Electronic Arts Inc. has recently released its 10-Q report, offering a detailed look at its financial performance and operations. The company, incorporated in 1982 and headquartered in Redwood City, California, is a global leader in digital interactive entertainment. It develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile devices. The company's offerings span various genres, including sports, racing, first-person shooter, action, role-playing, and simulation.
In the 10-Q report, Electronic Arts Inc. highlighted several key financial results for the fiscal quarter ended June 30, 2025. Total net revenue was reported at $1,671 million, marking a 1 percent year-over-year increase. Live services and other net revenue reached $1,382 million, a 2 percent decrease compared to the previous year. The gross margin was 83.3 percent, down 1 percentage point year-over-year, while operating expenses rose to $1,121 million, up 9 percent year-over-year. Operating income was $271 million, down 26 percent year-over-year, with net income at $201 million and diluted earnings per share of $0.79. Net cash provided by operating activities decreased by 86 percent year-over-year to $17 million. The company reported total cash, cash equivalents, and short-term investments of $1,630 million. Additionally, Electronic Arts Inc. returned $423 million to stockholders through its capital return programs, including share repurchases and cash dividends.
The report also outlined several key trends impacting the company's business. One major trend is the growth of live services business, with net revenue attributable to live services and other reaching $5,433 million for the trailing twelve months ended June 30, 2025. The company expects live services net revenue to continue to be significant to its business, particularly driven by extra content sales within the Ultimate Team mode associated with its sports franchises.
Another trend highlighted in the report is the increasing digital delivery of games. Electronic Arts Inc. noted that players are increasingly purchasing games digitally, leading to a shift in revenue from packaged goods sales to digital full game downloads. The company reported net revenue attributable to digital full game downloads at $1,478 million for fiscal year 2025, compared to $524 million from packaged goods sales.
The report also emphasized the competitive landscape, noting that competition in the company’s business is intense. The company competes with both established interactive entertainment companies and emerging start-ups, facing challenges such as consumer buying patterns and increased competition for talent retention.
Electronic Arts Inc. also discussed its critical accounting policies and estimates, particularly focusing on revenue recognition. The company derives revenue from sales of games, extra content, and services, and evaluates and recognizes revenue based on the performance obligations in the contracts with customers.
As a result of these announcements, the company's shares have moved 3.01% on the market, and are now trading at a price of $157.08. Check out the company's full 10-Q submission here.
