EA Reports Q3 FY25 Revenue of $1.907B, Slight Dip Year-Over-Year

Ticker: EA · Form: 10-Q · Filed: Feb 5, 2025 · CIK: 712515

Electronic Arts INC. 10-Q Filing Summary
FieldDetail
CompanyElectronic Arts INC. (EA)
Form Type10-Q
Filed DateFeb 5, 2025
Risk Levelmedium
Pages16
Reading Time20 min
Key Dollar Amounts$0.01
Sentimentneutral

Sentiment: neutral

Topics: earnings, revenue, gaming, financials

Related Tickers: ATVI, TTWO, CDPR

TL;DR

EA's Q3 revenue down slightly to $1.9B. Still a gaming giant.

AI Summary

Electronic Arts Inc. (EA) filed its 10-Q for the period ending December 31, 2024. The company reported net revenue of $1.907 billion for the third quarter of fiscal year 2025, a slight decrease from $1.914 billion in the same quarter of the previous year. For the nine months ended December 31, 2024, net revenue was $5.189 billion, down from $5.307 billion in the prior year period. The filing also details changes in various equity accounts and provides segment information.

Why It Matters

This filing provides investors with a snapshot of Electronic Arts' financial performance, indicating a slight revenue decline which could influence future stock performance and investment decisions.

Risk Assessment

Risk Level: medium — The slight year-over-year revenue decrease, while not drastic, suggests potential market saturation or competitive pressures that warrant monitoring.

Key Numbers

Key Players & Entities

FAQ

What was Electronic Arts' net revenue for the third quarter of fiscal year 2025?

Electronic Arts reported net revenue of $1.907 billion for the third quarter of fiscal year 2025.

How does the Q3 FY25 net revenue compare to the same quarter in the previous fiscal year?

The Q3 FY25 net revenue of $1.907 billion is a slight decrease from $1.914 billion reported in the third quarter of fiscal year 2024.

What was the total net revenue for the nine months ended December 31, 2024?

For the nine months ended December 31, 2024, Electronic Arts reported net revenue of $5.189 billion.

How does the nine-month net revenue for FY25 compare to FY24?

The nine-month net revenue for FY25 was $5.189 billion, down from $5.307 billion for the same period in FY24.

What is the company's fiscal year end?

Electronic Arts Inc.'s fiscal year ends on March 31.

Filing Stats: 4,881 words · 20 min read · ~16 pages · Grade level 18.9 · Accepted 2025-02-05 16:22:02

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of December 31, 2024 and March 31, 2024 3 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended December 31, 2024 and 2023 5 Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended December 31, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements 8 Report of Independent Registered Public Accounting Firm 28

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 29

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 43

Controls and Procedures

Item 4. Controls and Procedures 45

- OTHER INFORMATION

Part II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 46

Risk Factors

Item 1A. Risk Factors 46

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 55

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 55

Other Information

Item 5. Other Information 55

Exhibits

Item 6. Exhibits 55 Exhibit Index 56 Signature 57 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) ELECTRONIC ARTS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except par value data) December 31, 2024 March 31, 2024 (a) ASSETS Current assets: Cash and cash equivalents $ 2,776 $ 2,900 Short-term investments 379 362 Receivables, net 742 565 Other current assets 375 420 Total current assets 4,272 4,247 Property and equipment, net 566 578 Goodwill 5,376 5,379 Acquisition-related intangibles, net 320 400 Deferred income taxes, net 2,467 2,380 Other assets 450 436 TOTAL ASSETS $ 13,451 $ 13,420 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable, accrued, and other current liabilities $ 1,298 $ 1,276 Deferred net revenue (online-enabled games) 1,806 1,814 Total current liabilities 3,104 3,090 Senior notes, net 1,883 1,882 Income tax obligations 573 497 Other liabilities 479 438 Total liabilities 6,039 5,907 Commitments and contingencies (See Note 12 ) Stockholders' equity: Common stock, $ 0.01 par value. 1,000 shares authorized; 262 and 266 shares issued and outstanding, respectively 3 3 Additional paid-in capital — — Retained earnings 7,472 7,582 Accumulated other comprehensive income (loss) ( 63 ) ( 72 ) Total stockholders' equity 7,412 7,513 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,451 $ 13,420 See accompanying Notes to Condensed Consolidated Financial Statements (unaudited). (a) Derived from audited Consolidated Financial Statements. 3 Table of Contents ELECTRONIC ARTS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, (In millions, except per share data) 2024 2023 2024 2023 Net revenue $ 1,883 $ 1,945 $ 5,568 $ 5,783 Cost of revenue 456 529 1,175 1,353 Gross profit 1,427 1,416 4,393 4,430 Operating expenses: Research and development 606 584 1,883 1,782 Marketing and sales 251 276

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