Electronic Arts (EA) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 net bookings of $2.08 billion, up 14% year-over-year, driven by strong EA SPORTS franchises and successful launches, especially College Football 25.

• Q2 net revenue was $2.03 billion, up 6% year-over-year, with net income of $294 million and diluted EPS of $1.11.

• Trailing twelve months net bookings reached $7.4 billion, with live services representing 74% of total.

• Free cash flow for the trailing twelve months was $1.98 billion; Q2 operating cash flow was $234 million.

• Raised full-year FY25 guidance for net bookings and net revenue, reflecting strong first-half performance and confidence in long-term growth.

Financial highlights

• Q2 net bookings reached $2.08 billion, up from $1.82 billion in Q2 FY24.

• Gross margin was 78%, up from 76% in Q2 FY24; operating margin was 19% GAAP and 31.5% non-GAAP.

• Operating expenses were $1.19 billion, up 10% year-over-year, mainly from restructuring and increased personnel costs.

• Q2 net income was $294 million; diluted shares outstanding were 266 million.

• Returned $426 million to shareholders via buybacks and dividends in Q2; 2.6 million shares repurchased for $375 million.

Outlook and guidance

• FY25 net bookings guidance raised to $7.5–$7.8 billion, up 1–5% year-over-year; net revenue guidance raised to $7.4–$7.7 billion.

• FY25 GAAP operating margin expected at 19.3–21.1%; non-GAAP margin at 30.7–32.1%.

• FY25 EPS guidance revised to $3.82–$4.33; operating cash flow guidance increased to $2.075–$2.275 billion.

• Q3 net bookings expected at $2.4–$2.55 billion, up 1–8% year-over-year, driven by new launches.

• Capital expenditures for FY25 expected at $225 million.