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What changed in Electronic Arts's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Electronic Arts's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+215 added−237 removedSource: 10-K (2025-05-13) vs 10-K (2024-05-22)

Top changes in Electronic Arts's 2025 10-K

215 paragraphs added · 237 removed · 184 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeOur most popular live services are the extra content purchased for the Ultimate Team mode associated with our sports franchises and extra content purchased for our Apex Legends franchise. Ultimate Team allows players to collect current and former professional players in order to build and compete as a personalized team.
Biggest changeWe offer live services through our global football and American football franchises (which includes EA SPORTS College Football and EA SPORTS Madden NFL) and based on our iconic IP such as The Sims, Apex Legends and Battlefield. Our most popular live services are the extra content in the Ultimate Team mode associated with our sports franchises.
For example, we develop products and services within the EA SPORTS FC franchise that allow players to engage through multiple business models, distribution channels and devices, including: (1) our annualized console and PC games and associated services, which can be purchased through both digital distribution and retail channels and also are available through subscription services; (2) a mobile free-to-play offering; and (3) a PC free-to-play game available in certain countries.
For example, we develop products and services within the EA SPORTS FC franchise that allow players to engage through multiple business models, distribution channels and devices, including: (1) our annualized console and PC games and associated experiences, which can be purchased through both digital distribution and retail channels and also are available through subscription services; (2) a mobile free-to-play offering; and (3) a PC free-to-play game available in certain countries.
In order to remain successful, we are required to anticipate and commit, sometimes years in advance, the ways in which our products and services will compete in the market. We face significant competition from companies that focus on developing games and services available on consoles, PCs and/or mobile devices.
In order to remain successful, we are required to anticipate and commit to, sometimes years in advance, the ways in which our products and services will compete in the market. We face significant competition from companies that focus on developing products and services available on consoles, PCs and/or mobile devices.
Except as expressly set forth in this Form 10-K annual report, the contents of our website, 2023 Impact Report and/or social media accounts are not incorporated into, or otherwise to be regarded as part of this Form 10-K. Company Information We were incorporated originally in California in 1982. In September 1991, we were reincorporated under the laws of Delaware.
Except as expressly set forth in this Form 10-K annual report, the contents of our website, 2024 Impact Report and/or social media accounts are not incorporated into, or otherwise to be regarded as part of this Form 10-K. Company Information We were incorporated originally in California in 1982. In September 1991, we were reincorporated under the laws of Delaware.
We have agreements to distribute our mobile applications and additional content through distributors such as Apple and Google. Our applications are downloaded for mobile devices from third party application storefronts. The distributor collects payment from consumers for content purchased within the application or charges consumers a one-time fee to download the application.
We distribute our mobile applications and additional content through distributors such as Apple and Google. Our applications are downloaded for mobile devices from third party application storefronts. The distributor collects payment from consumers for content purchased within the application or charges consumers a one-time fee to download the application.
Singh has served as EA's Chief People Officer since October 2016. Ms. Singh was previously employed by EA from 2009 to 2013, service as Vice President, Human Resources, EA Labels from 2011 to 2013. Prior to rejoining EA, Ms. Singh served as the Chief People Officer of Minted, LLC from January 2014 to October 2016. Ms.
Singh has served as EA's Chief People Officer since October 2016. Ms. Singh was previously employed by EA from 2009 to 2013, serving as Vice President, Human Resources, EA Labels from 2011 to 2013. Prior to rejoining EA, Ms. Singh served as the Chief People Officer of Minted, LLC from January 2014 to October 2016. Ms.
The publishing agreements also require us to indemnify the console manufacturers for any loss, liability and expense resulting from any claim against the console manufacturer regarding our games and services, including any claims for patent, copyright or trademark infringement brought against the console manufacturer.
The publishing agreements also require us to indemnify the console manufacturers for any loss, liability and expense resulting from any claim against the console manufacturer regarding our products and services, including any claims for patent, copyright or trademark infringement brought against the console manufacturers.
More broadly, we compete against providers of different sources of entertainment, such as movies, television, online casual entertainment and music that our players could enjoy in their free time.
More broadly, we compete against providers of different sources of entertainment, such as movies, television, social media, online casual entertainment and music that our players could enjoy in their free time.
Under these agreements with Sony and Microsoft, we have the non-exclusive right to use, for a fixed term and in a designated territory, technology that is owned or licensed by them to publish our games on their respective consoles.
Under these agreements, we have the non-exclusive right to use, for a fixed term and in a designated territory, technology that is owned or licensed by them to publish our games on their respective consoles.
Item 1: Business Overview Electronic Arts is a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs, mobile phones and tablets.
Item 1: Business Overview Electronic Arts is a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs and mobile devices.
As our digital business has grown, our games and services increasingly depend on the reliability, availability and security of our technological infrastructure.
As our digital business has grown, our products and services increasingly depend on the reliability, availability and security of our technological infrastructure.
These live services include extra content, subscription offerings and other revenue generated outside of the sale of our full game sales. Our digital live services and other net revenue represented 73 percent of our total net revenue during fiscal year 2024.
These live services include extra content, subscription offerings and other revenue generated outside of the sale of our full games. Our digital live services and other net revenue represented 73 percent of our total net revenue during fiscal year 2025.
Schatz is a member of the Bar of the State of California and is admitted to practice in the United States Supreme Court, the Ninth Circuit Court of Appeals and several United States District Courts. Mr. Kelly has served as EA's Chief Accounting Officer since August 2021. Since joining EA in 2003, Mr.
Schatz is a member of the Bar of the State of California and is admitted to practice in the United States Supreme Court, the Ninth Circuit Court of Appeals and several United States District Courts. Mr. Kelly has served as EA's Senior Vice President, Chief Accounting Officer since June 2022. Since joining EA in 2003, Mr.
The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.
The SEC 5 Table of Contents maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.
Each agreement may be terminated by the console manufacturer if a breach or default by us is not cured after we receive written notice from the console manufacturer, or if we become insolvent. The console manufacturers are not obligated to enter into license agreements with us for any future consoles, products or services. Apple, Google and Other App Stores .
Each agreement may be terminated by the console manufacturers if a breach or default by us is not cured after we receive written notice from the console manufacturers, or if we become insolvent. The console manufacturers are not obligated to enter into license agreements with us for any future consoles, products or services. PC and Mobile .
Players can access our games and services through traditional single-game purchase or through subscription offerings; and certain of our games and services are available through a “free-to-play” model whereby players download the game for free and engage with services provided on an 3 Table of Contents ongoing basis.
Our players engage with our products and services on consoles, PCs and mobile devices. Players can access our products and services through traditional single-game purchase or through subscription offerings; and certain of our products and services are available through a “free-to-play” model whereby players download the game for free and engage with services provided on an ongoing basis.
Competition The market for interactive entertainment is intensely competitive and changes rapidly as new products, business models and distribution channels are introduced. We also face competition for the right to license certain intellectual property included in our products.
The agreements generally establish the amounts that are retained by the publisher and the amounts passed through to us. Competition The market for interactive entertainment is intensely competitive and changes rapidly as new products, business models and distribution channels are introduced. We also face competition for the right to license certain intellectual property included in our products.
Their greater financial and other resources may provide larger budgets to develop and market tools, technologies, products and services that gain consumer success and shift player time and engagement away from our products and services. We also continue to expect new entrants to emerge.
In addition, we compete with large, diversified companies that have strengthened their interactive entertainment capabilities. Their greater financial and other resources may provide larger budgets to develop and market tools, technologies, products and services that gain consumer success and shift player time and engagement away from our products and services. We also continue to expect new entrants to emerge.
Miele has served as EA’s President of EA Entertainment, Technology & Central Development since June 2023. Ms.
Miele has served as EA’s President of EA Entertainment & Central Development since January 2025. Ms.
Miele joined the Company in March 1996 and has held several positions at the Company, including Chief Operating Officer from October 2021 to June 2023, Chief Studios Officer from April 2018 to October 2021, Executive Vice President, Global Publishing from April 2016 to April 2018, and several senior roles in the Company's marketing organization. Ms.
Miele joined the Company in March 1996 and has held several positions at the Company, including President of EA Entertainment, Technology & Central Development from June 2023 to January 2025, Chief Operating Officer from October 2021 to June 2023, Chief Studios Officer from April 2018 to October 2021, and several senior roles in the Company's marketing organization. Ms.
Our mobile and tablet games and services are available through third-party application storefronts such as the Apple App Store and Google Play. Our PC games and services can be downloaded directly through the EA app, EA’s digital storefront, as well as through third-party online download stores, such as Steam.
Our PC products and services can be downloaded directly through the EA app, EA’s digital storefront, as well as through third-party online download stores, such as Steam.
Many of these laws and regulations are continuously evolving and developing, and the application to, and impact on, us is uncertain. Certain of our business models are subject to new laws or regulations or evolving interpretations and application of existing laws and regulations.
Many of these laws and regulations are continuously evolving and developing, and the application to, and impact on, us is uncertain.
With respect to our digitally-delivered products and services, the console manufacturers pay us either a wholesale price or a royalty percentage on the revenue they derive from their sales of our products and services.
With respect to our digitally-delivered products and services, the console manufacturers pay us either a wholesale price or a royalty percentage on the revenue they derive from their sales of our products and services. Our transactions for packaged goods products are made pursuant to individual purchase orders, which are accepted on a case-by-case basis.
Risks related to competitive factors affecting our business are described in Part I, Item 1A, Risk Factors. Research and Development Because the industries in which we compete are characterized by rapid technological advances, our ability to compete successfully is linked to our ability to deliver a flow of competitive products, services and technologies to the marketplace.
Research and Development 4 Table of Contents Because the industries in which we compete are characterized by rapid technological advances, our ability to compete successfully is linked to our ability to deliver competitive products, services and technologies to the marketplace.
Kelly has held several positions within EA's finance organization, including Vice President and Worldwide Controller from January 2014 to August 2021 and finance leadership roles such as CFO of Asia and European Financial Controller. Mr. Kelly holds a B.S. in Accounting from Villanova University and is a licensed Certified Public Accountant. 7 Table of Contents
Kelly has held several positions within EA's finance organization, including Vice President, Chief Accounting Officer from 6 Table of Contents August 2021 to June 2022, Vice President and Worldwide Controller from January 2014 to August 2021 and other finance leadership roles such as CFO of Asia and European Financial Controller. Mr.
What We Offer At our core is a portfolio of intellectual property from which we create innovative games and experiences that deliver high-quality interactive entertainment and drive engagement across our global network of hundreds of millions of unique active accounts.
What We Offer We create innovative games and experiences that deliver high-quality interactive entertainment and drive engagement across our global network of hundreds of millions of players.
Our principal executive offices are located at 209 Redwood Shores Parkway, Redwood City, California 94065 and our telephone number is (650) 628-1500. 6 Table of Contents Information About Our Executive Officers The following table sets forth information regarding our executive officers as of May 22, 2024: Name Age Position Andrew Wilson 49 Chief Executive Officer, Chair of the Board Stuart Canfield 45 EVP & Chief Financial Officer Laura Miele 54 President of EA Entertainment, Technology & Central Development Mala Singh 53 Chief People Officer Jacob Schatz 55 EVP of Global Affairs, Chief Legal Officer and Corporate Secretary Eric Kelly 52 Senior Vice President, Chief Accounting Officer Mr.
Information About Our Executive Officers The following table sets forth information regarding our executive officers as of May 13, 2025: Name Age Position Andrew Wilson 50 Chief Executive Officer, Chair of the Board Stuart Canfield 46 Chief Financial Officer Laura Miele 55 President of EA Entertainment & Central Development Mala Singh 54 Chief People Officer Jacob Schatz 56 EVP of Global Affairs, Chief Legal Officer and Corporate Secretary Eric Kelly 53 Senior Vice President, Chief Accounting Officer Mr.
Live services net revenue generated from extra content purchased within Ultimate Team , a substantial portion of which was derived from FC Ultimate Team, and for our Apex Legends franchise, is material to our business.
Ultimate Team allows players to collect current and former players in order to build and compete as a personalized team. Live services net revenue generated from extra content purchased within Ultimate Team , a substantial portion of which was derived from FC Ultimate Team , is material to our business.
We have teams focused on developing new technologies to enhance existing products and services and to expand the range of our offerings. Intellectual Property and Technology To establish and protect our intellectual property, we rely on a combination of copyrights, trademarks, patents, patent applications, trade secrets, know-how, license agreements, confidentiality provisions and procedures and other contractual provisions.
We expect developments in artificial intelligence to accelerate the production of our products and services and enable new experiences for our players. Intellectual Property and Technology To establish and protect our intellectual property, we rely on a combination of copyrights, trademarks, patents, patent applications, trade secrets, know-how, license agreements, confidentiality provisions and procedures and other contractual provisions.
We invest in developing and retaining employees through access to professional growth resources, skills learning, and other job-specific and general training. We also build technical onboarding and job-specific programs to help our employees onboard to technical roles and grow in their specific domains. We maintain resources, programs and services to support employees' physical, mental, familial and financial health.
We also build technical onboarding and job-specific programs to help our employees onboard to technical roles and grow in their specific domains. We maintain resources, programs and services to support employees' physical, mental, familial and financial health. We offer a wide range of benefits, such as comprehensive health insurance and time-off and leave programs.
The growth and development of electronic commerce, virtual items and virtual currency has prompted calls for new laws and regulations and resulted in the application of existing laws or regulations that have limited or restricted the sale of our products and services in certain territories.
Certain of our business models, including those that utilize virtual items and virtual currency, are subject to new laws or regulations or evolving interpretations and application of existing laws and regulations that have limited or restricted, and may continue to limit or restrict, the sale of our products and services in certain territories.
We are focusing on building games and experiences that grow the global online communities around our key franchises; deepening engagement through connecting interactive storytelling to key intellectual property; and building re-occurring revenue from scaling our live services and growth in our annualized sports franchises, our console, PC and mobile catalog titles.
We are focusing on building games and experiences that grow the global online communities around our key franchises; deepening engagement through connecting interactive storytelling to key intellectual property; and harnessing our communities to grow in, around, and beyond our games. We develop and publish games and experiences across diverse genres, such as sports, racing, first-person shooter, action, role-playing and simulation.
We have entered into agreements whereby we partner with certain companies, including Tencent Holdings Limited, Nexon Co., Ltd and Garena Online Private Limited. or their respective affiliates, pursuant to which these 4 Table of Contents companies publish our mobile and PC free-to-play games in certain countries, including China, Korea, Japan and certain countries in Southeast Asia.
We also have agreements with companies, such as Tencent Holdings Limited, Nexon Co., Ltd and Garena Online Private Limited, or their respective affiliates, that allow these companies to publish our mobile and PC free-to-play games in certain countries. Our players access games from the publishers’ online storefronts and are charged for additional content purchased within our game environment.
Our packaged goods games are sold directly to mass market retailers, specialty stores and through distribution arrangements. New distribution methods and business models are expected to continue to emerge in the future, and we intend to evaluate these opportunities on a case-by-case basis.
Our packaged goods games are sold directly to mass market retailers, specialty stores and through distribution arrangements. For packaged goods products, we pay the console manufacturers a per-unit royalty for each unit manufactured.
Our Board and its committees oversee our human capital management programs, practices and strategies and additional information on how they oversee these matters can be found in our annual Proxy Statement.
Additional information on how they oversee these matters can be found in our annual Proxy Statement. Our focus on people and culture helps our teams create products and services that entertain hundreds of millions of players around the world.
Revenue from our global football franchise, which is consistently one of the top franchises in the marketplace and includes the annualized console, PC and mobile games, as well as FC Ultimate Team , is material to our business and will continue to be so.
Revenue from our EA SPORTS FC franchise, as well as revenue from our American football franchise, is material to our business and will continue to be so. Distribution of Products and Services Console . We primarily distribute our console products and services through partners, such as Sony and Microsoft.
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Our portfolio includes Intellectual Property (IP) that we either wholly own (such as Apex Legends , Battlefield, and The Sims) or license from others (such as the licenses within EA SPORTS FC and EA SPORTS Madden NFL).
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We believe that our creative talent, production capabilities, broad portfolio of owned and licensed IP, and technological foundation, coupled with our network of hundreds of millions of players, provide us with strategic advantages. Through our live services offerings, we offer high-quality experiences designed to provide value to players and extend and enhance gameplay.
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We develop and publish games and services across diverse genres, such as sports, racing, first-person shooter, action, role-playing and simulation. We believe that our portfolio of IP, talented teams and culture of innovation, technological foundation, and live service offerings, coupled with our network of hundreds of millions of unique active accounts, provide us with strategic advantages.
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Under the terms of publishing agreements our products and services are developed, marketed, published, and distributed with PlayStation 3 Table of Contents and Xbox consoles. Our direct sales to Sony and Microsoft represented approximately 39 percent and 17 percent of total net revenue, respectively, in fiscal year 2025.
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During fiscal year 2024, we successfully launched EA SPORTS FC, with players connecting, competing and celebrating global football through our multi-experience ecosystem. We expect to continue to create and innovate across platforms, geographies, and business models to expand our global football experiences and entertain even more fans around the world.
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The companies with which we compete, as well as competitive factors, may change and evolve as we execute our strategic plan. Risks related to competitive factors affecting our business are described in Part I, Item 1A, Risk Factors.
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Live services net revenue, particularly extra content net revenue, has been material to our business, and we expect it to continue to be so. Through our live services offerings, we offer our players high-quality experiences designed to provide value to players and extend and enhance gameplay.
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We have teams focused on developing new technologies to enhance existing products and services and to expand the range of our offerings. For example, we are investing, and intend to continue to invest, in research and development to incorporate artificial intelligence into our products and services.
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We believe that we can add value to our network by making it easier for players to connect by offering choices of business model, distribution channel and device. Our games and services can be experienced on consoles, PCs, mobile phones, and tablets, and reach our players through both digital distribution channels and retail channels.
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Seasonality We have historically experienced the highest percentage of our net bookings in our third fiscal quarter. Human Capital As of March 31, 2025, we employed approximately 14,500 people globally, with 68% percent located internationally. Our Board and its committees oversee our human capital management programs, practices and strategies.
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Digitally, our console games and live services can be purchased through third-party storefronts, such as the digital stores of our console partners. Our direct sales to Sony and Microsoft represented approximately 37 percent and 16 percent of total net revenue, respectively, in fiscal year 2024.
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We prioritize hiring and retaining a global workforce of top talent that generates the creative ideas that are necessary to build products and services that resonate with global audiences. We aim to bring our workforce together in an environment where creativity thrives, perspectives are invited, and people feel valued.
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We also partner with third parties to publish our mobile and PC games and services in certain Asian territories, such as our partnerships with Tencent Holdings Limited for FC Online 4 in China and Nexon Co. Ltd. for FC Online 4 in Korea.
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We monitor employee sentiment through regular engagement surveys that address areas such as career development, manager performance and job satisfaction. Our compensation programs and practices are designed to compensate our employees fairly based on the work that they perform. We invest in developing and retaining employees through access to professional growth resources, skills learning, and other job-specific and general training.
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From time to time, third parties will publish games and services under a license to certain of our intellectual property assets. We also offer our EA Play subscription service on consoles and PC. EA Play allows players access to a selection of our console and PC games and services for a monthly or annual fee.
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Our principal executive offices are located at 209 Redwood Shores Parkway, Redwood City, California 94065 and our telephone number is (650) 628-1500.
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We believe that the future of entertainment is interactive and that the consumption of entertainment and sports is deeply social. We are investing towards a future of accelerated content generation and increased player engagement - with players across our network using games to stay connected to friends, and to express themselves.
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Kelly holds a B.S. in Accounting from Villanova University and is a licensed Certified Public Accountant. 7 Table of Contents
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While we continue to anchor our business on delivering amazing content and services to more players, our goal is to build from our core and invest in new areas of opportunity. Significant Relationships Sony & Microsoft .
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Under the terms of publishing agreements we have entered into with Sony Interactive Entertainment LLC and its affiliates and with Microsoft Corporation and its affiliates, we are authorized to develop, market, publish, and distribute disc-based products and services, and we authorize Sony and Microsoft to distribute our digital products and services, compatible with PlayStation and Xbox consoles, respectively.
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Our transactions for packaged goods products are made pursuant to individual purchase orders, which are accepted on a case-by case basis by Sony or Microsoft (or their designated replicators), as the case may be. For packaged goods products, we pay the console manufacturers a per-unit royalty for each unit manufactured.
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Our players access games from the publishers’ online storefronts and are charged for additional content purchased within our game environment. The agreements generally establish the amounts that are retained by the publisher, and the amounts passed through to us.
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In addition, the gaming, technology/internet, and entertainment industries are converging, and we compete with large, diversified companies in those industries. These companies have strengthened their interactive entertainment capabilities, and we expect them to continue to do so.
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Seasonality 5 Table of Contents We have historically experienced the highest percentage of our net bookings in our third fiscal quarter due to seasonal holiday demand and the launch timing of our games. While we expect this trend to continue in fiscal year 2025, there is no assurance that it will.
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Human Capital Our ability to attract and retain qualified employees is a critical factor in the successful development of our products and services. As of March 31, 2024, we employed approximately 13,700 people globally, with 66 percent located internationally.
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We’re committed to (1) embedding inclusion in our people practices to enable our people to thrive and do their best work, (2) a healthy and supportive culture that prioritizes engagement, listening and action, and (3) supporting the development of our people and the growth of our business.
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Our most recently published Company-wide gender and racial/ethnic representation, as well as our EEO-1 report (U.S. government reporting), are available on our website. Our programs and practices are designed to compensate our employees fairly based on the work that they perform.
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We consider our pay equity philosophy at each stage at which compensation decisions are made, including when hiring and promoting employees and through our annual review cycle. In addition, we annually partner with an independent outside firm to review employees’ pay and promote fairness in our compensation philosophy and practices.
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We aim to create a work environment and culture in which our people can do their best work. We aim to build a reciprocal relationship in which we engage, listen, respond, and work together to create a culture that supports our people and helps us deliver our business goals.
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All regular, full-time employees are asked to complete an Engagement Survey twice per year. 78 percent of employees participated in our most recent Engagement Survey, conducted in December 2023. We also conduct regular manager surveys. Results of all employee surveys are evaluated and inform opportunities for further improvement in our people practices.
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We offer a wide range of benefits, such as comprehensive health insurance and time-off and leave programs. We also design ways to collaborate across work models, whether working virtually, on-site, or using a hybrid approach. We empower leadership to determine the most appropriate workplace strategy for their teams, intended to facilitate productivity and engagement and to deliver on business priorities.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur industry changes rapidly and we may fail to anticipate or successfully implement new or evolving technologies, or adopt successful business strategies, distribution methods or services. 8 Table of Contents Rapid changes in our industry require us to anticipate, sometimes years in advance, the ways in which our business can remain competitive in the market.
Biggest changeRapid changes in our industry require us to anticipate, sometimes years in advance, the ways in which our business can remain competitive in the market. We have invested, and in the future may invest, in new business and marketing strategies, tools and technologies, distribution methods, products, and services.
Worsening economic conditions, political instability, and adverse political developments in or around any of the countries in which we do business, particularly conditions that negatively impact discretionary consumer spending and consumer demand or increase our operating costs, including conflicts, inflation, slower growth, recession and other macroeconomic conditions have had, and could continue to have, a material adverse impact on our business and operating results.
Worsening economic conditions, political instability, and political developments in or around any of the countries in which we do business, particularly conditions that negatively impact discretionary consumer spending and consumer demand or increase our operating costs, including conflicts, inflation, slower growth, recession and other macroeconomic conditions have had, and could continue to have, a material adverse impact on our business and operating results.
These acquisitions and other transactions involve significant challenges and risks including that the transaction does not advance our business strategy or strategic goals, that we do not realize a satisfactory return on our investment, cannot realize anticipated tax benefits or incur tax costs, that we acquire liabilities and/or litigation from acquired companies or liabilities and/or litigation results from the transactions, that our due diligence process does not identify significant issues, liabilities or other challenges, diversion of management’s attention from our other businesses, and the incurrence of debt, contingent liabilities or amortization expenses, write-offs of goodwill, intangibles, or acquired in-process technology, or other increased cash and non-cash expenses.
These acquisitions and other transactions involve significant challenges and risks including that the transaction does not advance our business strategy or strategic goals, that we do not realize a satisfactory return on our investment, that we cannot realize anticipated tax benefits or incur tax costs, that we acquire liabilities and/or litigation from acquired companies, that our due diligence process does not identify significant issues or liabilities, diversion of management’s attention from our other businesses and the incurrence of debt, contingent liabilities or amortization expenses, write-offs of goodwill, intangibles, or acquired in-process technology, or other increased cash and non-cash expenses.
Additionally, our products and services are extremely complex software programs and are difficult to develop and distribute. We have quality controls in place to detect defects, bugs or other errors in our products and services before they are released. Nonetheless, these quality controls are subject to human error, overriding, and resource or technical constraints.
Our products and services are extremely complex software programs and are difficult to develop and distribute. We have quality controls in place to detect defects, bugs or other errors in our products and services before they are released. Nonetheless, these quality controls are subject to human error, overriding, and resource or technical constraints.
These actions have had a negative impact on our financial results and may impact our future development processes. We expect to continue to take actions as appropriate, including actions that may result in additional expenditures and the loss of revenue.
These actions have had a negative impact on our financial results and have impacted our future development processes. We expect to continue to take actions as appropriate, including actions that may result in additional expenditures and the loss of revenue.
Catastrophic events, including natural disasters, cyber-incidents, power disruptions, pandemics, acts of terrorism or other events have caused, and in the future could cause, outages, disruptions and/or degradations of our infrastructure (including our or our partners’ information technology and network systems), a failure in our ability to conduct normal business operations, or the closure of public spaces in which players engage with our games and services all of which could materially impact our reputation and brand, financial condition and operating results.
Catastrophic events, including natural disasters, cyber-incidents, power disruptions, pandemics, acts of terrorism or other events have caused, and in the future could cause, outages, disruptions and/or degradations of our infrastructure (including our or our partners’ information technology and network systems), a failure in our ability to conduct normal business operations, or the closure of public spaces in which players engage with our products and services all of which could materially impact our reputation and brand, financial condition and operating results.
In addition, certain foreign countries allow government censorship of interactive entertainment software products or require pre-approval processes of uncertain length before our games and services can be offered.
In addition, certain foreign countries allow government censorship of interactive entertainment software products or require pre-approval processes of uncertain length before our products and services can be offered.
Our business depends on the success and availability of consoles, platforms and devices developed by third parties and our ability to develop commercially successful products and services for those consoles, platforms and devices.
Our business depends on the success and availability of consoles, platforms and devices developed by third parties and our ability to develop and maintain commercially successful products and services for those consoles, platforms and devices.
Any events or circumstances that negatively impact our EA SPORTS FC franchise, including Ultimate Team, such as product or service quality, other products that take a portion of consumer spending and time, the delay or cancellation of a product or service launch, increased competition for key licenses, or real or perceived security or regulatory risks, could negatively impact our financial results to a disproportionate extent.
Any events or circumstances that negatively impact our EA SPORTS FC franchise, including Ultimate Team, such as product or service quality, other products that take a portion of consumer spending and time, the delay or cancellation of a product or service launch, increased competition for key licenses, or real or perceived security or regulatory risks, negatively impacts our financial results to a disproportionate extent.
These fluctuations may be due to our operating results or factors specific to our operating results (including those discussed in the risk factors above), changes in securities analysts’ estimates of our future financial performance, ratings or recommendations, our results or future financial guidance falling below our expectations and analysts’ and investors’ expectations, the failure of our capital return programs to meet analysts’ and investors’ expectations, the announcement and integration of any acquisitions we may make, departure of key personnel, cyberattacks, or factors largely outside of our control including, those affecting interactive gaming, entertainment, and/or technology companies generally, national or international economic conditions, investor sentiment or other factors related or unrelated to our operating performance.
These fluctuations may be due to our operating results or factors specific to our operating results (including those discussed in the risk factors above), changes in securities analysts’ estimates of our future financial performance, ratings or recommendations, the failure of our capital return programs to meet analysts’ and investors’ expectations, the announcement and integration of any acquisitions we may make, departure of key personnel, cyberattacks, or factors largely outside of our control including those affecting interactive gaming, entertainment, and/or technology companies generally, national or international economic conditions, investor sentiment or other factors related or unrelated to our operating performance.
Our business depends on our ability to attract, train, motivate and retain executive, technical, creative, marketing and other personnel that are essential to the development, marketing and support of our products and services. The market for highly-skilled workers and leaders in our industry is extremely competitive, particularly in the geographic locations in which many of our key personnel are located.
Our business depends on our ability to attract, train, motivate and retain executive, technical, creative, marketing and other talent that are essential to the development, marketing and support of our products and services. The market for highly-skilled workers and leaders in our industry is extremely competitive, particularly in the geographic locations in which many of our key talent are located.
These partners also control the information technology systems through which online sales of our products and service channels are captured.
These partners also control the information technology systems through which online sales of our products and service are captured.
We strive to create innovative and high-quality products and services that allow us to grow the global online communities around our key franchises and reach more players. However, innovative and high-quality titles, even if highly-reviewed, may not meet our expectations or the expectations of our players.
We strive to create innovative and high-quality products and services that allow us to grow the global online communities around our key franchises and reach more players. However, innovative and high-quality titles, even if highly-reviewed or critically acclaimed, may not meet our expectations or the expectations of our players.
Further, disruptions in the financial markets, economic downturns, poor business decisions, or reputational harm may adversely affect our business partners and they may not be able to continue honoring their obligations to us or we may cease our arrangements with them.
Further, disruptions in the financial markets, geopolitical conditions, economic downturns, poor business decisions, or reputational harm may adversely affect our business partners and they may not be able to continue honoring their obligations to us or we may cease our arrangements with them.
We are particularly susceptible to market conditions and risks associated with the entertainment industry, which, in addition to general macroeconomic downturns, also include the popularity, price and timing of our games, changes in consumer demographics, the availability and popularity of other forms of entertainment, and critical reviews and public tastes and preferences, among other factors which may change rapidly and cannot necessarily be predicted.
We are particularly susceptible to market conditions and risks associated with the entertainment industry, which, in addition to general macroeconomic downturns, also include the popularity, price and timing of our products and services, changes in consumer demographics, the availability and popularity of other forms of entertainment, and critical reviews and public tastes and preferences, among other factors which may change rapidly and cannot necessarily be predicted.
We also engage with talent through contracted services. In addition, our leading position within the interactive entertainment industry makes us a prime target for recruiting our executives, as well as key creative and technical talent.
We also engage with talent through contracted services. Our leading position within the interactive entertainment industry makes us a prime target for recruiting our executives, as well as key creative and technical talent.
The success of our business is driven in part by the commercial success and adequate supply of third-party consoles, platforms and devices for which we develop our products and services or through which our products and services are distributed.
The success of our business is driven in part by the commercial success, adequate supply and consumer adoption of third-party consoles, platforms and devices for which we develop our products and services or through which our products and services are distributed.
In addition, our license agreements typically provide these partners with significant control over the approval and distribution of the products and services that we develop for their consoles, systems and devices.
Our license agreements typically provide these partners with significant control over the approval and distribution of the products and services that we develop for their consoles, systems and devices.
Our success depends in part on accurately predicting which consoles, platforms and devices will be successful in the marketplace and providing engaging and commercially successful games and services for those consoles, platforms and devices.
Our success depends in part on accurately predicting which consoles, platforms and devices will be successful in the marketplace and providing engaging and commercially successful products and services for those consoles, platforms and devices.
The costs of compliance with these laws may increase in the future as a result of changes in applicable laws or changes to 13 Table of Contents interpretation. Any failure on our part to comply with these laws or the application of these laws in an unanticipated manner may harm our business and result in penalties or significant legal liability.
The costs of compliance with these laws may increase in the future as a result of changes in applicable laws or changes to interpretation. Any failure on our part to comply with these laws or the application of these laws in an unanticipated manner may harm our business and result in penalties or significant legal liability.
Several foreign jurisdictions have introduced new digital services taxes on revenue of companies that provide certain digital services or expanded their interpretation of existing tax laws with regard to other non-income taxes. There is limited guidance about the applicability of these new taxes or changing interpretations to our business and significant uncertainty as to what will be deemed in scope.
Several foreign jurisdictions have introduced new digital services taxes on revenue of companies that provide certain digital services or expanded their interpretation of existing tax laws with regard to other non-income taxes. The guidance about the applicability of these new taxes to our business is limited and significant uncertainty exists as to what will be deemed in scope.
External game developers may not meet product development schedules or otherwise honor their obligations. We contract with external game developers to develop our games or to publish or distribute their games. While we maintain contractual protections, we have less control over the product development schedules of games developed by external developers.
External game developers may not meet product development schedules or otherwise honor their obligations. We contract with external game developers to develop our games or to publish or distribute their games. While we maintain contractual protections, we have less control over the product development schedules of games developed by external 9 Table of Contents developers.
We must make product development decisions and commit significant resources well in advance of the commercial availability of new consoles, platforms and devices, and we may incur significant expense to adjust our product portfolio and development efforts 9 Table of Contents in response to changing consumer preferences.
We must make product development decisions and commit significant resources well in advance of the commercial availability of new consoles, platforms and devices, and we may incur significant expense to adjust our product portfolio and development efforts in response to changing consumer preferences.
We may be unable to maintain or acquire licenses to include intellectual property owned by others in our games, or to maintain or acquire the rights to publish or distribute games developed by others. Many of our products and services are based on or incorporate intellectual property owned by others.
We may be unable to maintain or acquire licenses to include intellectual property owned by others in our games, or to maintain or acquire the rights to publish or distribute games developed by others. 10 Table of Contents Many of our products and services are based on or incorporate intellectual property owned by others.
Certain of our business models and features within our games and services are subject to new laws or regulations or evolving interpretations and application of existing laws and regulations.
Certain of our business models and features within our products and services are subject to new laws or regulations or evolving interpretations and application of existing laws and regulations.
Significant judgment is involved in determining the amount of 15 Table of Contents valuation allowances, and actual financial results also may differ materially from our current estimates and could have a material impact on our assessments.
Significant judgment is involved in determining the amount of valuation allowances, and actual financial results also may differ materially from our current estimates and could have a material impact on our assessments.
We are subject to laws in certain foreign countries, and adhere to industry standards in the United States, that mandate rating requirements or set other restrictions on the advertisement, publication or distribution of interactive entertainment software based on content.
We are subject to laws in certain foreign countries, and adhere to industry standards in the United States, that mandate rating requirements or set other restrictions on the advertisement, marketing, publication or distribution of interactive entertainment 13 Table of Contents software based on content.
We also may miss opportunities or fail to respond quickly enough to industry change, including the adoption of tools and technology or distribution methods or develop products, services or new ways to engage with our games that become popular with consumers, which could adversely affect our financial results.
We may miss opportunities or fail to respond quickly enough to industry change, including the failure to adopt tools, technology and distribution methods or failure to develop new products, services or ways to engage with our games that become popular with consumers, each of which could adversely affect our financial results.
Moreover, certain significant partners can determine and change unilaterally certain key terms and conditions, including the ability to change their user and developer policies and guidelines and can also set the rates that we must pay to provide our games and services through their online channels, and retain flexibility to change their fee structures or adopt different fee structures for their online channels.
Moreover, certain significant partners can determine and change unilaterally certain key terms and conditions, including the ability to change their user and developer policies and guidelines and set the rates that we must pay to provide our products and services through their online channels, and change their fee structures or adopt different fee structures for their online channels.
In addition, certain third parties have registered our intellectual property 14 Table of Contents rights without authorization in foreign countries. Successfully registering such intellectual property rights could limit or restrict our ability to offer products and services based on such rights in those countries.
In addition, certain third parties have registered our intellectual property rights without authorization in foreign countries. Successfully registering such intellectual property rights could limit or restrict our ability to offer products and services based on such rights in those countries.
For our fiscal year ended March 31, 2024, international net revenue comprised 60 percent of our total net revenue, and we expect our international business to continue to account for a significant portion of our total net revenue.
For our fiscal year ended March 31, 2025, international net revenue comprised 59 percent of our total net revenue, and we expect our international business to continue to account for a significant portion of our total net revenue.
A console, platform or device for which we are developing products and services may not succeed as expected and we may be unable to fully recover the investments we have made in developing our products and services; or new consoles, platforms or devices may take market share away from those for which we have devoted significant resources, causing us to not reach our intended audience and take advantage of meaningful revenue opportunities.
A console, platform or device for which we are developing products and services may not achieve consumer adoption at the rate we expect and we may be unable to fully recover the investments we have made in developing our products and services; or new consoles, platforms or devices may take market share away from those for which we have devoted significant resources, causing us to not reach our intended audience and take advantage of meaningful revenue opportunities.
Our business partners may not honor their obligations to us or their actions may put us at risk. We rely on various business partners, including platform partners, third-party service providers, vendors, licensing partners, development partners and licensees. Their actions may put our business and our reputation and brand at risk.
We rely on various business partners, including platform partners, third-party service providers, vendors, licensing partners, development partners and licensees. Their actions may put our business and our reputation and brand at risk.
Taxing authorities in jurisdictions in which we operate have challenged and audited, and may continue to, challenge and audit our methodologies for calculating our income taxes, which could increase our effective income tax rate.
Taxing authorities in jurisdictions in which we operate have challenged and audited, and may continue to, challenge and audit, our methodologies for calculating our income taxes, which could have a material impact on our effective income tax rate and cash taxes.
In addition, relations between the United States and countries in which we have operations and sales have been impacted by events such as the adoption or expansion of trade restrictions, including economic sanctions, that have had a negative impact on our financial results and development processes.
In addition, relations between the United States and countries in which we have operations and sales have been impacted by events such as immigration policies and the adoption or expansion of trade restrictions, including tariffs and economic sanctions, that may have a material impact on our operations and financial results.
We do not have redundancy for all our systems, many of our critical applications reside in only one of our data centers, and our disaster recovery planning may not account for all eventualities. Attracting, managing and retaining our talent is critical to our success.
We do not have redundancy for all our systems, many of our critical applications reside in only one of our data centers, and our disaster recovery planning may not account for all eventualities.
In addition, we may not integrate these businesses successfully or achieve expected synergies. We may fund strategic transactions with (1) cash, which would reduce cash available for other corporate purposes, (2) debt, which would increase our interest expense and leverage and/or (3) equity which would dilute current shareholders’ percentage ownership and also dilute our earnings per share.
We may fund strategic transactions with (1) cash, which would reduce cash available for other corporate purposes, (2) debt, which would increase our interest expense and leverage and/or (3) equity which would dilute current shareholders’ percentage ownership and also dilute our earnings per share.
In addition, products or services of our direct competitors or other entertainment companies may shift consumer spending or engagement from our products and services, which could cause our products and services to underperform.
In addition, products or services of our direct competitors or other entertainment companies have shifted consumer spending or engagement from our products and services and may do so in the future, which could cause our products and services to underperform.
Government regulations applicable to us may negatively impact our business. We are a global company subject to various and complex laws and regulations domestically and internationally, including laws and regulations related to consumer protection, protection of minors, online safety, content, advertising, information security, intellectual property, competition, sanctions, taxation, and employment, among others.
We are a global company subject to various and complex laws and regulations domestically and internationally, including laws and regulations related to consumer protection, protection of minors, online safety, including content moderation and transparency, advertising, information security, intellectual property, competition, sanctions, taxation and tariffs, and employment, among others.
If we are unable to maintain these licenses and rights or obtain additional licenses or rights with significant commercial value, our ability to develop successful and engaging products and services may be adversely affected and our revenue, profitability and cash flows may 10 Table of Contents decline significantly.
If we are unable to maintain these licenses and rights or obtain additional licenses or rights with significant commercial value, our ability to develop successful and engaging products and services may be adversely affected and our revenue, profitability and cash flows may decline significantly. Other competitors may assume certain licenses and create competing products, impacting our sales.
As a result, our reputation and brand may be harmed, consumer engagement with our products and services may be reduced, and our revenue and profitability could be negatively impacted.
As a result, our reputation and brand may be harmed, consumer engagement with our products and services may be reduced, and our revenue and profitability could be negatively impacted. Attracting, managing and retaining our talent is critical to our success.
We regard our products, brands and intellectual property as proprietary and take measures to protect our assets from infringement. We are aware that some unauthorized copying of our products and brands occurs, and if a significantly greater amount were to occur, it could negatively impact our business.
We are aware that some unauthorized copying of our products and brands occurs, and if a significantly greater amount were to occur, it could negatively impact our business.
The growth and development of electronic commerce, virtual items and virtual currency has prompted calls for new laws and regulations and resulted in the application of existing laws or regulations that have limited or restricted the sale of our products and services in certain territories.
The industry’s adoption of virtual items and virtual currency has prompted calls for new laws and regulations and resulted in the application of existing laws or regulations that have increased scrutiny on these business models and limited or restricted the sale of our products and services in certain territories.
In addition, the outcome of any legal proceedings, claims, litigation, investigations or inquiries may be difficult to predict and could have a material adverse effect on our business, reputation, operating results, or financial condition. Our products and brands are subject to intellectual property infringement, including in jurisdictions that do not adequately protect our products and intellectual property rights.
In addition, the outcome of any legal proceedings, claims, litigation, investigations or inquiries may be difficult to predict and could have a material adverse effect on our business, reputation, operating results, or financial condition.
Remote access to our networks and systems, and the networks and systems of our partners is substantial. While we and our partners have taken steps to secure our networks and systems, these networks and systems may be more vulnerable to a successful cyber-attack or information security incident in a hybrid working model.
While we and our partners have taken steps to secure our networks and systems, these networks and systems may be more vulnerable to a successful cyber-attack or information security incident in a hybrid working model. The costs to respond to, mitigate, and/or notify affected parties of cyber-attacks and other security vulnerabilities are significant.
Such interactions and content may be objectionable or offensive and decrease engagement with our products and services, cause a loss of confidence in our brands and expose us to liability and regulatory oversight, particularly as applicable global laws and regulations are introduced and evolve.
Such interactions and content may be objectionable or offensive and expose us to liability and regulatory oversight, particularly as applicable global laws and regulations are introduced and evolve.
The concentration of a material portion of our digital sales in these partners exposes us to risks associated with these businesses. Any deterioration in the businesses of our significant partners 12 Table of Contents could disrupt and harm our business, including by limiting the methods through which our digital products and services are offered and exposing us to collection risks.
The concentration of a material portion of our digital sales in these partners exposes us to risks associated with these businesses and any deterioration in the businesses of our significant partners could disrupt and harm our business.
From time to time we seek to establish and implement new business models. Forecasting the success of any new business model is inherently uncertain and depends on a number of factors both within and outside of our control. Our actual revenue and profit for these businesses may be significantly greater or less than our forecasts.
We could fail to successfully adopt new business models. From time to time we seek to establish and implement new business models. Forecasting the success of any new business model is inherently uncertain and depends on a number of factors both within and outside of our control.
Other competitors may assume certain licenses and create competing products, impacting our sales. Competition for these licenses has increased, and may continue to increase, the amounts that we must pay to licensors and developers, through higher minimum guarantees or royalty rates, which could significantly increase our costs and reduce our profitability.
Competition for these licenses has increased, and may continue to increase, the amounts that we must pay to licensors and developers, through higher minimum guarantees or royalty rates, which could significantly increase our costs and reduce our profitability. Our business partners may not honor their obligations to us or their actions may put us at risk.
In particular, economic downturns may contribute to the public stock markets experiencing extreme price and trading volume volatility. These fluctuations could adversely affect the price of our common stock. 16 Table of Contents
In particular, economic downturns may contribute to the public stock markets experiencing extreme price and trading volume volatility. These fluctuations could adversely affect the market price of our common stock. The market price of our common stock is sensitive to our ability to forecast our financial and operating results and meet these projections and the expectations of analysts and investors.
Their greater financial and other resources may provide larger budgets to recruit our key creative and technical talent, develop and market products and services that gain consumer success and shift player time and engagement away from our products and services, or otherwise disrupt our operations. We also expect new competitors to continue to emerge throughout the world.
In addition, we compete with large, diversified companies that have strengthened their interactive entertainment capabilities. Their greater financial and other resources provide larger budgets to recruit our key creative and technical talent, develop and market products and services that gain consumer success, shift player time and engagement away from our products and services, or otherwise disrupt our operations.
Although we take steps to avoid knowingly violating the intellectual property rights of others, it is possible that third parties still may claim infringement. Existing or future infringement claims against us may be expensive to defend and divert the attention of our employees from business operations. Such claims or litigation could require us to pay damages and other costs.
Existing or future infringement claims against us may be expensive to defend and divert the attention of our employees from business operations. Such claims or litigation could require us to pay damages and other costs.
In addition, we have taken actions, including delaying the release of our games and delaying or discontinuing content, features and services for our games, after taking into consideration, among other things, feedback from our community or geopolitical events even if those decisions negatively impacted our operating results in the short term.
We also may not effectively manage our responses because of reasons within or outside of our control. In addition, we have taken actions, including delaying the release of our games and delaying or discontinuing content, features and services for our games, after taking into consideration, among other things, feedback from our community or geopolitical events.
Our valuation allowances, in turn, are impacted by several factors with respect to our business, industry, and the macroeconomic environments, including changing interest rates and tax laws.
Our effective tax rate also could be adversely affected by changes in the measurement of our deferred income taxes, including the need for valuation allowances against deferred tax assets. Our valuation allowances, in turn, are impacted by several factors with respect to our business, industry, and the macroeconomic environments, including changing interest rates and tax laws.
We rely on the consoles, systems and devices of partners who have significant influence over the products and services that we offer in the marketplace. A significant percentage of our digital net revenue is attributable to sales of products and services through our significant partners, including Sony, Microsoft, Apple and Google.
A significant percentage of our digital net revenue is attributable to sales of products and services through our significant partners, including Sony, Microsoft, Apple and Google.
If we cannot successfully recruit, train, motivate, attract and retain qualified employees, develop and maintain a healthy culture, or replace key employees following their departure, our reputation, brand and culture may be negatively impacted and our business will be impaired. Our global workforce is primarily non-unionized, but we have unions and works councils outside of the United States.
If we cannot successfully recruit, train, motivate, attract and retain qualified talent, develop and maintain a healthy culture, replace key talent following their departure or experience disruption in our contracted services, our reputation, brand and culture may be negatively impacted, products and services may be delayed and our business will be impaired.
Both our partners and we have expended, and expect to continue to expend, financial and operational resources to guard against cyber risks and to help protect our data and systems. However, the techniques used by malfeasant actors change frequently, continue to evolve in sophistication and volume, and often are not detected for long periods of time.
However, the techniques used by malfeasant actors change frequently, continue to evolve in sophistication and volume, and often are not detected for long periods of time. 11 Table of Contents Remote access to our networks and systems, and the networks and systems of our partners is substantial.
No assurance can be given that the tools and technology we choose to implement, the business and marketing strategies we choose to adopt and the products, services and platform strategies that we pursue will achieve financial results that meet or exceed our expectations.
There can be no assurance that the strategic investments we pursue will achieve financial results that meet or exceed our expectations.
The costs to respond to, mitigate, and/or notify affected parties of cyber-attacks and other security vulnerabilities are significant. It may also be necessary for us to take 11 Table of Contents additional extraordinary measures and make additional expenditures to take appropriate responsive and preventative steps.
It may also be necessary for us to take additional extraordinary measures and make additional expenditures to take appropriate responsive and preventative steps.
For example, the European Union and other countries, including Switzerland, have enacted or have committed to enact global minimum taxes which could impact our provision for income taxes and cash taxes. Our effective tax rate also could be adversely affected by changes in the measurement of our deferred income taxes, including the need for valuation allowances against deferred tax assets.
For example, the European Union and other countries, including Switzerland, have enacted or have committed to enact global minimum taxes, commonly referred to as Pillar II, as proposed by the Organization for Economic Cooperation and Development, which could impact our provision for 15 Table of Contents income taxes and cash taxes.
In addition, compliance with new and possibly inconsistent regulations for different territories could be costly, delay or prevent the release of our products in those territories. We may be subject to claims of infringement of third-party intellectual property rights. From time to time, third parties may claim that we have infringed their intellectual property rights.
In addition, compliance with new and possibly inconsistent regulations for different territories could be costly, delay or prevent the release of our products in those territories. We are subject to complex and prescriptive regulations, and consumer sensitivity, regarding data privacy practices. We are subject to global data privacy, data protection, security and consumer-protection laws and regulations.
Additionally, in our current phase of innovation, artificial intelligence capabilities are rapidly advancing, and it is possible that we could become subject to new regulations, or the interpretation of existing regulations, aimed at how we incorporate artificial intelligence into our games and development processes, that could negatively impact our operation and results.
We are integrating artificial intelligence technologies into our business and development processes, and it is possible that we could become subject to new regulations, or the interpretation of existing regulations that could negatively impact our operational and financial results. Our products and services allow players to connect with each other and create and share user-generated content.
In the United States, there has been an increase in prominence in certain sectors of workers exercising their right to form or join a union. If significant employee populations were to unionize or if we experience labor disruptions, we could experience operational changes that may materially impact our business.
Our global workforce is primarily non-unionized, but we have unions and works councils outside of the United States. In the United States, there has been an increase in prominence in certain sectors of workers exercising their right to form or join a union.
If we miss key selling periods for products or services, including product delays or product cancellations our sales likely will suffer significantly.
If we miss key selling periods for products or services as a result of product delays or product cancellations, our sales likely will suffer significantly. 8 Table of Contents Our industry changes rapidly and we may fail to anticipate or successfully implement new or evolving technologies, or adopt successful business strategies, distribution methods or services.
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In addition, the gaming, technology/internet, and entertainment industries are converging, and we compete with large, diversified companies in those industries. We expect them to continue to pursue and strengthen these businesses.
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We also expect new competitors to continue to emerge throughout the world.
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We have invested, and in the future may invest, in new business and marketing strategies, tools and technologies, distribution methods, products, and services. There can be no assurance that these strategic investments will achieve expected returns.
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For example, we expect our competitive landscape to evolve as artificial intelligence technology advances and is integrated into the markets in which we compete.
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We also may not effectively manage our responses because of reasons within or outside of our control.
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Our competitors may incorporate new artificial intelligence tools and technology into their existing products and services more successfully, may use these new tools and technology more efficiently or may create new categories of products and services before we do.
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We may experience declines or fluctuations in the re-occurring portion of our business.
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Maintaining high ratings on the third-party console, platforms and devices on which we operate are important to drive players to our products and services.
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Our business model includes revenue that we deem re-occurring in nature, such as revenue from our live services, annualized sports franchises (e.g., EA SPORTS FC, EA SPORTS Madden NFL), and our console, PC and mobile catalog titles (i.e., titles that did not launch in the current fiscal year).
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If we receive significant negative reviews that result in a decrease in our ratings, including as a result of negative review campaigns intended to harm our ratings, our games could be more difficult for players to find, negatively impacting our financial and operating results.
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While we have been able to forecast the revenue from these areas of our business with greater relative confidence than for new games, services and business models, we cannot provide assurances that consumer demand will remain consistent, including in connection with circumstances outside of our control.
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We are integrating artificial intelligence tools and technologies into our business and development processes. The use of artificial intelligence might present social and ethical issues that, if not managed appropriately, may result in legal and reputational harm, cause consumers to lose confidence in our business and brands and negatively impact our financial and operating results.
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Furthermore, we may cease to offer games and services that we previously had deemed to be re-occurring in nature. Any decline or fluctuation in the re-occurring portion of our business may have a negative impact on our financial and operating results. We could fail to successfully adopt new business models.
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Our actual revenue and profit for these businesses may be significantly greater or less than our forecasts.
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Additionally, we have divested and may in the future divest certain products and services that no longer fit our long-term strategies.
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In addition, we may not be able to complete the acquisition as a result of challenges in obtaining regulatory approvals or we may not integrate these businesses successfully, retain key employees from acquired companies and achieve expected synergies.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur Chief Information Security Officer, who reports directly to our Chief Technology Officer, Enterprise & Platform Services, has extensive experience managing information technology and cybersecurity matters and is responsible for assessing and managing cybersecurity risks. Risks associated with cybersecurity are integrated into our overall enterprise-wise enterprise risk assessment and more closely monitored by our information technology security teams.
Biggest changeOur Chief Information Security Officer, who reports directly to our Chief Technology Officer, has extensive experience managing information technology and cybersecurity matters and is responsible for assessing and managing cybersecurity risks. Risks associated with cybersecurity are integrated into our overall enterprise-risk assessment and more closely monitored by our information technology security teams.
Our employees and certain contractors are required to complete mandatory annual security training. These trainings raise awareness of security practices and educates employees to protect information assets and infrastructure.
Our employees and certain contractors are required to complete mandatory annual security training. These trainings raise awareness of security practices and educate employees to protect information assets and infrastructure.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

9 edited+1 added−2 removed1 unchanged
Biggest changeThe following table summarizes the number of shares repurchased in the fourth quarter of the fiscal year ended March 31, 2024: Fiscal Month Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as part of Publicly Announced Programs Maximum Dollar Value that May Still Be Purchased Under the Programs (in millions) December 31, 2023 - January 27, 2024 699,335 $ 137.14 699,335 $ 884 January 28, 2024 - February 24, 2024 729,048 $ 138.86 729,048 $ 783 February 25, 2024 - March 30, 2024 937,619 $ 136.39 937,619 $ 655 2,366,002 $ 137.37 2,366,002 Stock Performance Graph The following information shall not be deemed to be “filed” with the SEC nor shall this information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, as amended, except to the extent that we specifically incorporate it by reference into a filing.
Biggest changeThe following table summarizes the number of shares repurchased in the fourth quarter of the fiscal year ended March 31, 2025: Fiscal Month Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as part of Publicly Announced Programs Maximum Dollar Value that May Still Be Purchased Under the Programs (in millions) December 29, 2024 - January 25, 2025 723,537 $ 142.12 723,537 $ 3,925 January 26, 2025 - February 22, 2025 Accelerated share repurchases (1) 6,131,678 $ — 6,131,678 $ 2,925 Open market share repurchases 930,914 $ 125.38 930,914 $ 2,808 February 23, 2025 - March 29, 2025 Accelerated share repurchases (1) 836,443 $ — 836,443 $ 2,808 Open market share repurchases 1,130,049 $ 137.74 1,130,049 $ 2,652 9,752,621 9,752,621 (1) Subsequent to March 31, 2025, we settled the ASR Agreement, which resulted in total repurchases of 7.4 million shares of our common stock at an average price of $135.05. 18 Table of Contents Stock Performance Graph The following information shall not be deemed to be “filed” with the SEC nor shall this information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, as amended, except to the extent that we specifically incorporate it by reference into a filing.
The following graph shows a five-year comparison of cumulative total returns during the period from March 31, 2019 through March 31, 2024, for our common stock, the S&P 500 Index (to which EA was added in July 2002), the Nasdaq Composite Index, and the RDG Technology Composite Index, each of which assumes an initial value of $100.
The following graph shows a five-year comparison of cumulative total returns during the period from March 31, 2020 through March 31, 2025, for our common stock, the S&P 500 Index (to which EA was added in July 2002), the Nasdaq Composite Index, and the RDG Technology Composite Index, each of which assumes an initial value of $100.
Our common stock is traded on the Nasdaq Global Select Market under the symbol “EA”. Dividends Our quarterly cash dividend was $0.19 per share of common stock in fiscal year 2024. We paid aggregate cash dividends of $205 million during the fiscal year ended March 31, 2024.
Our common stock is traded on the Nasdaq Global Select Market under the symbol “EA”. Dividends Our quarterly cash dividend was $0.19 per share of common stock in fiscal year 2025. We paid aggregate cash dividends of $199 million during the fiscal year ended March 31, 2025.
Each measurement point is as of the end of each fiscal year. The performance of our stock depicted in the following graph is not necessarily indicative of the future performance of our stock. 18 Table of Contents * Based on $100 invested on March 31, 2019 in stock or index, including reinvestment of dividends.
Each measurement point is as of the end of each fiscal year. The performance of our stock depicted in the following graph is not necessarily indicative of the future performance of our stock. * Based on $100 invested on March 31, 2020 in stock or index, including reinvestment of dividends.
Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Holders There were approximately 616 holders of record of our common stock as of May 20, 2024. In addition, a significant number of beneficial owners of our common stock hold their shares in street name.
Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Holders There were approximately 574 holders of record of our common stock as of May 8, 2025. In addition, a significant number of beneficial owners of our common stock hold their shares in street name.
This program was terminated on May 8, 2024 and was superseded and replaced by a new stock repurchase program approved in May 2024. In May 2024, the Company’s Audit Committee, upon delegation from the Company’s Board of Directors, authorized a new program to repurchase up to $5.0 billion of our common stock.
Issuer Purchases of Equity Securities In May 2024, the Company’s Audit Committee, upon delegation from the Company’s Board of Directors, authorized a new program to repurchase up to $5.0 billion of our common stock. This program expires on May 9, 2027.
This program supersedes and replaces the August 2022 program and expires on May 9, 2027. Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans.
Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions.
The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares of our common stock under this program and it may be modified, suspended or discontinued at any time.
We are not obligated to repurchase a specific number of shares of our common stock under this program and it may be modified, suspended or discontinued at any time. We are actively repurchasing shares under this program. In February 2025, we entered into an accelerated share repurchase agreement (the “ASR Agreement”) with Goldman Sachs & Co.
March 31, 2019 2020 2021 2022 2023 2024 Electronic Arts Inc. $ 100 $ 99 $ 134 $ 125 $ 120 $ 133 S&P 500 Index 100 93 145 168 155 202 Nasdaq Composite Index 100 101 175 189 164 221 RDG Technology Composite Index 100 110 187 201 182 226
March 31, 2020 2021 2022 2023 2024 2025 Electronic Arts Inc. $ 100 $ 135 $ 127 $ 122 $ 135 $ 148 S&P 500 Index 100 156 181 167 217 235 Nasdaq Composite Index 100 173 187 162 219 233 RDG Technology Composite Index 100 170 183 166 206 221
Removed
Issuer Purchases of Equity Securities In August 2022, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock. We repurchased approximately 10.0 million shares of our common stock for approximately $1,300 million under this program during the fiscal year ended March 31, 2024.
Added
LLC., under which we purchased an aggregate of $1.0 billion of our common stock as part of the May 2024 repurchase program. Final settlement of the ASR Agreement occurred on April 25, 2025. Refer to Note 1 5 to our Consolidated Financial Statements for additional details on the ASR Agreement.
Removed
We are actively repurchasing shares under this program.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

69 edited+5 added−18 removed64 unchanged
Biggest changeComparison of Fiscal Year 2023 to Fiscal Year 2022 28 Table of Contents For the comparison of fiscal year 2023 to fiscal year 2022, refer to Part II, Item 7 “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of our Annual Report on Form 10-K for our fiscal year ended March 31, 2023, filed with the SEC on May 24, 2023 under the subheading “ Comparison of Fiscal Year 2023 to Fiscal Year 2022. ” LIQUIDITY AND CAPITAL RESOURCES As of March 31, (In millions) 2024 2023 Increase/(Decrease) Cash and cash equivalents $ 2,900 $ 2,424 $ 476 Short-term investments 362 343 19 Total $ 3,262 $ 2,767 $ 495 Percentage of total assets 24 % 21 % Year Ended March 31, (In millions) 2024 2023 Increase/(Decrease) Net cash provided by operating activities $ 2,315 $ 1,550 $ 765 Net cash used in investing activities (207) (217) 10 Net cash used in financing activities (1,624) (1,600) (24) Effect of foreign exchange on cash and cash equivalents (8) (41) 33 Net increase (decrease) in cash and cash equivalents $ 476 $ (308) $ 784 For the comparison of fiscal year 2023 to fiscal year 2022, refer to Part II, Item 7 “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of our Annual Report on Form 10-K for our fiscal year ended March 31, 2023, filed with the SEC on May 24, 2023 under the subheading “Liquidity and Capital Resources.” Changes in Cash Flow Operating Activities.
Biggest changeComparison of Fiscal Year 2024 to Fiscal Year 2023 For the comparison of fiscal year 2024 to fiscal year 2023, refer to Part II, Item 7 “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of our Annual Report on Form 10-K for our fiscal year ended March 31, 2024, filed with the SEC on May 22, 2024 under the subheading “ Comparison of Fiscal Year 2024 to Fiscal Year 2023. ” 28 Table of Contents LIQUIDITY AND CAPITAL RESOURCES As of March 31, (In millions) 2025 2024 Increase/(Decrease) Cash and cash equivalents $ 2,136 $ 2,900 $ (764) Short-term investments 112 362 (250) Total $ 2,248 $ 3,262 $ (1,014) Percentage of total assets 18 % 24 % Year Ended March 31, (In millions) 2025 2024 Change Net cash provided by operating activities $ 2,079 $ 2,315 $ (236) Net cash provided by (used in) investing activities 37 (207) 244 Net cash used in financing activities (2,863) (1,624) (1,239) Effect of foreign exchange on cash and cash equivalents (17) (8) (9) Net increase (decrease) in cash and cash equivalents $ (764) $ 476 $ (1,240) For the comparison of fiscal year 2024 to fiscal year 2023, refer to Part II, Item 7 “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of our Annual Report on Form 10-K for our fiscal year ended March 31, 2024, filed with the SEC on May 22, 2024 under the subheading “Liquidity and Capital Resources.” Changes in Cash Flow Operating Activities.
Net Revenue Net revenue consists of sales generated from (1) full games sold as digital downloads or as packaged goods and designed for play on game consoles and PCs, (2) live services which primarily includes sales of extra content for console, PC, and mobile games, (3) subscriptions that generally offer access to a selection of full games, in-game content, online services and other benefits, and (4) licensing our games to third parties to distribute and host our games.
Net Revenue Net revenue consists of sales generated from (1) full games sold as digital downloads or as packaged goods and designed for play on game consoles and PCs, (2) live services which primarily includes sales of extra content for console, PC, and mobile games, (3) subscriptions that generally offer access to a selection of full games, in-game content, online services and other benefits, and (4) licensing our games to third parties to distribute and host our games and content.
Increases in consumer adoption of digital purchase of games combined with increases in our live services revenue generally results in expansion of our gross margin, as costs associated with selling a game digitally is generally less than selling the same game through traditional retail and distribution channels. Increased Competition. Competition in our business is intense.
Increases in consumer adoption of digital purchase of games combined with increases in our live services revenue generally results in expansion of our gross margin, as costs associated with selling a game digitally are generally less than selling the same game through traditional retail and distribution channels. Increased Competition. Competition in our business is intense.
General and Administrative 27 Table of Contents General and administrative expenses consist of personnel and related expenses of executive and administrative staff, corporate functions such as finance, legal, human resources, and information technology (“IT”), related overhead costs, fees for professional services such as legal and accounting, and allowances for doubtful accounts.
General and Administrative 27 Table of Contents General and administrative expenses consist of personnel and related expenses of executive and administrative staff, corporate functions such as finance, legal, human resources, and information technology (“IT”), related overhead costs, fees for professional services, and allowances for doubtful accounts.
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS The information under the subheading “Impact of Recently Issued Accounting Standards” in Note 1 — Description of Business and Basis of Presentation to the Consolidated Financial Statements in this Form 10-K is incorporated by reference into this Item 7. 25 Table of Contents RESULTS OF OPERATIONS Our fiscal year is reported on a 52- or 53-week period that ends on the Saturday nearest March 31.
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS The information under the subheading “Recently Issued Accounting Standards” in Note 1 — Description of Business and Basis of Presentation to the Consolidated Financial Statements in this Form 10-K is incorporated by reference into this Item 7. 25 Table of Contents RESULTS OF OPERATIONS Our fiscal year is reported on a 52- or 53-week period that ends on the Saturday nearest March 31.
Financial Condition Our material cash requirements, including commitments for capital expenditure, as of March 31, 2024 are set forth in our Note 14 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-K, which is incorporated by reference into this Item 7.
Financial Condition Our material cash requirements, including commitments for capital expenditure, as of March 31, 2025 are set forth in our Note 14 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-K, which is incorporated by reference into this Item 7.
Short-term Investments Due to our mix of fixed and variable rate securities, our short-term investment portfolio is susceptible to changes in short-term interest rates. As of March 31, 2024, our short-term investments had net unrealized gains of less than $1 million or less than 1 percent of total short-term investments.
Short-term Investments Due to our mix of fixed and variable rate securities, our short-term investment portfolio is susceptible to changes in short-term interest rates. As of March 31, 2025, our short-term investments had net unrealized gains of less than $1 million or less than 1 percent of total short-term investments.
Management believes that an understanding of these trends and drivers provides important context for our results for the fiscal year ended March 31, 2024, as well as our future prospects.
Management believes that an understanding of these trends and drivers provides important context for our results for the fiscal year ended March 31, 2025, as well as our future prospects.
We evaluate and recognize revenue by: • identifying the contract(s) with the customer; • identifying the performance obligations in the contract; • determining the transaction price; 22 Table of Contents • allocating the transaction price to performance obligations in the contract; and • recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”).
We evaluate and recognize revenue by: • identifying the contract(s) with the customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”).
The remaining 25 percent is allocated to the future update rights and the online hosting performance obligations and recognized ratably as the service is provided (over the Estimated Offering Period). Online-Hosted Service Games. Sales of our Online-Hosted Service Games are determined to have one distinct performance obligation: the online hosting.
The remaining 25 percent is allocated to the future update rights and the online hosting performance obligations and recognized ratably as the service is provided (over the Estimated Offering Period). 22 Table of Contents Online-Hosted Service Games. Sales of our Online-Hosted Service Games are determined to have one distinct performance obligation: the online hosting.
As a result, actual results may differ materially from our estimates. Revenue Recognition We derive revenue principally from sales of our games, and related extra content and services that can be experienced on game consoles, PCs, mobile phones and tablets.
As a result, actual results may differ materially from our estimates. Revenue Recognition We derive revenue principally from sales of our games, and related extra content and services that can be experienced on game consoles, PCs, and mobile devices.
For example, games and extra content sold at retail would have a composite offering period equal to the online gameplay period plus time in channel as opposed to digitally-distributed games and extra content which are delivered immediately via digital download and therefore, the offering period is estimated to be only the online gameplay period.
For example, games 23 Table of Contents and extra content sold at retail would have a composite offering period equal to the online gameplay period plus time in channel as opposed to digitally-distributed games and extra content which are delivered immediately via digital download and therefore, the offering period is estimated to be only the online gameplay period.
In addition, as measured based on total units sold on Microsoft’s Xbox One and Xbox Series X and Sony’s PlayStation 4 and 5 rather than by net revenue, we estimate that 73 percent, 68 percent, and 65 percent of our total units sold during fiscal years 2024, 2023, and 2022, were sold digitally.
In addition, as measured based on total units sold on Microsoft’s Xbox One and Xbox Series X and Sony’s PlayStation 4 and 5 rather than by net revenue, we estimate that 78 percent, 73 percent, and 68 percent of our total units sold during fiscal years 2025, 2024, and 2023, were sold digitally.
In our industry, we see a large portion of games sales concentrated on the most popular titles. Similarly, a significant portion of our revenue historically has been derived from games based on a few popular franchises, such as EA SPORTS FC, EA SPORTS Madden NFL, Apex Legends , Battlefield, and The Sims.
In our industry, we see a large portion of games sales concentrated on the most popular titles. Similarly, a significant portion of our revenue has been derived from games based on a few popular titles, such as EA SPORTS FC, EA SPORTS College Football, EA SPORTS Madden NFL, Apex Legends , Battlefield, and The Sims.
In addition, we recognized a lower period cost for U.S. tax on our non-U.S. earnings, including a cumulative one-time benefit, due to R&D capitalization guidance issued by the U.S. Treasury during the fiscal year. Excluding the effects of these items, the effective tax rate for fiscal year 2024 would have been 29.5%.
In addition, we recognized a lower period cost for U.S. tax on our non-U.S. earnings, including a cumulative one-time benefit, due to R&D capitalization guidance issued by the U.S. Treasury during the fiscal year. Excluding the effects of these items, the effective tax rate for fiscal year 2024 would have been 26.7 percent.
To the extent a contract includes multiple promises, we must apply judgment to determine whether those promises are separate and distinct performance obligations. If these criteria are not met, the promises are accounted for as a combined performance obligation. 23 Table of Contents Determining the transaction price.
To the extent a contract includes multiple promises, we must apply judgment to determine whether those promises are separate and distinct performance obligations. If these criteria are not met, the promises are accounted for as a combined performance obligation. Determining the transaction price.
Our foreign subsidiaries are generally subject to U.S. tax, and to the extent earnings from these subsidiaries can be repatriated without a material tax cost, such earnings will not be indefinitely reinvested. As of March 31, 2024, approximately $1,121 million of our cash and cash equivalents were domiciled in foreign tax jurisdictions.
Our foreign subsidiaries are generally subject to U.S. tax, and to the extent earnings from these subsidiaries can be repatriated without a material tax cost, such earnings will not be indefinitely reinvested. As of March 31, 2025, approximately $1.1 billion of our cash and cash equivalents were domiciled in foreign tax jurisdictions.
As of March 31, 2024, we did not have any off-balance sheet arrangements. 30 Table of Contents
As of March 31, 2025, we did not have any off-balance sheet arrangements. 30 Table of Contents
Our results of operations for the fiscal year ended March 31, 2024 contained 52 weeks and ended on March 30, 2024. Our results of operations for the fiscal year ended March 31, 2023 contained 52 weeks and ended on April 1, 2023. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end.
Our results of operations for the fiscal year ended March 31, 2025 contained 52 weeks and ended on March 29, 2025. Our results of operations for the fiscal year ended March 31, 2024 contained 52 weeks and ended on March 30, 2024. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end.
Our net revenue attributable to live services and other was $5,547 million, $5,489 million, and $4,998 million for fiscal years 2024, 2023, and 2022, respectively, and we expect that live services net revenue will continue to be material to our business.
Our net revenue attributable to live services and other was $5,461 million, $5,547 million, and $5,489 million for fiscal years 2025, 2024, and 2023, respectively, and we expect that live services net revenue will continue to be material to our business.
We believe that our cash, cash equivalents, short-term investments, cash generated from operations and available financing facilities will be sufficient to meet these material cash requirements, which include licensing intellectual property from professional sports organizations and players associations used in our EA SPORTS titles (e.g., EA SPORTS FC, NFL Properties LLC, NFL Players Association and NFL Players Inc.) and third-party content and celebrities (e.g., Disney Interactive), debt repayment obligations of $1.9 billion, and to fund our operating requirements for the next 12 months and beyond.
We believe that our cash, cash equivalents, short-term investments, cash generated from operations and available financing facilities will be sufficient to meet these material cash requirements, which include licensing intellectual property from sports organizations and players associations used in our EA SPORTS titles and third-party content, debt repayment obligations of $1.9 billion, and to fund our operating requirements for the next 12 months and beyond.
Our most popular live services are the extra content purchased for the Ultimate Team mode associated with our sports franchises, that allows players to collect current and former professional players in order to build and compete as a personalized team, and extra content purchased for our Apex Legends franchise.
Our most popular live services are the extra content in the Ultimate Team mode associated with our sports franchises. Ultimate Team allows players to collect current and former players in order to build and compete as a personalized team.
Our Swiss deferred tax asset realizability analysis relies upon future Swiss taxable income as the primary source of taxable income but considers all available sources of Swiss income based on the positive and negative evidence. We give more weight to evidence that can be objectively verified.
Our Swiss deferred tax asset realizability analysis relies upon future Swiss taxable 24 Table of Contents income, and considers all available sources of Swiss income based on positive and negative evidence. We give more weight to evidence that can be objectively verified.
In our industry, players increasingly purchase games digitally as opposed to purchasing physical discs. While this trend, as applied to our business, may not be linear due to a mix of products during a fiscal year, consumer buying patterns and other factors, over time we expect players to purchase an increasingly higher proportion of our games digitally.
While this trend, as applied to our business, may not be linear due to a mix of products during a fiscal year, consumer buying patterns and other factors, over time we expect players to continue to purchase a higher proportion of our games digitally.
We expect capital expenditures to be approximately $200 million in fiscal year 2025 primarily due to investments in hardware, software, and real estate and facilities.
We expect capital expenditures to be approximately $225 million in fiscal year 2026 primarily due to investments in hardware, software, and real estate.
We may choose at any time to raise additional capital to repay debt, strengthen our financial position, facilitate expansion, repurchase our stock, pursue strategic acquisitions and investments, and/or to take advantage of business opportunities as they arise.
Our operating requirements include working capital requirements, capital expenditures, our capital return programs, and potentially, future acquisitions or strategic investments. We may choose at any time to raise additional capital to repay debt, strengthen our financial position, facilitate expansion, repurchase our stock, pursue strategic acquisitions and investments, and/or to take advantage of business opportunities as they arise.
Live services and other net bookings were $5,425 million for fiscal year 2024, and decreased $105 million or 2 percent as compared to fiscal year 2023.
Live services and other net bookings were $5,338 million for fiscal year 2025, and decreased $87 million or 2 percent as compared to fiscal year 2024.
Research and development expenses for fiscal years 2024 and 2023 were as follows (in millions): March 31, 2024 % of Net Revenue March 31, 2023 % of Net Revenue $ Change % Change $ 2,420 32 % $ 2,328 31 % $ 92 4 % Research and development expenses increased by $92 million, or 4 percent, in fiscal year 2024, as compared to fiscal year 2023.
Research and development expenses for fiscal years 2025 and 2024 were as follows (in millions): March 31, 2025 % of Net Revenue March 31, 2024 % of Net Revenue $ Change % Change $ 2,569 34 % $ 2,420 32 % $ 149 6 % Research and development expenses increased by $149 million, or 6 percent, in fiscal year 2025, as compared to fiscal year 2024.
Marketing and sales expenses for fiscal years 2024 and 2023 were as follows (in millions): March 31, 2024 % of Net Revenue March 31, 2023 % of Net Revenue $ Change % Change $ 1,019 13 % $ 978 13 % $ 41 4 % Marketing and sales expenses increased by $41 million, or 4 percent, in fiscal year 2024, as compared to fiscal year 2023.
Marketing and sales expenses for fiscal years 2025 and 2024 were as follows (in millions): March 31, 2025 % of Net Revenue March 31, 2024 % of Net Revenue $ Change % Change $ 962 13 % $ 1,019 13 % $ (57) (6) % Marketing and sales expenses decreased by $57 million, or 6 percent, in fiscal year 2025, as compared to fiscal year 2024.
General and administrative expenses for fiscal years 2024 and 2023 were as follows (in millions): March 31, 2024 % of Net Revenue March 31, 2023 % of Net Revenue $ Change % Change $ 691 9 % $ 727 10 % $ (36) (5) % General and administrative expenses decreased by $36 million, or 5 percent, in fiscal year 2024, as compared to fiscal year 2023.
General and administrative expenses for fiscal years 2025 and 2024 were as follows (in millions): March 31, 2025 % of Net Revenue March 31, 2024 % of Net Revenue $ Change % Change $ 745 10 % $ 691 9 % $ 54 8 % General and administrative expenses increased by $54 million, or 8 percent, in fiscal year 2025, as compared to fiscal year 2024.
Our net revenue attributable to digital full game downloads was $1,343 million, $1,262 million, and $1,282 million during fiscal years 2024, 2023, and 2022, respectively; while our net revenue attributable to packaged goods sales was $672 million, $675 million, and $711 million in fiscal years 2024, 2023, and 2022, respectively.
Our net revenue attributable to digital full game downloads was $1,478 million, $1,343 million, and $1,262 million during fiscal years 2025, 2024, and 2023, respectively; while our net revenue attributable to packaged goods sales was $524 million, 20 Table of Contents $672 million, and $675 million in fiscal years 2025, 2024, and 2023, respectively.
Income Taxes Provision for income taxes for fiscal years 2024 and 2023 was as follows (in millions): March 31, 2024 Effective Tax Rate March 31, 2023 Effective Tax Rate $ 316 19.9 % $ 524 39.5 % Our effective tax rate for the fiscal year ended March 31, 2024 was 19.9 percent as compared to 39.5 percent for the same period in fiscal year 2023.
Income Taxes Provision for income taxes for fiscal years 2025 and 2024 was as follows (in millions): March 31, 2025 Effective Tax Rate March 31, 2024 Effective Tax Rate $ 484 30.2 % $ 316 19.9 % Our effective tax rate for the fiscal year ended March 31, 2025 was 30.2 percent as compared to 19.9 percent in fiscal year 2024.
Net cash used in investing activities decreased by $10 million during fiscal year 2024, as compared to fiscal year 2023, primarily driven by a $237 million increase in proceeds from maturities and sales of short-term investments, and a $8 million decrease in capital expenditures, partially offset by a $235 million increase in the purchase of short-term investments. Financing Activities.
Net cash provided by investing activities increased by $244 million during fiscal year 2025, as compared to fiscal year 2024, primarily driven by a $203 million decrease in the purchase of short-term investments and a $63 million increase in proceeds from maturities and sales of short-term investments, partially offset by a $22 million increase in capital expenditures. Financing Activities.
See Note 12 — Financing Arrangements to the Consolidated Financial Statements in this Form 10-K as it relates to our Credit Facility, which is incorporated by reference into this Item 7.
Proceeds of loans made under the Credit Facility may be used for general corporate purposes. See Note 12 — Financing Arrangements to the Consolidated Financial Statements in this Form 10-K as it relates to our Credit Facility, which is incorporated by reference into this Item 7.
Net cash used in financing activities increased by $24 million during fiscal year 2024, as compared to fiscal year 2023, primarily due to a $21 million increase in cash paid to taxing authorities in connection with withholding taxes for stock-based compensation.
Net cash used in financing activities increased by $1,239 million during fiscal year 2025, as compared to fiscal year 2024, primarily due to a $1,208 million increase in common stock repurchases and excise tax payments, and a $38 million increase in cash paid to taxing authorities in connection with withholding taxes for stock-based compensation.
During the fiscal year ended March 31, 2024, we recognized a $92 million tax benefit to remeasure our Swiss deferred tax assets as a result of an increase in the Swiss statutory tax rate.
Excluding the effect of the change in valuation allowance, the effective tax rate for fiscal year 2025 would have been 27.0 percent. During the fiscal year ended March 31, 2024, we recognized a $92 million tax benefit to remeasure our Swiss deferred tax assets as a result of an increase in the Swiss statutory tax rate.
Cost of revenue for fiscal years 2024 and 2023 was as follows (in millions): March 31, 2024 % of Net Revenue March 31, 2023 % of Net Revenue % Change Change as a % of Net Revenue $ 1,710 23 % $ 1,792 24 % (5) % (1) % Cost of revenue decreased by $82 million during fiscal year 2024, as compared to fiscal year 2023.
Cost of revenue for fiscal years 2025 and 2024 was as follows (in millions): March 31, 2025 % of Net Revenue March 31, 2024 % of Net Revenue % Change Change as a % of Net Revenue $ 1,543 21 % $ 1,710 23 % (10) % (2) % Cost of revenue decreased by $167 million, and by 2 percent as a percentage of total net revenue, during fiscal year 2025 as compared to fiscal year 2024.
Cost of Revenue Cost of revenue consists of (1) certain royalty expenses for celebrities, professional sports leagues, movie studios and other organizations, and independent software developers, (2) mobile platform fees associated with our mobile revenue (for transactions in which we are acting as the principal in the sale to the end customer), (3) data center, bandwidth and server costs associated with hosting our online games and websites, (4) inventory costs, including manufacturing royalties, (5) payment processing fees, (6) amortization and impairments of certain intangible assets, and (7) personnel-related costs.
This decrease was primarily driven by decreased sales of extra content for Apex Legends and from sunset mobile titles, partially offset by an increase in net revenue primarily driven by sales of extra content for Ultimate Team within our American football and global football franchises Cost of Revenue Cost of revenue consists of (1) certain royalty expenses for sports organizations, movie studios, independent software developers, and others (2) mobile platform fees associated with our mobile revenue (for transactions in which we are acting as the principal in the sale to the end customer), (3) data center, bandwidth and server costs associated with hosting our online games and websites, (4) inventory costs, including manufacturing royalties, (5) payment processing fees, (6) amortization and impairments of certain intangible assets, and (7) personnel-related costs.
Live services and other net revenue for fiscal year 2024 was $5,547 million, primarily driven by sales of extra content for FIFA 23, EA SPORTS FC 24, Apex Legends, The Sims 4 , and our global football mobile business.
Live services and other net revenue for fiscal year 2025 was $5,461 million, primarily driven by sales of extra content for our global football and American football franchises, Apex Legends , and The Sims 4 .
During the fiscal year ended March 31, 2023, we recognized a $118 million tax charge to increase the valuation allowance on Swiss deferred tax assets, primarily as a result of an increase in Swiss interest rates.
During the fiscal year ended March 31, 2025, we recognized a $51 million tax charge to increase the valuation allowance on Swiss deferred tax assets as a result of various factors including our business operations, geographical income mix, and an increase in the Swiss interest rates.
The following is a calculation of our total net bookings for the periods presented: Year Ended March 31, (In millions) 2024 2023 Total net revenue $ 7,562 $ 7,426 Change in deferred net revenue (online-enabled games) (132) (85) Net bookings $ 7,430 $ 7,341 Net bookings were $7,430 million for fiscal year 2024 primarily driven by sales related to EA SPORTS FC 24, FIFA 23, Apex Legends , EA SPORTS Madden NFL 24 , and The Sims 4.
The following is a calculation of our total net bookings for the periods presented: Year Ended March 31, (In millions) 2025 2024 Net revenue $ 7,463 $ 7,562 Change in deferred net revenue (online-enabled games) (108) (132) Net bookings $ 7,355 $ 7,430 Net bookings were $7,355 million for fiscal year 2025 primarily driven by sales related to our global football, American football, and The Sims franchises .
The decrease was primarily due to a net decrease in royalty and other product related costs associated with EA SPORTS FC 24 , a decrease in acquisition-related intangible asset amortization and impairments, and a decrease in platform and hosting fees, partially offset by an increase in inventory costs from the release of Star Wars Jedi: Survivor.
The decrease was primarily due to a year-over-year decrease in product related and royalty costs associated with our EA SPORTS FC franchise, a decrease in platform and online hosting fees, and a decrease in acquisition-related intangible asset amortization and impairment, partially offset by a net increase in royalty costs due to the mix of sales from other royalty bearing titles.
About Electronic Arts Electronic Arts is a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs, mobile phones and tablets.
About Electronic Arts Electronic Arts is a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs, and mobile devices. We create innovative games and experiences that deliver high-quality interactive entertainment and drive engagement across our global network of hundreds of millions of players.
The decrease in live services and other net bookings was due primarily to decreased sales of extra content for Apex Legends, and fluctuations in foreign exchange rates, net of hedging activities, partially offset by a year-over-year increase in extra content sales for Ultimate Team within our global football franchise, driven by EA SPORTS FC 24 .
The decrease in live services and other net bookings was due primarily to decreased sales of extra content from Apex Legends and from Ultimate Team within our global football franchise , partially offset by increased sales of extra content from Ultimate Team within our American football franchises, driven by EA SPORTS College Football 25 , and global football mobile extra content sales.
We are focusing on building games and experiences that grow the global online communities around our key franchises; deepening engagement through connecting interactive storytelling to key intellectual property; and building re-occurring revenue from scaling our live services and growth in our annualized sports franchises, our console, PC and mobile catalog titles.
We are focusing on building games and experiences that grow the global online communities around our key franchises; deepening engagement through connecting interactive storytelling to key intellectual property; and harnessing our communities to grow in, around, and beyond our games.
During fiscal year 2024, we returned $1,505 million to stockholders through our capital return programs, repurchasing 10.0 million shares for approximately $1,300 million and returning $205 million through our quarterly cash dividend program.
During fiscal year 2025, we returned $2,699 million to stockholders through our capital return programs, repurchasing 17.6 million shares for approximately $2,500 million and returning $199 million through our quarterly cash dividend program.
These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games.
Through our live services offerings, we offer high-quality experiences designed to provide value to players and extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES Our Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The preparation of these Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, contingent assets and liabilities, and revenue and expenses during the reporting periods.
GAAP”). The preparation of these Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, contingent assets and liabilities, and revenue and expenses during the reporting periods.
Interest is payable semiannually in arrears, on March 1 and September 1 of each year. 29 Table of Contents See Note 12 — Financing Arrangements to the Consolidated Financial Statements in this Form 10-K as it relates to our Senior Notes, which is incorporated by reference into this Item 7.
See Note 12 — Financing Arrangements to the Consolidated Financial Statements in this Form 10-K as it relates to our Senior Notes, which is incorporated by reference into this Item 7. 29 Table of Contents Credit Facility On March 22, 2023, we entered into a $500 million unsecured revolving credit facility (the "Credit Facility") with a syndicate of banks.
Net Revenue by Composition Our net revenue by composition for fiscal years 2024 and 2023 was as follows (in millions): Year Ended March 31, 2024 2023 $ Change % Change Net revenue: Full game downloads $ 1,343 $ 1,262 $ 81 6 % Packaged goods 672 675 (3) — % Full game $ 2,015 $ 1,937 $ 78 4 % Live services and other $ 5,547 $ 5,489 $ 58 1 % Total net revenue $ 7,562 $ 7,426 $ 136 2 % Full Game Net Revenue Full game net revenue includes full game downloads and packaged goods.
Net Revenue by Composition Our net revenue by composition for fiscal years 2025 and 2024 was as follows (in millions): Year Ended March 31, 2025 2024 $ Change % Change Net revenue: Full game downloads $ 1,478 $ 1,343 $ 135 10 % Packaged goods 524 672 (148) (22) % Full game $ 2,002 $ 2,015 $ (13) (1) % Live services and other $ 5,461 $ 5,547 $ (86) (2) % Total net revenue $ 7,463 $ 7,562 $ (99) (1) % Full Game Net Revenue Full game net revenue includes full game downloads and packaged goods.
Net cash provided by operating activities increased by $765 million during fiscal year 2024, as compared to fiscal year 2023, primarily driven by higher cash collections due to timing and year-over-year growth in our business, and lower cash payments for income taxes, partially offset by cash outflows from hedging activities. Investing Activities.
Net cash provided by operating activities decreased by $236 million during fiscal year 2025, as compared to fiscal year 2024, primarily driven by lower cash collections from sales and higher cash payments for income taxes, partially offset by lower royalty, marketing, and advertising payments. Investing Activities.
This increase was primarily driven by the release of Star Wars Jedi: Survivor , partially offset by Battlefield 2042. Live Services and Other Net Revenue Live services and other net revenue primarily includes revenue from sales of extra content for console, PC, and mobile games, certain licensing revenue, subscriptions, and advertising.
Live Services and Other Net Revenue Live services and other net revenue primarily includes revenue from sales of extra content for console, PC, and mobile games, certain licensing revenue, subscriptions, and advertising.
Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.
Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.
Full game downloads primarily includes revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily includes revenue from software that is sold physically through traditional channels such as brick and mortar retailers.
Full game downloads primarily include revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily includes revenue from full games that are sold physically to mass market retailers, specialty stores and through distribution arrangements.
In particular, we have historically derived a significant portion of our net revenue from our global football franchise, the annualized version of which is consistently one of the best-selling games in the marketplace. We transitioned our global football franchise to a new EA SPORTS FC brand in the second quarter of fiscal 2024.
In particular, we have historically derived a significant portion of our net revenue from our global football franchise, the annualized version of which is consistently one of the best-selling games in the marketplace. Net Bookings . In order to improve transparency into our business, we disclose an operating performance metric, net bookings.
Full game net revenue for fiscal year 2024 was $2,015 million, primarily driven by EA SPORTS FC 24 , Star Wars Jedi: Survivor, EA SPORTS Madden NFL 24 , and FIFA 2 3. Full game net revenue for fiscal year 2024 increased $78 million, or 4 percent, as compared to fiscal year 2023.
Full game net revenue for fiscal year 2025 was $2,002 million, primarily driven by EA SPORTS FC 25, EA SPORTS College Football 25, EA SPORTS FC 24 , and EA SPORTS Madden NFL 25 . Full game net revenue for fiscal year 2025 decreased $13 million, or 1 percent, as compared to fiscal year 2024.
Our competitors range from established interactive entertainment companies to emerging start-ups. In addition, the gaming, technology/internet, and entertainment industries are converging, and we compete with large, diversified technology companies in those industries.
Our competitors range from established interactive entertainment companies to emerging start-ups. In addition, we compete with large, diversified companies that have strengthened their interactive entertainment capabilities.
Live services and other net revenue for fiscal year 2024 increased $58 million, or 1 percent, as compared to fiscal year 2023 .
Live services and other net revenue for fiscal 26 Table of Contents year 2025 decreased $86 million, or 2 percent, as compared to fiscal year 2024 .
Net bookings increased $89 million or 1 percent as compared to fiscal year 2023 primarily due to a year-over-year increase in sales related to our global football franchise, driven by EA SPORTS FC 24, partially offset by decreased sales of extra content for Apex Legends, and fluctuations in foreign exchange rates, net of hedging activities.
Net bookings decreased $75 million or 1 percent as compared to fiscal year 2024 primarily due to the prior year release of Star Wars Jedi: Survivor, a year-over-year decrease in sales of extra content for Apex Legends, and a year-over-year decrease in sales related to our global football franchise , partially offset by increased sales from our American football franchises, driven by EA SPORTS College Football 25 , and the release of Split Fiction.
However, for sales arrangements via Apple App Store and Google Play Store, EA is considered the principal to the end customer and thus, we report revenue on a gross basis and mobile platform fees are reported within cost of revenue. 24 Table of Contents Income Taxes We recognize deferred tax assets and liabilities for both (1) the expected impact of differences between the financial statement amount and the tax basis of assets and liabilities and (2) the expected future tax benefit to be derived from tax losses and tax credit carryforwards.
However, for sales arrangements via Apple App Store and Google Play Store, EA is considered the principal to the end customer and thus, we report revenue on a gross basis and mobile platform fees are reported within cost of revenue.
Comparison of Fiscal Year 2024 to Fiscal Year 2023 Net Revenue Net revenue for fiscal year 2024 was $7,562 million, primarily driven by sales related to FIFA 23, EA SPORTS FC 24, Apex Legends, EA SPORTS Madden NFL 24, and The Sims 4 . Net revenue for fiscal year 2024 increased $136 million, as compared to fiscal year 2023.
Comparison of Fiscal Year 2025 to Fiscal Year 2024 Net Revenue Net revenue for fiscal year 2025 was $7,463 million, primarily driven by sales related to our global football and American football franchises, Apex Legends , and The Sims 4 . Net revenue for fiscal year 2025 decreased $99 million, as compared to fiscal year 2024.
Their greater financial or other resources may provide larger budgets to develop and market tools, technologies, products and services that gain consumer success and shift player time and engagement away from our products and services.
Our competitors have access to certain resources such as larger budgets, tools, technologies, or IP portfolios that can lead to greater consumer success and shift player time and engagement away from our products and services.
Financial Results Our key financial results for our fiscal year ended March 31, 2024 were as follows: • Total net revenue was $7,562 million, up 2 percent year-over-year. • Live services and other net revenue was $5,547 million, up 1 percent year-over-year. • Gross margin was 77.4 percent, up 2 percentage points year-over-year. • Operating expenses were $4,334 million, up 1 percent year-over-year. • Operating income was $1,518 million, up 14 percent year-over-year. • Net income was $1,273 million with diluted earnings per share of $4.68. • Net cash provided by operating activities was $2,315 million, up 49 percent year-over-year. • Total cash, cash equivalents and short-term investments were $3,262 million. • We repurchased 10.0 million shares of our common stock for $1,300 million. • We paid cash dividends of $205 million during the fiscal year ended March 31, 2024.
Financial Results Our key financial results for our fiscal year ended March 31, 2025 were as follows: • Total net revenue was $7,463 million, down 1 percent year-over-year. • Live services and other net revenue was $5,461 million, down 2 percent year-over-year. • Gross margin was 79.3 percent, up 2 percentage points year-over-year. • Operating expenses were $4,400 million, up 2 percent year-over-year. • Operating income was $1,520 million, flat year-over-year. • Net income was $1,121 million with diluted earnings per share of $4.25. • Net cash provided by operating activities was $2,079 million, down 10 percent year-over-year. • Total cash, cash equivalents and short-term investments were $2,248 million. • We returned $2,699 million to stockholders through our capital return programs, repurchasing 17.6 million shares for approximately $2,500 million and returning $199 million through our quarterly cash dividend program.
This increase was primarily due to a $51 million increase in stock-based compensation, a $45 million increase in personnel-related costs primarily due to an increase in variable compensation and related expenses, offset by a $12 million decrease in studio related contracted services.
This increase was primarily due to a $67 million increase in personnel-related costs as part of our continued investment in our studios, a $39 million increase in stock-based compensation, and an $11 million increase in contracted services.
Credit Facility On March 22, 2023, we entered into a $500 million unsecured revolving credit facility (the "Credit Facility") with a syndicate of banks. The Credit Facility terminates on March 22, 2028 unless the maturity is extended in accordance with its terms. As of March 31, 2024, no amounts were outstanding.
The Credit Facility terminates on March 22, 2028 unless the maturity is extended in accordance with its terms. As of March 31, 2025, no amounts were outstanding. The Credit Facility contains an option to arrange with existing lenders and/or new lenders to provide up to an aggregate of $500 million in additional commitments for revolving loans.
This increase was driven by a $2,105 million increase in net revenue primarily driven by EA SPORTS FC 24 and Star Wars Jedi: Survivor , partially offset by a $1,969 million decrease in net revenue primarily due to our legacy FIFA franchise, A pex Legends , and Battlefield 2042.
This decrease was driven by a $789 million decrease in net revenue primarily due to decreased sales of extra content for A pex Legends and the prior year release of Star Wars Jedi: Survivor , partially offset by a $690 million increase in net revenue primarily from our American football franchises, driven by EA SPORTS College Football 2 5.
Live services net revenue generated from extra content purchased within the Ultimate Team mode associated with our sports franchises, a substantial portion of which is derived from Ultimate Team within our global football franchise and from our Apex Legends franchise, is material to our business. 20 Table of Contents Digital Delivery of Games.
Live services net revenue generated from extra content purchased within Ultimate Team , a substantial portion of which was derived from FC Ultimate Team , is material to our business. Digital Delivery of Games. In our industry, players increasingly purchase games digitally as opposed to purchasing physical discs.
This increase was primarily due to a $82 million increase largely related to rebranding investments associated with the launch of EA SPORTS FC 24 , offset by a $40 million decrease in advertising and promotional spending related to the prior year release of Apex Legends Mobile.
This decrease was primarily due to a decrease in advertising and promotional spending related to Star Wars Jedi: Survivor, and Apex Legends , partially offset by an increase in advertising and promotional spending related to the release of Dragon Age: The Veilguard in fiscal year 2025.
Within live services and other, net revenue attributable to extra content was $4,463 million, $4,277 million, and $3,910 million for fiscal years 2024, 2023, and 2022, respectively. Extra content net revenue has increased as more players engage with our games and services, and purchase additional content designed to provide value to players and extend and enhance gameplay.
Within live services and other, net revenue attributable to extra content was $4,365 million, $4,463 million, and $4,277 million for fiscal years 2025, 2024, and 2023, respectively. Growth in live services net revenue, including extra content may not be linear due to the competitive landscape, consumer buying patterns, and other factors.
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At our core is a portfolio of intellectual property from which we create innovative games and experiences that deliver high-quality entertainment and drive engagement across our network of hundreds of millions of unique active accounts.
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Full game net bookings were $2,017 million for fiscal year 2025, and increased $12 million or less than 1 percent as compared to fiscal year 2024 primarily due to a year-over-year increase in sales of our American football franchises, driven by EA SPORTS College Football 25 , and the releases of Split Fiction and Dragon Age: The Veilguard, partially offset by the prior year release of Star Wars Jedi: Survivor, legacy FIFA titles within our global football franchise, and softness in EA SPORTS FC 25 full game sales. 21 Table of Contents CRITICAL ACCOUNTING POLICIES AND ESTIMATES Our Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S.
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Our portfolio includes brands that we either wholly own (such as Apex Legends , Battlefield, and The Sims) or license from others (such as the licenses within EA SPORTS FC and EA SPORTS Madden NFL). Through our live services offerings, we offer high-quality experiences designed to provide value to players, and extend and enhance gameplay.
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Income Taxes We recognize deferred tax assets and liabilities for both (1) the expected impact of differences between the financial statement amount and the tax basis of assets and liabilities and (2) the expected future tax benefit to be derived from tax losses and tax credit carryforwards.
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Our continued vision for the future of EA SPORTS FC is to create and innovate across platforms, geographies, and business models to expand our global football experiences and entertain even more fans around the world. Re-occurring Revenue Sources.
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This decrease was primarily driven by the prior year release of Star Wars Jedi: Survivor , and legacy FIFA titles within our global football franchise, partially offset by our American football franchises driven by EA SPORTS College Football 25 and our EA SPORTS FC franchise.
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Our business model includes revenue that we deem re-occurring in nature, such as revenue from our live services, annualized sports franchises (e.g., EA SPORTS FC, EA SPORTS Madden NFL), and our console, PC and mobile catalog titles (i.e., titles that did not launch in the current fiscal year).
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This increase was primarily due to a $20 million increase in personnel-related costs, a $9 million increase in stock-based compensation, and a $13 million increase in IT and facility-related costs.
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We have been able to forecast revenue from these areas of our business with greater relative confidence than for new games, services and business models. As we continue to incorporate new business models and modalities of play into our games, our goal is to continue to look for opportunities to expand the re-occurring portion of our business.
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Interest is payable semiannually in arrears, on March 1 and September 1 of each year.
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Free-to-Play and Free-to-Enter Games. We offer games in some of our largest franchises, including Apex Legends , The Sims 4, and the PC and mobile version of our EA SPORTS FC franchise, through a business model that allows consumers to access games with no-upfront cost.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of March 31, 2024, a hypothetical 150 basis point increase in interest rates would have resulted in a $4 million, or 1% decrease in the fair market value of our short-term investments. 32 Table of Contents
Biggest changeAs of March 31, 2025, a hypothetical 150 basis point increase in interest rates would have resulted in a $1 million, or 1 percent decrease in the fair market value of our short-term investments. 32 Table of Contents
As of March 31, 2024, our short-term investments were classified as available-for-sale securities and, consequently, were recorded at fair value with changes in fair value, including unrealized gains and unrealized losses not related to credit losses, reported as a separate component of accumulated other comprehensive income (loss), net of tax, in stockholders’ equity.
As of March 31, 2025, our short-term investments were classified as available-for-sale securities and, consequently, were recorded at fair value with changes in fair value, including unrealized gains and unrealized losses not related to credit losses, reported as a separate component of accumulated other comprehensive income (loss), net of tax, in stockholders’ equity.
As of March 31, 2024, a hypothetical adverse foreign currency exchange rate movement of 10 percent or 20 percent would have resulted in potential losses in the Consolidated Statements of Operations on our foreign currency forward contracts used in balance sheet hedging of $85 million or $169 million, respectively.
As of March 31, 2025, a hypothetical adverse foreign currency exchange rate movement of 10 percent or 20 percent would have resulted in potential losses in the Consolidated Statements of Operations on our foreign currency forward contracts used in balance sheet hedging of $109 million or $217 million, respectively.
As of March 31, 2024, a hypothetical adverse foreign currency exchange rate movement of 10 percent or 20 percent would have resulted in potential declines in the fair value on our foreign currency forward contracts used in cash flow hedging of $271 million or $542 million, respectively.
As of March 31, 2025, a hypothetical adverse foreign currency exchange rate movement of 10 percent or 20 percent would have resulted in potential declines in the fair value on our foreign currency forward contracts used in cash flow hedging of $241 million or $481 million, respectively.