01—Abstract
Summary
Summary of the 10-K filed May 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Electronic Arts (EA) reported total net revenue of $7,463 milliona 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 millionb. 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 billionc 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.
02—Key points
Key Highlights
- Total net revenue for FY2025 was $7,463 million, a 1% decrease compared to FY2024, primarily due to shifts in game releases and live services content performance.
- Live services and other net revenue, a critical revenue stream, declined 2% to $5,461 million, though it still represents 73% of total net revenue.
- Gross margin improved by 2 percentage points year-over-year to 79.3%, indicating better cost management and a favorable revenue mix.
- Operating income remained stable at $1,520 million, showing resilience despite the slight revenue decrease.
- Net income was $1,121 million, resulting in diluted earnings per share of $4.25.
- EA returned a significant $2.7 billion to stockholders through share repurchases ($2.5 billion) and dividends ($199 million) in FY2025.
- The company continues to rely heavily on key franchises, with revenue from EA SPORTS FC, EA SPORTS Madden NFL, Apex Legends, and The Sims being material to its financial performance.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Electronic Arts kept $0.15.
- Revenue$7.46B100.0%
- Cost of revenue−$1.54B20.7%
- Gross profit$5.92B79.3%
- Operating costs−$4.40B59.0%
- Operating income$1.52B20.4%
- Interest, other & tax−$399.0M5.3%
- Net income$1.12B15.0%
Where FY2025 revenue went
$7.46B- Operating costs: $4.40B, 59% of revenue
- Cost of revenue: $1.54B, 21% of revenue
- Net income: $1.12B, 15% of revenue
- Interest, other & tax: $399.0M, 5.3% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed May 13, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $7.46B$7.56B | −1.3% |
| Cost of Revenue | $1.54B$1.71B | −9.8% |
| Gross Profit | $5.92B$5.85B | +1.2% |
| Operating Expenses | $4.40B$4.33B | +1.5% |
| Operating Income | $1.52B$1.52B | +0.1% |
| Interest Expense | $58.00M$58.00M | 0.0% |
| Net Income | $1.12B$1.27B | −11.9% |
| EPS (Basic) | $4.28$4.71 | −9.1% |
| EPS (Diluted) | $4.25$4.68 | −9.2% |
| Shares Outstanding (Basic) | 262.00M270.00M | −3.0% |
| Shares Outstanding (Diluted) | 264.00M272.00M | −2.9% |
05—Questions
Frequently Asked Questions
What was Electronic Arts' overall financial performance for fiscal year 2025?
For the fiscal year ended March 31, 2025, Electronic Arts reported total net revenue of $7,463 million, a 1% decrease year-over-year. Operating income remained flat at $1,520 million, while net income was $1,121 million, translating to diluted earnings per share of $4.25. The company demonstrated improved profitability with a gross margin of 79.3%.
How significant are EA's live services to its overall revenue?
Live services and other net revenue remain a critical component of EA's business, accounting for 73% of total net revenue in fiscal year 2025, totaling $5,461 million. While this segment saw a slight decrease of 2% year-over-year, it continues to be the primary driver of revenue, particularly through in-game content and subscription offerings like Ultimate Team modes.
What is EA's strategy for returning capital to shareholders?
Electronic Arts demonstrated a strong commitment to shareholder returns in fiscal year 2025 by repurchasing approximately $2.5 billion of its common stock and paying out $199 million in quarterly cash dividends, totaling $2.7 billion returned to stockholders. The company has an active share repurchase program in place.
What are the key risks facing Electronic Arts according to the filing?
EA faces significant risks including intense competition in the digital interactive entertainment market, potential underperformance of its major game franchises, reliance on third-party console manufacturers and distribution platforms, evolving technologies like AI, potential cybersecurity breaches, and regulatory changes impacting its business models. The concentration of revenue from a few key titles also presents a risk if those titles underperform.
06—Continue