Electronic Arts Inc. has recently released its 10-Q report, providing a detailed look at the company's financial performance for the fiscal quarter ended September 30, 2025. The report reveals that the company's total net revenue was $1,839 million, representing a 9% decrease year-over-year. Live services and other net revenue also saw a 7% decrease, totaling $1,221 million. The company's gross margin was 75.9%, down 2 percentage points year-over-year, and operating income decreased by 48% to $200 million. Net income was $137 million with diluted earnings per share of $0.54. Net cash provided by operating activities decreased by 44% year-over-year to $130 million. The company returned $423 million to stockholders through its capital return programs, including share repurchases and dividend payments.
Electronic Arts Inc. is a global leader in digital interactive entertainment, offering games, content, and services across various platforms. The company's live services offerings, including extra content and subscription offerings, play a significant role in its revenue generation. The report highlights the key financial results, trends in the business, and critical accounting policies and estimates.
The report also discusses the company's proposed merger, emphasizing the impact of the transaction on its future prospects. Electronic Arts Inc. acknowledges the intense competition in the interactive entertainment industry and the concentration of sales among its most popular titles, such as EA SPORTS FC, EA SPORTS College Football, EA SPORTS Madden NFL, Apex Legends, Battlefield, and The Sims.
Additionally, the report delves into the company's critical accounting policies and estimates, particularly focusing on revenue recognition. It outlines the process of evaluating and recognizing revenue from sales of games, extra content, subscriptions, and licensing to third parties. The company also provides insights into its approach to revenue recognition for online-enabled games, including Games with Services and Online-Hosted Service Games.
The market has reacted to these announcements by moving the company's shares -0.14% to a price of $199.92. For more information, read the company's full 10-Q submission here.
