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EA · Electronic Arts

34 filings

10-K

EA 10-K Annual Reports

Electronic Arts - 34 annual reports

Filing record · 2016–202610-K1210-Q328-K135

2026-A
Electronic Arts Annual Report (Amendment), Year Ended Mar 31, 2026
Electronic Arts Inc. (EA) filed its 10-K annual report on July 28, 2026, detailing its corporate governance and executive compensation for the fiscal year ending March 31, 2026. The report highlights a stable and experienced Board of Directors with significant financial, operational, and industry expertise. Compensation structures for Named Executive Officers (NEOs) are designed to align with stockholder interests through a pay-for-performance philosophy, emphasizing competitive pay, equity ownership, and incentives tied to business results. The company also outlines robust policies for director independence, related-person transactions, and insider trading, reinforcing its commitment to strong corporate governance. The fiscal year 2026 compensation for NEOs included base salary, annual cash bonuses tied to financial and business performance metrics, and long-term equity incentives comprising Performance-Based Restricted Stock Units (PRSUs) and Time-Based Restricted Stock Units (RSUs). The company achieved strong performance in its bonus program, with payouts reflecting both financial results and strategic objectives, including progress in generative AI strategy and building massive online communities. The report details the compensation peer group used for benchmarking, the structure of equity awards, and benefits provided to employees and directors. Significant emphasis is placed on risk mitigation in compensation practices, with the Compensation Committee concluding that current programs do not encourage excessive risk-taking.
Jul 28, 2026
2026
Electronic Arts Annual Report, Year Ended Mar 31, 2026
Electronic Arts Inc. (EA) reported total net revenue of $7.531 billion for the fiscal year ended March 31, 2026, a slight increase of 1% year-over-year. While live services revenue experienced a modest 1% decline, it still represented a significant 71% of total net revenue, highlighting its crucial role in EA's business model. Full game download revenue saw a healthy 16% increase, indicating a continued shift towards digital purchases. The company is in the process of being acquired by an investor consortium for $210 per share in cash, a transaction expected to close subject to regulatory approvals. The ongoing merger adds a layer of uncertainty, impacting operational flexibility and incurring significant transaction costs, though the acquisition itself is not contingent on financing. Financially, EA reported operating income of $1.162 billion, down 24% year-over-year, largely due to a 9% increase in operating expenses, primarily driven by higher research and development and marketing costs associated with new game releases. Net income was $887 million. The company maintained a strong liquidity position with $2.98 billion in cash, cash equivalents, and short-term investments, and generated robust net cash from operating activities. Despite a challenging competitive landscape and potential risks associated with the merger, EA's focus on its core live services and digital distribution continues to be a strategic imperative.
May 11, 2026
2025
Electronic Arts Annual Report, Year Ended Mar 31, 2025
Electronic Arts (EA) reported total net revenue of $7,463 million for the fiscal year ended March 31, 2025, a slight decrease of 1% year-over-year. This performance was primarily driven by its global football and American football franchises, Apex Legends, and The Sims 4. While overall revenue saw a marginal dip, the company's live services and other net revenue, which constitutes a significant 73% of total revenue, experienced a 2% decline to $5,461 million. Despite this, EA demonstrated improved profitability with a gross margin of 79.3%, up 2 percentage points year-over-year, and maintained operating income at $1,520 million. The company continues to focus on its live services model, particularly through its popular Ultimate Team modes within sports franchises, which remain material to its business. EA also returned substantial capital to shareholders, repurchasing $2.5 billion in stock and paying $199 million in dividends, underscoring a commitment to shareholder returns. The company faces intense competition and evolving market dynamics, with a significant portion of its revenue concentrated in its most popular franchises, highlighting the importance of continued innovation and player engagement.
May 13, 2025
2024
Electronic Arts Annual Report, Year Ended Mar 31, 2024
Electronic Arts Inc. (EA) reported solid financial results for the fiscal year ended March 30, 2024, with total net revenue reaching $7.56 billion, a 2% increase year-over-year. The company's live services segment continues to be a dominant revenue driver, accounting for 73% of total net revenue. This segment, particularly extra content purchases within modes like Ultimate Team and for franchises such as Apex Legends, demonstrates the success of EA's recurring revenue strategy. Operating income saw a significant 14% increase, reaching $1.52 billion, reflecting improved operational efficiency and a higher gross margin of 77.4%. EA demonstrated a strong commitment to returning value to shareholders through a substantial stock repurchase program, buying back approximately $1.3 billion worth of shares in fiscal year 2024. The company also announced a new, significantly larger stock repurchase authorization of $5.0 billion, signaling confidence in its financial position and future outlook. While the company operates in a highly competitive and rapidly evolving industry, its focus on core franchises, digital delivery, and live services positions it for continued engagement and revenue growth.
May 22, 2024
2023
Electronic Arts Annual Report, Year Ended Mar 31, 2023
Electronic Arts Inc. (EA) reported solid financial performance for the fiscal year ended March 31, 2023, with total net revenue of $7.43 billion, a 6% increase year-over-year. This growth was primarily driven by a 10% increase in live services and other net revenue, which now constitutes 74% of total revenue, highlighting the company's successful shift towards recurring revenue streams. The company also demonstrated strong profitability with an operating income of $1.33 billion, up 18% year-over-year, and a gross margin of 75.9%. Key strategic initiatives include the upcoming rebranding of its global football franchise to EA SPORTS FC in fiscal year 2024, signaling a continued focus on this material revenue driver. EA also continues to invest in its core franchises like Apex Legends and The Sims, while emphasizing digital delivery and live services to enhance player engagement and recurring revenue. The company returned $1.5 billion to stockholders through share repurchases and dividends, underscoring its commitment to shareholder value. Despite a competitive landscape and evolving market dynamics, EA's diversified portfolio and focus on player engagement position it for continued growth in the digital interactive entertainment space.
May 24, 2023
2022
Electronic Arts Annual Report, Year Ended Mar 31, 2022
Electronic Arts (EA) reported strong revenue growth in the fiscal year ending March 31, 2022, with total net revenue increasing by 24% year-over-year to $6.991 billion. This growth was primarily driven by its Live Services segment, which includes extra content and subscriptions, accounting for a significant portion (71%) of total net revenue. The company also saw substantial growth in its mobile division, boosted by acquisitions like Glu Mobile and Playdemic, indicating a strategic focus on this expanding market. EA continues to leverage its strong portfolio of owned and licensed intellectual properties, with franchises like FIFA and Apex Legends being key revenue drivers. The company is actively investing in innovation and expanding its reach across various platforms and business models, including free-to-play and subscription services. While the company reported an increase in operating expenses, largely due to strategic investments and acquisitions, it also managed to grow operating income. However, net income and diluted earnings per share saw a slight decrease year-over-year, influenced by increased operating expenses and changes in tax rates. Looking ahead, EA is focused on creating socially-connected ecosystems, investing in creation tools for its community, and expanding its content and distribution channels. The company's robust live services model, combined with strategic acquisitions and a focus on player engagement, positions it to capitalize on evolving trends in the digital interactive entertainment market.
May 25, 2022
2021
Electronic Arts Annual Report, Year Ended Mar 31, 2021
Electronic Arts Inc. (EA) reported solid performance for the fiscal year ended March 31, 2021, with total net revenue reaching $5.63 billion, a slight increase of 2% year-over-year. This growth was primarily driven by a 10% increase in live services and other net revenue, which now accounts for 71% of total net revenue. The company benefited from increased player engagement, partly due to pandemic-related social restrictions, which accelerated longer-term trends like digital game purchases and live service monetization. EA also made significant strategic acquisitions during the year, including Codemasters for $1.2 billion to bolster its racing game portfolio and Glu Mobile for $2.3 billion to enhance its mobile gaming capabilities. Despite revenue growth, operating income and net income saw a decline compared to the prior year. This was largely due to a one-time net tax benefit recognized in fiscal year 2020, which artificially inflated that year's net income. EA continued its commitment to returning capital to shareholders through share repurchases and initiated a quarterly cash dividend. The company's strategy remains focused on delivering engaging games and content, expanding its live services, and connecting more players across more platforms.
May 26, 2021
2020
Electronic Arts Annual Report, Year Ended Mar 31, 2020
Electronic Arts Inc. (EA) demonstrated robust growth in its fiscal year ended March 31, 2020, with total net revenue increasing by 12% year-over-year to $5.537 billion. This growth was primarily fueled by strong performance in digital net revenue, which rose 16% to $4.314 billion, highlighting the company's successful shift towards digital distribution and live services. Live services, in particular, saw a significant 27% increase, driven by in-game content purchases, especially within popular modes like FIFA Ultimate Team and Apex Legends. The company's strategic pillars focus on creating engaging games and content, supported by live services, and delivering them to a broad global audience. EA's portfolio includes well-known franchises like FIFA, Madden NFL, Apex Legends, and The Sims, contributing to its market leadership. Despite the increasing importance of live services, the company also faces intense competition and the ongoing challenge of adapting to rapidly evolving industry trends and technologies. Management expressed confidence in the company's liquidity and ability to meet its operating requirements, even as it navigates the uncertainties presented by the COVID-19 pandemic.
May 20, 2020
2019
Electronic Arts Annual Report, Year Ended Mar 31, 2019
Electronic Arts Inc. (EA) reported a net revenue of $4.95 billion for the fiscal year ended March 31, 2019, a decrease of 4% year-over-year. This decline was primarily attributed to a decrease in revenue from franchises like Battlefield and Mass Effect: Andromeda, partially offset by growth in FIFA and The Sims. The company's strategic shift towards digital revenue continued, with digital net revenue increasing by 8% to $3.71 billion, representing 75% of total net revenue, up from 67% in the prior year. This trend is expected to continue, driven by live services and digital downloads. EA continued its focus on player engagement through new IP launches like Apex Legends and Anthem, and investments in subscription services. The company also actively repurchased shares, spending approximately $1.19 billion under its stock repurchase program. Despite a decrease in operating income and net income compared to the previous year, the company maintained a strong cash position and positive operating cash flow.
May 24, 2019
2018
Electronic Arts Annual Report, Year Ended Mar 31, 2018
Electronic Arts Inc. (EA) demonstrated robust financial performance in fiscal year 2018, with total net revenue reaching $5.15 billion, a 6% increase year-over-year. A significant driver of this growth was the digital segment, which surged 20% to $3.45 billion, now representing 67% of total net revenue. This shift towards digital, including live services which contributed 40% of total revenue and particularly the Ultimate Team modes, indicates a successful transition in the company's business model. The company also reported strong operating income of $1.43 billion and net income of $1.04 billion, with diluted earnings per share at $3.34, reflecting improved profitability. EA's strategic focus on its "Players First," "Commitment to Digital," and "One EA" pillars appears to be resonating, as evidenced by the growth in digital revenue and engagement through live services. The company also continues to invest in research and development, with expenses increasing 10% to $1.32 billion, supporting the development of its diverse game portfolio. Despite the competitive landscape, EA's strong performance and strategic direction position it well for continued growth in the interactive entertainment market.
May 23, 2018
2017
Electronic Arts Annual Report, Year Ended Mar 31, 2017
Electronic Arts Inc. (EA) reported a strong fiscal year 2017, with total net revenue reaching $4.845 billion, a 10% increase year-over-year. This growth was primarily driven by a significant 19% rise in digital revenue, which now accounts for 59% of total net revenue, highlighting the company's successful transition to digital distribution and live services. The company's strategic focus on a 'Players First' approach, commitment to digital, and 'One EA' operational model appears to be paying off. Key franchises like FIFA, Battlefield, and Star Wars continue to perform well, with the Ultimate Team mode in FIFA and live services for other franchises demonstrating their ability to extend game lifecycles and drive recurring revenue. EA also continued its focus on returning value to shareholders through a robust stock repurchase program, authorizing an additional $1.2 billion in May 2017. While the company experienced a decrease in net income year-over-year, this was largely attributed to a significant one-time income tax benefit in the prior fiscal year. Overall, EA demonstrated solid revenue growth and a continued strategic shift towards higher-margin digital offerings, positioning it for sustained engagement in the interactive entertainment market.
May 24, 2017
2016
Electronic Arts Annual Report, Year Ended Mar 31, 2016
Electronic Arts Inc. (EA) for the fiscal year ended March 31, 2016, demonstrates continued strength in its digital transformation, with digital revenue growing 10% year-over-year to $2.41 billion. While total net revenue saw a slight decrease of 3% to $4.40 billion, largely due to a decline in revenue from specific franchises like Titanfall and Battlefield, this was offset by growth in key franchises such as Star Wars and Madden NFL. The company's commitment to player engagement through digital services and in-game content is a core strategy, contributing to a robust gross margin of 69.2%. EA also actively returned capital to shareholders, repurchasing approximately $1.02 billion in stock during the fiscal year. The company's strong operating cash flow of $1.22 billion and significant cash reserves of $2.49 billion provide a solid financial foundation for future growth and investment. A notable financial development was the significant income tax benefit of $453 million in fiscal year 2016, primarily driven by the release of a valuation allowance against U.S. deferred tax assets. This release was supported by two consecutive years of positive U.S. pre-tax income and projected future profitability. Despite the slight dip in overall revenue, EA's strategic focus on digital growth, player engagement, and efficient operations positions it well in the competitive interactive entertainment market. Investors should note the concentration of revenue from top franchises (55%) and key distribution partners, which represent both opportunities and potential risks.
May 27, 2016
2015
Electronic Arts Annual Report, Year Ended Mar 31, 2015
Electronic Arts Inc. (EA) reported strong financial performance for the fiscal year ending March 31, 2015, with net revenue increasing 26% to $4.515 billion, and net income surging to $875 million from $8 million in the prior year. This significant growth was driven by key franchises like FIFA and Madden NFL, alongside the performance of Battlefield 4. The company continues its strategic shift towards digital revenue, which showed a substantial increase, indicating a successful transition from traditional packaged goods. EA also demonstrated a commitment to shareholder returns through an active stock repurchase program. The company's strategy focuses on putting players first, embracing a digital-first approach, and operating as 'One EA.' EA maintained its position as a top publisher on current-generation consoles (PlayStation 4 and Xbox One) and saw significant engagement with its mobile titles, averaging over 165 million monthly active users. The company is investing in its digital platform to enhance player relationships and is seeing higher margins from digital revenue. Despite a competitive market and industry cyclicality related to console transitions, EA's diversified portfolio and focus on digital transformation position it for continued growth.
May 21, 2015
2014-A
Electronic Arts Annual Report (Amendment), Year Ended Mar 31, 2014
This filing is Amendment No. 1 (Form 10-K/A) to Electronic Arts' annual report for the fiscal year ended March 31, 2014, which was originally filed May 21, 2014. It is an exhibit-only amendment and contains no financial statements, revenue, earnings, or other operating results. The company states that no revisions were made to its financial statements and that no other disclosures in the original Form 10-K were changed. Investors seeking financial performance data should refer to the original 10-K. The amendment was prompted by SEC staff comments on EA's request for confidential treatment of portions of Exhibit 10.27, the Durango Publisher License Agreement dated June 29, 2012 with Microsoft Licensing, GP and Microsoft Corporation. EA re-filed that exhibit with the revised redactions, and it also filed new Rule 13a-14 certifications from its principal executive and financial officers (Exhibits 31.03 and 31.04). No other exhibits were updated. The exhibit index is useful for understanding EA's material contractual relationships. It lists platform publisher agreements with Sony (PlayStation 3) and Microsoft (Xbox), a $-denominated JPMorgan-led credit agreement dated August 30, 2012, and 0.75% Convertible Senior Notes due 2016 issued in July 2011 with related call option and warrant agreements. It also includes executive compensation plans, the March 2013 separation agreement with former CEO John Riccitiello, and facility leases for its Tiburon studio.
Oct 3, 2014
2014
Electronic Arts Annual Report, Year Ended Mar 31, 2014
Electronic Arts Inc. (EA) reported revenues of $3.575 billion for the fiscal year ended March 31, 2014, a decrease of 6% from the prior year. This decline was primarily attributed to a shift in revenue recognition for online-enabled games and fewer major title releases. Despite the revenue dip, EA saw a significant increase in its digital revenue, which grew by 8% to $1.793 billion (before revenue deferral), highlighting a successful transition towards digital distribution and services. Financially, the company posted a net income of $8 million ($0.03 diluted EPS), a substantial decrease from $98 million ($0.31 diluted EPS) in the previous year, largely due to increased costs related to a litigation settlement and a change in revenue deferral policies. EA is strategically focusing on fewer, higher-quality 'hit' titles across multiple platforms, including new console generation games for PlayStation 4 and Xbox One, and is investing in its digital offerings and direct-to-consumer relationships through platforms like Origin. The company also announced a new $750 million stock repurchase program, indicating a commitment to shareholder returns.
May 21, 2014
2013
Electronic Arts Annual Report, Year Ended Mar 31, 2013
Electronic Arts Inc. (EA) reported net revenue of $3.8 billion for the fiscal year ended March 31, 2013, a decrease of 8% from the prior year. While packaged goods revenue declined, this was partially offset by a significant increase in digital and service-based revenue, which grew 36% to $1.66 billion, demonstrating the company's ongoing shift towards digital distribution and content. Net income improved to $98 million from $76 million in the prior year, driven by a substantial reduction in operating expenses and a gain on strategic investments, though this was partially offset by lower gross profit. EA is strategically investing in products and services for upcoming next-generation consoles while continuing to leverage its strong portfolio of brands across multiple platforms.
May 22, 2013
2012
Electronic Arts Annual Report, Year Ended Mar 31, 2012
Electronic Arts Inc. (EA) for the fiscal year ending March 31, 2012, demonstrated a notable increase in net revenue, reaching $4.14 billion, up 15% from the prior year, primarily driven by strong performance in franchises like FIFA, Battlefield, and Madden NFL. This revenue growth was accompanied by a significant swing from a net loss in the previous year to a net income of $76 million, reflecting improved profitability. The company is actively transforming its business model, with a strategic shift towards digital content distribution and services, which saw substantial growth. This digital focus is supported by investments in platforms like Origin and a reduced number of high-quality packaged goods releases, emphasizing online features and services. The acquisition of PopCap Games in August 2011 further bolstered EA's position in the fast-growing casual and social gaming markets. Key financial highlights include a 78% increase in service and other revenue, driven by subscription services and micro-transactions, and a 47% increase in digital revenue before deferrals. While operational expenses, including R&D and marketing, saw increases, the company's profitability improved, partly due to a decrease in restructuring charges. EA's balance sheet reflects continued investment in growth, with increased goodwill and intangible assets resulting from acquisitions. The company's liquidity remains robust, supported by cash flow from operations and a completed stock repurchase program. Investors should note the company's strategic emphasis on digital and mobile growth, alongside the continued importance of its core sports and action franchises.
May 25, 2012
2011
Electronic Arts Annual Report, Year Ended Mar 31, 2011
Electronic Arts Inc. (EA) reported its annual results for the fiscal year ending March 31, 2011. The company experienced a slight decline in overall net revenue to $3.59 billion, a decrease from $3.65 billion in the previous year. This revenue dip was primarily attributed to a strategic decision to reduce the number of games published, focusing on higher-margin opportunities and established franchises like FIFA, Battlefield, and Madden NFL. Despite the revenue decrease, EA significantly narrowed its net loss to $276 million from $677 million in the prior year, driven by improved gross profit margins and cost reduction initiatives, including a decrease in research and development expenses. Key developments during the fiscal year included the announcement of a $600 million stock repurchase program and continued strategic investments in digital content distribution and mobile platforms, highlighted by the acquisition of Chillingo. The company is also preparing for the launch of highly anticipated titles such as "Star Wars: The Old Republic." EA's international revenue showed growth, now representing 49% of total net revenue, indicating a strong performance outside of North America. Investors should note the ongoing shift towards digital distribution and services as a key growth driver.
May 24, 2011
2010
Electronic Arts Annual Report, Year Ended Mar 31, 2010
Electronic Arts Inc. (EA) in its fiscal year 2010 10-K filing demonstrates a diverse business focused on developing, marketing, publishing, and distributing video game software across multiple platforms including consoles, PCs, handhelds, and mobile devices. The company leverages a strong portfolio of owned intellectual properties (like Need for Speed, The Sims) and licensed properties (such as Madden NFL Football, FIFA Soccer). A key strategic focus is on creating and releasing iterated product families or "franchises" and expanding its digital content and services offerings. Financially, the fiscal year ended March 31, 2010, saw a decrease in net revenue to $3.65 billion from $4.21 billion in the prior year, accompanied by a net loss of $677 million, an improvement from the $1.09 billion net loss in fiscal year 2009. This improvement was attributed to a significant goodwill impairment charge in the prior year and cost-saving measures, including a workforce reduction of approximately 1,200 employees as part of a restructuring plan. The company also made a strategic acquisition of Playfish Limited, a social games developer, for approximately $308 million.
May 28, 2010
2009
Electronic Arts Annual Report, Year Ended Mar 31, 2009
Electronic Arts Inc. (EA) reported a challenging fiscal year ending March 31, 2009, marked by a significant net loss of $1,088 million, a substantial increase from the prior year's net loss of $454 million. This downturn was largely attributed to a $368 million goodwill impairment charge related to its EA Mobile reporting unit and a $362 million increase in the valuation allowance for deferred tax assets. Revenue, however, saw an increase of 15% to $4.21 billion, driven by strong performances from titles like Rock Band 2 and Spore. The company also initiated a cost reduction plan in fiscal year 2009, which included workforce reductions and facility closures, aiming to improve efficiency and focus the product portfolio amidst a weakening global economy. Despite the financial setbacks, EA continues to invest in its key franchises and explore growth opportunities in digitally delivered content and services.
May 22, 2009
2008
Electronic Arts Annual Report, Year Ended Mar 31, 2008
Electronic Arts Inc. (EA) in fiscal year 2008 (ending March 30) demonstrated significant revenue growth, increasing by 19% to $3.665 billion, driven by strong performance in North America and Europe, and the success of titles like 'Rock Band' and 'Madden NFL 08'. However, the company reported a substantial net loss of $454 million, a sharp decline from the previous year's profit, largely due to a significant increase in cost of goods sold, restructuring charges ($103 million), acquisition-related expenses (primarily the acquisition of BioWare and Pandemic Studios), and a change in revenue recognition for online-enabled games, which deferred $355 million of revenue. This shift in revenue recognition, impacting gross margins and operating income, is a key financial development for investors to note. The company is navigating the transition to new-generation consoles, which involves higher development costs but also expanding market potential. EA also announced a significant proposed acquisition of Take-Two Interactive Software for $2.1 billion, indicating a strategy of aggressive expansion and consolidation within the industry.
May 23, 2008
2007
Electronic Arts Annual Report, Year Ended Mar 31, 2007
Electronic Arts' fiscal 2007 10-K (year ended March 31, 2007) shows a company with growing revenue but sharply lower profitability. Net revenue rose 5% to $3.091 billion, driven by Madden NFL 07, Need for Speed Carbon, FIFA 07 and The Sims 2 Pets, while net income fell 68% to $76 million ($0.24 diluted EPS) from $236 million. The decline reflects a $395 million rise in operating expenses, including $133 million of stock-based compensation under the newly adopted SFAS 123(R), an $83 million increase in annual bonus expense, and a 14% increase in headcount. Operating income fell to $39 million from $325 million, and the effective tax rate rose to 48.2%, so interest income of $99 million carried pre-tax income to $138 million. The filing points to a more difficult near-term earnings outlook. EA is in the early phase of a console cycle (Xbox 360, PLAYSTATION 3 and Wii launched in 2005-2006), so sales of prior-generation titles are declining, and development costs per title are higher. Management expects research and development, marketing and G&A expenses to rise in fiscal 2008, and expects net earnings to decline further. Starting in fiscal 2008, revenue from online-enabled packaged goods will be deferred over roughly six months, which management estimates at $400-500 million of revenue shifted into fiscal 2009. The company also faces a dependence on third-party hardware makers, which are also competitors, and on key retail customers (Wal-Mart and GameStop each represented about 12-13% of revenue). Balance sheet and liquidity remain strong. Cash, short-term investments and marketable equity securities total $2.98 billion, and stockholders' equity rose to $4.03 billion. Operating cash flow fell to $397 million from $596 million, mainly due to receivable collection timing. Disclosed items include an informal SEC inquiry into stock option grant practices, a planned $108 million investment in Neowiz, a planned approximately $167 million investment in The9, and the acquisitions of Mythic Entertainment and the remaining DICE minority interest. The company paid no dividends.
May 30, 2007
2006
Electronic Arts Annual Report, Year Ended Mar 31, 2006
Electronic Arts reported fiscal 2006 (year ended April 1, 2006, a 53-week year) with net revenue of $2.951 billion, down 6% from $3.129 billion, and net income of $236 million, down 53% from $504 million. Diluted EPS fell to $0.75 from $1.59. The decline reflects the industry's transition from current-generation consoles (PlayStation 2, Xbox, GameCube) to next-generation platforms (Xbox 360, PS3, Nintendo Wii). Revenue from PS2, Xbox and GameCube fell sharply, while growth in handheld (PSP, Nintendo DS) and the Xbox 360 only partially offset the drop. Gross margin compressed to 60% from 62%, driven by higher license royalties on football titles, and R&D rose 20% to $758 million as the company invested in next-generation development. Management guided to further pressure in fiscal 2007. It expects current-generation revenue to keep declining, average selling prices to fall, and operating expenses to rise, including the first-time expensing of stock-based compensation under SFAS 123R. The company also expects net income to decline. Strategic moves include the JAMDAT Mobile acquisition ($684 million, February 2006) to build the EA Mobile cellular business, and the planned full merger of DICE. Cash flow from operations fell to $596 million, and the company repurchased $709 million of stock under a completed $750 million program. Cash, equivalents and short-term investments totaled $2.27 billion at year-end, and the company holds no debt beyond operating-lease financing. For investors, the central issues are the depth of the console-cycle transition, margin pressure from licensing costs and next-generation development spending, and the fiscal 2007 earnings headwind from SFAS 123R. Concentration risk is also notable: Wal-Mart accounted for about 13% of revenue, and platform licensors such as Sony, Microsoft and Nintendo are also major competitors.
Jun 12, 2006
2005
Electronic Arts Annual Report, Year Ended Mar 31, 2005
Electronic Arts' fiscal 2005 10-K (year ended March 31, 2005) shows a company still growing revenue but facing margin and earnings pressure as it prepares for the next console cycle. Net revenue rose 5.8% to $3.129 billion, while net income fell 12.7% to $504 million and diluted EPS declined to $1.59 from $1.87. Operating income dropped to $669 million from $776 million, driven mainly by a 24% increase in research and development spending to $633 million, which management attributes to next-generation technology investment and a 30% rise in headcount. Management signaled that the company is entering a transition period. It expects Sony, Microsoft and Nintendo to launch next-generation consoles within roughly eighteen months, which it says will raise development costs per title, may cause current-generation sales to decline, and will make operating results more volatile and harder to predict. Price pressure on current-generation titles, rising licensing costs for sports and film properties, and concentration of sales in a few retailers (Wal-Mart alone was 14% of revenue) are additional risks. Management guided to higher sales and gross profit in fiscal 2006 but flagged continued cost increases. The balance sheet remains strong, with cash, short-term investments and marketable equity securities of about $3.1 billion and stockholders' equity of $3.5 billion, and no cash dividends are paid. However, the filing discloses several pending lawsuits: two employment misclassification class actions in California and a securities class action filed in March 2005 with related shareholder derivative suits, following a reported returns and price-protection shortfall in the March 2005 quarter. Investors should weigh the strong franchise position and cash generation against near-term margin pressure, legal exposure and the uncertainty of the console transition.
Jun 7, 2005
2004
Electronic Arts Annual Report, Year Ended Mar 31, 2004
Electronic Arts Inc. (EA) reported robust financial performance for the fiscal year ended March 31, 2004, with net revenue reaching $2,957.1 million, a 19.1% increase year-over-year. This growth was driven by strong sales across multiple platforms, particularly the PlayStation 2, and a significant increase in the number of "platinum titles" (games selling over one million units). Net income saw a substantial rise of 82.1% to $577.3 million, with diluted earnings per share growing 73.1% to $1.87. The company benefited from a favorable foreign exchange environment, particularly the strengthening Euro, which added approximately $156 million to net revenue. EA also demonstrated improved cost management, with cost of goods sold decreasing as a percentage of net revenue due to lower product and royalty costs. The company continues to invest heavily in research and development, with a 27.4% increase to $510.9 million, reflecting its commitment to developing new titles and technologies for current and next-generation consoles. Despite increased R&D spending and marketing efforts, EA's overall financial health appears strong, supported by a significant increase in cash and cash equivalents. The company also announced plans to consolidate studio facilities and expects continued international revenue growth.
Jun 4, 2004
2003
Electronic Arts Annual Report, Year Ended Mar 31, 2003
Electronic Arts Inc. (EA) reported a strong financial performance for the fiscal year ending March 31, 2003. The company achieved a significant increase in net revenue, up 44% to $2.48 billion, primarily driven by the robust performance of new console platforms such as PlayStation 2, Xbox, and Nintendo GameCube. EA's strategic focus on multi-platform development and successful franchise titles like "Medal of Honor Frontline," "The Lord of the Rings," and "Harry Potter" contributed to this growth. Despite increased operating expenses, including significant investments in research and development and marketing, EA demonstrated improved profitability, with net income rising substantially. The company also highlighted its international expansion, with international revenue increasing by 66%, indicating a growing global footprint. However, EA acknowledged challenges in its online gaming segment (EA.com), with certain product launches, notably "The Sims Online," falling below expectations. This led to a restructuring and asset impairment charge impacting the EA.com segment. The company also noted the cyclical nature of the gaming industry and the intense competition, emphasizing the importance of delivering "hit" products and securing intellectual property licenses. Looking ahead, EA expects continued growth but at a decelerating rate, with a focus on managing pricing pressures and further leveraging its strong position in the next-generation console market.
Jun 10, 2003
2002
Electronic Arts Annual Report, Year Ended Mar 31, 2002
Electronic Arts' fiscal 2002 (year ended March 31, 2002) marked a turnaround year, with net revenues rising 30.4% to $1.72 billion from $1.32 billion and net income swinging to $101.5 million from a net loss of $11.1 million in fiscal 2001. Growth was driven by the current-generation console transition: PlayStation 2 revenue rose 86% to $483 million, and the Xbox, Nintendo GameCube, and Game Boy Advance launched during the year contributed meaningfully. Gross margin improved to 53.2% from 50.7%, and operating income was $135.4 million versus an operating loss of $30.3 million, though GAAP results were burdened by a $20.3 million EA.com restructuring and impairment charge and $25.4 million of intangible amortization. Operating cash flow strengthened to $285 million, and cash, equivalents and short-term investments reached $797 million with no debt disclosed on the balance sheet. The quality of earnings warrants scrutiny. EA.com, the online segment, lost $151.0 million at the operating level, and the company's own pro forma figures show EA Core carrying the business while EA.com remains unprofitable and dependent on funding from Electronic Arts. Management also acknowledges that PlayStation and N64 sales are declining sharply, that PC revenue is expected to be flat or lower in fiscal 2003, and that Wal-Mart accounted for 14% of revenue. Customer concentration in receivables (one customer at 13% of gross receivables) and the Kmart bankruptcy add collection risk. Investors should also note the dual-class structure, with Class B tracking stock reflecting EA.com, and the large contractual commitments of about $278 million, including AOL and minimum guarantees. Overall, the filing presents a company with strong core franchises (EA Sports, Harry Potter, James Bond) and a healthy balance sheet, but whose near-term earnings depend on successful next-generation console cycles and on whether EA.com can reach profitability. Fiscal 2003 guidance points to higher R&D spending and lower legacy-platform sales, which investors should weigh against the favorable fiscal 2002 results.
Jun 28, 2002
2001
Electronic Arts Annual Report, Year Ended Mar 31, 2001
Electronic Arts Inc. (EA) for the fiscal year ended March 31, 2001, reported a net loss of $11.1 million, a significant decrease from the $116.8 million net income in the prior year. This decline was primarily driven by a 6.9% decrease in consolidated net revenues to $1.32 billion, impacted by the ongoing transition to next-generation gaming consoles (PlayStation 2, Xbox, GameCube) which led to a substantial drop in sales for older platforms like PlayStation and N64. Investments in research and development and the emerging EA.com segment also increased operating expenses. Despite the revenue dip, PC sales showed growth, driven by titles like 'The Sims,' and PlayStation 2 revenue showed promise, though hampered by hardware shortages. The company is strategically investing in new platforms and online capabilities, anticipating future growth while navigating the challenges of industry transitions and increased competition.
Jun 29, 2001
2000-A
Electronic Arts Annual Report (Amendment), Year Ended Mar 31, 2000
This document is an amended annual report (Form 10-K/A) from Electronic Arts Inc. for the fiscal year ended March 31, 2000. The excerpt provided contains only the cover page, signature pages, and a list of directors and officers. It does not include the business description, financial statements, MD&A, or any revenue, earnings, or balance sheet figures, so no operating or financial performance analysis is possible from this text. The cover page shows an aggregate market value of about $2.27 billion for common stock held by non-affiliates as of June 1, 2000, with 64,638,382 shares outstanding. Signatures are dated August 10, 2000, with Lawrence F. Probst III signing as Chairman and CEO and E. Stanton McKee, Jr. as Executive Vice President and Chief Financial and Administrative Officer. The board includes M. Richard Asher, William J. Byron, Daniel H. Case III, Gary M. Kusin, and Timothy J. Mott. Part I and Part III incorporate information by reference from proxy statements, so governance and compensation details would sit in those separate documents. Investors seeking substance should obtain the complete filing, including the financial statements and MD&A, and check the reason for the amendment, which is not stated in the excerpt.
Aug 11, 2000
2000
Electronic Arts Annual Report, Year Ended Mar 31, 2000
Electronic Arts' 10-K covers fiscal 2000 (year ended March 31, 2000), a year of record results driven by the PC and PlayStation franchises. Net revenues rose 16.2% to $1.42 billion, gross margin expanded to 50.3% from 48.7%, and net income climbed 60% to $116.8 million, or $1.76 per diluted share. Excluding one-time acquisition charges and goodwill amortization, net income was $129.5 million. North America grew 20.1%, Europe 10.9%, and Asia Pacific 20.3%, while Japan was flat. PC revenue rose 46.9% on Command & Conquer: Tiberian Sun, Sim City 3000 and The Sims, offsetting an expected 21% decline in N64 sales. The filing's central story is the creation of two tracking stock segments. Shareholders approved a Class B tracking stock in March 2000 to reflect the performance of EA.com, the online division built around Ultima Online and a five-year AOL agreement. EA.com lost $54.6 million in fiscal 2000 on a standalone basis and management expects significant operating losses in the first half of fiscal 2001 as online investment continues. The AOL deal carries a $50 million carriage fee and $31 million in minimum revenue-share advances, and EA.com missed its June 1, 2000 launch target, which could give AOL termination rights. Investors should weigh strong core profitability against near-term risks. Sales of PlayStation and N64 products are expected to decline as the console market transitions to PlayStation 2, Dreamcast, Dolphin and Xbox. The company is highly seasonal and depends on hit titles, and it relies on platform licensors who are also its chief competitors. The balance sheet is solid, with $339.8 million in cash and short-term investments, working capital of $440 million, and no dividends. The filing was signed on June 28, 2000 and reports a stock price range of $45.63 to $120.94 for the year.
Jun 29, 2000
1999
Electronic Arts Annual Report, Year Ended Mar 31, 1999
Electronic Arts reported fiscal 1999 (year ended March 31, 1999) net revenues of $1.22 billion, up 34.4% from $908.9 million, and net income of $72.9 million, essentially flat versus $72.6 million in fiscal 1998. Diluted EPS was $1.15 versus $1.19. The flat bottom line masks strong underlying growth: excluding one-time charges, net income rose to $110.4 million, up 53%. The principal drag was a $44.1 million charge for acquired in-process technology, mostly tied to the September 1998 Westwood Studios acquisition ($122.7 million in cash), plus $5.9 million of new intangibles amortization. Operating income rose 26.2% to $105.3 million, though operating margin slipped to 8.6% from 9.2%. Growth was driven by the PlayStation and Nintendo 64 installed bases. PlayStation sales reached $519.8 million (43% of revenue) and N64 sales rose to $152.3 million from $56.7 million. Affiliated Label distribution grew to $248.1 million, helped by the Square EA joint venture. Management, however, expects PlayStation growth rates to moderate, does not expect significant N64 growth in fiscal 2000, and has no Saturn or 16-bit titles planned. International revenue was 42% of the total. Wal-Mart accounted for 12% of revenue, and the company carries material platform-licensor dependence (Sony and Nintendo control manufacturing and are also competitors). Balance sheet and cash flow remain healthy. Operating cash flow was $150.8 million, and stockholders' equity grew to $662.9 million. Cash, cash equivalents and short-term investments fell to $312.8 million from $374.6 million, reflecting roughly $116 million in capital expenditures (largely new Redwood City, Canadian and Austin facilities and land purchases) and the Westwood acquisition. Management believes existing liquidity is sufficient for the next twelve months. Investors should weigh the strong top-line momentum and cash generation against margin pressure, concentration on Sony and Nintendo platforms, the high cost of hit-driven titles, and the risk of product development delays.
Jun 29, 1999
1998
Electronic Arts Annual Report, Year Ended Mar 31, 1998
Electronic Arts (EA) reported a strong fiscal 1998 (year ended March 31, 1998), with net revenues rising 35% to $908.9 million from $673.0 million and net income up 41% to $72.6 million, or $1.19 per diluted share. Growth was driven primarily by Sony's PlayStation, which accounted for about 42% of revenue ($380.3 million, up from $187.5 million), along with strong affiliated label (AL) distribution sales and the first meaningful N64 contributions. Gross margin, however, compressed to 47.1% from 51.1% as lower-margin AL and N64 products grew as a share of the mix, and management explicitly warned that margins may remain at or decline from current levels. Operating income rose 33% to $83.4 million, but the reported profit was flattered by a $12.6 million gain on the sale of the Creative Wonders joint venture, and was partly offset by $10.8 million in Maxis merger costs and a $1.5 million in-process technology charge. Operating margin was essentially flat at 9.2% versus 9.3% a year earlier, so the earnings growth came mainly from scale rather than improved profitability. The balance sheet is solid, with cash and short-term investments of $374.6 million, working capital of $408.1 million, and operating cash flow of $79.0 million, though receivables grew faster than sales. Investors should weigh EA's heavy dependence on a few platforms and franchises, particularly the PlayStation, against the risks of product delays, hardware-controlled manufacturing, and a hits-driven business. The company is also shifting its portfolio toward PC-CD and N64 titles, with Saturn and 16-bit sales expected to decline sharply, and it announced new joint ventures with Square. The company pays no dividends and plans to reinvest its cash, so shareholder returns depend on continued share price appreciation.
Jun 26, 1998
1997
Electronic Arts Annual Report, Year Ended Mar 31, 1997
Electronic Arts reported fiscal 1997 (year ended March 31, 1997) net revenues of $624.8 million, up 17.5% from $531.9 million, and net income of $53.0 million, up 30.9%. Diluted EPS was $0.96 versus $0.75. Gross margin improved to 50.1% (cost of goods sold fell to 49.9% of revenue from 51.4%), and operating income rose 25.8% to $67.3 million. Growth was driven by the shift to 32-bit CD-based platforms: PlayStation sales rose to $185.3 million (30% of revenue) from $50.5 million, and PC-CD revenue reached $178.3 million. 16-bit cartridge revenue fell sharply, with Genesis down to 10% of revenue and SNES to 4%, reflecting the platform transition. The balance sheet remains strong, with $230.1 million in cash and short-term investments, working capital of $241.6 million, and no debt. Operating cash flow was $80.6 million. The company has never paid cash dividends. International revenue grew 28% to 46% of the total, with Europe up 42%, while Japan declined 19%. Key risks for investors include heavy dependence on Sony PlayStation (30% of revenue) and on hardware licensors who are also competitors, a seasonal and hit-driven business, the expected decline of Genesis and SNES revenue in fiscal 1998, limited N64 shipments until calendar 1998, and a pending pooling-of-interests merger with Maxis (about 4.1 million shares) expected to close in the September 1997 quarter.
Jun 23, 1997
1996
Electronic Arts Annual Report, Year Ended Mar 31, 1996
Electronic Arts' fiscal 1996 (year ended March 31, 1996) was a year of solid top-line growth but sharply lower profitability. Net revenues rose 7.8% to $531.9 million from $493.3 million, driven by PC-CD and CD-based videogames (PlayStation), and international revenues grew 43% to $225.7 million, now 42% of the total. However, operating income fell 17.4% to $53.5 million (10.1% margin versus 13.1%), and net income dropped 27.3% to $40.5 million, or $0.75 per share, from $55.7 million, or $1.07. The decline reflects a sharp rise in research and development spending (up 34.8% to $99.6 million, 18.7% of revenue), higher marketing and sales costs, and the absence of the prior year's one-time $10 million Broderbund termination payment. The filing signals a difficult transition ahead. Management expects sales of 16-bit Sega Genesis and Super NES cartridges to decline significantly in fiscal 1997, and the company intends to release even fewer titles on those platforms. Revenue from 16-bit cartridges already fell to 38% of net revenues from 57%. Management also warned that the transition to 32-bit CD platforms will continue to pressure near-term results and that the first fiscal quarter of 1997 could show a net loss if product release schedules slip. Several product delays (including Wing Commander IV and PlayStation titles) during fiscal 1996 illustrate this execution risk. The balance sheet remains strong. Stockholders' equity rose to $322.3 million from $237.1 million, largely from a $17.5 million unrealized investment gain and $21.7 million from employee stock plans, and the company carries no debt beyond modest obligations. Cash and short-term investments were $148.0 million, and working capital was $199.7 million. Operating cash flow fell to just $6.9 million from $63.8 million, mainly because of growth in receivables, prepaid royalties, and capital spending of $56.8 million, including new headquarters and Texas development facilities. The company paid no dividends. Investors should weigh the strong capital base and international growth against falling margins, dependence on a shrinking 16-bit market, and the risk of hit-driven product execution.
Jul 1, 1996