Electronic Arts EA reported second-quarter fiscal 2025 earnings of $2.15 per share, which jumped 47.3% year over year. Revenues increased 5.8% year over year to $2.02 billion due to recovery in Live services and full game revenues.

The Zacks Consensus Estimate for earnings was pegged at $2.03 per share. The consensus mark for revenues was pinned at $2.03 billion.

Net bookings for the fiscal second quarter were $2.07 billion, up 14.2% year over year with the strong reception for EA SPORTS College Football 25. Net bookings in the fiscal second quarter saw minimal impact from FX.

Full-game net bookings were $832 million, up 20% year over year, highlighted by the successful expansion of our American Football ecosystem. Live services net bookings were $1.25 billion, up 10% year over year as American Football Ultimate Team modes delivered engaging entertainment to players across both College Football and Madden NFL.

Electronic Arts Inc. Price, Consensus and EPS Surprise

Electronic Arts Inc. price-consensus-eps-surprise-chart | Electronic Arts Inc. Quote

Quarter Details

EA’s full-game revenues (35.4% of total revenues) increased 15.3% year over year to $716 million. Full-game download revenues increased 37% year over year to $475 million. Revenues from packaged goods plunged 12% year over year to $241 million.

Live services and other revenues (64.6% of total revenues) increased 1.2% year over year to $1.3 billion. 

Based on platforms, revenues from consoles increased 16% year over year to $1.37 billion in the reported quarter. Revenues from PC & Other declined 14% year over year to $364 million.  Revenues from the mobile platform decreased 5% year over year to $287 million.

Operating Details

EA’s GAAP gross profit increased 7.6% from the year-ago quarter’s levels to $156 billion. Gross margin expanded 130 basis points (bps) on a year-over-year basis to 77.5%.

Operating expenses increased 9.6% year over year to $1.18 billion. As a percentage of revenues, operating expenses expanded 200 bps on a year-over-year basis at 58.5%.

Operating income on a GAAP basis increased 1.9% year over year to $384 million. The operating margin contracted 70 bps year over year to 19% in the reported quarter.

Balance Sheet and Cash Flow

As of June 30, 2024, EA had $2.5 billion in cash and short-term investments compared with $2.76 billion as of June 30, 2024.

Net cash provided by operating activities was $234 million for the quarter and $2.198 billion for the trailing 12 months.

EA repurchased 2.6 million shares for $375 million during the quarter under the stock repurchase program, bringing the total for the trailing 12 months to 10.2 million shares for $1.4 billion.

The company has declared a quarterly cash dividend of 19 cents per share of the company’s common stock. The dividend is payable on Dec. 18, 2024, to stockholders of record as of the close of business on Nov. 27, 2024.