Electronic Arts Inc. stock research
FY2025 Q4
Electronic Arts (EA) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was stable compared to the previous quarter, while gross profit increased and cost of revenue decreased, resulting in a higher gross margin. Relative to the same quarter one year earlier, revenue was higher and gross margin also improved.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q4
Revenue was stable compared to the previous quarter, while gross profit increased and cost of revenue decreased, resulting in a higher gross margin. Relative to the same quarter one year earlier, revenue was higher and gross margin also improved.
- The most notable change was the reduction in cost of revenue from the prior quarter, which accompanied the improvement in gross margin while revenue remained unchanged.
- Gross margin strengthened compared to the immediately preceding quarter, with revenue flat and cost of revenue lower. Compared to the same quarter one year earlier, gross margin was higher alongside an increase in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.6%
Gross profit
$1.5B
Revenue
$1.9B
Cost of revenue
$368.0M
Quarter-over-quarter change
+4.8 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $1.9B | $1.5B | $368.0M | 80.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+4.8 pts
Year-over-year change
Mar 31, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable change was the reduction in cost of revenue from the prior quarter, which accompanied the improvement in gross margin while revenue remained unchanged.
Gross margin strengthened compared to the immediately preceding quarter, with revenue flat and cost of revenue lower. Compared to the same quarter one year earlier, gross margin was higher alongside an increase in revenue.
Monitor the trend in cost of revenue, as its recent decline was a key observable factor in the gross margin change.