Electronic Arts Inc. stock research
FY2025 Q2
Electronic Arts (EA) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit increased compared to the prior quarter and the same quarter last year. Cost of revenue rose relative to the prior quarter but was unchanged from a year ago, resulting in a gross margin that was lower than the prior quarter yet higher than the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q2
Revenue and gross profit increased compared to the prior quarter and the same quarter last year. Cost of revenue rose relative to the prior quarter but was unchanged from a year ago, resulting in a gross margin that was lower than the prior quarter yet higher than the same quarter last year.
- The gross margin improved versus the same quarter one year earlier, primarily because gross profit increased more than proportionally relative to the change in revenue. Compared to the prior quarter, however, the margin weakened as cost of revenue grew faster than revenue.
- Revenue, gross profit, and cost of revenue were higher than the prior quarter. Revenue and gross profit were also higher than the same quarter a year ago, while cost of revenue was the same as a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.5%
Gross profit
$1.6B
Revenue
$2.0B
Cost of revenue
$456.0M
Quarter-over-quarter change
-6.7 pts
Year-over-year change
+1.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $1.9B | $1.4B | $529.0M | 72.8% |
| Mar 31, 2024 | $1.8B | $1.4B | $357.0M | 79.9% |
| Jun 30, 2024 | $1.7B | $1.4B | $263.0M | 84.2% |
| Sep 30, 2024 | $2.0B | $1.6B | $456.0M | 77.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-6.7 pts
Year-over-year change
Sep 30, 2023
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved versus the same quarter one year earlier, primarily because gross profit increased more than proportionally relative to the change in revenue. Compared to the prior quarter, however, the margin weakened as cost of revenue grew faster than revenue.
Revenue, gross profit, and cost of revenue were higher than the prior quarter. Revenue and gross profit were also higher than the same quarter a year ago, while cost of revenue was the same as a year ago.
Monitor the trend in cost of revenue relative to revenue, as its faster growth in the current quarter led to a weakened gross margin from the prior period.