Electronic Arts Q3 2025 Earnings Report Shows Mixed Results

Electronic Arts' Q3 2025 earnings call reveals a challenging quarter with net bookings down 6% year over year. Despite this, EA remains optimistic about future growth through strategic updates and a strong game pipeline.

Date: 05-02-2025

AI Rating: 5

Overview of Earnings and Performance Metrics
In the earnings call, Electronic Arts reported a net bookings figure of $2.2 billion for Q3 2025, down 6% year over year. The company faced challenges, particularly with the underperformance of Dragon Age: The Veilguard and a subsequent slowdown in the EA Sports FC franchise. Despite this, the company noted strong engagement metrics following a significant gameplay update and the successful launch of the Team of the Year event.

Earnings Per Share (EPS):
The earnings per share (EPS) was reported at $1.11, which is an increase of 4% year over year. This increase in EPS indicates a positive outcome for shareholders despite overall net bookings decrease.

Free Cash Flow (FCF):
Operating cash flow for the quarter was reported at $1.18 billion, with free cash flow at $1.89 billion. The company continues to be a robust cash generator, highlighting a solid financial foundation despite recent challenges.

Net Income and Profit Margins:
While specific figures for net income were not provided, the company reported a GAAP net revenue of $1.88 billion, which was down 3% year over year. They also reported an increase in gross margins by 300 basis points, indicating efficiency in managing costs.

Future Guidance and Market Outlook:
Looking ahead, EA has lowered its guidance for FY '25 net bookings to between $7 billion and $7.15 billion, which indicates a cautious outlook moving forward. However, the company is optimistic about upcoming titles and strategic initiatives that could revitalize growth, especially with the anticipated launch of College Football 26 and the expansion of the sports franchise.

Stocks: EA