Financial Performance - Q2 net bookings reached a record 2.079billion,exceedingthehighendoftheguidancerangeof2.050 billion[3] - Net revenue for Q2 was 2.025billion,withnetcashprovidedbyoperatingactivitiesat234 million[4] - FY25 net revenue is expected to be approximately 7.400billionto7.700 billion, with net income projected between 1.019billionand1.156 billion[9] - Q3 FY25 net bookings are expected to be approximately 2.400billionto2.550 billion[11] - Net revenue for Q2 FY25 increased to 2,025million,up61,914 million in Q2 FY24[24] - Gross profit for Q2 FY25 rose to 1,569million,an81,458 million in Q2 FY24[24] - Operating income for Q2 FY25 grew to 384million,a2377 million in Q2 FY24[24] - Net income for Q2 FY25 decreased to 294million,down26399 million in Q2 FY24[24] - Diluted earnings per share (EPS) for Q2 FY25 dropped to 1.11,a241.47 in Q2 FY24[24] - Q2 FY25 net revenue increased by 6% YoY to 2,025million,drivenbya37475 million[26] - Live services and other revenue remained stable with a 1% YoY increase to 1,309million,contributing651,374 million, while PC & Other and Mobile revenues declined by 14% and 6% YoY, respectively[26] - Non-GAAP operating income rose 12% YoY to 637million,withanon−GAAPoperatingmarginof31.57,400 million and 7,700million,withanon−GAAPoperatingmarginrangeof30.71,875 million and 2,025million,withaprojectedchangeindeferrednetrevenueof525 million[33] Cash Flow and Share Repurchases - Net cash provided by operating activities for Q2 FY25 was 234million,comparedto112 million in Q2 FY24[23] - Free cash flow for Q2 FY25 was 184million,withatrailingtwelve−month(TTM)freecashflowof1,978 million, down 2% YoY[27][28] - EA repurchased 2.6 million shares for 375millionduringthequarter,totaling10.2millionsharesfor1.400 billion over the trailing twelve months[4] - The company repurchased 375millionworthofcommonstockinQ2FY25,a151 billion in net bookings for FY25, with total hours played in Q2 up over 140% year over year[3] - The Sims™ 4 added more than 15 million players over the past year, driving higher-than-expected net bookings[3] - College Football 25 was the best-selling HD title in North America through September, contributing to EA having three of the top ten HD bestsellers in the region[3] - Global Football franchise net bookings in FY25 are on track to grow over the record FY24 performance[3] Balance Sheet and Capital Expenditures - Cash and cash equivalents decreased to 2,197millionasofSeptember30,2024,downfrom2,900 million on March 31, 2024[21] - Deferred net revenue (online-enabled games) decreased to 1,475millionasofSeptember30,2024,from1,814 million on March 31, 2024[22] - Total assets as of September 30, 2024, were 13,136million,slightlydownfrom13,420 million on March 31, 2024[21] - Capital expenditures increased 15% YoY to 220milliononaTTMbasis,reflectingongoinginvestmentsininfrastructureandtechnology[27]DividendsandStock−BasedCompensation−EAdeclaredaquarterlycashdividendof0.19 per share, payable on December 18, 2024[5] - Stock-based compensation for Q2 FY25 increased to 174million,upfrom155 million in Q2 FY24[24] Non-GAAP Financial Measures - Non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring charges, and capital expenditures[34] - Non-GAAP measures are used by management to understand ongoing financial and business performance, excluding items not indicative of core business[34] - Investors are encouraged to review GAAP financial measures and reconciliations of non-GAAP measures to GAAP[35] - Non-GAAP financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures[34] Tax Rate - The company maintains a tax rate of 19% for internal performance evaluation and future planning[31][33] - The company uses a tax rate of 19% internally for evaluating operating performance and forecasting future periods[35]