EA
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XBRL · SEC EDGAR2008–2025(18yr)| Metric | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.7B | $4.2B | $3.7B | $3.6B | $4.1B | $3.8B | $3.6B | $4.5B | $4.4B | $4.8B | $5.2B | $5.0B | $5.5B | $5.6B | $7.0B | $7.4B | $7.6B | $7.5B | -1.3% |
| Gross Profit | $1.9B | $2.1B | $1.8B | $2.1B | $2.5B | $2.4B | $2.2B | $3.1B | $3.0B | $3.5B | $3.9B | $3.6B | $4.2B | $4.1B | $5.1B | $5.6B | $5.9B | $5.9B | +1.2% |
| Gross Margin | 50.8% | 49.5% | 48.9% | 58.2% | 61.4% | 63.4% | 62.3% | 68.3% | 69.2% | 73.2% | 75.2% | 73.3% | 75.3% | 73.5% | 73.4% | 75.9% | 77.4% | 79.3% | +1.9pp |
| Operating Income | -$487.0M | -$827.0M | -$686.0M | -$312.0M | $35.0M | $121.0M | $33.0M | $948.0M | $898.0M | $1.2B | $1.4B | $996.0M | $1.4B | $1.0B | $1.1B | $1.3B | $1.5B | $1.5B | +0.1% |
| Operating Margin | -13.3% | -19.6% | -18.8% | -8.7% | 0.8% | 3.2% | 0.9% | 21.0% | 20.4% | 25.3% | 27.8% | 20.1% | 26.1% | 18.6% | 16.1% | 17.9% | 20.1% | 20.4% | +0.3pp |
| Net Income | -$454.0M | -$1.1B | -$677.0M | -$276.0M | $76.0M | $98.0M | $8.0M | $875.0M | $1.2B | $967.0M | $1.0B | $1.0B | $3.0B | $837.0M | $789.0M | $802.0M | $1.3B | $1.1B | -11.9% |
| Net Margin | -12.4% | -25.8% | -18.5% | -7.7% | 1.8% | 2.6% | 0.2% | 19.4% | 26.3% | 20.0% | 20.3% | 20.6% | 54.9% | 14.9% | 11.3% | 10.8% | 16.8% | 15.0% | -1.8pp |
| Free Cash Flow | — | — | — | — | — | — | — | — | — | — | — | $1.4B | $1.7B | $1.8B | $1.7B | $1.3B | $2.1B | $1.9B | -12.2% |
| FCF Margin | — | — | — | — | — | — | — | — | — | — | — | 28.8% | 29.9% | 32.2% | 24.5% | 18.1% | 28.0% | 24.9% | -3.1pp |
| EPS (Diluted) | — | $-3.37 | $-2.08 | $-0.84 | $0.23 | $0.31 | $0.03 | $2.69 | $3.50 | $3.08 | $3.34 | $3.33 | $10.30 | $2.87 | $2.76 | $2.88 | $4.68 | $4.25 | -9.2% |
1. THE BIG PICTURE
Electronic Arts is evolving into a capital-return machine that prioritizes "live services" and recurring digital revenue over one-time game sales. While top-line growth has been stagnant, Electronic Arts’s ability to generate cash is elite, allowing it to return $2.71 billion to shareholders in a single year through buybacks and dividends (XBRL).
2. WHERE THE RISKS HIT HARDEST
Electronic Arts’ "broad portfolio of owned and licensed IP" (10-K Item 1) is structurally threatened by franchise concentration. Because a significant portion of revenue is derived from titles like EA SPORTS FC, any licensing dispute or quality decline in that specific franchise would disproportionately harm total profitability (Risks). Furthermore, its "network of hundreds of millions of players" (10-K Item 1) is accessed through third-party platforms like Sony, Microsoft, and Apple. These partners can unilaterally change fee structures or distribution policies, directly undermining Electronic Arts’ ability to commercialize its most successful products (Risks).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a sharp divergence between trailing performance and recent momentum. While TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth is slightly negative at -1.3% (Peer Benchmarking), the most recent quarter saw net bookings surge 38% to $3.046 billion (10-Q). This spike was driven by the "landmark launch" of Battlefield 6, which became the best-selling shooter of 2025 (8-K).
However, this growth is volatile; net income for the same quarter fell to $88 million from $293 million a year prior (8-K). This suggests that while major launches drive massive bookings, the associated costs or shifts in the product mix—such as the decline in EA SPORTS FC full-game sales—can temporarily squeeze the bottom line. Short interest stands at 6.1% of the float (Supplemental Signals), indicating that a portion of the market remains skeptical that these launch-driven spikes can be sustained without consistent "extra content" sales.
4. IS IT WORTH IT AT THIS PRICE?
At 21.7x forward earnings, Electronic Arts trades at a 14% discount to the peer median of 25.3x (Peer Benchmarking). The market is currently pricing in 4.0% long-term growth (CAPM analysis). This valuation appears in line with peers given that Electronic Arts leads the group in FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin at 40.2%, even though its revenue growth (-1.3%) trails faster-growing peers like Netflix (+15.9%).
The 4.0% implied growth rate is supported by an implied EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth of 6.3% when factoring in the lift from aggressive share repurchases (CAPM analysis). However, the sensitivity is high: if growth were to slow to a GDP-pace of 2.5%, the justified multiple would fall to 16.3x, representing significant downside (CAPM analysis). The current price is only "right" if Electronic Arts successfully integrates AI to accelerate production and maintains the high engagement levels seen in the Battlefield 6 launch.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if "live services and other" revenue—which recently saw a 1% year-over-year decrease (10-Q)—continues to stagnate, as this segment is the engine for Electronic Arts's high margins.
- Constructive if the investment in artificial intelligence leads to a measurable acceleration in product delivery or lower development expenses (10-K Item 1).
- Cautious if platform partners like Apple or Google implement "unilateral changes" to fee structures that compress digital margins (10-K Item 1).
6. BOTTOM LINE
Structural Advantage: A massive, global network of hundreds of millions of players and a dominant portfolio of licensed sports IP that fuels a high-margin live-services model.
Bottom Line: Electronic Arts is a highly efficient cash-flow generator trading at a fair value, provided it can navigate the risks of platform dependency and franchise fatigue.
1. Top 5 Material Risks
- Franchise Concentration: A significant portion of revenue is derived from a few popular franchises, specifically EA SPORTS FC. The underperformance of a single major title, or events impacting the quality or licensing of this franchise, disproportionately harms financial results.
- Platform Dependency: A significant percentage of digital net revenue is generated through third-party partners (Sony, Microsoft, Apple, and Google). These partners control distribution, set fee structures, and can unilaterally change policies, which directly impacts Electronic Arts’ ability to commercialize products.
- Development and Release Schedules: Failure to meet production schedules—due to team coordination, technical complexity, or third-party approvals—leads to delayed revenue, increased marketing and development expenses, and potential shortfalls in meeting key selling periods.
- Competitive Landscape: Electronic Arts faces intense competition from both established companies and emerging start-ups with larger budgets. If competitors offer more engaging products or lower price points, Electronic Arts’ revenue and profitability decline.
- Technological Evolution: The industry changes rapidly, and Electronic Arts may fail to anticipate or implement new technologies, such as artificial intelligence. Competitors may integrate AI tools more efficiently, allowing them to create new product categories or capture market share before Electronic Arts can respond.
2. Company-Specific Risks
- Virtual Economy Exploitation: Electronic Arts’ virtual economies are subject to fraud, including the unauthorized generation and sale of virtual items in black markets, which necessitates increased spending on protection and remediation.
- Quality Control Constraints: As software programs become increasingly complex, Electronic Arts’ quality controls are subject to human error and technical constraints; failure to detect bugs before release may require costly product refunds or the suspension of sales.
- External Developer Reliance: Electronic Arts contracts with external developers and has less control over their development schedules; disputes or failures by these partners can lead to the cancellation of announced games and increased costs.
- User-Generated Content Liability: Features allowing real-time communication and content sharing expose Electronic Arts to potential lawsuits and regulatory oversight if objectionable content is disseminated by third parties.
3. Regulatory/Legal Risks
- Data Privacy and Security: Electronic Arts is subject to evolving global data protection laws. Failure to comply, or perceived failures in securing consumer information, can result in civil or criminal penalties, costly remedial measures, and brand damage.
- Virtual Item Regulation: The use of virtual currency and items has prompted increased scrutiny from regulators, potentially limiting or restricting the sale of products in certain territories.
- Intellectual Property Infringement: Electronic Arts faces risks from third-party infringement claims, which can lead to expensive litigation, damages, or the requirement to stop selling specific products or features.
- Global Tax Compliance: Electronic Arts is subject to audits regarding its income tax methodologies and is exposed to new digital services taxes in foreign jurisdictions, as well as the implementation of global minimum taxes (Pillar II).
4. Financial Impact Map
Franchise Concentration → Net Revenue → Underperformance of a major title like EA SPORTS FC has a material adverse impact on financial results. Platform Dependency → Digital Net Revenue → Unilateral changes to fee structures or distribution policies by partners like Sony or Microsoft directly affect revenue capture. Development and Release Schedules → Operating Expenses → Failure to meet schedules increases development and marketing expenses while causing revenue shortfalls. Competitive Landscape → Margins and Profitability → Failure to deliver engaging products or respond to lower-priced competition leads to a decline in profitability. Global Tax Compliance → Effective Income Tax Rate → Changes in tax laws, geographic mix of earnings, or audits of tax methodologies can materially impact the effective tax rate and cash taxes.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 8-K | Feb 2026 | — |
| 10-Q | Feb 2026 | Dec 2025 |
| 14A | Jun 2025 | — |
| 10-K | May 2025 | Mar 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Electronic Arts FY26 Net Bookings Record $8.03B, Up 9% YoY
- ▸FY26 net bookings record $8.026 billion, up 9% YoY
- ▸FY26 net revenue $7.531 billion, up 1% YoY
- ▸FY26 operating cash flow $2.553 billion, up 23% YoY
- ▸Battlefield 6 launch set new franchise fiscal year records
- ▸Quarterly cash dividend declared at $0.19 per share
Electronic Arts Q1 Revenue $2.12B Beats Estimates by 5.2%, EPS $1.81 Tops Consensus
- ▸Revenue $2.12B, +17.8% YoY, beating estimates of $2.02B
- ▸GAAP EPS $1.81, beating consensus estimates of $1.30 by 39.6%
- ▸Adjusted EBITDA $799M, missing analyst estimates of $804.9M
- ▸Operating margin expanded to 26.6% from 22% in prior year
- ▸Free cash flow margin averaged 26.7% over the last two years
Electronic Arts Q3 net bookings $3.05B, up 38% YoY on Battlefield 6 success
- ▸Q3 fiscal 2026 net bookings $3.05B, +38% YoY
- ▸Full-game download revenue +22.4% YoY
- ▸Battlefield 6 ranked as 2025's best-selling shooter title
- ▸Tudor Investment Corp increased stake to 890,000 shares by Q4 2025
- ▸Strategic expansion focus on Middle East and mobile markets
Electronic Arts secures $50B in LBO financing, largest since Global Financial Crisis
- ▸JPMorgan secured $50B in orders from 500 accounts for EA LBO financing
- ▸Loan tranches upsized twice; pricing settled at S+350, tight end of guidance
- ▸Deal features OID of 98.5, reflecting current market demand for large-scale debt
- ▸EA generated $1.89B in free cash flow for trailing 12 months ending Dec 31
- ▸Consortium includes Saudi PIF, Silver Lake, and Affinity Partners
Electronic Arts Q4 revenue $3.05B +37.5% YoY, beats analyst estimates by 4%
- ▸EA Q4 revenue $3.05B, +37.5% YoY, beat estimates by 4%
- ▸LendingTree Q4 revenue $319.7M, +22.2% YoY, beat estimates by 11.5%
- ▸Shutterstock Q4 revenue $220.2M, -12% YoY, missed estimates by 12.7%
- ▸Consumer internet sector Q4 revenue beat consensus estimates by 1.7%
- ▸Consumer internet sector Q4 revenue guidance 3.7% below consensus
Electronic Arts targets $700 million in annual cost savings to support debt issuance
- ▸Projecting $700 million in annual cost savings
- ▸Cost reduction strategy aimed at attracting debt investors
- ▸Focus on operational efficiency within video game development business
Electronic Arts $15B buyout debt offering draws $25B in investor orders
- ▸Debt offering for EA buyout attracts $25B in total investor orders
- ▸Leveraged loan portion receives $9B in orders
- ▸Secured bond portion receives $9B in orders
- ▸Leveraged loan marketed at discount of 98.50 cents on the dollar
- ▸JPMorgan Chase leading underwriting for $15B debt package
Electronic Arts $15 Billion Debt Offering Draws $25 Billion in Investor Demand
- ▸Total debt offering size approximately $15 billion
- ▸Investor demand reached $25 billion for acquisition financing
- ▸$4 billion leveraged loan received $9 billion in orders
- ▸$4.75 billion secured bond received $9 billion in orders
- ▸$2.5 billion unsecured bond received $7 billion in orders
Electronic Arts $15 Billion Debt Offering Attracts $25 Billion in Investor Demand
- ▸Total debt offering size approximately $15 billion
- ▸Investor demand reached $25 billion for acquisition financing
- ▸$4 billion leveraged loan received $9 billion in orders
- ▸$4.75 billion secured bond received $9 billion in orders
- ▸$2.5 billion unsecured bond received $7 billion in orders
Electronic Arts launches $5.75B term loan B, part of record $18B LBO financing
- ▸Launched $5.75B cross-border term loan B as part of $18B total debt package
- ▸Total $18B debt financing is largest LBO deal since Global Financial Crisis
- ▸Company being taken private by PIF, Silver Lake, and Affinity for $55B
- ▸Term loan B guided at S/E+350-375 with 0% floor at 98.50
- ▸Borrower credit rating split BB-/B1