Electronic Arts (EA) investor relations material

Executive summary

• Net revenue for the quarter ended June 30, 2026 was $1,986 million, up 19% year-over-year, driven by strong performance in EA SPORTS FC, Battlefield, and American football franchises.

• Live services and other net revenue reached $1,472 million, a 7% increase year-over-year, with extra content for EA SPORTS FC and Apex Legends as key contributors.

• Operating income rose 89% year-over-year to $513 million, and net income was $397 million, with diluted EPS of $1.56.

• The company is in the process of being acquired by a consortium, with the merger expected to close in August 2026.

Financial highlights

• Gross margin improved to 86.2%, up 3 percentage points year-over-year.

• Operating expenses increased 7% year-over-year to $1,199 million, mainly due to higher R&D and marketing costs.

• Net cash used in operating activities was $242 million, compared to net cash provided of $17 million in the prior-year period, primarily due to higher tax and personnel payments.

• Total cash, cash equivalents, and short-term investments were $2,404 million as of June 30, 2026.

• Returned $48 million to shareholders via dividends during the quarter.

Outlook and guidance

• Live services net revenue is expected to remain a material part of the business, with continued focus on extra content and digital delivery trends.

• The company anticipates ongoing growth in digital full game downloads and a decline in packaged goods sales.

• Management expects sufficient liquidity to meet operational and strategic needs for the next 12 months and beyond.