Summary
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.
Financial Highlights
49 data points| Revenue | $7.46B |
| Cost of Revenue | $1.54B |
| Gross Profit | $5.92B |
| Operating Expenses | $4.40B |
| Operating Income | $1.52B |
| Interest Expense | $58.00M |
| Net Income | $1.12B |
| EPS (Basic) | $4.28 |
| EPS (Diluted) | $4.25 |
| Shares Outstanding (Basic) | 262.00M |
| Shares Outstanding (Diluted) | 264.00M |
Key Highlights
- 1Total 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.
- 2Live services and other net revenue, a critical revenue stream, declined 2% to $5,461 million, though it still represents 73% of total net revenue.
- 3Gross margin improved by 2 percentage points year-over-year to 79.3%, indicating better cost management and a favorable revenue mix.
- 4Operating income remained stable at $1,520 million, showing resilience despite the slight revenue decrease.
- 5Net income was $1,121 million, resulting in diluted earnings per share of $4.25.
- 6EA returned a significant $2.7 billion to stockholders through share repurchases ($2.5 billion) and dividends ($199 million) in FY2025.
- 7The 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.