North America

International

- Swiss Legal Entity

Total Revenue

f6337f66243f789ce78d0bb0db7bcb28cbcccd76debff72438b9e688e2ee10f2

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

357dee679fb78ad8fc94b55a5321f4046bb47599b3afb1f0d4e71a4ddade0448

b82a5356f8a6a70ba82d96f1e579ee258cbb9cfd985ea293fcc6b53b98372db5

a63f3c824f9c53fff07b798caf4e5eb389618318c7483b4f45e2cf2bd502d186

728ad94a92ead59ca486d45f84fc9b96e1dbc6fcb2ea6e70e7a5213f0df3504e

Total Net Bookings (USD millions)

Percentage of total units sold that were sold digitally (percentage)

90fb7a0f33ce3194fc7d7987759542fc58bba3dd744c3da7fea304552e5a1ec2

Net Revenue (USD, millions)

Cost of Revenue (USD, millions)

Gross Profit (USD, millions)

Research and Development Expenses (USD, millions)

Marketing and Sales Expenses (USD, millions)

General and Administrative Expenses (USD, millions)

Amortization and Impairment of Intangibles (USD, millions)

Restructuring Expenses (USD, millions)

Total Operating Expenses (USD, millions)

Operating Income (USD, millions)

Interest and Other Income (Expense), Net (USD, millions)

Income Before Provision for Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Income (USD, millions)

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Net income (USD, millions)

Depreciation, amortization, accretion and impairment (USD, millions)

Stock-based compensation (USD, millions)

Net cash provided by operating activities (USD, millions)

Capital expenditures (USD, millions)

Proceeds from maturities and sales of short-term investments (USD, millions)

Purchase of short-term investments (USD, millions)

Net cash used in investing activities (USD, millions)

Proceeds from issuance of common stock (USD, millions)

Cash dividends paid (USD, millions)

Cash paid to taxing authorities for shares withheld from employees (USD, millions)

Common stock repurchases (USD, millions)

Net cash used in financing activities (USD, millions)

Effect of foreign exchange on cash and cash equivalents (USD, millions)

Increase (decrease) in cash and cash equivalents (USD, millions)

Cash paid during the period for income taxes, net (USD, millions)

Cash paid during the period for interest (USD, millions)

Acquisitions, net of cash acquired (USD, millions)

Proceeds from issuance of senior notes, net of issuance costs (USD, millions)

Payment of senior notes (USD, millions)

Repurchase and retirement of common stock (USD, millions)

Receivables, net (USD, millions)

Other assets (USD, millions)

Accounts payable (USD, millions)

Accrued and other liabilities (USD, millions)

Deferred income taxes, net (USD, millions)

Deferred net revenue (online-enabled games) (USD, millions)

Beginning cash and cash equivalents (USD, millions)

Ending cash and cash equivalents (USD, millions)

a777dfe6293cfeb407db0b8519f957c903a4c52574b23656bb51042dd530bcf6

Based solely on the provided documents, there isn’t a definitive explanation for why EA’s operating cash flow was as low as **$112 million** in Q2 2024.  **[0000712515-23-000048_ea-20230930.htm:4]**  Although one document discusses factors—such as **higher customer cash receipts**, **lower cash payments for income taxes**, **onetime tax benefits**, and **improved operating foundations**—that drove a significant increase in operating cash flow in other periods  **[EA_3363332_12]** , it doesn’t directly state why Q2 2024 was particularly low.

Why was Operating Cash Flow so low in Q2 2024?

In Q4 2023, **Electronic Arts (EA) reported a net loss primarily due to a combination of factors**. **A significant restructuring charge of $155 million** greatly impacted operating expenses, while **an increase in operating expenses by 5% (excluding restructuring) driven by higher people costs and increased marketing spend for new releases** added further pressure. Additionally, **changes in deferred net revenue from online-enabled games also contributed to the negative net income**.  **[EA_3250265_2]** **[0000712515-23-000021_earningspressrelease2023_0.htm:1]** 

What caused the negative Net Income in Q4 2023?

The sharp rebound in operating cash flow in Q3 2024 was driven by **higher collections** stemming from year-over-year business growth and **lower cash payments for income taxes**, which together contributed to an increase of **$802 million** over the previous year. These positive factors were partially offset by cash outflows associated with **hedging activities**.  **[0000712515-24-000007_ea-20231231.htm:46]** 

What drove the sharp rebound in Operating Cash Flow in Q3 2024?

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Electronic Arts recorded a **negative provision for income taxes of -$8 million** in Q2 2024 primarily due to a **one-time noncash tax benefit** that boosted GAAP earnings per share by **$0.34**. Additional factors, such as changes in the geographic earnings mix, profit levels, and varying tax regulations, can also influence the effective tax rate, though the one-time benefit was the major driver in this instance.  **[0000712515-23-000048_ea-20230930.htm:2]** **[EA_3363332_4]** **[0000712515-23-000048_ea-20230930.htm:75]** 

Why was Provision for Income Taxes so negative in Q2 2024?

The spike in Q4 2024 was primarily driven by significant impairment charges. **EA recorded impairment charges totaling $70 million for acquisition-related intangible assets**, with **$53 million recorded within operating expenses** and **$17 million within the cost of revenue**. Additionally, this increase was coupled with a relative decrease in amortization of these assets in the cost of revenue compared to the previous fiscal year, further accentuating the spike in the overall figure.  **[0000712515-24-000023_ea-20240331.htm:86]** **[0000712515-24-000023_ea-20240331.htm:53]** 

Why did Amortization and Impairment of Intangibles spike in Q4 2024?

The drop in Q1 2025 net revenue was primarily driven by a **14% year-over-year decline** from **$1,924 million** to **$1,660 million**. This decrease resulted from a combination of factors, including a **44% drop** in full game revenue (declining from **$443 million** to **$250 million**) and a **5% decrease** in live services revenue (falling from **$1,481 million** to **$1,410 million**). Additionally, the timing of game releases was less favorable in Q1 2025 compared to Q1 2024—with fewer major titles being launched—and there were notable platform-specific declines (with declines of **14%** on consoles and **19%** on PC & Other platforms) that further impacted overall revenue.  **[0000712515-24-000039_ea-20240630.htm:40]** **[0000712515-24-000039_ea-20240630.htm:2]** **[EA_3395045_5]** **[0000712515-24-000027_earningspressrelease2024_0.htm:6]** 

Why did Net Revenue drop in Q1 2025?

The information shows that **Operating Income in Q4 2024 was $234 million**, representing a **34% year-over-year increase** compared to Q4 2023's **$175 million**. In fact, the solid performance was mainly driven by **improved gross margins** (up 380 basis points to 79.9%), **lower operating expenses** (a 5% year-over-year decline due to reduced restructuring-related charges), and effective cost management despite a 5% decline in net revenue.  **[EA_3386861_5]** **[0000712515-24-000013_earningspressrelease2024_5.htm:9]**  Therefore, based on these documents, the Q4 2024 Operating Income was not low; it actually improved significantly relative to the previous year.

Why was Operating Income so low in Q4 2024?

The **net revenue surge in Q2 2025** was driven by several key factors. **First**, the strong performance of American football franchises, particularly the release of **EA SPORTS College Football 25**, contributed an additional **$301 million** in revenue. **Second**, there was a significant **37% increase** in revenue from full game downloads, adding about **$129 million**. **Third**, although modest, an increase of **1%** in live services added another **$16 million**. These factors outweighed the decreases in other areas, resulting in a **6% year-over-year net revenue increase** compared to Q2 2024.  **[0000712515-24-000048_ea-20240930.htm:41]** **[0000712515-24-000048_ea-20240930.htm:2]** 

Why did Net Revenue surge in Q2 2025?

2a0932693ee3ee51ae81313ffbc29999869291cf3d1073d1d4837e8d6408fb53

Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Property and equipment, net (USD, millions)

Goodwill (USD, millions)

Acquisition-related intangibles, net (USD, millions)

TOTAL ASSETS (USD, millions)

Accounts payable, accrued, and other current liabilities (USD, millions)

Accrued and other current liabilities (USD, millions)

Total current liabilities (USD, millions)

Senior notes, net (USD, millions)

Income tax obligations (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Common stock, $ 0.01 par value. 1,000 shares authorized; 262 and 266 shares issued and outstanding, respectively (USD, millions)

Electronic Arts Inc (EA)

Financials