Electronic Arts Delivers Strong Q1 with Broad-Based Portfolio Performance
New Battlefield 6 Reveal Just Days Away
Redwood City, CA — Electronic Arts Inc. released preliminary financial results for its first quarter ended June 30, 2025.
“We delivered a strong start to FY26, outperforming expectations ahead of what will be the most exciting launch slate in EA’s history,” said Andrew Wilson, CEO of Electronic Arts. “From deepening player engagement in EA SPORTS to gearing up for Battlefield 6 and skate., we’re scaling our global communities and continuing to shape the future of interactive entertainment.”
“We exceeded the high end of our guidance in Q1 highlighting the resilience of our live services and the breadth of our portfolio,” said Stuart Canfield, CFO of Electronic Arts. “With strong fundamentals and a robust pipeline ahead, we remain confident in our full-year guidance and long-term margin framework.”
Selected Operating Highlights and Metrics
- Net bookings 1 for the quarter totaled $1.298 billion, exceeding the high end of the guidance range of $1.275 billion.
- Q1 performance saw better-than-expected contributions from many areas in our portfolio, including EA SPORTS, Apex Legends, and catalog.
- Global Football delivered year-over-year growth in net bookings, highlighted by a record quarter in FC Mobile net bookings.
- EA SPORTS F1 25 delivered strong year-over-year net bookings growth, supported by an enhanced gameplay experience, including real-world integration with “ F1 The Movie”.
Selected Financial Highlights and Metrics
- Net revenue was $1.671 billion for the quarter.
- Net cash provided by operating activities was $17 million for the quarter and $1.976 billion for the trailing twelve months.
- EA repurchased 3.0 million shares for $375 million during the quarter, bringing the total for the trailing twelve months to 17.8 million shares for $2.500 billion.
Dividend
EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on September 17, 2025 to stockholders of record as of the close of business on August 27, 2025.
Business Outlook as of July 29, 2025
Fiscal Year 2026 Expectations
Our outlook for fiscal year 2026 provided on May 6, 2025 remains unchanged.
- Net bookings is expected to be approximately $7.600 billion to $8.000 billion.
- 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.
- 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.
Q2 Fiscal Year 2026 Expectations – Ending September 30, 2025
- Net bookings is expected to be approximately $1.800 billion to $1.900 billion.
- The Company expects a more normalized curve for College Football full game sales, partially offset by the launch of Madden NFL 26. Expectations are that early momentum in Apex Legends and catalog continues.
- This guidance includes a four-point year-over-year headwind related to phasing of the EA SPORTS FC 26 Ultimate Edition content, which will largely be recognized in Q3.
- Net revenue is expected to be approximately $1.750 billion to $1.850 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately $50 million.
- GAAP operating expenses are expected to be approximately $1.215 billion to $1.235 billion.
- Year-over-year growth in expenses is largely driven by marketing related to upcoming launches, notably Battlefield 6.
- Net income is expected to be approximately $73 million to $117 million.
- Diluted earnings per share is expected to be approximately $0.29 to $0.46.
- The Company estimates a share count of 253 million for purposes of calculating diluted earnings per share.
Quarterly Financial Highlights
|
|
Three Months Ended June 30, |
|||
|
|
2025 |
2024 |
||
|
(in $ millions, except per share amounts) |
|
|
||
|
Full game |
289 |
250 |
||
|
Live services and other |
1,382 |
|
1,410 |
|
|
Total net revenue |
1,671 |
|
1,660 |
|
|
|
|
|
||
|
Net income |
201 |
|
280 |
|
|
Diluted earnings per share |
0.79 |
|
1.04 |
|
|
|
|
|
||
|
Operating cash flow |
17 |
|
120 |
|
|
|
|
|
||
|
Value of shares repurchased |
375 |
|
375 |
|
|
Number of shares repurchased |
3.0 |
|
2.8 |
|
|
|
|
|
||
|
Cash dividend paid |
48 |
|
50 |
|
Trailing Twelve Months Financial Highlights
|
|
Twelve Months Ended June 30, |
|||
|
|
2025 |
2024 |
||
|
(in $ millions) |
|
|
||
|
Full game |
2,041 |
1,822 |
||
|
Live services and other |
5,433 |
|
5,476 |
|
|
Total net revenue |
7,474 |
|
7,298 |
|
|
|
|
|
||
|
Net income |
1,042 |
|
1,151 |
|
|
|
|
|
||
|
Operating cash flow |
1,976 |
|
2,076 |
|
|
|
|
|
||
|
Value of shares repurchased |
2,500 |
|
1,350 |
|
|
Number of shares repurchased |
17.8 |
|
10.2 |
|
Operating Metric
The following is a calculation of our total net bookings for the periods presented:
|
|
Three Months Ended June 30, |
Twelve Months Ended June 30, |
||||||
|
|
2025 |
2024 |
2025 |
2024 |
||||
|
(in $ millions) |
|
|
|
|
||||
|
Total net revenue |
1,671 |
|
1,660 |
|
7,474 |
|
7,298 |
|
|
Change in deferred net revenue (online-enabled games) |
(373 |
) |
(398 |
) |
(83 |
) |
(184 |
) |
|
Total net bookings |
1,298 |
|
1,262 |
|
7,391 |
|
7,114 |
|
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
|||
|
Unaudited Condensed Consolidated Statements of Operations |
|||
|
(in $ millions, except per share data) |
|||
|
|
|
|
|
|
|
Three Months Ended |
||
|
|
|||
|
|
2025 |
|
2024 |
|
Net revenue |
1,671 |
|
1,660 |
|
Cost of revenue |
279 |
|
263 |
|
Gross profit |
1,392 |
|
1,397 |
|
Operating expenses: |
|
|
|
|
Research and development |
706 |
|
629 |
|
Marketing and sales |
214 |
|
205 |
|
General and administrative |
184 |
|
180 |
|
Amortization of intangibles |
17 |
|
17 |
|
Restructuring |
— |
|
2 |
|
Total operating expenses |
1,121 |
|
1,033 |
|
Operating income |
271 |
|
364 |
|
Interest and other income (expense), net |
2 |
|
30 |
|
Income before provision for income taxes |
273 |
|
394 |
|
Provision for income taxes |
72 |
|
114 |
|
Net income |
201 |
|
280 |
|
Earnings per share |
|
|
|
|
Basic |
0.80 |
|
1.05 |
|
Diluted |
0.79 |
|
1.04 |
|
Number of shares used in computation |
|
|
|
|
Basic |
251 |
|
266 |
|
Diluted |
254 |
|
268 |
Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on May 6, 2025 for the three months ended June 30, 2025 plus a comparison to the actuals for the three months ended June 30, 2024.
|
|
Three Months Ended June 30, |
||||||||||
|
|
2025 Guidance (Mid-Point) |
|
|
|
2025 Actuals |
|
2024 Actuals |
||||
|
|
|
Variance |
|
|
|||||||
|
Net revenue |
|
|
|
|
|
|
|
||||
|
Net revenue |
1,600 |
|
|
71 |
|
|
1,671 |
|
|
1,660 |
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
|
Change in deferred net revenue (online-enabled games)1 |
(375 |
) |
|
2 |
|
|
(373 |
) |
|
(398 |
) |
|
Cost of revenue |
|
|
|
|
|
|
|
||||
|
Cost of revenue |
275 |
|
|
4 |
|
|
279 |
|
|
263 |
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
|
Acquisition-related expenses |
(10 |
) |
|
— |
|
|
(10 |
) |
|
(10 |
) |
|
Stock-based compensation |
(5 |
) |
|
2 |
|
|
(3 |
) |
|
(4 |
) |
|
Operating expenses |
|
|
|
|
|
|
|
||||
|
Operating expenses |
1,115 |
|
|
6 |
|
|
1,121 |
|
|
1,033 |
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
|
Acquisition-related expenses |
(20 |
) |
|
3 |
|
|
(17 |
) |
|
(17 |
) |
|
Restructuring and related charges |
— |
|
|
— |
|
|
— |
|
|
(6 |
) |
|
Stock-based compensation |
(145 |
) |
|
(4 |
) |
|
(149 |
) |
|
(139 |
) |
|
Income before tax |
|
|
|
|
|
|
|
||||
|
Income before tax |
211 |
|
|
62 |
|
|
273 |
|
|
394 |
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
|
Acquisition-related expenses |
30 |
|
|
(3 |
) |
|
27 |
|
|
27 |
|
|
Change in deferred net revenue (online-enabled games)1 |
(375 |
) |
|
2 |
|
|
(373 |
) |
|
(398 |
) |
|
Restructuring and related charges |
— |
|
|
— |
|
|
— |
|
|
6 |
|
|
Stock-based compensation |
150 |
|
|
2 |
|
|
152 |
|
|
143 |
|
|
Tax rate used for management reporting |
19 |
% |
|
|
|
19 |
% |
|
19 |
% |
|
|
Earnings per share |
|
|
|
|
|
|
|
||||
|
Basic |
0.58 |
|
|
0.22 |
|
|
0.80 |
|
|
1.05 |
|
|
Diluted |
0.58 |
|
|
0.21 |
|
|
0.79 |
|
|
1.04 |
|
|
Number of shares used in computation |
|
|
|
|
|
|
|
||||
|
Basic |
253 |
|
|
(2 |
) |
|
251 |
|
|
266 |
|
|
Diluted |
255 |
|
|
(1 |
) |
|
254 |
|
|
268 |
|
|
1The 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 SUBSIDIARIES |
|||||
|
Unaudited Condensed Consolidated Balance Sheets |
|||||
|
(in $ millions) |
|||||
|
|
|
|
|
||
|
|
June 30, 2025 |
|
March 31, 20252 |
||
|
ASSETS |
|
|
|
||
|
Current assets: |
|
|
|
||
|
Cash and cash equivalents |
1,518 |
|
|
2,136 |
|
|
Short-term investments |
112 |
|
|
112 |
|
|
Receivables, net |
533 |
|
|
679 |
|
|
Other current assets |
382 |
|
|
349 |
|
|
Total current assets |
2,545 |
|
|
3,276 |
|
|
Property and equipment, net |
592 |
|
|
586 |
|
|
Goodwill |
5,389 |
|
|
5,376 |
|
|
Acquisition-related intangibles, net |
271 |
|
|
293 |
|
|
Deferred income taxes, net |
2,462 |
|
|
2,420 |
|
|
Other assets |
440 |
|
|
417 |
|
|
TOTAL ASSETS |
11,699 |
|
|
12,368 |
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
|
Current liabilities: |
|
|
|
||
|
Accounts payable, accrued, and other current liabilities |
1,306 |
|
|
1,359 |
|
|
Deferred net revenue (online-enabled games) |
1,334 |
|
|
1,700 |
|
|
Senior notes, current, net |
400 |
|
|
400 |
|
|
Total current liabilities |
3,040 |
|
|
3,459 |
|
|
Senior notes, net |
1,484 |
|
|
1,484 |
|
|
Income tax obligations |
647 |
|
|
594 |
|
|
Other liabilities |
446 |
|
|
445 |
|
|
Total liabilities |
5,617 |
|
|
5,982 |
|
|
|
|
|
|
||
|
Stockholders’ equity: |
|
|
|
||
|
Common stock |
3 |
|
|
3 |
|
|
Retained earnings |
6,241 |
|
|
6,470 |
|
|
Accumulated other comprehensive loss |
(162 |
) |
|
(87 |
) |
|
Total stockholders’ equity |
6,082 |
|
|
6,386 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
11,699 |
|
|
12,368 |
|
|
2Derived from audited consolidated financial statements. |
|||||
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
|||||
|
Unaudited Condensed Consolidated Statements of Cash Flows |
|||||
|
(in $ millions) |
|||||
|
|
|
|
|
||
|
|
Three Months Ended June 30, |
||||
|
|
2025 |
|
2024 |
||
|
OPERATING ACTIVITIES |
|
|
|
||
|
Net income |
201 |
|
|
280 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||
|
Depreciation, amortization, accretion and impairment |
79 |
|
|
80 |
|
|
Stock-based compensation |
152 |
|
|
143 |
|
|
Change in assets and liabilities |
|
|
|
||
|
Receivables, net |
145 |
|
|
132 |
|
|
Other assets |
(55 |
) |
|
58 |
|
|
Accounts payable, accrued, and other liabilities |
(98 |
) |
|
(158 |
) |
|
Deferred income taxes, net |
(40 |
) |
|
(13 |
) |
|
Deferred net revenue (online-enabled games) |
(367 |
) |
|
(402 |
) |
|
Net cash provided by operating activities |
17 |
|
|
120 |
|
|
|
|
|
|
||
|
INVESTING ACTIVITIES |
|
|
|
||
|
Capital expenditures |
(72 |
) |
|
(67 |
) |
|
Proceeds from maturities and sales of short-term investments |
42 |
|
|
128 |
|
|
Purchase of short-term investments |
(42 |
) |
|
(130 |
) |
|
Acquisitions, net of cash acquired |
(17 |
) |
|
— |
|
|
Net cash used in investing activities |
(89 |
) |
|
(69 |
) |
|
|
|
|
|
||
|
FINANCING ACTIVITIES |
|
|
|
||
|
Cash dividends paid |
(48 |
) |
|
(50 |
) |
|
Cash paid to taxing authorities for shares withheld from employees |
(145 |
) |
|
(121 |
) |
|
Common stock repurchases and excise taxes paid |
(375 |
) |
|
(375 |
) |
|
Net cash used in financing activities |
(568 |
) |
|
(546 |
) |
|
|
|
|
|
||
|
Effect of foreign exchange on cash and cash equivalents |
22 |
|
|
(5 |
) |
|
Change in cash and cash equivalents |
(618 |
) |
|
(500 |
) |
|
Beginning cash and cash equivalents |
2,136 |
|
|
2,900 |
|
|
Ending cash and cash equivalents |
1,518 |
|
|
2,400 |
|
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
|||||||||||||||||
|
Unaudited Supplemental Financial Information and Business Metrics |
|||||||||||||||||
|
(in $ millions, except per share data) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
YOY % |
||||||
|
|
FY25 |
|
FY25 |
|
FY25 |
|
FY25 |
|
FY26 |
|
Change |
||||||
|
Net revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net revenue |
1,660 |
|
|
2,025 |
|
|
1,883 |
|
|
1,895 |
|
|
1,671 |
|
|
1 |
% |
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Change in deferred net revenue (online-enabled games)1 |
(398 |
) |
|
54 |
|
|
332 |
|
|
(96 |
) |
|
(373 |
) |
|
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gross profit |
1,397 |
|
|
1,569 |
|
|
1,427 |
|
|
1,527 |
|
|
1,392 |
|
|
— |
|
|
Gross profit (as a % of net revenue) |
84 |
% |
|
78 |
% |
|
76 |
% |
|
81 |
% |
|
83 |
% |
|
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Acquisition-related expenses |
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
|
|
|
Change in deferred net revenue (online-enabled games)1 |
(398 |
) |
|
54 |
|
|
332 |
|
|
(96 |
) |
|
(373 |
) |
|
|
|
|
Stock-based compensation |
4 |
|
|
4 |
|
|
3 |
|
|
3 |
|
|
3 |
|
|
|
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Operating income |
364 |
|
|
384 |
|
|
377 |
|
|
395 |
|
|
271 |
|
|
(26 |
%) |
|
Operating income (as a % of net revenue) |
22 |
% |
|
19 |
% |
|
20 |
% |
|
21 |
% |
|
16 |
% |
|
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Acquisition-related expenses |
27 |
|
|
27 |
|
|
26 |
|
|
27 |
|
|
27 |
|
|
|
|
|
Change in deferred net revenue (online-enabled games)1 |
(398 |
) |
|
54 |
|
|
332 |
|
|
(96 |
) |
|
(373 |
) |
|
|
|
|
Restructuring and related charges |
6 |
|
|
52 |
|
|
— |
|
|
4 |
|
|
— |
|
|
|
|
|
Stock-based compensation |
143 |
|
|
174 |
|
|
163 |
|
|
162 |
|
|
152 |
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income |
280 |
|
|
294 |
|
|
293 |
|
|
254 |
|
|
201 |
|
|
(28 |
%) |
|
Net income (as a % of net revenue) |
17 |
% |
|
15 |
% |
|
16 |
% |
|
13 |
% |
|
12 |
% |
|
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Acquisition-related expenses |
27 |
|
|
27 |
|
|
26 |
|
|
27 |
|
|
27 |
|
|
|
|
|
Change in deferred net revenue (online-enabled games)1 |
(398 |
) |
|
54 |
|
|
332 |
|
|
(96 |
) |
|
(373 |
) |
|
|
|
|
Restructuring and related charges |
6 |
|
|
52 |
|
|
— |
|
|
4 |
|
|
— |
|
|
|
|
|
Stock-based compensation |
143 |
|
|
174 |
|
|
163 |
|
|
162 |
|
|
152 |
|
|
|
|
|
Tax rate used for management reporting |
19 |
% |
|
19 |
% |
|
19 |
% |
|
19 |
% |
|
19 |
% |
|
|
|
|
Diluted earnings per share |
1.04 |
|
|
1.11 |
|
|
1.11 |
|
|
0.98 |
|
|
0.79 |
|
|
(24 |
%) |
|
Number of shares used in computation |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
266 |
|
|
264 |
|
|
262 |
|
|
257 |
|
|
251 |
|
|
|
|
|
Diluted |
268 |
|
|
266 |
|
|
265 |
|
|
259 |
|
|
254 |
|
|
|
|
|
1The 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 SUBSIDIARIES |
||||||||||||||||||
|
Unaudited Supplemental Financial Information and Business Metrics |
||||||||||||||||||
|
(in $ millions) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
YOY % |
||||||
|
|
|
FY25 |
|
FY25 |
|
FY25 |
|
FY25 |
|
FY26 |
|
Change |
||||||
|
QUARTERLY NET REVENUE PRESENTATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net revenue by composition |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Full game downloads |
|
190 |
|
|
475 |
|
|
446 |
|
|
367 |
|
|
233 |
|
|
23 |
% |
|
Packaged goods |
|
60 |
|
|
241 |
|
|
153 |
|
|
70 |
|
|
56 |
|
|
(7 |
%) |
|
Full game |
|
250 |
|
|
716 |
|
|
599 |
|
|
437 |
|
|
289 |
|
|
16 |
% |
|
Live services and other |
|
1,410 |
|
|
1,309 |
|
|
1,284 |
|
|
1,458 |
|
|
1,382 |
|
|
(2 |
%) |
|
Total net revenue |
|
1,660 |
|
|
2,025 |
|
|
1,883 |
|
|
1,895 |
|
|
1,671 |
|
|
1 |
% |
|
Full game |
|
15 |
% |
|
35 |
% |
|
32 |
% |
|
23 |
% |
|
17 |
% |
|
|
|
|
Live services and other |
|
85 |
% |
|
65 |
% |
|
68 |
% |
|
77 |
% |
|
83 |
% |
|
|
|
|
Total net revenue % |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Full game downloads |
|
(47 |
) |
|
70 |
|
|
25 |
|
|
(27 |
) |
|
(46 |
) |
|
|
|
|
Packaged goods |
|
(35 |
) |
|
46 |
|
|
9 |
|
|
(26 |
) |
|
(29 |
) |
|
|
|
|
Full game |
|
(82 |
) |
|
116 |
|
|
34 |
|
|
(53 |
) |
|
(75 |
) |
|
|
|
|
Live services and other |
|
(316 |
) |
|
(62 |
) |
|
298 |
|
|
(43 |
) |
|
(298 |
) |
|
|
|
|
Total change in deferred net revenue (online-enabled games) by composition1 |
|
(398 |
) |
|
54 |
|
|
332 |
|
|
(96 |
) |
|
(373 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net revenue by platform |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Console |
|
1,005 |
|
|
1,374 |
|
|
1,215 |
|
|
1,182 |
|
|
1,007 |
|
|
— |
|
|
PC & Other |
|
365 |
|
|
364 |
|
|
392 |
|
|
426 |
|
|
374 |
|
|
2 |
% |
|
Mobile |
|
290 |
|
|
287 |
|
|
276 |
|
|
287 |
|
|
290 |
|
|
— |
|
|
Total net revenue |
|
1,660 |
|
|
2,025 |
|
|
1,883 |
|
|
1,895 |
|
|
1,671 |
|
|
1 |
% |
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Console |
|
(328 |
) |
|
108 |
|
|
275 |
|
|
(86 |
) |
|
(317 |
) |
|
|
|
|
PC & Other |
|
(70 |
) |
|
(37 |
) |
|
33 |
|
|
(11 |
) |
|
(54 |
) |
|
|
|
|
Mobile |
|
— |
|
|
(17 |
) |
|
24 |
|
|
1 |
|
|
(2 |
) |
|
|
|
|
Total change in deferred net revenue (online-enabled games) by platform1 |
|
(398 |
) |
|
54 |
|
|
332 |
|
|
(96 |
) |
|
(373 |
) |
|
|
|
|
1The 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 SUBSIDIARIES |
|||||||||||||||||
|
Unaudited Supplemental Financial Information and Business Metrics |
|||||||||||||||||
|
(in $ millions) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
YOY % |
||||||
|
|
FY25 |
|
FY25 |
|
FY25 |
|
FY25 |
|
FY26 |
|
Change |
||||||
|
CASH FLOW DATA |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Investing cash flow |
(69 |
) |
|
(46 |
) |
|
(62 |
) |
|
214 |
|
|
(89 |
) |
|
|
|
|
Investing cash flow – TTM |
(232 |
) |
|
(215 |
) |
|
(226 |
) |
|
37 |
|
|
17 |
|
|
107 |
% |
|
Financing cash flow |
(546 |
) |
|
(402 |
) |
|
(504 |
) |
|
(1,411 |
) |
|
(568 |
) |
|
|
|
|
Financing cash flow – TTM |
(1,688 |
) |
|
(1,739 |
) |
|
(1,812 |
) |
|
(2,863 |
) |
|
(2,885 |
) |
|
(71 |
%) |
|
Operating cash flow |
120 |
|
|
234 |
|
|
1,176 |
|
|
549 |
|
|
17 |
|
|
|
|
|
Operating cash flow – TTM |
2,076 |
|
|
2,198 |
|
|
2,110 |
|
|
2,079 |
|
|
1,976 |
|
|
(5 |
%) |
|
Capital expenditures |
67 |
|
|
50 |
|
|
50 |
|
|
54 |
|
|
72 |
|
|
|
|
|
Capital expenditures – TTM |
221 |
|
|
220 |
|
|
218 |
|
|
221 |
|
|
226 |
|
|
2 |
% |
|
Free cash flow3 |
53 |
|
|
184 |
|
|
1,126 |
|
|
495 |
|
|
(55 |
) |
|
|
|
|
Free cash flow3 – TTM |
1,855 |
|
|
1,978 |
|
|
1,892 |
|
|
1,858 |
|
|
1,750 |
|
|
(6 |
%) |
|
Common stock repurchases and excise taxes paid |
375 |
|
|
375 |
|
|
383 |
|
|
1,375 |
|
|
375 |
|
|
— |
|
|
Cash dividends paid |
50 |
|
|
51 |
|
|
50 |
|
|
48 |
|
|
48 |
|
|
(4 |
%) |
|
DEPRECIATION |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Depreciation expense |
51 |
|
|
51 |
|
|
51 |
|
|
51 |
|
|
52 |
|
|
2 |
% |
|
BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cash and cash equivalents |
2,400 |
|
|
2,197 |
|
|
2,776 |
|
|
2,136 |
|
|
1,518 |
|
|
|
|
|
Short-term investments |
366 |
|
|
366 |
|
|
379 |
|
|
112 |
|
|
112 |
|
|
|
|
|
Cash and cash equivalents, and short-term investments |
2,766 |
|
|
2,563 |
|
|
3,155 |
|
|
2,248 |
|
|
1,630 |
|
|
(41 |
%) |
|
Receivables, net |
433 |
|
|
1,012 |
|
|
742 |
|
|
679 |
|
|
533 |
|
|
23 |
% |
|
STOCK-BASED COMPENSATION |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cost of revenue |
4 |
|
|
4 |
|
|
3 |
|
|
3 |
|
|
3 |
|
|
|
|
|
Research and development |
101 |
|
|
122 |
|
|
119 |
|
|
115 |
|
|
110 |
|
|
|
|
|
Marketing and sales |
12 |
|
|
16 |
|
|
14 |
|
|
14 |
|
|
12 |
|
|
|
|
|
General and administrative |
26 |
|
|
32 |
|
|
27 |
|
|
30 |
|
|
27 |
|
|
|
|
|
Total stock-based compensation |
143 |
|
|
174 |
|
|
163 |
|
|
162 |
|
|
152 |
|
|
|
|
|
RESTRUCTURING AND RELATED CHARGES |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Restructuring |
2 |
|
|
51 |
|
|
1 |
|
|
3 |
|
|
— |
|
|
|
|
|
Office space reductions |
4 |
|
|
1 |
|
|
(1 |
) |
|
1 |
|
|
— |
|
|
|
|
|
Total restructuring and related charges |
6 |
|
|
52 |
|
|
— |
|
|
4 |
|
|
— |
|
|
|
|
|
3Free cash flow is defined as Operating cash flow less Capital expenditures. |
|||||||||||||||||
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
|||||||||
|
Unaudited 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 June 30, 2025 plus a comparison to the actuals for the three months ended June 30, 2024. |
|||||||||
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
||||||
|
|
June 30 |
|
|
||||||
|
|
2025 |
|
2024 |
|
YOY % Change |
||||
|
|
|
|
|
|
|
||||
|
Net revenue |
1,671 |
|
|
1,660 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
||||
|
GAAP operating income |
271 |
|
|
364 |
|
|
(26 |
%) |
|
|
Acquisition-related expenses |
27 |
|
|
27 |
|
|
|
||
|
Restructuring and related charges |
— |
|
|
6 |
|
|
|
||
|
Stock-based compensation |
152 |
|
|
143 |
|
|
|
||
|
Non-GAAP operating income |
450 |
|
|
540 |
|
|
(17 |
%) |
|
|
|
|
|
|
|
|
||||
|
GAAP operating margin |
16.2 |
% |
|
21.9 |
% |
|
|
||
|
Non-GAAP operating margin |
26.9 |
% |
|
32.5 |
% |
|
|
||
|
Impact from change in deferred net revenue (online-enabled games) |
(2,100 bps) |
|
(2,120 bps) |
|
|
||||
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
|||||||||||||||||
|
GAAP 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, 2026 |
||||||||||||||||
|
|
GAAP-Based Financial Data |
|
|
|
|
|
GAAP-Based Financial Data |
||||||||||
|
|
|
A |
|
|
B |
|
C |
|
|
|
|
|
|
||||
|
|
GAAP Guidance Range |
|
Acquisition-related expenses5 |
|
Stock-based compensation5 |
|
Non-GAAP Guidance Range = A + B +C |
|
Change in deferred net revenue (online-enabled games)5 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net revenue |
7,100 |
|
to |
7,500 |
|
|
— |
|
— |
|
7,100 |
|
to |
7,500 |
|
|
500 |
|
Cost of revenue |
1,475 |
|
to |
1,515 |
|
|
(40) |
|
(15) |
|
1,420 |
|
to |
1,460 |
|
|
— |
|
Operating expense |
4,470 |
|
to |
4,570 |
|
|
(70) |
|
(650) |
|
3,750 |
|
to |
3,850 |
|
|
— |
|
Operating margin |
16.3 |
% |
to |
18.9 |
% |
|
150 bps |
|
910 bps |
|
27.2 |
% |
to |
29.2 |
% |
|
480 bps to 440 bps |
|
Income before provision for income taxes |
1,136 |
|
to |
1,391 |
|
|
110 |
|
665 |
|
1,911 |
|
to |
2,166 |
|
|
500 |
|
Net income4 |
795 |
|
to |
974 |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Number of shares used in computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Diluted |
257 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
4 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 SUBSIDIARIES |
|||||||||
|
GAAP-Based Financial Data for Guidance |
|||||||||
|
(in $ millions) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides supplemental information to the Company’s Q2 FY26 guidance. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ending September 30, 2025 |
||||||||
|
|
GAAP-Based Financial Data |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Guidance Range |
|
Acquisition-related expenses |
|
Stock-based compensation |
|
Change in deferred net revenue (online-enabled games) |
||
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
1,750 |
to |
1,850 |
|
— |
|
— |
|
50 |
|
Cost of revenue |
430 |
to |
450 |
|
(10) |
|
(5) |
|
— |
|
Operating expense |
1,215 |
to |
1,235 |
|
(20) |
|
(170) |
|
— |
|
Income before provision for income taxes |
104 |
to |
167 |
|
30 |
|
175 |
|
50 |
|
Net income4 |
73 |
to |
117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in computation: |
|
|
|
|
|
|
|
|
|
|
Diluted |
253 |
|
|
|
|
|
|
||
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