Electronic Arts(EA) - 2025 Q4 - Annual Results

Financial Performance - Net bookings for FY25 totaled $7.355 billion, with EA SPORTS portfolio achieving record net bookings[6] - EA's American Football franchise exceeded $1 billion in net bookings for FY25[6] - Net revenue for FY25 was $7.463 billion, a slight decrease from $7.562 billion in FY24[9] - Net income for FY25 was $1.121 billion, down from $1.273 billion in FY24[9] - Diluted earnings per share for FY25 were $4.25, compared to $4.68 in FY24[9] - Net revenue for the twelve months ended March 31, 2025, was $7,463 million, a decrease of 1% compared to $7,562 million in 2024[34] - For Q1 FY25, net revenue increased by 7% to $1,895 million compared to $1,779 million in Q1 FY24[37] Future Projections - For Q1 FY26, net bookings are expected to be approximately $1.175 billion to $1.275 billion[7] - Fiscal year 2026 net bookings are projected to be between $7.600 billion and $8.000 billion[7] - The company expects FY26 net revenue guidance to range from $7,100 million to $7,500 million[40] - Operating margin guidance for FY26 is projected to be between 16.3% and 18.9%[40] Cash Flow and Shareholder Returns - Operating cash flow for FY25 was $2.079 billion, down from $2.315 billion in FY24[9] - EA repurchased 9.8 million shares for $1.375 billion during Q4 FY25, totaling 17.6 million shares for $2.500 billion in FY25[6] - EA declared a quarterly cash dividend of $0.19 per share, payable on June 18, 2025[5] - Free cash flow for Q4 FY25 was $495 million, a decrease of 6% year-over-year[31] Quarterly Performance - Net revenue for the three months ended March 31, 2025, was $1,895 million, a 7% increase compared to $1,779 million in the same period of 2024[22] - Gross profit for the same period was $1,527 million, representing 81% of net revenue, up from 76% in the previous year[28] - Operating income increased to $395 million, which is 21% of net revenue, compared to 13% in Q4 FY24[28] - Net income for the three months ended March 31, 2025, was $254 million, a 40% increase from $182 million in the same period of 2024[28] - Diluted earnings per share rose to $0.98, a 46% increase from $0.67 in the prior year[28] Balance Sheet Highlights - Total current assets decreased to $3,276 million from $4,247 million year-over-year[24] - Total liabilities increased slightly to $5,982 million from $5,907 million in the previous year[24] - Cash and cash equivalents at the end of the period were $2,136 million, down from $2,900 million a year earlier[24] - The company reported a deferred net revenue of $1,700 million for online-enabled games, down from $1,814 million in the previous year[24] Operating Metrics - GAAP operating income for the same period was $1,520 million, slightly up from $1,518 million in 2024[34] - Non-GAAP operating income decreased by 2% to $2,331 million from $2,384 million year-over-year[34] - GAAP operating margin improved to 20.8% in Q1 FY25 from 13.2% in Q1 FY24[37] - Total stock-based compensation for Q4 FY25 was $162 million, up from $148 million in Q4 FY24[34] Taxation - The tax rate used for management reporting remained consistent at 19% for both years[28]