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Dec 31, 2024

EA Q3 2025 Earnings Report

EA reported mixed Q3 FY25 results with a slight decrease in revenue, offset by growth in net income and strategic stock repurchase plans.

Key Takeaways

Electronic Arts announced its Q3 FY25 results, revealing a slight decrease in net revenue to $1.883 billion, but an increase in net income to $293 million. The company plans a $1 billion accelerated stock repurchase, signaling confidence in its long-term growth strategy. EA SPORTS FC 25 Team of the Year event saw record success, driving engagement.

Net bookings totaled $2.215 billion for the quarter.

Global Football franchise net bookings have grown more than 70% over the last five fiscal years.

EA SPORTS FC Mobile experienced a double-digit increase in new players and engagement year-over-year.

EA plans a $1 billion accelerated stock repurchase program.

Total Revenue
$1.88B
Previous year: $1.95B
-3.2%
EPS
$2.83
Previous year: $2.96
-4.4%
Net Bookings
$2.22B
Previous year: $2.37B
-6.4%
Gross Profit
$1.43B
Previous year: $1.42B
+0.8%
Cash and Equivalents
$2.78B
Previous year: $2.74B
+1.2%
Free Cash Flow
$1.13B
Previous year: $1.21B
-7.1%
Total Assets
$13.5B
Previous year: $13.6B
-1.2%

EA

EA

EA Revenue by Segment

EA Revenue by Geographic Location

Forward Guidance

EA anticipates net revenue between $1.682 billion and $1.832 billion for Q4 FY25, with net income projected between $171 million and $263 million.

Positive Outlook

  • Net revenue is expected to be approximately $1.682 billion to $1.832 billion.
  • Net income is expected to be approximately $171 million to $263 million.
  • Diluted earnings per share is expected to be approximately $0.65 to $1.00.
  • Net bookings is expected to be approximately $1.444 billion to $1.594 billion.
  • The Company estimates a share count of 264 million for purposes of calculating diluted earnings per share.

Challenges Ahead

  • Change in deferred net revenue (online-enabled games) is expected to be approximately ($238) million.
  • Operating expense $1,112 to $1,122
  • Cost of revenue $305 to $315
  • Income before provision for income taxes $285 to $416
  • Net income $171 to $263

Revenue & Expenses

Visualization of income flow from segment revenue to net income