Electronic Arts 10-Q — Q3 FY2025 (February 2025)

Electronic Arts reported a mixed performance for the nine‑month period ending December 31 2024. Net revenue of $5,568 million reflected a modest 2.7% decline versus the same period in FY2023, driven by lower sales of flagship titles such as EA SPORTS FC and Apex Legends. Gross profit fell 4.6% to $4,393 million while operating expenses decreased 3.5%, resulting in operating income of $1,125 million—down from $1,284 million a year earlier. Net income contracted 14.5% to $1,091 million, largely due to higher interest and tax expenses.

Cash and cash equivalents stood at $2.78 billion, a slight drop from the prior year’s $2.90 billion, after significant capital return to shareholders through a $1.13 billion stock‑repurchase program and dividend payments. Total assets were $13.45 billion, with goodwill at $5.38 billion; total liabilities increased to $6.07 billion, supported by a $2 billion revolving credit facility that remains unused.

Revenue concentration remained high, with core franchises generating the bulk of sales and live‑service income. The company’s strategy focuses on portfolio realignment, cost discipline, and expansion of free‑to‑play offerings across console, PC, and mobile platforms. Risks highlighted include competitive pressures, development delays, third‑party platform dependencies, regulatory compliance, and macroeconomic volatility. Despite these challenges, Electronic Arts maintains a solid liquidity position and continues to deploy capital through share repurchases while pursuing growth in its flagship titles.