content releases through the remainder of the year and into 2027?

[Analyst] (Sidoti & Company): Hi, Stephen and Peter. This is Justin on for Anja. Thanks for taking questions. With the release of the first US Track Pass in July, can you discuss how that is trending and the roadmap for additional content releases through the remainder of the year and into 2027?

Justin Mechetti: Hi, Stephen and Peter. This is Justin on for Anja. Thanks for taking questions. With the release of the first US Track Pass in July, can you discuss how that is trending and the roadmap for additional content releases through the remainder of the year and into 2027?

Operator 2: Pardon the interruption, gentlemen. You may want to check your mute switch. Mr. Hood, Mr. Hansen-Chambers.

Speaker #2: And pardon the interruption, gentlemen, you may want to check your mute switch. Mr. Hood, Mr. Hanson Chambers.

Operator: Pardon the interruption, gentlemen. You may want to check your mute switch. Mr. Hood, Mr. Hansen-Chambers.

Speaker #5: Hi there, Justin. Thank you for your question. Yeah, I mean, so far we've seen a very good reaction from our community to that release.

Peter Hansen-Chambers: Hi there, Justin. Thank you for your question. So far we've seen a very good reaction from our community to that release. It in fact has been performing better than we had hoped, which is good. It's been a strong initial release. There had been some anticipation about what we were going to launch and there's obviously sort of more speculation about what will come. As it stands right now, we're working on additional content that will follow this year. We've got another two releases of packs that will come later in the year, dates to be confirmed.

Speaker #5: It, in fact, has been performing better than we had hoped, which is good. It's been a strong initial release. There had been some anticipation about what we were going to launch, and there's obviously more speculation about what will come.

Speaker #5: As it stands right now, we're working on additional content that will follow this year. We've got another two releases of packs that will come.

Speaker #5: Later in the year; dates to be confirmed.

Speaker #4: Very helpful. Turning to Race Controls, how is recurring revenue building? Can you give us a sense of the growth trajectory you anticipate, and maybe where retention is running?

[Analyst] (Sidoti & Company): Very helpful. Turning to RaceControl.gg, how is recurring revenue building? Can you give us a sense of the growth trajectory you anticipate and maybe where retention is running?

Justin Mechetti: Very helpful. Turning to RaceControl.gg, how is recurring revenue building? Can you give us a sense of the growth trajectory you anticipate and maybe where retention is running?

Speaker #5: I'm sorry, Justin. Can you repeat the question?

Peter Hansen-Chambers: I'm sorry, Justin, can you repeat the question?

Speaker #4: Sure. Turning to Race Controls, how is recurring revenue building? And can you give us a sense of the growth trajectory you anticipate, and where retention is running?

[Analyst] (Sidoti & Company): Sure. Turning to RaceControl.gg, how is recurring revenue building? Can you give us a sense of the growth trajectory you anticipate and where retention is running?

Justin Mechetti: Sure. Turning to RaceControl.gg, how is recurring revenue building? Can you give us a sense of the growth trajectory you anticipate and where retention is running?

Peter Hansen-Chambers: Yeah, good questions. Yeah, at the moment, we've got a run rate of $2.9 million for the year. The attach rate to subscription seems to be relatively consistent, and we're able to forecast that relatively accurately. So we feel quite confident in its continuous growth throughout the rest of the year. We're unable to give guidance, obviously, in terms of precisely where that will land come the end of the year. But, I think we announced growth of 347% year-on-year, which means it's becoming a much more meaningful part of the business, and we anticipate that will continue. Obviously, this is new for Motorsport Games. It's taken up an increasing focus. There's a specific effort on improving retention. At the moment, we've got specific initiatives in place to ensure that subscribers do continue. That seems to be working well at this time.

Speaker #5: Yeah, good questions. At the moment, we've got a run rate of $2.9 million for the year. The attach rate to subscription seems to be relatively consistent, and we're able to forecast that relatively accurately.

Speaker #5: So we feel quite confident in its continued growth throughout the rest of the year. We're unable to give guidance, obviously, in terms of precisely where that will land come the end of the year, but I think we announced growth of 349% year-on-year, which means it's becoming a much more meaningful part of the business, and we anticipate that will continue.

Speaker #5: Obviously, this is new for Motorsport Games. It's taken up an increasing focus; there's a specific effort on improving retention. At the moment, we've got specific initiatives in place to ensure that subscribers do continue, and that seems to be working well at this time.

Peter Hansen-Chambers: Obviously, this is new for Motorsport Games. It's taken up an increasing focus. There's a specific effort on improving retention. At the moment, we've got specific initiatives in place to ensure that subscribers do continue. That seems to be working well at this time. So yeah, I think the key thing is for us to continue to keep the game exciting, servicing it with new content and making it an attractive prospect that people continue to subscribe to.

Speaker #5: So, yeah, I mean, I think the key thing is for us to continue to keep the game exciting, servicing it with new content, and making it an attractive prospect that people can continue to subscribe to.

Peter Hansen-Chambers: So yeah, I think the key thing is for us to continue to keep the game exciting, servicing it with new content and making it an attractive prospect that people continue to subscribe to.

Speaker #4: Thanks for all the color there. Last one for me—Peter, congratulations on the new role. Can you talk about your key priorities in this role?

[Analyst] (Sidoti & Company): Thanks for all the color there. Last one for me is, Peter, congratulations on the new role. Can you talk about your key priorities in this role?

Justin Mechetti: Thanks for all the color there. Last one for me is, Peter, congratulations on the new role. Can you talk about your key priorities in this role?

Speaker #5: Sure. Yeah, I mean, it's great to join the business. I think it's got a great team. I love the product. I love the focus.

Peter Hansen-Chambers: Sure. Yeah. It's great to join the business. I think it's got a great team. I love the product. I love the focus. But I also think we could do much more, and I know that Stephen Hood's very ambitious for the business. So it feels like a great place to be. We know that we can achieve a lot more, and we certainly want to try and accomplish that. Yeah, there's a number of things internally that we want to try and address. First and foremost, I think there's some aspects about how we approach culturally. Ultimately, I want to achieve, help us to become a high-performing business, and that's kind of multifaceted, and that probably require a lot longer to discuss.

Speaker #5: But I also think we could do much more, and I know that Steve's very ambitious for the business, so it feels like a great place to be.

Speaker #5: We know that we can achieve a lot more, and we certainly want to try and accomplish that. Yeah, I mean, there are a number of things internally that we want to try and address.

Speaker #5: I think first and foremost, I think there's some aspects about sort of how we approach sort of culturally the I mean, ultimately, I want to achieve help us to become a high-performing business, and that's kind of multifaceted, and that probably would require a lot longer to discuss.

Peter Hansen-Chambers: Ultimately, I want to achieve, help us to become a high-performing business, and that's kind of multifaceted, and that probably require a lot longer to discuss. We have performed very well to date, but culturally it requires a number of other things in order to have the energy to get us to the next phase of the journey. I think Stephen Hood said in his talk that we've done well, but this is not the end of the story. This is just part of the first chapter, if you like. It's been an eventful first chapter.

Speaker #5: We have performed very well today. But, sort of culturally, it requires a number of other things in order to have the energy to get us to the next phase of the journey.

Peter Hansen-Chambers: We have performed very well to date, but culturally it requires a number of other things in order to have the energy to get us to the next phase of the journey. I think Stephen Hood said in his talk that we've done well, but this is not the end of the story. This is just part of the first chapter, if you like. It's been an eventful first chapter. So yeah, there's a number of things that I think we need to work on to make sure that we've got the foundation for and the energy to take us forward going forward.

Speaker #5: I think Steve said in his talk that we've done well, but this is not the end of the story. This is just sort of part of—sort of just the first chapter, if you like.

Speaker #5: And it's been an eventful first chapter. So yeah, there are a number of things that I think we need to work on to make sure that we've got the foundation for, and the energy to sort of take us forward going forward.

Peter Hansen-Chambers: So yeah, there's a number of things that I think we need to work on to make sure that we've got the foundation for and the energy to take us forward going forward.

Speaker #4: Great, thanks for taking questions. I'll turn it back.

[Analyst] (Sidoti & Company): Great. Thanks for taking questions. I'll turn it back.

Justin Mechetti: Great. Thanks for taking questions. I'll turn it back.

Speaker #2: Thank you. And once again, if you would like to ask a question, that is star one on your telephone keypad. One moment while we queue.

Operator 2: Thank you. Once again, if you would like to ask a question, that is star one on your telephone keypad. One moment while we queue. We'll move on to Peter Sidoti with Sidoti & Company. Your line is open.

Operator: Thank you. Once again, if you would like to ask a question, that is star one on your telephone keypad. One moment while we queue. We'll move on to Peter Sidoti with Sidoti & Company. Your line is open.

Speaker #2: We'll move on to Peter Sadotti with Sadotti and Company. Your line is open.

Speaker #6: Hi, thank you very much for taking the call. Just two quick questions: Can you talk about subscriber acquisition costs, and also the competitive environment?

Peter Sidoti: Hi. Thank you very much for taking the call. Just two quick questions. Can you talk about subscriber acquisition costs and also just the competitive environment?

Speaker #5: Sure. Hi, Peter. So, yeah, I mean, at the moment, we've been in a great place where we've been able to acquire organically. So, obviously, the costs are very low and margins are very high, which is great.

Peter Hansen-Chambers: Sure. Hi, Peter. At the moment we've been in a great place where we've been able to acquire organically. Obviously, the costs are very low and the margin's very high, which is great. Whether we will experiment with paid acquisition in the future, I don't know. That's not something we're focused on right now. I think right now, I think we feel like although we're doing really well and I'm proud of the results that we've announced in terms of growth, I still think there's scope for us to further grow in terms of converting RaceControl.gg account holders into subscribers. I think we believe the value proposition is strong enough. I think we have to experiment with our communication and probably test some things in terms of maybe the way that we package some subscriptions, incentives, et cetera, learning from other industries.

Speaker #5: Whether we will experiment with sort of paid acquisition in the future, I don't know. That's not something we're focused on right now. I think right now, I think we feel like although we're doing really well and I am proud of the results that we've announced in terms of growth, I still think there's scope for us to sort of further grow in terms of converting Race Control account holders into subscribers.

Speaker #5: I think we believe the value proposition is strong enough. And I think we have to experiment with our communication, and probably test some things in terms of maybe the way that we package some subscriptions, incentives, etc., learning from other industries.

Peter Hansen-Chambers: I think we believe the value proposition is strong enough. I think we have to experiment with our communication and probably test some things in terms of maybe the way that we package some subscriptions, incentives, et cetera, learning from other industries. I think where we are in terms of that conversion, I would say is very strong. If you look at mobile free to play, which is a part of the gaming industry I've spent a long time in more recently. Traditionally, a successful game would be about 5% of the player base converting. That would be a target.

Speaker #5: I think where we are in terms of that conversion, I would say, is very strong if you look at sort of mobile free-to-play, which is a part of the gaming industry I've spent a long time in more recently, a sort of traditionally a successful game would be about 5% of the player base converting.

Peter Hansen-Chambers: I think where we are in terms of that conversion, I would say is very strong. If you look at mobile free to play, which is a part of the gaming industry I've spent a long time in more recently. Traditionally, a successful game would be about 5% of the player base converting. That would be a target. We are exceeding that right now. I think we should be proud of it, but I think there's still a way to go before we need to necessarily go down the road of paying to acquire.

Speaker #5: That would be a target, and we are exceeding that right now. So I think we should be proud of it, but I think there's still a way to go before we need to necessarily go down the road of paying to acquire.

Peter Hansen-Chambers: We are exceeding that right now. I think we should be proud of it, but I think there's still a way to go before we need to necessarily go down the road of paying to acquire.

Speaker #6: Okay, great. Thank you very much.

Peter Sidoti: Okay. Thank you very much.

Speaker #2: Thank you. And once again, press star one if you would like to ask a question. One moment while we queue. And it appears that we have no further questions at this time.

Operator 2: Thank you. Once again, star 1 if you would like to ask a question. One moment while we queue. It appears that we have no further questions at this time. I would be happy to return the call to our hosts for any closing comments. Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Operator: Thank you. Once again, star 1 if you would like to ask a question. One moment while we queue. It appears that we have no further questions at this time. I would be happy to return the call to our hosts for any closing comments. Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Speaker #2: I'd be happy to return the call to our hosts for any closing comments. Thank you. This brings us to the end of today's meeting.