Electronic Arts 10-Q — Q2 FY2025 (August 2025)

Electronic Arts reported a modest decline in Q2 FY2025 total assets to $11.7 billion, largely driven by a reduction in current assets from $3.3 billion to $2.5 billion, while current liabilities fell slightly to $3.0 billion. Stockholders’ equity decreased to $6.08 billion, reflecting a $229 million drop in retained earnings and a $75 million increase in accumulated other comprehensive loss.

Revenue for the quarter was $1.671 billion, a 0.1% year‑over‑year decrease, with operating expenses rising to $1.121 billion due mainly to higher R&D spending ($706 million versus $629 million). Net income fell 30% to $201 million, producing diluted earnings per share of $0.79 compared with $1.04 in the prior year. Cash balances declined to $1.518 billion from $2.136 billion, largely because of dividend and share‑repurchase outflows.

Digital full‑game downloads accounted for 78 % of units sold, up from 68 % in FY2023, driving net revenue from digital downloads to $1.478 billion and contributing to a 3 % year‑over‑year increase in live‑services revenue ($1.084 billion). However, packaged goods revenue fell to $524 million and extra‑content sales from Apex Legends declined. The company’s capital‑return program accelerated, repurchasing 7.4 million shares at an average price of $135.05 and initiating a new $5 billion share‑repurchase plan in May 2024.

Risk disclosures highlight vulnerability to product performance, development delays, and franchise success, with additional concerns around licensing costs, platform partner dependencies, cyber threats, talent attrition, and evolving data‑privacy regulations. Currency volatility remains a financial risk given that 59 % of revenue is international, and the company maintains an unused $500 million revolving credit facility that satisfies debt‑to‑EBITDA covenants. Overall, the quarter reflects steady digital sales growth offset by margin pressures and heightened operational risks that could impact future cash flow, earnings, and shareholder value.