Electronic Arts Inc. stock research
FY2025 Q3
Electronic Arts (EA) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit were slightly lower than the prior quarter but stable compared to the same quarter last year. The gross margin weakened from the previous quarter but improved relative to the year-ago period, as cost of revenue remained flat sequentially and declined year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q3
Revenue and gross profit were slightly lower than the prior quarter but stable compared to the same quarter last year. The gross margin weakened from the previous quarter but improved relative to the year-ago period, as cost of revenue remained flat sequentially and declined year-over-year.
- The gross margin improved year-over-year, as cost of revenue decreased while revenue stayed stable. The sequential decline was driven by lower revenue with the same cost of revenue.
- Compared to the immediate prior quarter, revenue and gross profit were lower and gross margin weakened. Compared to the same quarter one year earlier, revenue was stable, gross profit was stable, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.8%
Gross profit
$1.4B
Revenue
$1.9B
Cost of revenue
$456.0M
Quarter-over-quarter change
-1.7 pts
Year-over-year change
+3.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $1.9B | $1.4B | $456.0M | 75.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.7 pts
Year-over-year change
Dec 31, 2023
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year-over-year, as cost of revenue decreased while revenue stayed stable. The sequential decline was driven by lower revenue with the same cost of revenue.
Compared to the immediate prior quarter, revenue and gross profit were lower and gross margin weakened. Compared to the same quarter one year earlier, revenue was stable, gross profit was stable, and gross margin improved.
Monitor the trajectory of cost of revenue, which remained unchanged sequentially despite lower revenue.