NEWS.EA.COM
Electronic Arts Reports Q4 and FY25 Results
May 06, 2025
Strong finish to FY25 from EA SPORTS FC and Split Fiction; positions EA for growth acceleration and a Battlefield launch in FY26
REDWOOD CITY, Calif.--(BUSINESS WIRE)--
Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2025.“The incredible success of College Football and the enduring strength of FC drove another record year for EA SPORTS, while The Sims capped FY25 with a historic Q4,” said Andrew Wilson, CEO of Electronic Arts. “As we look to the future, we’re confident in our ability to execute across a deep pipeline — beginning this summer with the highly anticipated reveal of Battlefield, a pivotal step in delivering on our next generation of blockbuster entertainment.”“Q4 marked a strong finish to FY25, with broad-based momentum across the portfolio positioning the business for accelerated growth,” said Stuart Canfield, CFO of Electronic Arts. “As we enter FY26, we remain focused on disciplined execution as we build toward a slate of groundbreaking upcoming releases.”Selected Operating Highlights and MetricsNet bookings1for FY25 totaled $7.355 billion.The EA SPORTS portfolio delivered another record net bookings year in FY25.EA’s American Football franchise exceeded expectations and reached over $1 billion in net bookings in FY25.Celebrating its 25th birthday, The Sims franchise continues its strong momentum with double digit growth in the quarter.In EA SPORTS FC, player monetization was up double digits, starting with the mid-January gameplay update.Split Fiction has sold nearly 4 million units since its hugely successful launch in March.Selected Financial Highlights and MetricsNet revenue for FY25 was $7.463 billion.Net cash provided by operating activities was $549 million for the quarter and $2.079 billion for the fiscal year.EA repurchased 9.8 million shares for $1.375 billion during the quarter, bringing the total for the fiscal year to 17.6 million shares for $2.500 billion.DividendEA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 18, 2025 to stockholders of record as of the close of business on May 28, 2025.Business Outlook as of May 6, 2025Fiscal Year 2026 ExpectationsOperational outlook metrics:Fiscal year 2026 net bookings is expected to be approximately $7.600 billion to $8.000 billion.Year-over-year net bookings growth in fiscal year 2026 is expected to be driven by the EA SPORTS portfolio, The Sims, and the launches of Battlefield and skate., partially offset by approximately 5 points of weakness in catalog and Apex Legends.The Company expects continued growth in live services, as well as the launch of new non-annual titles in fiscal year 2027.Financial outlook metrics:Net revenue is expected to be approximately $7.100 billion to $7.500 billion.Change in deferred net revenue (online-enabled games) is expected to be approximately $500 million.GAAP operating expenses are expected to be approximately $4.470 billion to $4.570 billion.Year-over-year increases in expenses are largely attributable to costs related to Battlefield marketing.Net income is expected to be approximately $795 million to $974 million.Diluted earnings per share is expected to be approximately $3.09 to $3.79.Operating cash flow is expected to be approximately $2.200 billion to $2.400 billion.The Company estimates a share count of 257 million for purposes of calculating diluted earnings per share.The Company intends to return at least 80% of free cash flow with stock repurchases and dividends through fiscal year 2027.The Company reiterates its financial margin framework through fiscal year 2027 shared at its September 2024 Investor Day.Q1 Fiscal Year 2026 Expectations – Ending June 30, 2025Operational outlook metric:Net bookings is expected to be approximately $1.175 billion to $1.275 billion.Live services growth, excluding Apex Legends, is expected to be up low-single-digits year-over-year led by the EA SPORTS portfolio, offset by approximately 5 points of headwind from Apex Legends and 2 points of headwind from catalog.Financial outlook metrics:Net revenue is expected to be approximately $1.550 billion to $1.650 billion.Change in deferred net revenue (online-enabled games) is expected to be approximately ($375) million.GAAP operating expenses are expected to be approximately $1.110 billion to $1.120 billion.Expenses in Q1 are impacted by continued investments in line with Q4 FY25, as well as costs associated with resource reprioritization.Net income is expected to be approximately $125 million to $169 million.Diluted earnings per share is expected to be approximately $0.49 to $0.66.The Company estimates a share count of 255 million for purposes of calculating diluted earnings per share.Quarterly Financial HighlightsThree Months EndedMarch 31,20252024(in $ millions, except per share amounts)Full game437333Live services and other1,4581,446Total net revenue1,8951,779Net income254182Diluted earnings per share0.980.67Operating cash flow549580Value of shares repurchased1,375325Number of shares repurchased9.82.3Cash dividend paid4851Fiscal Year Financial HighlightsTwelve Months EndedMarch 31,20252024(in $ millions, except per share amounts)Full game2,0022,015Live services and other5,4615,547Total net revenue7,4637,562Net income1,1211,273Diluted earnings per share4.254.68Operating cash flow2,0792,315Value of shares repurchased2,5001,300Number of shares repurchased17.610.0Cash dividend paid199205Operating MetricThe following is a calculation of our total net bookings for the periods presented:Three Months EndedMarch 31,Twelve MonthsEnded March 31,2025202420252024(in $ millions)Total net revenue1,8951,7797,4637,562Change in deferred net revenue (online-enabled games)(96)(113)(108)(132)Total net bookings1,7991,6667,3557,430Conference Call and Supporting DocumentsElectronic Arts will host a conference call on May 6, 2025 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth fiscal quarter and fiscal year ended March 31, 2025 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (855) 761-5600 (domestic) or (646) 307-1097 (international), using the conference code 5939891 or via webcast at EA’s IR Website at http://ir.ea.com.EA has posted a slide presentation with a financial model of EA’s historical results and guidance on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website.A dial-in replay of the conference call will be available until May 13, 2025 at (800) 770-2030 (domestic) or (609) 800-9099 (international) using conference code 5939891. An audio webcast replay of the conference call will be available for one year on EA’s IR Website.Forward-Looking StatementsSome statements set forth in this release, including the information relating to EA’s expectations under the heading “Business Outlook as of May 6, 2025” and other information regarding EA's expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements.Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences and trends; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.These forward-looking statements are current as of May 6, 2025. Electronic Arts assumes no obligation to revise or update any forward-looking statement, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2025. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2025.About Electronic ArtsElectronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.In fiscal year 2025, EA posted GAAP net revenue of approximately $7.5 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FC™, Battlefield™, Apex Legends™, The Sims™, EA SPORTS™ Madden NFL, EA SPORTS™ College Football, Need for Speed™, Dragon Age™, Titanfall™, Plants vs. Zombies™ and EA SPORTS F1®. More information about EA is available at www.ea.com/news.EA, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Dragon Age, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL, and F1 are the property of their respective owners and used with permission.1 Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.ELECTRONIC ARTS INC. AND SUBSIDIARIESUnaudited Condensed Consolidated Statements of Operations(in $ millions, except per share data)Three Months EndedMarch 31,Twelve Months EndedMarch 31,2025202420252024Net revenue1,8951,7797,4637,562Cost of revenue3683571,5431,710Gross profit1,5271,4225,9205,852Operating expenses:Research and development6866382,5692,420Marketing and sales2342349621,019General and administrative192185745691Amortization and impairment of intangibles177267142Restructuring3595762Total operating expenses1,1321,1884,4004,334Operating income3952341,5201,518Interest and other income (expense), net12268571Income before provision for income taxes4072601,6051,589Provision for income taxes15378484316Net income2541821,1211,273Earnings per shareBasic0.990.684.284.71Diluted0.980.674.254.68Number of shares used in computationBasic257267262270Diluted259270264272Results (in $ millions, except per share data)The following table reports the variance of the actuals versus our guidance provided on February 4, 2025 for the three months ended March 31, 2025 plus a comparison to the actuals for the three months ended March 31, 2024.Three Months Ended March 31,2025 Guidance(Mid-Point)2025Actuals2024ActualsVarianceNet revenueNet revenue1,7571381,8951,779GAAP-based financial dataChange in deferred net revenue (online-enabled games)1(238)142(96)(113)Cost of revenueCost of revenue31058368357GAAP-based financial dataAcquisition-related expenses(10)—(10)(29)Stock-based compensation(4)1(3)(2)Operating expensesOperating expenses1,117151,1321,188GAAP-based financial dataAcquisition-related expenses(20)3(17)(72)Restructuring and related charges(7)3(4)(61)Stock-based compensation(161)2(159)(146)Income before taxIncome before tax35156407260GAAP-based financial dataAcquisition-related expenses30(3)27101Change in deferred net revenue (online-enabled games)1(238)142(96)(113)Restructuring and related charges7(3)461Stock-based compensation165(3)162148Tax rate used for management reporting19%19%19%Earnings per shareBasic0.830.160.990.68Diluted0.820.160.980.67Number of shares used in computationBasic262(5)257267Diluted264(5)2592701 The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.ELECTRONIC ARTS INC. AND SUBSIDIARIESUnaudited Condensed Consolidated Balance Sheets(in $ millions)March 31, 2025March 31, 20242ASSETSCurrent assets:Cash and cash equivalents2,1362,900Short-term investments112362Receivables, net679565Other current assets349420Total current assets3,2764,247Property and equipment, net586578Goodwill5,3765,379Acquisition-related intangibles, net293400Deferred income taxes, net2,4202,380Other assets417436TOTAL ASSETS12,36813,420LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities:Accounts payable, accrued, and other current liabilities1,3591,276Deferred net revenue (online-enabled games)1,7001,814Senior notes, current, net400—Total current liabilities3,4593,090Senior notes, net1,4841,882Income tax obligations594497Other liabilities445438Total liabilities5,9825,907Stockholders’ equity:Common stock33Retained earnings6,4707,582Accumulated other comprehensive loss(87)(72)Total stockholders’ equity6,3867,513TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY12,36813,4202 Derived from audited consolidated financial statements.ELECTRONIC ARTS INC. AND SUBSIDIARIESUnaudited Condensed Consolidated Statements of Cash Flows(in $ millions)Three Months EndedMarch 31,Twelve Months EndedMarch 31,2025202420252024OPERATING ACTIVITIESNet income2541821,1211,273Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, accretion and impairment79149356404Stock-based compensation162148642584Change in assets and liabilitiesReceivables, net64303(115)119Other assets19(38)40148Accounts payable, accrued, and other liabilities29(53)190(208)Deferred income taxes, net48(6)(41)82Deferred net revenue (online-enabled games)(106)(105)(114)(87)Net cash provided by operating activities5495802,0792,315INVESTING ACTIVITIESCapital expenditures(54)(51)(221)(199)Proceeds from maturities and sales of short-term investments329182695632Purchase of short-term investments(61)(180)(437)(640)Net cash provided by (used in) investing activities214(49)37(207)FINANCING ACTIVITIESProceeds from issuance of common stock35347877Cash dividends paid(48)(51)(199)(205)Cash paid to taxing authorities for shares withheld from employees(23)(18)(234)(196)Common stock repurchases and excise taxes paid(1,375)(325)(2,508)(1,300)Net cash used in financing activities(1,411)(360)(2,863)(1,624)Effect of foreign exchange on cash and cash equivalents8(13)(17)(8)Change in cash and cash equivalents(640)158(764)476Beginning cash and cash equivalents2,7762,7422,9002,424Ending cash and cash equivalents2,1362,9002,1362,900ELECTRONIC ARTS INC. AND SUBSIDIARIESUnaudited Supplemental Financial Information and Business Metrics(in $ millions, except per share data)Q4Q1Q2Q3Q4YOY %FY24FY25FY25FY25FY25ChangeNet revenueNet revenue1,7791,6602,0251,8831,8957%GAAP-based financial dataChange in deferred net revenue (online-enabled games)1(113)(398)54332(96)Gross profitGross profit1,4221,3971,5691,4271,5277%Gross profit (as a % of net revenue)80%84%78%76%81%GAAP-based financial dataAcquisition-related expenses2910101010Change in deferred net revenue (online-enabled games)1(113)(398)54332(96)Stock-based compensation24433Operating incomeOperating income23436438437739569%Operating income (as a % of net revenue)13%22%19%20%21%GAAP-based financial dataAcquisition-related expenses10127272627Change in deferred net revenue (online-enabled games)1(113)(398)54332(96)Restructuring and related charges61652—4Stock-based compensation148143174163162Net incomeNet income18228029429325440%Net income (as a % of net revenue)10%17%15%16%13%GAAP-based financial dataAcquisition-related expenses10127272627Change in deferred net revenue (online-enabled games)1(113)(398)54332(96)Restructuring and related charges61652—4Stock-based compensation148143174163162Tax rate used for management reporting19%19%19%19%19%Diluted earnings per share0.671.041.111.110.9846%Number of shares used in computationBasic267266264262257Diluted2702682662652591 The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.ELECTRONIC ARTS INC. AND SUBSIDIARIESUnaudited Supplemental Financial Information and Business Metrics(in $ millions)Q4Q1Q2Q3Q4YOY %FY24FY25FY25FY25FY25ChangeQUARTERLY NET REVENUE PRESENTATIONSNet revenue by compositionFull game downloads26519047544636738%Packaged goods6860241153703%Full game33325071659943731%Live services and other1,4461,4101,3091,2841,4581%Total net revenue1,7791,6602,0251,8831,8957%Full game19%15%35%32%23%Live services and other81%85%65%68%77%Total net revenue %100%100%100%100%100%GAAP-based financial dataFull game downloads(37)(47)7025(27)Packaged goods(37)(35)469(26)Full game(74)(82)11634(53)Live services and other(39)(316)(62)298(43)Total change in deferred net revenue (online-enabled games) by composition1(113)(398)54332(96)Net revenue by platformConsole1,0491,0051,3741,2151,18213%PC & Other4233653643924261%Mobile307290287276287(7%)Total net revenue1,7791,6602,0251,8831,8957%GAAP-based financial dataConsole(94)(328)108275(86)PC & Other(10)(70)(37)33(11)Mobile(9)—(17)241Total change in deferred net revenue (online-enabled games) by platform1(113)(398)54332(96)1 The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.ELECTRONIC ARTS INC. AND SUBSIDIARIESUnaudited Supplemental Financial Information and Business Metrics(in $ millions)Q4Q1Q2Q3Q4YOY %FY24FY25FY25FY25FY25ChangeCASH FLOW DATAInvesting cash flow(49)(69)(46)(62)214Investing cash flow - TTM(207)(232)(215)(226)37118%Financing cash flow(360)(546)(402)(504)(1,411)Financing cash flow - TTM(1,624)(1,688)(1,739)(1,812)(2,863)(76%)Operating cash flow5801202341,176549Operating cash flow - TTM2,3152,0762,1982,1102,079(10%)Capital expenditures5167505054Capital expenditures - TTM19922122021822111%Free cash flow3529531841,126495Free cash flow3 - TTM2,1161,8551,9781,8921,858(12%)Common stock repurchases and excise taxes paid3253753753831,375323%Cash dividends paid5150515048(6%)DEPRECIATIONDepreciation expense50515151512%BALANCE SHEET DATACash and cash equivalents2,9002,4002,1972,7762,136Short-term investments362366366379112Cash and cash equivalents, and short-term investments3,2622,7662,5633,1552,248(31%)Receivables, net5654331,01274267920%STOCK-BASED COMPENSATIONCost of revenue24433Research and development104101122119115Marketing and sales1412161414General and administrative2826322730Total stock-based compensation148143174163162RESTRUCTURING AND RELATED CHARGESRestructuring5925113Office space reductions241(1)1Total restructuring and related charges61652—43 Free cash flow is defined as Operating cash flow less Capital expenditures.ELECTRONIC ARTS INC. AND SUBSIDIARIESUnaudited Reconciliation of GAAP to Non-GAAP Financial Measures(in $ millions)The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the twelve months ended March 31, 2025 plus a comparison to the actuals for the twelve months ended March 31, 2024.Twelve Months EndedMarch 31,20252024YOY % ChangeNet revenue7,4637,562(1%)GAAP operating income1,5201,518—Acquisition-related expenses107218Restructuring and related charges6264Stock-based compensation642584Non-GAAP operating income2,3312,384(2%)GAAP operating margin20.4%20.1%Non-GAAP operating margin31.2%31.5%Impact from change in deferred net revenue (online-enabled games)(100 bps)(120 bps)ELECTRONIC ARTS INC. AND SUBSIDIARIESUnaudited Reconciliation of GAAP to Non-GAAP Financial Measures(in $ millions)The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the three months ended March 31, 2025 plus a comparison to the actuals for the three months ended March 31, 2024.Three Months EndedMarch 31,20252024YOY % ChangeNet revenue1,8951,7797%GAAP operating income39523469%Acquisition-related expenses27101Restructuring and related charges461Stock-based compensation162148Non-GAAP operating income5885448%GAAP operating margin20.8%13.2%Non-GAAP operating margin31.0%30.6%Impact from change in deferred net revenue (online-enabled games)(370 bps)(470 bps)ELECTRONIC ARTS INC. AND SUBSIDIARIESGAAP Guidance to Non-GAAP Guidance(in $ millions)The following table provides GAAP to Non-GAAP reconciliation of the Company’s FY26 guidance.Twelve Months Ending March 31, 2026GAAP-Based Financial DataGAAP-BasedFinancial DataABCGAAP GuidanceRangeAcquisition-relatedexpenses5Stock-basedcompensation5Non-GAAPGuidance Range= A + B +CChange in deferrednet revenue (online-enabled games)5Net revenue7,100to7,500——7,100to7,500500Cost of revenue1,475to1,515(40)(15)1,420to1,460—Operating expense4,470to4,570(70)(650)3,750to3,850—Operating margin16.3%to18.9%150 bps910 bps27.2%to29.2%480 bps to 440 bpsIncome before provision for income taxes1,136to1,3911106651,911to2,166500Net income4795to974Number of shares used in computation:Diluted2574 The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan and analyze future periods.5 The mid-point of the range has been used for purposes of presenting reconciling items to operating margin.ELECTRONIC ARTS INC. AND SUBSIDIARIESGAAP-Based Financial Data for Guidance(in $ millions)The following table provides supplemental information to the Company’s Q1 FY26 guidance.Three Months Ending June 30, 2025GAAP-Based Financial DataGAAP GuidanceRangeAcquisition-related expensesStock-basedcompensationChange indeferred netrevenue (online-enabled games)Net revenue1,550to1,650——(375)Cost of revenue265to285(10)(5)—Operating expense1,110to1,120(20)(145)—Income before provision for income taxes179to24230150(375)Net income4125to169Number of shares used in computation:Diluted2554 The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan and analyze future periods.Non-GAAP Financial Measures
As a supplement to the Company’s financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents certain non-GAAP measures of financial performance, including non-GAAP operating margin and free cash flow. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the items associated with the Company’s results of operations as determined in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.The non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring and related charges, and capital expenditures, as applicable in any given reporting period and our outlook. The Company may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. Management believes that these non-GAAP financial measures provide investors with additional useful information to better understand and evaluate the Company’s operating results and future prospects because they exclude certain items that may not be indicative of the Company’s core business, operating results, or future outlook. These non-GAAP financial measures, with further adjustments are used by management to understand ongoing financial and business performance.The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan, and analyze future periods. Accordingly, the Company applies the same tax rate to its management reporting financial results.Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure.
Andrew Uerkwitz
Vice President, Investor Relations
650-674-7191
[email protected]
Justin Higgs
Vice President, Corporate Communications
925-502-9253
[email protected]
Source: Electronic Arts Inc.
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