Revenue and profitability snapshot:
- Revenue: $1.5038B, YoY +12.37%, QoQ -4.97%
- Gross Profit: $0.945B, YoY +22.55%, QoQ +17.64%, Gross Margin 62.84%
- Operating Income: $21.6M, YoY +111.68%, QoQ +100.57%, Operating Margin 1.44%
- EBITDA: $280.4M, Margin 18.65%
- Net Income: -$11.9M, YoY improvement in losses vs prior periods but still negative, Net Margin -0.79%
- EPS: -$0.0658, YoY +95.67%, QoQ +99.69%
Liquidity and cash flow:
- Cash and cash equivalents: $2.025B; Total cash and investments: $2.035B
- Net cash provided by operating activities: -$44.7M; Free cash flow: -$69.8M
- Net cash provided by (used in) financing activities: +$618.3M (notably from stock issuance of $1.216B)
- Net change in cash: +$557M; End-of-period cash: $2.116B
Balance sheet and leverage:
- Total assets: $9.684B; Total liabilities: $6.203B; Total stockholders’ equity: $3.481B
- Long-term debt: $2.8966B; Short-term debt: $610.3M; Total debt: $3.5069B; Net debt: $1.4819B
- Intangibles and goodwill: Intangibles $4.2517B; Goodwill $1.0656B; High overall intangible asset base indicating IP-centric valuation
- Retained earnings: -$7.071B (reflecting accumulated losses and capital allocation history)
Commentary context:
- The top-line strength is underpinned by core franchises and digital monetization potential, but profitability remains constrained by reinvestment and a negative quarterly operating cash flow. The company’s strong liquidity provides flexibility to fund development, marketing, and monetization improvements while pursuing growth opportunities in live services and new title development. A full-year view would depend on upcoming title cadence and the execution of live-service monetization strategies.