Electronic Arts (EA) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net revenue was $1.883 billion, down 3% year-over-year, with net income at $293 million and diluted EPS of $1.11; live services accounted for 74% of trailing twelve months net bookings.

• Net bookings for Q3 were $2.215 billion, down 6% year-over-year, with strong engagement in EA SPORTS FC Mobile and American Football titles.

• Management remains confident in long-term growth, supported by a robust pipeline, technology investments, and a $1 billion accelerated stock repurchase.

• $1.7 billion was returned to shareholders in the trailing twelve months via stock repurchases and dividends.

• Gross margin improved to 75.8%, up 3 percentage points year-over-year, reflecting lower licensing costs and a favorable mix shift.

Financial highlights

• Q3 net bookings were $2.215 billion, down 6% year-over-year; net revenue was $1.883 billion, down 3% year-over-year; net income was $293 million.

• Gross margin increased by 300 basis points to 75.8%; operating expenses were $1.05 billion, flat year-over-year.

• Diluted EPS was $1.11, up from $1.07 year-over-year.

• Operating cash flow for the quarter was $1.176 billion; trailing 12-month free cash flow reached $1.892 billion.

• Returned $425 million to shareholders in Q3 through buybacks and dividends.

Outlook and guidance

• FY2025 net bookings expected at $7.0–$7.15 billion, down 4–6% year-over-year; net revenue guidance lowered to $7.25–$7.4 billion.

• FY2025 GAAP EPS guidance: $3.90–$4.25; operating cash flow guidance set at $1.8–$1.9 billion.

• Q4 net bookings expected at $1.444–$1.594 billion, down 4–13% year-over-year.

• Growth expected to resume in FY2026, driven by new releases and franchise expansions.

• Capital expenditures for FY2025 are expected to be approximately $225 million.