Summary
Electronic Arts Inc. (EA) reported its quarterly results for the period ending December 31, 2025. Net revenue for the quarter was $1.901 billion, a slight increase of 1% year-over-year, primarily driven by strong performance in franchises like EA SPORTS FC, Battlefield, and EA SPORTS Madden NFL. However, operating income saw a significant decline of 66% year-over-year to $127 million, mainly due to a 22% increase in operating expenses, largely attributed to increased R&D and marketing spending, as well as merger-related fees. For the nine months ended December 31, 2025, net revenue was $5.411 billion, a decrease of 3% compared to the prior year, impacted by lower live services revenue and a decline in packaged goods sales. Despite the revenue dip, net cash provided by operating activities increased significantly by 30% to $1.973 billion, reflecting improved working capital management and lower tax payments. The company ended the period with a robust cash and cash equivalents balance of $2.784 billion. A significant development impacting the company is the proposed acquisition by an investor consortium for $210 per share in cash, which is expected to close in the first quarter of fiscal year 2027, subject to regulatory approvals. This impending transaction has led EA to suspend its share repurchase program.
Financial Highlights
50 data points| Revenue | $1.90B |
| Cost of Revenue | $498.00M |
| Gross Profit | $1.40B |
| Operating Expenses | $1.28B |
| Operating Income | $127.00M |
| Interest Expense | $14.00M |
| Net Income | $88.00M |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.35 |
| Shares Outstanding (Basic) | 250.00M |
| Shares Outstanding (Diluted) | 253.00M |
Key Highlights
- 1Net revenue for the quarter increased by 1% year-over-year to $1.901 billion, driven by key franchises.
- 2Operating income declined significantly by 66% year-over-year to $127 million due to increased operating expenses.
- 3For the nine-month period, net revenue decreased by 3% to $5.411 billion, with live services revenue showing a slight decline.
- 4Net cash provided by operating activities saw a substantial increase of 30% to $1.973 billion for the nine-month period.
- 5The company reported a strong cash position with $2.784 billion in cash and cash equivalents as of December 31, 2025.
- 6A definitive agreement has been signed for EA to be acquired by an investor consortium for $210 per share, with an expected closing in Q1 fiscal year 2027.
- 7EA has suspended its stock repurchase program in contemplation of the proposed merger.