Summary
Electronic Arts Inc. (EA) reported its financial results for the fiscal quarter and six months ended September 30, 2025. For the quarter, net revenue was $1.839 billion, a decrease of 9% year-over-year, while net income was $137 million, down significantly from $294 million in the prior year period. Diluted earnings per share stood at $0.54. The company announced a definitive agreement to be acquired by an investor consortium for $210 per share in cash, expected to close in the first quarter of fiscal 2027. This significant development overshadows the current operational performance. While the company experienced a decline in net revenue and net income compared to the prior year, management highlighted ongoing trends in live services and digital game delivery as crucial for future growth. Despite the year-over-year revenue decline, net bookings for the quarter were $1.818 billion, reflecting underlying sales activity. Investors should closely monitor the progress of the proposed merger, including regulatory approvals and stockholder adoption, as this transaction represents the most material event for the company. Operationally, the continued strength of live services, particularly within sports franchises like EA SPORTS FC, remains a key revenue driver, even amidst competitive pressures and shifts in consumer spending patterns.
Financial Highlights
50 data points| Revenue | $1.84B |
| Cost of Revenue | $443.00M |
| Gross Profit | $1.40B |
| Operating Expenses | $1.20B |
| Operating Income | $200.00M |
| Interest Expense | $14.00M |
| Net Income | $137.00M |
| EPS (Basic) | $0.55 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 250.00M |
| Shares Outstanding (Diluted) | 252.00M |
Key Highlights
- 1Net revenue for the three months ended September 30, 2025, was $1.839 billion, a 9% decrease year-over-year.
- 2Net income for the quarter was $137 million, a significant decrease from $294 million in the prior year period.
- 3Diluted earnings per share for the quarter was $0.54.
- 4A definitive agreement to be acquired by an investor consortium for $210 per share in cash was announced, with an expected closing in the first quarter of fiscal 2027.
- 5Net bookings for the quarter were $1.818 billion, a 13% decrease year-over-year, primarily driven by declines in EA SPORTS College Football and EA SPORTS FC franchises.
- 6Cash, cash equivalents, and short-term investments totaled $1.260 billion as of September 30, 2025.
- 7The company returned $423 million to stockholders through share repurchases and dividends in the quarter.