Electronic Arts Q2 FY25 Results

Key insights

6 takeaways

01
Electronic Arts reported Q2 FY25 net bookings of $2.079 billion, a 14% year-over-year increase driven by strong performance in its sports portfolio.See it on page 4
02
Live services remain the company's primary revenue driver, accounting for 74% of total trailing twelve-month net bookings.See it on page 4
03
Console revenue grew 29% year-over-year to $1.482 billion, serving as the largest platform contributor for the quarter.See it on page 6
04
Engagement in American Football-related content surged, with total hours played increasing by 140% behind the EA Sports FC and Madden NFL franchises.See it on page 4
05
Management projects total net bookings for the full fiscal year 2025 to fall between $7.5 billion and $7.8 billion.See it on page 4
06
The company’s growth strategy relies on a mix of new releases, such as EA Sports College Football 25 and Dragon Age: The Veilguard, alongside recurring revenue from established online communities.See it on page 7

Summary

Electronic Arts reported strong financial performance for the second quarter of fiscal year 2025, ending September 30, 2024. The company’s primary objective was to demonstrate growth in its core sports franchises and live service offerings, which continue to serve as the foundation of its business model. Total net bookings for the quarter reached $2.079 billion, representing a 14% year-over-year increase. This growth was largely driven by the robust performance of its sports portfolio, specifically the EA Sports FC and Madden NFL franchises, with American Football-related content seeing a 140% increase in total hours played.

The company’s financial health is underpinned by its live services segment, which accounted for 74% of total trailing twelve-month net bookings. On a platform basis, console revenue remained the primary driver, contributing $1.482 billion in the second quarter, a 29% increase compared to the previous year. While the company maintains a diverse slate of titles, including recent releases like EA Sports College Football 25 and Dragon Age: The Veilguard, the recurring revenue generated by established online communities remains a critical component of its long-term strategy.

Financial guidance for the remainder of fiscal year 2025 projects net bookings between $7.5 billion and $7.8 billion. The company utilizes a combination of GAAP and non-GAAP metrics to evaluate performance, adjusting for items such as stock-based compensation, acquisition-related expenses, and deferred revenue from online-enabled games. Management continues to monitor macroeconomic factors, including foreign currency exchange rate fluctuations, which are mitigated through hedging programs. These results reflect a stable operational trajectory, supported by high engagement across its major interactive entertainment properties.