EX-99.1 2 earningspressrelease2025_0.htm EX-99.1

Exhibit 99.1

Electronic Arts Reports Q4 and FY25 Results

Strong finish to FY25 from EA SPORTS FC and Split Fiction; positions EA for growth

acceleration and a Battlefield launch in FY26

REDWOOD CITY, CA – May 6, 2025 – Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2025.

“The incredible success of College Football and the enduring strength of FC drove another record year for EA SPORTS, while The Sims capped FY25 with a historic Q4,” said Andrew Wilson, CEO of Electronic Arts. “As we look to the future, we’re confident in our ability to execute across a deep pipeline — beginning this summer with the highly anticipated reveal of Battlefield, a pivotal step in delivering on our next generation of blockbuster entertainment.”

“Q4 marked a strong finish to FY25, with broad-based momentum across the portfolio positioning the business for accelerated growth,” said Stuart Canfield, CFO of Electronic Arts. “As we enter FY26, we remain focused on disciplined execution as we build toward a slate of groundbreaking upcoming releases.”

Selected Operating Highlights and Metrics

•Net bookings1 for FY25 totaled $7.355 billion.

•The EA SPORTS portfolio delivered another record net bookings year in FY25.

•EA’s American Football franchise exceeded expectations and reached over $1 billion in net bookings in FY25.

•Celebrating its 25th birthday, The Sims franchise continues its strong momentum with double digit growth in the quarter.

•In EA SPORTS FC, player monetization was up double digits, starting with the mid-January gameplay update.

•Split Fiction has sold nearly 4 million units since its hugely successful launch in March.

Selected Financial Highlights and Metrics

•Net revenue for FY25 was $7.463 billion.

•Net cash provided by operating activities was $549 million for the quarter and $2.079 billion for the fiscal year.

•EA repurchased 9.8 million shares for $1.375 billion during the quarter, bringing the total for the fiscal year to 17.6 million shares for $2.500 billion.

Dividend

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 18, 2025 to stockholders of record as of the close of business on May 28, 2025.

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Business Outlook as of May 6, 2025

Fiscal Year 2026 Expectations

Operational outlook metrics:

•Fiscal year 2026 net bookings is expected to be approximately $7.600 billion to $8.000 billion.

◦Year-over-year net bookings growth in fiscal year 2026 is expected to be driven by the EA SPORTS portfolio, The Sims, and the launches of Battlefield and skate., partially offset by approximately 5 points of weakness in catalog and Apex Legends.

•The Company expects continued growth in live services, as well as the launch of new non-annual titles in fiscal year 2027.

Financial outlook metrics:

•Net revenue is expected to be approximately $7.100 billion to $7.500 billion.

◦Change in deferred net revenue (online-enabled games) is expected to be approximately $500 million.

•GAAP operating expenses are expected to be approximately $4.470 billion to $4.570 billion.

◦Year-over-year increases in expenses are largely attributable to costs related to Battlefield marketing.

•Net income is expected to be approximately $795 million to $974 million.

•Diluted earnings per share is expected to be approximately $3.09 to $3.79.

•Operating cash flow is expected to be approximately $2.200 billion to $2.400 billion.

•The Company estimates a share count of 257 million for purposes of calculating diluted earnings per share.

•The Company intends to return at least 80% of free cash flow with stock repurchases and dividends through fiscal year 2027.

•The Company reiterates its financial margin framework through fiscal year 2027 shared at its September 2024 Investor Day.

Q1 Fiscal Year 2026 Expectations – Ending June 30, 2025

Operational outlook metric:

•Net bookings is expected to be approximately $1.175 billion to $1.275 billion.

◦Live services growth, excluding Apex Legends, is expected to be up low-single-digits year-over-year led by the EA SPORTS portfolio, offset by approximately 5 points of headwind from Apex Legends and 2 points of headwind from catalog.

Financial outlook metrics:

•Net revenue is expected to be approximately $1.550 billion to $1.650 billion.

◦Change in deferred net revenue (online-enabled games) is expected to be approximately ($375) million.

•GAAP operating expenses are expected to be approximately $1.110 billion to $1.120 billion.

◦Expenses in Q1 are impacted by continued investments in line with Q4 FY25, as well as costs associated with resource reprioritization.

•Net income is expected to be approximately $125 million to $169 million.

•Diluted earnings per share is expected to be approximately $0.49 to $0.66.

•The Company estimates a share count of 255 million for purposes of calculating diluted earnings per share.

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Quarterly Financial Highlights

			Three Months Ended
			March 31,
(in $ millions, except per share amounts)			2025						2024
Full game			437						333
Live services and other			1,458						1,446
Total net revenue			1,895						1,779
Net income			254						182
Diluted earnings per share			0.98						0.67
Operating cash flow			549						580
Value of shares repurchased			1,375						325
Number of shares repurchased			9.8						2.3
Cash dividend paid			48						51

Fiscal Year Financial Highlights

			Twelve Months Ended
			March 31,
(in $ millions, except per share amounts)			2025						2024
Full game			2,002						2,015
Live services and other			5,461						5,547
Total net revenue			7,463						7,562
Net income			1,121						1,273
Diluted earnings per share			4.25						4.68
Operating cash flow			2,079						2,315
Value of shares repurchased			2,500						1,300
Number of shares repurchased			17.6						10.0
Cash dividend paid			199						205

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Operating Metric

The following is a calculation of our total net bookings for the periods presented:

			Three Months Ended March 31,												Twelve Months Ended March 31,
(in $ millions)			2025						2024						2025						2024
Total net revenue			1,895						1,779						7,463						7,562
Change in deferred net revenue (online-enabled games)			(96)						(113)						(108)						(132)
Total net bookings			1,799						1,666						7,355						7,430

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Conference Call and Supporting Documents

Electronic Arts will host a conference call on May 6, 2025 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth fiscal quarter and fiscal year ended March 31, 2025 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (855) 761-5600 (domestic) or (646) 307-1097 (international), using the conference code 5939891 or via webcast at EA’s IR Website at http://ir.ea.com.

EA has posted a slide presentation with a financial model of EA’s historical results and guidance on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website.

A dial-in replay of the conference call will be available until May 13, 2025 at (800) 770-2030 (domestic) or (609) 800-9099 (international) using conference code 5939891. An audio webcast replay of the conference call will be available for one year on EA’s IR Website.

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Forward-Looking Statements

Some statements set forth in this release, including the information relating to EA’s expectations under the heading “Business Outlook as of May 6, 2025” and other information regarding EA's expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements.

Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences and trends; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

These forward-looking statements are current as of May 6, 2025. Electronic Arts assumes no obligation to revise or update any forward-looking statement, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.

While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2025. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2025.

About Electronic Arts

Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.

In fiscal year 2025, EA posted GAAP net revenue of approximately $7.5 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FC™, Battlefield™, Apex Legends™, The Sims™, EA SPORTS™ Madden NFL, EA SPORTS™ College Football, Need for Speed™, Dragon Age™, Titanfall™, Plants vs. Zombies™ and EA SPORTS F1®. More information about EA is available at www.ea.com/news.

EA, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Dragon Age, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL, and F1 are the property of their respective owners and used with permission.

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For additional information, please contact:

Andrew Uerkwitz			Justin Higgs
Vice President, Investor Relations			Vice President, Corporate Communications
650-674-7191			925-502-9253
auerkwitz@ea.com			jhiggs@ea.com

1 Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in $ millions, except per share data)
			Three Months Ended March 31,												Twelve Months Ended March 31,
			2025						2024						2025						2024
Net revenue			1,895						1,779						7,463						7,562
Cost of revenue			368						357						1,543						1,710
Gross profit			1,527						1,422						5,920						5,852
Operating expenses:
Research and development			686						638						2,569						2,420
Marketing and sales			234						234						962						1,019
General and administrative			192						185						745						691
Amortization and impairment of intangibles			17						72						67						142
Restructuring			3						59						57						62
Total operating expenses			1,132						1,188						4,400						4,334
Operating income			395						234						1,520						1,518
Interest and other income (expense), net			12						26						85						71
Income before provision for income taxes			407						260						1,605						1,589
Provision for income taxes			153						78						484						316
Net income			254						182						1,121						1,273
Earnings per share
Basic			0.99						0.68						4.28						4.71
Diluted			0.98						0.67						4.25						4.68
Number of shares used in computation
Basic			257						267						262						270
Diluted			259						270						264						272

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on February 4, 2025 for the three months ended March 31, 2025 plus a comparison to the actuals for the three months ended March 31, 2024.

			Three Months Ended March 31,
			2025 Guidance (Mid-Point)												2025 Actuals						2024 Actuals
									Variance
Net revenue
Net revenue			1,757						138						1,895						1,779
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1			(238)						142						(96)						(113)
Cost of revenue
Cost of revenue			310						58						368						357
GAAP-based financial data
Acquisition-related expenses			(10)						—						(10)						(29)
Stock-based compensation			(4)						1						(3)						(2)
Operating expenses
Operating expenses			1,117						15						1,132						1,188
GAAP-based financial data
Acquisition-related expenses			(20)						3						(17)						(72)
Restructuring and related charges			(7)						3						(4)						(61)
Stock-based compensation			(161)						2						(159)						(146)
Income before tax
Income before tax			351						56						407						260
GAAP-based financial data
Acquisition-related expenses			30						(3)						27						101
Change in deferred net revenue (online-enabled games)1			(238)						142						(96)						(113)
Restructuring and related charges			7						(3)						4						61
Stock-based compensation			165						(3)						162						148
Tax rate used for management reporting			19		%										19		%				19		%
Earnings per share
Basic			0.83						0.16						0.99						0.68
Diluted			0.82						0.16						0.98						0.67
Number of shares used in computation
Basic			262						(5)						257						267
Diluted			264						(5)						259						270

1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
			March 31, 2025						March 31, 20242
ASSETS
Current assets:
Cash and cash equivalents			2,136						2,900
Short-term investments			112						362
Receivables, net			679						565
Other current assets			349						420
Total current assets			3,276						4,247
Property and equipment, net			586						578
Goodwill			5,376						5,379
Acquisition-related intangibles, net			293						400
Deferred income taxes, net			2,420						2,380
Other assets			417						436
TOTAL ASSETS			12,368						13,420
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued, and other current liabilities			1,359						1,276
Deferred net revenue (online-enabled games)			1,700						1,814
Senior notes, current, net			400						—
Total current liabilities			3,459						3,090
Senior notes, net			1,484						1,882
Income tax obligations			594						497
Other liabilities			445						438
Total liabilities			5,982						5,907
Stockholders’ equity:
Common stock			3						3
Retained earnings			6,470						7,582
Accumulated other comprehensive loss			(87)						(72)
Total stockholders’ equity			6,386						7,513
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			12,368						13,420

2Derived from audited consolidated financial statements.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in $ millions)
			Three Months Ended March 31,												Twelve Months Ended March 31,
			2025						2024						2025						2024
OPERATING ACTIVITIES
Net income			254						182						1,121						1,273
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, accretion and impairment			79						149						356						404
Stock-based compensation			162						148						642						584
Change in assets and liabilities
Receivables, net			64						303						(115)						119
Other assets			19						(38)						40						148
Accounts payable, accrued, and other liabilities			29						(53)						190						(208)
Deferred income taxes, net			48						(6)						(41)						82
Deferred net revenue (online-enabled games)			(106)						(105)						(114)						(87)
Net cash provided by operating activities			549						580						2,079						2,315
INVESTING ACTIVITIES
Capital expenditures			(54)						(51)						(221)						(199)
Proceeds from maturities and sales of short-term investments			329						182						695						632
Purchase of short-term investments			(61)						(180)						(437)						(640)
Net cash provided by (used in) investing activities			214						(49)						37						(207)
FINANCING ACTIVITIES
Proceeds from issuance of common stock			35						34						78						77
Cash dividends paid			(48)						(51)						(199)						(205)
Cash paid to taxing authorities for shares withheld from employees			(23)						(18)						(234)						(196)
Common stock repurchases and excise taxes paid			(1,375)						(325)						(2,508)						(1,300)
Net cash used in financing activities			(1,411)						(360)						(2,863)						(1,624)
Effect of foreign exchange on cash and cash equivalents			8						(13)						(17)						(8)
Change in cash and cash equivalents			(640)						158						(764)						476
Beginning cash and cash equivalents			2,776						2,742						2,900						2,424
Ending cash and cash equivalents			2,136						2,900						2,136						2,900

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
			Q4						Q1						Q2						Q3						Q4						YOY %
			FY24						FY25						FY25						FY25						FY25						Change
Net revenue
Net revenue			1,779						1,660						2,025						1,883						1,895						7		%
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1			(113)						(398)						54						332						(96)
Gross profit
Gross profit			1,422						1,397						1,569						1,427						1,527						7		%
Gross profit (as a % of net revenue)			80		%				84		%				78		%				76		%				81		%
GAAP-based financial data
Acquisition-related expenses			29						10						10						10						10
Change in deferred net revenue (online-enabled games)1			(113)						(398)						54						332						(96)
Stock-based compensation			2						4						4						3						3
Operating income
Operating income			234						364						384						377						395						69		%
Operating income (as a % of net revenue)			13		%				22		%				19		%				20		%				21		%
GAAP-based financial data
Acquisition-related expenses			101						27						27						26						27
Change in deferred net revenue (online-enabled games)1			(113)						(398)						54						332						(96)
Restructuring and related charges			61						6						52						—						4
Stock-based compensation			148						143						174						163						162
Net income
Net income			182						280						294						293						254						40		%
Net income (as a % of net revenue)			10		%				17		%				15		%				16		%				13		%
GAAP-based financial data
Acquisition-related expenses			101						27						27						26						27
Change in deferred net revenue (online-enabled games)1			(113)						(398)						54						332						(96)
Restructuring and related charges			61						6						52						—						4
Stock-based compensation			148						143						174						163						162
Tax rate used for management reporting			19		%				19		%				19		%				19		%				19		%
Diluted earnings per share			0.67						1.04						1.11						1.11						0.98						46		%
Number of shares used in computation
Basic			267						266						264						262						257
Diluted			270						268						266						265						259

1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
						Q4						Q1						Q2						Q3						Q4						YOY %
						FY24						FY25						FY25						FY25						FY25						Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by composition
Full game downloads						265						190						475						446						367						38		%
Packaged goods						68						60						241						153						70						3		%
Full game						333						250						716						599						437						31		%
Live services and other						1,446						1,410						1,309						1,284						1,458						1		%
Total net revenue						1,779						1,660						2,025						1,883						1,895						7		%
Full game						19		%				15		%				35		%				32		%				23		%
Live services and other						81		%				85		%				65		%				68		%				77		%
Total net revenue %						100		%				100		%				100		%				100		%				100		%
GAAP-based financial data
Full game downloads						(37)						(47)						70						25						(27)
Packaged goods						(37)						(35)						46						9						(26)
Full game						(74)						(82)						116						34						(53)
Live services and other						(39)						(316)						(62)						298						(43)
Total change in deferred net revenue (online-enabled games) by composition1						(113)						(398)						54						332						(96)
Net revenue by platform
Console						1,049						1,005						1,374						1,215						1,182						13		%
PC & Other						423						365						364						392						426						1		%
Mobile						307						290						287						276						287						(7		%)
Total net revenue						1,779						1,660						2,025						1,883						1,895						7		%
GAAP-based financial data
Console						(94)						(328)						108						275						(86)
PC & Other						(10)						(70)						(37)						33						(11)
Mobile						(9)						—						(17)						24						1
Total change in deferred net revenue (online-enabled games) by platform1						(113)						(398)						54						332						(96)

1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
			Q4						Q1						Q2						Q3						Q4						YOY %
			FY24						FY25						FY25						FY25						FY25						Change
CASH FLOW DATA
Investing cash flow			(49)						(69)						(46)						(62)						214
Investing cash flow - TTM			(207)						(232)						(215)						(226)						37						118		%
Financing cash flow			(360)						(546)						(402)						(504)						(1,411)
Financing cash flow - TTM			(1,624)						(1,688)						(1,739)						(1,812)						(2,863)						(76		%)
Operating cash flow			580						120						234						1,176						549
Operating cash flow - TTM			2,315						2,076						2,198						2,110						2,079						(10		%)
Capital expenditures			51						67						50						50						54
Capital expenditures - TTM			199						221						220						218						221						11		%
Free cash flow3			529						53						184						1,126						495
Free cash flow3 - TTM			2,116						1,855						1,978						1,892						1,858						(12		%)
Common stock repurchases and excise taxes paid			325						375						375						383						1,375						323		%
Cash dividends paid			51						50						51						50						48						(6		%)
DEPRECIATION
Depreciation expense			50						51						51						51						51						2		%
BALANCE SHEET DATA
Cash and cash equivalents			2,900						2,400						2,197						2,776						2,136
Short-term investments			362						366						366						379						112
Cash and cash equivalents, and short-term investments			3,262						2,766						2,563						3,155						2,248						(31		%)
Receivables, net			565						433						1,012						742						679						20		%
STOCK-BASED COMPENSATION
Cost of revenue			2						4						4						3						3
Research and development			104						101						122						119						115
Marketing and sales			14						12						16						14						14
General and administrative			28						26						32						27						30
Total stock-based compensation			148						143						174						163						162
RESTRUCTURING AND RELATED CHARGES
Restructuring			59						2						51						1						3
Office space reductions			2						4						1						(1)						1
Total restructuring and related charges			61						6						52						—						4

3Free cash flow is defined as Operating cash flow less Capital expenditures.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(in $ millions)
The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the twelve months ended March 31, 2025 plus a comparison to the actuals for the twelve months ended March 31, 2024.
			Twelve Months Ended
			March 31,
			2025						2024						YOY % Change
Net revenue			7,463						7,562						(1%)
GAAP operating income			1,520						1,518						—
Acquisition-related expenses			107						218
Restructuring and related charges			62						64
Stock-based compensation			642						584
Non-GAAP operating income			2,331						2,384						(2%)
GAAP operating margin			20.4%						20.1%
Non-GAAP operating margin			31.2%						31.5%
Impact from change in deferred net revenue (online-enabled games)			(100 bps)						(120 bps)

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(in $ millions)
The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the three months ended March 31, 2025 plus a comparison to the actuals for the three months ended March 31, 2024.
			Three Months Ended
			March 31,
			2025						2024						YOY % Change
Net revenue			1,895						1,779						7%
GAAP operating income			395						234						69%
Acquisition-related expenses			27						101
Restructuring and related charges			4						61
Stock-based compensation			162						148
Non-GAAP operating income			588						544						8%
GAAP operating margin			20.8%						13.2%
Non-GAAP operating margin			31.0%						30.6%
Impact from change in deferred net revenue (online-enabled games)			(370 bps)						(470 bps)

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
GAAP Guidance to Non-GAAP Guidance
(in $ millions)
The following table provides GAAP to Non-GAAP reconciliation of the Company’s FY26 guidance.
			Twelve Months Ending March 31, 2026
			GAAP-Based Financial Data																																				GAAP-Based Financial Data
						A									B												C
			GAAP Guidance Range												Acquisition-related expenses5												Stock-based compensation5						Non-GAAP Guidance Range = A + B +C												Change in deferred net revenue (online-enabled games)5
Net revenue			7,100			to			7,500						—												—						7,100			to			7,500						500
Cost of revenue			1,475			to			1,515						(40)												(15)						1,420			to			1,460						—
Operating expense			4,470			to			4,570						(70)												(650)						3,750			to			3,850						—
Operating margin			16.3%			to			18.9%						150 bps												910 bps						27.2%			to			29.2%						480 bps to 440 bps
Income before provision for income taxes			1,136			to			1,391						110												665						1,911			to			2,166						500
Net income4			795			to			974
Number of shares used in computation:
Diluted			257

4 The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan and analyze future periods.

5 The mid-point of the range has been used for purposes of presenting reconciling items to operating margin.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
GAAP-Based Financial Data for Guidance
(in $ millions)
The following table provides supplemental information to the Company’s Q1 FY26 guidance.
			Three Months Ending June 30, 2025
			GAAP-Based Financial Data
			GAAP Guidance Range												Acquisition-related expenses												Stock-based compensation												Change in deferred net revenue (online-enabled games)
Net revenue			1,550			to			1,650						—												—																		(375)
Cost of revenue			265			to			285						(10)												(5)																		—
Operating expense			1,110			to			1,120						(20)												(145)																		—
Income before provision for income taxes			179			to			242						30												150																		(375)
Net income4			125			to			169
Number of shares used in computation:
Diluted			255

4 The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan and analyze future periods.

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Non-GAAP Financial Measures

As a supplement to the Company’s financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents certain non-GAAP measures of financial performance, including non-GAAP operating margin and free cash flow. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the items associated with the Company’s results of operations as determined in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

The non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring and related charges, and capital expenditures, as applicable in any given reporting period and our outlook. The Company may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. Management believes that these non-GAAP financial measures provide investors with additional useful information to better understand and evaluate the Company’s operating results and future prospects because they exclude certain items that may not be indicative of the Company’s core business, operating results, or future outlook. These non-GAAP financial measures, with further adjustments are used by management to understand ongoing financial and business performance.

The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan, and analyze future periods. Accordingly, the Company applies the same tax rate to its management reporting financial results.

Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure.