Electronic Arts Inc. (EA) 10-Year Financial Performance & Capital Metrics

EA • • Industrial / General

TechnologyGaming & MultimediaGame Development & PublishingAAA Game Publishers

AboutElectronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands. The company licenses its games to third parties to distribute and host its games. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.Show more

Revenue $7.46B -1.3%
EBITDA $1.88B -2.4%
Net Income $1.12B -11.9%
EPS (Diluted) 4.23 -9.6%
Gross Margin 79.32% +2.5%
EBITDA Margin 25.14% -1.1%
Operating Margin 20.37% +1.5%
Net Margin 15.02% -10.8%
ROE 16.13% -6.2%
ROIC 17.5% +2.8%
Debt/Equity 0.35 +34.0%
Interest Coverage 26.21 +0.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓FCF machine: 24.9% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Share count reduced 2.9% through buybacks
✓Healthy 5Y average net margin of 13.8%
✓Trading near 52-week high

✗Weaknesses

✗Profits declining 18.1% over 5 years

Price & Volume

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Growth Metrics

Revenue CAGR

10Y5.15%

5Y6.15%

3Y2.2%

TTM-1.63%

Profit (Net Income) CAGR

10Y2.51%

5Y-18.08%

3Y12.42%

TTM-15.39%

EPS CAGR

10Y4.63%

5Y-16.3%

3Y15.29%

TTM-12.6%

ROCE

10Y Avg17.27%

5Y Avg13.15%

3Y Avg14.54%

Latest15.8%

Peer Comparison

AAA Game Publishers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
EAElectronic Arts Inc.	51.06B	204.15	48.26	-1.31%	12.14%	14.75%	3.64%	0.35
NTESNetEase, Inc.	86.18B	136.10	2.96	1.77%	32.45%	22.55%	43.48%	0.09
MSGMMotorsport Games Inc.	17.27M	3.40	-3.62	25.73%	23.71%	32.88%		0.04
TTWOTake-Two Interactive Software, Inc.	45.15B	244.34	-9.55	5.31%	-64.26%	-116.47%		1.92

Profit & Loss

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Sales/Revenue+	4.4B	4.84B	5.15B	4.95B	5.54B	5.63B	6.99B	7.43B	7.56B	7.46B
Revenue Growth %	-0.03%	0.1%	0.06%	-0.04%	0.12%	0.02%	0.24%	0.06%	0.02%	-0.01%
Cost of Goods Sold+	1.35B	1.3B	1.28B	1.32B	1.37B	1.49B	1.86B	1.79B	1.71B	1.54B
COGS % of Revenue	0.31%	0.27%	0.25%	0.27%	0.25%	0.27%	0.27%	0.24%	0.23%	0.21%
Gross Profit+	3.04B	3.55B	3.87B	3.63B	4.17B	4.13B	5.13B	5.63B	5.85B	5.92B
Gross Margin %	0.69%	0.73%	0.75%	0.73%	0.75%	0.73%	0.73%	0.76%	0.77%	0.79%
Gross Profit Growth %	-0.01%	0.17%	0.09%	-0.06%	0.15%	-0.01%	0.24%	0.1%	0.04%	0.01%
Operating Expenses+	2.14B	2.32B	2.44B	2.63B	2.72B	3.09B	4B	4.3B	4.33B	4.4B
OpEx % of Revenue	0.49%	0.48%	0.47%	0.53%	0.49%	0.55%	0.57%	0.58%	0.57%	0.59%
Selling, General & Admin	1.03B	1.11B	1.11B	1.16B	1.14B	1.28B	1.63B	1.71B	1.71B	1.71B
SG&A % of Revenue	0.23%	0.23%	0.22%	0.23%	0.21%	0.23%	0.23%	0.23%	0.23%	0.23%
Research & Development	1.11B	1.21B	1.32B	1.43B	1.56B	1.78B	2.19B	2.33B	2.42B	2.57B
R&D % of Revenue	0.25%	0.25%	0.26%	0.29%	0.28%	0.32%	0.31%	0.31%	0.32%	0.34%
Other Operating Expenses	7M	6M	9M	37M	27M	30M	183M	269M	204M	124M
Operating Income+	898M	1.22B	1.43B	996M	1.45B	1.05B	1.13B	1.33B	1.52B	1.52B
Operating Margin %	0.2%	0.25%	0.28%	0.2%	0.26%	0.19%	0.16%	0.18%	0.2%	0.2%
Operating Income Growth %	-0.05%	0.36%	0.17%	-0.31%	0.45%	-0.28%	0.08%	0.18%	0.14%	0%
EBITDA+	1.09B	1.4B	1.57B	1.14B	1.59B	1.23B	1.61B	1.87B	1.92B	1.88B
EBITDA Margin %	0.25%	0.29%	0.3%	0.23%	0.29%	0.22%	0.23%	0.25%	0.25%	0.25%
EBITDA Growth %	-0.06%	0.27%	0.12%	-0.27%	0.4%	-0.23%	0.32%	0.16%	0.03%	-0.02%
D&A (Non-Cash Add-back)	197M	172M	136M	145M	150M	181M	486M	536M	404M	356M
EBIT	902M	1.25B	1.49B	1.12B	1.55B	1.06B	1.14B	1.38B	1.65B	1.66B
Net Interest Income+	-13M	-22M	6M	43M	56M	-21M	-54M	-9M	68M	67M
Interest Income	15M	25M	50M	88M	100M	24M	4M	49M	126M	125M
Interest Expense	28M	47M	44M	45M	44M	45M	58M	58M	58M	58M
Other Income/Expense	-21M	-14M	15M	83M	63M	-29M	-48M	-6M	71M	85M
Pretax Income+	877M	1.21B	1.45B	1.08B	1.51B	1.02B	1.08B	1.33B	1.59B	1.6B
Pretax Margin %	0.2%	0.25%	0.28%	0.22%	0.27%	0.18%	0.15%	0.18%	0.21%	0.22%
Income Tax+	-279M	243M	406M	60M	-1.53B	180M	292M	524M	316M	484M
Effective Tax Rate %	1.32%	0.8%	0.72%	0.94%	2.02%	0.82%	0.73%	0.6%	0.8%	0.7%
Net Income+	1.16B	967M	1.04B	1.02B	3.04B	837M	789M	802M	1.27B	1.12B
Net Margin %	0.26%	0.2%	0.2%	0.21%	0.55%	0.15%	0.11%	0.11%	0.17%	0.15%
Net Income Growth %	0.32%	-0.16%	0.08%	-0.02%	1.98%	-0.72%	-0.06%	0.02%	0.59%	-0.12%
Net Income (Continuing)	1.16B	967M	1.04B	1.02B	3.04B	837M	789M	802M	1.27B	1.12B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	3.50	3.08	3.34	3.33	10.30	2.87	2.76	2.88	4.68	4.23
EPS Growth %	0.3%	-0.12%	0.08%	-0%	2.09%	-0.72%	-0.04%	0.04%	0.63%	-0.1%
EPS (Basic)	3.73	3.19	3.39	3.36	10.37	2.90	2.78	2.90	4.71	4.28
Diluted Shares Outstanding	330M	314M	312M	306M	295M	292M	286M	278M	272M	264M
Basic Shares Outstanding	310M	303M	308M	303M	293M	289M	284M	277M	270M	262M
Dividend Payout Ratio	-	-	-	-	-	0.12%	0.24%	0.26%	0.16%	0.18%

Balance Sheet

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Total Current Assets+	4.35B	5.2B	6B	6.38B	6.52B	7.21B	4.15B	3.97B	4.25B	3.28B
Cash & Short-Term Investments	3.83B	4.53B	5.33B	5.45B	5.74B	6.37B	3.06B	2.77B	3.26B	2.25B
Cash Only	2.49B	2.56B	4.26B	4.71B	3.77B	5.26B	2.73B	2.42B	2.9B	2.14B
Short-Term Investments	1.34B	1.97B	1.07B	737M	1.97B	1.11B	330M	343M	362M	112M
Accounts Receivable	233M	359M	385M	623M	461M	521M	650M	684M	565M	679M
Days Sales Outstanding	19.35	27.05	27.29	45.94	30.39	33.78	33.94	33.62	27.27	33.21
Inventory	33M	0	0	0	0	0	0	0	0	0
Days Inventory Outstanding	8.9	-	-	-	-	-	-	-	-	-
Other Current Assets	254M	308M	288M	313M	321M	326M	439M	518M	420M	349M
Total Non-Current Assets+	2.7B	2.52B	2.58B	2.58B	4.59B	6.08B	9.65B	9.49B	9.17B	9.09B
Property, Plant & Equipment	439M	434M	453M	448M	449M	491M	550M	549M	578M	586M
Fixed Asset Turnover	10.01x	11.16x	11.37x	11.05x	12.33x	11.46x	12.71x	13.53x	13.08x	12.74x
Goodwill	1.71B	1.71B	1.88B	1.89B	1.89B	2.87B	5.39B	5.38B	5.38B	5.38B
Intangible Assets	57M	8M	71M	87M	53M	309M	962M	618M	400M	293M
Long-Term Investments	0	0	0	0	0	0	0	0	0	0
Other Non-Current Assets	103M	84M	89M	114M	305M	362M	507M	481M	436M	417M
Total Assets+	7.05B	7.72B	8.58B	8.96B	11.11B	13.29B	13.8B	13.46B	13.42B	12.37B
Asset Turnover	0.62x	0.63x	0.60x	0.55x	0.50x	0.42x	0.51x	0.55x	0.56x	0.60x
Asset Growth %	0.15%	0.09%	0.11%	0.04%	0.24%	0.2%	0.04%	-0.02%	-0%	-0.08%
Total Current Liabilities+	2.42B	2.42B	2.49B	2.27B	2.66B	2.96B	3.51B	3.29B	3.09B	3.46B
Accounts Payable	89M	87M	48M	113M	68M	96M	101M	99M	110M	105M
Days Payables Outstanding	23.99	24.46	13.72	31.2	18.13	23.45	19.83	20.16	23.48	24.84
Short-Term Debt	163M	0	0	0	599M	0	0	0	0	400M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	256M	267M	282M	524M	435M	609M	644M	526M	566M	570M
Current Ratio	1.80x	2.15x	2.41x	2.82x	2.45x	2.43x	1.18x	1.21x	1.37x	0.95x
Quick Ratio	1.79x	2.15x	2.41x	2.82x	2.45x	2.43x	1.18x	1.21x	1.37x	0.95x
Cash Conversion Cycle	4.25	-	-	-	-	-	-	-	-	-
Total Non-Current Liabilities+	1.23B	1.24B	1.5B	1.36B	987M	2.48B	2.66B	2.88B	2.82B	2.52B
Long-Term Debt	989M	990M	992M	994M	397M	1.88B	1.88B	1.88B	1.88B	1.48B
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	267M
Deferred Tax Liabilities	2M	1M	1M	2M	1M	43M	1M	1M	1M	0
Other Non-Current Liabilities	243M	252M	505M	365M	589M	565M	783M	1B	934M	772M
Total Liabilities	3.65B	3.66B	3.99B	3.63B	3.65B	5.45B	6.17B	6.17B	5.91B	5.98B
Total Debt+	1.15B	990M	992M	994M	1.06B	1.95B	1.96B	1.95B	1.95B	2.22B
Net Debt	-1.34B	-1.57B	-3.27B	-3.71B	-2.7B	-3.31B	-773M	-478M	-952M	82M
Debt / Equity	0.34x	0.24x	0.22x	0.19x	0.14x	0.25x	0.26x	0.27x	0.26x	0.35x
Debt / EBITDA	1.05x	0.71x	0.63x	0.87x	0.67x	1.59x	1.21x	1.04x	1.01x	1.18x
Net Debt / EBITDA	-1.22x	-1.13x	-2.08x	-3.26x	-1.69x	-2.70x	-0.48x	-0.26x	-0.50x	0.04x
Interest Coverage	32.07x	26.04x	32.59x	22.13x	32.84x	23.24x	19.47x	22.97x	26.17x	26.21x
Total Equity+	3.4B	4.06B	4.59B	5.33B	7.46B	7.84B	7.63B	7.29B	7.51B	6.39B
Equity Growth %	0.12%	0.2%	0.13%	0.16%	0.4%	0.05%	-0.03%	-0.04%	0.03%	-0.15%
Book Value per Share	10.29	12.93	14.73	17.42	25.29	26.85	26.66	26.23	27.62	24.19
Total Shareholders' Equity	3.4B	4.06B	4.59B	5.33B	7.46B	7.84B	7.63B	7.29B	7.51B	6.39B
Common Stock	3M	3M	3M	3M	3M	3M	3M	3M	3M	3M
Retained Earnings	2.06B	3.03B	4.06B	5.36B	7.51B	7.89B	7.61B	7.36B	7.58B	6.47B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-16M	-19M	-127M	-30M	-50M	-50M	15M	-67M	-72M	-87M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash from Operations+	1.22B	1.38B	1.69B	1.55B	1.8B	1.93B	1.9B	1.55B	2.31B	2.08B
Operating CF Margin %	0.28%	0.29%	0.33%	0.31%	0.32%	0.34%	0.27%	0.21%	0.31%	0.28%
Operating CF Growth %	0.15%	0.13%	0.22%	-0.09%	0.16%	0.08%	-0.02%	-0.18%	0.49%	-0.1%
Net Income	1.16B	967M	1.04B	1.02B	3.04B	837M	789M	802M	1.27B	1.12B
Depreciation & Amortization	197M	172M	136M	145M	150M	181M	486M	536M	344M	356M
Stock-Based Compensation	178M	196M	242M	284M	347M	435M	528M	548M	584M	642M
Deferred Taxes	-403M	100M	204M	-16M	-1.87B	-143M	-329M	-221M	0	0
Other Non-Cash Items	413M	0	0	30M	1.88B	143M	329M	221M	60M	0
Working Capital Changes	-318M	-52M	67M	85M	-1.74B	481M	96M	-336M	54M	-40M
Change in Receivables	-106M	-136M	-25M	-88M	164M	-41M	-77M	-34M	119M	-115M
Change in Inventory	3M	0	0	88M	-164M	41M	77M	34M	0	0
Change in Payables	13M	5M	-44M	59M	-36M	18M	-7M	10M	-6M	190M
Cash from Investing+	-484M	-759M	622M	169M	-1.36B	-505M	-2.8B	-217M	-207M	37M
Capital Expenditures	-93M	-123M	-107M	-119M	-140M	-124M	-188M	-207M	-199M	-221M
CapEx % of Revenue	0.02%	0.03%	0.02%	0.02%	0.03%	0.02%	0.03%	0.03%	0.03%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-93M	-123M	0	0	-140M	0	0	-10M	0	0
Cash from Financing+	-306M	-534M	-643M	-1.25B	-1.36B	-15M	-1.62B	-1.6B	-1.62B	-2.86B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	-98M	-193M	-210M	-205M	-199M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	349M	65M	-120M	-122M	-213M	86M	-204M	-175M	-196M	-234M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	1.13B	1.26B	1.58B	1.43B	1.66B	1.81B	1.71B	1.34B	2.12B	1.86B
FCF Margin %	0.26%	0.26%	0.31%	0.29%	0.3%	0.32%	0.24%	0.18%	0.28%	0.25%
FCF Growth %	0.16%	0.12%	0.26%	-0.1%	0.16%	0.09%	-0.05%	-0.22%	0.58%	-0.12%
FCF per Share	3.42	4.01	5.08	4.67	5.62	6.20	5.98	4.83	7.78	7.04
FCF Conversion (FCF/Net Income)	1.06x	1.43x	1.62x	1.52x	0.59x	2.31x	2.41x	1.93x	1.82x	1.85x
Interest Paid	4M	43M	42M	42M	42M	40M	56M	56M	56M	56M
Taxes Paid	35M	51M	57M	100M	170M	340M	629M	583M	300M	404M

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Return on Equity (ROE)	35.95%	25.94%	24.1%	20.53%	47.51%	10.94%	10.2%	10.75%	17.2%	16.13%
Return on Invested Capital (ROIC)	36.84%	40.44%	56.4%	50.71%	34%	16.89%	14.88%	14.62%	17.02%	17.5%
Gross Margin	69.2%	73.21%	75.2%	73.29%	75.28%	73.46%	73.41%	75.87%	77.39%	79.32%
Net Margin	26.3%	19.96%	20.25%	20.59%	54.89%	14.87%	11.29%	10.8%	16.83%	15.02%
Debt / Equity	0.34x	0.24x	0.22x	0.19x	0.14x	0.25x	0.26x	0.27x	0.26x	0.35x
Interest Coverage	32.07x	26.04x	32.59x	22.13x	32.84x	23.24x	19.47x	22.97x	26.17x	26.21x
FCF Conversion	1.06x	1.43x	1.62x	1.52x	0.59x	2.31x	2.41x	1.93x	1.82x	1.85x
Revenue Growth	-2.64%	10.21%	6.3%	-3.88%	11.86%	1.66%	24.2%	6.22%	1.83%	-1.31%

Revenue by Segment

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Live services and other, net revenue	-	-	-	2.22B	2.81B	4.02B	5B	5.49B	5.55B	5.46B
Live services and other, net revenue Growth	-	-	-	-	26.94%	42.77%	24.45%	9.82%	1.06%	-1.55%
Full game downloads, net revenue	-	-	-	680M	809M	918M	1.28B	1.26B	1.34B	1.48B
Full game downloads, net revenue Growth	-	-	-	-	18.97%	13.47%	39.65%	-1.56%	6.42%	10.05%
Packaged goods, net revenue	-	-	-	1.24B	1.22B	695M	711M	675M	672M	524M
Packaged goods, net revenue Growth	-	-	-	-	-1.37%	-43.17%	2.30%	-5.06%	-0.44%	-22.02%
Total consoles, net revenue	2.94B	3.39B	3.63B	-	-	-	-	-	-	-
Total consoles, net revenue Growth	-	15.23%	7.23%	-	-	-	-	-	-	-
Xbox One, PLAYSTATION 4, net revenue	2.18B	3.06B	3.5B	-	-	-	-	-	-	-
Xbox One, PLAYSTATION 4, net revenue Growth	-	39.99%	14.37%	-	-	-	-	-	-	-
PC and Browsers, net revenue	814M	773M	827M	-	-	-	-	-	-	-
PC and Browsers, net revenue Growth	-	-5.04%	6.99%	-	-	-	-	-	-	-
Mobile, net revenue	548M	627M	672M	-	-	-	-	-	-	-
Mobile, net revenue Growth	-	14.42%	7.18%	-	-	-	-	-	-	-
Other consoles, net revenue	7M	3M	140M	-	-	-	-	-	-	-
Other consoles, net revenue Growth	-	-57.14%	4566.67%	-	-	-	-	-	-	-
Other, net revenue	92M	55M	16M	-	-	-	-	-	-	-
Other, net revenue Growth	-	-40.22%	-70.91%	-	-	-	-	-	-	-
Xbox 360, PLAYSTATION 3, net revenue	752M	331M	-	-	-	-	-	-	-	-
Xbox 360, PLAYSTATION 3, net revenue Growth	-	-55.98%	-	-	-	-	-	-	-	-

Revenue by Geography

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
International	2.49B	2.73B	3.06B	3.04B	3.27B	3.15B	3.95B	4.28B	4.56B	4.38B
International Growth	-	9.52%	12.25%	-0.52%	7.33%	-3.43%	25.26%	8.17%	6.69%	-3.86%
North America	1.91B	2.12B	2.09B	1.91B	2.27B	2.47B	3.04B	3.15B	3B	3.08B
North America Growth	-	11.12%	-1.37%	-8.80%	19.10%	8.99%	22.84%	3.69%	-4.76%	2.57%

Frequently Asked Questions

Valuation & Price

Electronic Arts Inc. (EA) has a price-to-earnings (P/E) ratio of 48.3x. This suggests investors expect higher future growth.

Growth & Financials

Electronic Arts Inc. (EA) reported $7.29B in revenue for fiscal year 2025. This represents a 76% increase from $4.14B in 2012.

Electronic Arts Inc. (EA) saw revenue decline by 1.3% over the past year.

Yes, Electronic Arts Inc. (EA) is profitable, generating $885.0M in net income for fiscal year 2025 (15.0% net margin).

Dividend & Returns

Yes, Electronic Arts Inc. (EA) pays a dividend with a yield of 0.37%. This makes it attractive for income-focused investors.

Electronic Arts Inc. (EA) has a return on equity (ROE) of 16.1%. This is reasonable for most industries.

Electronic Arts Inc. (EA) generated $1.65B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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