"We are focused on delivering sustainable, long-term growth through innovation and by deepening our engagement with players."
— Andrew Wilson, CEO
03Detailed Report
ERT.DE
Electronic Arts Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 26, 2026
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Executive Summary
In QQ1 2025, Electronic Arts Inc reported revenues of $1.65 billion, reflecting a significant decline of 14.09% year-over-year (YoY) and a 7.08% quarter-over-quarter (QoQ) decrease. The net income stood at $280 million, down 30.35% YoY but showing a promising recovery with a 53.85% increase from the previous quarter. The company continues to face headwinds in its core gaming segments, which remain heavily influenced by competition, shifts in consumer behavior, and macroeconomic conditions.
Despite the decline in revenue, management emphasized the strength of its franchise titles and ongoing investments in innovation and digital distribution as vital areas for long-term growth. The company’s strategic focus on leveraging its existing intellectual property—especially within the highly anticipated sports and battle royale segments—could provide a pathway towards stabilizing revenues in upcoming quarters.
Profitability Analysis:
- Gross Profit: $1.373 billion
- Gross Profit Margin: 83.06%
- Operating Income: $369 million, down 31.92% YoY
- Net Income: $280 million, down 30.35% YoY
- EPS: $1.05, reflecting a 29.05% decrease YoY but a 54.41% increase QoQ
Balance Sheet Strength:
- Total Current Assets: $3.587 billion
- Total Assets: $12.708 billion
- Cash and Cash Equivalents: $2.4 billion
- Total Liabilities: $5.308 billion
- Total Stockholders' Equity: $7.4 billion
Cash Flow Insights:
- Operating Cash Flow: $120 million
- Free Cash Flow: $53 million
- Net Cash Change: -$500 million as a result of financing activities including share repurchases totaling $375 million and dividends paid of $50 million.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.65B
-14.09%
-7.08%
Gross Profit
1.37B
-11.76%
-0.44%
Operating Income
369.00M
-31.92%
14.60%
Net Income
280.00M
-30.35%
53.85%
EPS
1.05
-29.05%
54.41%
Key Financial Ratios
Gross Profit Margin
Excellent
84.20%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
21.90%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
16.90%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.20%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.78%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.45
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.26
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
32.77x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Premium
4.96x
Trading at premium to book value, reflects strong intangibles or growth
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