Electronic Arts Inc. has recently released its 10-Q report, revealing key financial and operational details for the fiscal quarter ended June 30, 2025. The company, headquartered in Redwood City, California, is a global leader in digital interactive entertainment, developing, marketing, and delivering games, content, and services for game consoles, PCs, and mobile devices. Its offerings span various genres, including sports, racing, first-person shooter, action, role-playing, and simulation, and include live services such as extra content and subscription offerings.
In the recently released 10-Q report, Electronic Arts Inc. reported total net revenue of $1,671 million, representing a 1% increase year-over-year. Live services and other net revenue amounted to $1,382 million, marking a 2% decrease year-over-year. The gross margin was reported at 83.3%, down 1 percentage point year-over-year, while operating expenses increased by 9% to $1,121 million. Operating income was $271 million, down 26% year-over-year, with net income of $201 million and diluted earnings per share of $0.79. Net cash provided by operating activities decreased by 86% year-over-year to $17 million, and the company reported total cash, cash equivalents, and short-term investments of $1,630 million. Furthermore, Electronic Arts Inc. returned $423 million to stockholders through its capital return programs, which included repurchasing 3 million shares for approximately $375 million and paying $48 million through its quarterly cash dividend program.
The report also highlighted several trends and drivers affecting the company's business. Notably, Electronic Arts Inc. emphasized the importance of its live services business, which includes extra content, subscription offerings, and other revenue generated in addition to the sale of full games. The company's net revenue attributable to live services and other was $5,433 million for the trailing twelve months ended June 30, 2025. Additionally, the report emphasized the increasing trend of digital delivery of games, with net revenue attributable to digital full game downloads on the rise.
Furthermore, the 10-Q report discussed critical accounting policies and estimates, particularly focusing on revenue recognition. Electronic Arts Inc. detailed its approach to recognizing revenue from sales of games, extra content, subscriptions, and licensing to third parties, outlining the evaluation of performance obligations and the allocation of transaction prices.
The market has reacted to these announcements by moving the company's shares 3.01% to a price of $157.08. Check out the company's full 10-Q submission here.
