Electronic Arts Reports Disappointing Q3 Financial Performance

Electronic Arts has released its Q3 financial results for FY25, revealing a decline in revenue and net bookings. CEO Andrew Wilson expressed disappointment, stating that the performance was not in line with expectations, primarily due to the underwhelming results of EA Sports FC 25. The company had previously revised its full-year and Q3 guidance due to the underperformance of EA Sports FC and Dragon Age. Key highlights from the report include: revenue of $1.88 billion, down 3% year-over-year, net income of $293 million, up 1% year-over-year, and net bookings of $2.22 billion, down 6% year-over-year. The launch of EA Sports FC 25 in September 2024 was stable, but momentum was short-lived. The Global Football franchise experienced a mid-single-digit decline year-over-year, resulting in lower-than-expected sales. Wilson attributed this to players remaining in previous franchise iterations during the holiday period and lower-than-expected engagement due to balance issues. An update was implemented in January 2025, which has seen a positive response. Dragon Age: The Veilguard, launched in October 2024, underperformed financially due to not resonating with a broad enough audience. CFO Stuart Canfield emphasized the importance of reallocating resources to high-potential opportunities. BioWare, the developer of Dragon Age, is reimagining its operations, with some staff redeployed to other EA teams. The next Battlefield is scheduled for release in 2026, and a community test program, Battlefield Labs, has been well-received. Apex Legends' net bookings were down year-over-year but performed as expected. The Sims franchise grew year-over-year, driven by the release of creator kits for The Sims 4 and MySims: Cozy Bundle. Looking ahead to Q4, EA expects net bookings to decline 4% year-over-year, driven by declines in Global Football and Apex Legends, partially offset by the release of Split Fiction. Canfield remains optimistic about the company's long-term outlook, citing a strong lineup of new experiences and opportunities for growth in FY26.