Electronic Arts (EA) investor relations material

Executive summary

• Net revenue for the quarter ended December 31, 2025 was $1.901 billion, up 1% year-over-year, driven by global football, Battlefield, and American football franchises.

• Q3 FY26 net bookings reached a record $3.046 billion, up 38% year-over-year, led by Battlefield 6 and strong performance in EA SPORTS FC and Apex Legends.

• Operating income declined 66% year-over-year to $127 million, with net income at $88 million and diluted EPS of $0.35.

• A proposed merger/acquisition with a consortium led by PIF, Silver Lake, and Affinity Partners at $210/share in cash, valuing the company at $55 billion, was approved by stockholders and is expected to close in fiscal Q1 2027, pending regulatory approvals.

• Net cash provided by operating activities rose 55% year-over-year to $1.826 billion.

Financial highlights

• Gross margin for the quarter was 73.8%, down 2 percentage points year-over-year.

• Operating expenses increased 22% year-over-year to $1.276 billion, mainly due to higher R&D, marketing, and merger-related costs.

• Live services and other net revenue was $1.269 billion, down 1% year-over-year; full game net revenue increased 6% to $632 million.

• Cash, cash equivalents, and short-term investments totaled $2.899 billion at quarter end.

• $47 million was returned to stockholders via dividends during the quarter.

Outlook and guidance

• Live services net revenue is expected to remain material, though growth may not be linear due to competition and consumer patterns.

• Digital full game downloads are projected to increase over time, while packaged goods sales are expected to decline.

• The merger/acquisition is anticipated to close in Q1 fiscal 2027, pending regulatory approvals.

• Management cautions that forward-looking statements are subject to risks and actual results may differ materially.