Yahoo Finance

• Net Bookings: $7.36 billion for FY25, down 1% year-over-year.

• American Football Net Bookings: Surpassed $1 billion, up over 70% year-over-year.

• Full Game Net Bookings: $2.02 billion, up 1%.

• Live Services Net Bookings: $5.34 billion, down 2%.

• Net Revenue: $7.46 billion, down 1% year-over-year.

• Gross Margin: 79.3%, an improvement of nearly 200 basis points.

• Operating Expenses: $4.4 billion, up 2%.

• Earnings Per Share (EPS): $4.25.

• Operating Cash Flow: $2.08 billion.

• Free Cash Flow: $1.86 billion.

• Q4 Net Bookings: $1.8 billion, up 8%.

• Q4 Full Game Net Bookings: $384 million, up 48%.

• Q4 Live Services and Other Net Bookings: $1.42 billion, up 1%.

• Q4 Net Revenue: $1.9 billion, up 7%.

• Q4 Gross Margin: 80.6%.

• Q4 Operating Expenses: $1.13 billion, down 5%.

• Q4 Earnings Per Share (EPS): $0.98, up 46%.

• Q4 Free Cash Flow: $495 million.

• FY26 Net Bookings Guidance: $7.6 billion to $8 billion, up 3% to 9% year-over-year.

• FY26 Operating Cash Flow Guidance: $2.2 billion to $2.4 billion.

• FY26 Free Cash Flow Guidance: $1.975 billion to $2.175 billion, up 6% to 17%.

• Q1 Net Bookings Guidance: $1.175 billion to $1.275 billion, down 7% to up 1%.

• Q1 Earnings Per Share (EPS) Guidance: $0.49 to $0.66.

• Warning! GuruFocus has detected 9 Warning Signs with EA.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Electronic Arts Inc (NASDAQ:EA) delivered Q4 results that significantly exceeded expectations, driven by strong performance in EA Sports FC, American Football, and The Sims.

• The launch of Split Fiction was highly successful, with nearly 4 million units sold, showcasing EA's ability to introduce new IPs effectively.

• EA Sports FC saw a reacceleration of growth due to a major gameplay update and community engagement, leading to double-digit increases in player engagement.

• The American Football ecosystem, including Madden NFL and College Football, achieved over $1 billion in net bookings, up over 70% year-over-year.

• The Sims franchise experienced double-digit growth in net bookings, marking its best fourth-quarter performance ever, driven by successful player reengagement and new content releases.

Negative Points

• Apex Legends faced a decline, contributing to a 4-point headwind in live services net bookings, impacting overall performance.

• The transition from FC 24 to FC 25 was slower than expected, requiring targeted marketing efforts to incentivize player migration.

• EA anticipates a 40% year-over-year decline in Apex Legends net bookings for FY26, posing a challenge to overall growth.

• The company faces a 5-point headwind from catalog and Apex Legends, affecting FY26 guidance.

• EA's catalog is experiencing near-term pressure due to a strategic shift towards massive online communities and select blockbuster storytelling investments.