EA Reports Disappointing Q3 Financial Performance

Electronic Arts has released its financial results for the third quarter of FY25, revealing declines in revenue and net bookings. According to CEO Andrew Wilson, the company did not achieve the financial performance it had anticipated, primarily due to the temporary underperformance of EA Sports FC 25. EA had previously announced its Q3 results, revising its full-year and third-quarter guidance due to the underwhelming financial performance of its EA Sports FC and Dragon Age franchises. Key highlights include: Revenue of $1.88 billion, representing a 3% year-over-year decline; Net income of $293 million, up 1% year-over-year; and Net bookings of $2.22 billion, down 6% year-over-year. EA Sports FC 25 experienced a strong launch in September 2024 but failed to maintain momentum throughout the quarter. The Global Football franchise saw a mid-single-digit decline year-over-year, resulting in lower-than-expected sales of FC 25. Wilson attributed this to players remaining engaged with previous franchise iterations during the holiday season and issues with balance affecting player engagement. An update was implemented on January 16, 2025, alongside the Team of the Year event, which received a strong response and positive gameplay sentiment from the community, leading to better-than-expected player retention. Regarding Dragon Age: The Veilguard, launched on October 31, 2024, Wilson noted that despite a successful launch, the title failed to resonate with a broad audience in a highly competitive market. CFO Stuart Canfield emphasized the importance of reallocating resources towards high-potential opportunities. BioWare, the developer of Dragon Age, has announced a restructuring, with staff redeployed to other EA teams, including the development of the next Mass Effect game. The next Battlefield game is scheduled for release in 2026, and the community test program, Battlefield Labs, has been well-received. Apex Legends saw a year-over-year decline in net bookings but performed in line with expectations. The Sims franchise experienced year-over-year growth during Q3, driven by the release of creator kits for The Sims 4 and the launch of MySims: Cozy Bundle, which outperformed expectations. Looking ahead to Q4, EA expects net bookings of $1.44 billion to $1.59 billion, representing a 13% decline from its previous forecast and a 4% year-over-year decrease. Canfield stated that this decline is driven by decreases in Global Football and Apex Legends, partially offset by the release of Split Fiction. Despite the disappointing Q3 performance, EA remains focused on adapting to evolving player preferences and refining its portfolio to deliver sustainable growth, with a strong lineup of new experiences, including EA Sports College Football 26, Battlefield, and Skate, poised to drive growth in FY26.