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- **Q1 Strong Performance**: $1.3B net bookings beat high end of guidance, driven by Global Football (+mid-single digits) and live services
- **Upcoming Blockbusters**: Battlefield 6 (Aug 14), skate., and FC 26 (Sep 26) set for record launches
- **Community-Centric Growth**: FC Mobile achieves 50M+ installs, College Football shows 8pt retention improvement
- **Financial Health**: $1.75B free cash flow; FY26 guidance maintained despite Q2 headwinds
- **Strategic Investments**: $100M+ marketing for Battlefield, expanding creator tools, and mobile monetization
- **Risk Management**: Normalizing College Football demand curve, managing FX volatility


**【CEO Opening Remarks】**
- Q1 FY26 net bookings of $1.3B exceeded high end of guidance, driven by strong execution across EA SPORTS and live services.
- Global Football franchise grew mid-single digits YoY, with FC Mobile achieving record installs and DAU growth.
- American Football ecosystem (Madden NFL, College Football) delivered sustained engagement, with College Football 26 showing early retention strength.
- Upcoming releases include Battlefield 6 (August 14), skate. (TBD), and FC 26 (September 26).
- Emphasis on community-centric strategy, creator-driven platforms, and expanding live service monetization.

**【CFO Financial Commentary】**
- GAAP net revenue: $1.67B (+1% YoY)
- Gross margin: 83.3% (down 90bps due to royalty-bearing titles)
- Operating expenses: $1.12B (+9% YoY) driven by strategic investments in upcoming titles
- Free cash flow: $1.75B (trailing 12 months)
- Q2 guidance: Net bookings $1.8-1.9B (-13% to -9% YoY) due to phasing of EA SPORTS content
- FY26 outlook remains unchanged, with focus on scaling live services and new IP launches

**【Q&A Highlights】**
- **Pricing Strategy**: No immediate changes to $70/$80 price points; maintaining broad spectrum from free-to-play to deluxe editions
- **Battlefield 6 Marketing**: Record $1M+ pre-registrations; $100M+ marketing investment for largest launch in franchise history
- **Competitive Landscape**: Confident in EA SPORTS' ability to compete with new entrants like Rematch
- **Mobile Growth**: Expanding web store adoption in emerging markets; FC Mobile leading with localized content
- **College Football Strategy**: Normalizing demand curve post-pent-up demand; focusing on LTV through Ultimate Team retention
- **FX Impact**: 1pt tailwind if rates remain stable; 1pt headwind in original guidance


Electronic Arts Inc. (EA) Q1 2026 Earnings Call Transcript

- **Revenue Resilience**: FY '25 net bookings $7.36B, Q4 +8% to $1.8B, driven by FC rebound and Split Fiction success.
- **Franchise Strength**: American Football ecosystem net bookings >$1B (+70% YoY), The Sims Q4 +30% YoY.
- **New IP Breakthrough**: Split Fiction sold nearly 4M units, overperforming expectations.
- **FY '26 Growth**: Guidance of $7.6B-$8B net bookings, fueled by Battlefield launch and live services expansion.
- **Margin Expansion**: Targeting 27.2%-29.2% non-GAAP operating margin, with $1.975B-$2.175B free cash flow.
- **Community-Driven Innovation**: Battlefield Labs engaged 600K+ players, reflecting commitment to player-centric development.

**【CEO Summary Section】**
- **Revenue Growth**: FY '25 net bookings of $7.36 billion, down 1%, driven by 70%+ YoY growth in American Football and double-digit growth in The Sims. Q4 net bookings of $1.8 billion (+8%) exceeded expectations, with FC rebound and Split Fiction success.
- **EA Sports Momentum**: FC engagement rebounded post-January update, with competitive cohort engagement up YoY. FC Mobile DAUs +20% YoY. American Football ecosystem net bookings >$1 billion (+70% YoY). 
- **New IP Success**: Split Fiction sold nearly 4M units, overperforming expectations. The Sims Q4 net bookings +30% YoY, marking its best quarter ever.
- **Future Launches**: Battlefield (FY '26) and Skate (early FY '26 access) positioned for long-term growth. Battlefield Labs engaged 600K+ players, with global expansion planned.
- **AI Integration**: Investing in AI to enhance game design, animation, and personalization, amplifying creative potential.

**【CFO Financial Commentary】**
- **FY '25 Financials**: GAAP net revenue $7.46B (-1%), gross margin 79.3% (up 200bps). Operating expenses $4.4B (+2%), driven by people costs. Free cash flow $1.86B, with $2.7B returned to shareholders via buybacks and dividends.
- **Q4 Performance**: Net revenue $1.9B (+7%), EPS $0.98 (+46%). Live services (FC, The Sims) outperformed, offsetting Apex Legends decline. 
- **FY '26 Guidance**: Net bookings $7.6B-$8B (+3% to +9% YoY). GAAP EPS $3.09-$3.79. Free cash flow $1.975B-$2.175B (+6% to +17%). Q1 bookings $1.175B-$1.275B (-7% to +1%), reflecting seasonal softness.
- **Margin Expansion**: Targeting 27.2%-29.2% non-GAAP operating margin, driven by live services growth and new launches.

**【Q&A Highlights】**
- **FC Recovery**: Q3 slowdown due to migration challenges and competitive cohort feedback. Q4 rebound via personalized marketing and gameplay updates, with competitive cohort engagement returning to normalized levels.
- **Battlefield Strategy**: Largest team in franchise history, with Battlefield Labs testing at scale (600K+ players). FY '26 launch backed by community collaboration and global expansion plans.
- **American Football Growth**: College Football 25 added 5M+ new fans. FY '26 focus on deepening integration between Madden NFL and College Football for unified community.
- **Macroeconomic Resilience**: Entertainment as a discretionary need shows resilience. Pricing strategy focuses on delivering value across free-to-play to premium tiers.
- **World Cup Impact**: 2026 World Cup in North America presents acquisition opportunity. EA Sports app expansion and mobile growth will enhance global reach.

Electronic Arts (EA)-6 May 25-2025 Q4 Earnings call transcript

- **FC Recovery Momentum**: Q3 underperformance reversed with 2M reactivated players and record engagement post-January update, signaling resilience in the franchise.
- **AI and Tech Investment**: Unified CTO structure accelerates AI-driven innovation, with TRACAB tech poised to redefine interactive sports content creation.
- **Stockholder Returns**: $2.5B buyback program reinforces commitment to capital allocation discipline amid cautious FY25 guidance.
- **Battlefield Labs Success**: Open beta test exceeded expectations, with community-driven development ensuring stability and scale for FY26 launch.
- **College Football Expansion**: Upcoming launch of EA Sports College Football 26 sets stage for ecosystem-wide growth in American football.

**【CEO Summary Section】**
- **FC Underperformance and Recovery**: Q3 net bookings declined mid-single digits YoY due to slower acquisition and engagement churn. A major gameplay update in January reactivated 2M Ultimate Team players, driving record weekly active users and YoY growth during the Team of the Year event.
- **Dragon Age Missed Expectations**: The single-player RPG underperformed in a competitive market, highlighting the need to reallocate resources to higher-potential opportunities.
- **AI and Technology Integration**: Unified under CTO Matt Thomlinson, AI will drive innovation in game development and player experiences.
- **Battlefield Labs Progress**: The open beta test received strong community feedback, with plans to release in FY26 after extensive player-driven tuning.
- **TRACAB Acquisition**: Optical tracking tech will enhance EA Sports' data-driven gameplay and interactive sports app vision.

**【CFO Financial Commentary】**
- **Q3 Financials**: Net bookings $2.2B (-6% YoY), GAAP net revenue $1.88B (-3% YoY), EPS $1.11 (+4% YoY). Operating cash flow $1.18B, trailing 12M free cash flow $1.89B.
- **FY25 Guidance Update**: Net bookings $7B-$7.15B (-6%/-4% YoY), driven by lower contributions from Dragon Age and cautious Global Football assumptions.
- **Stock Repurchase Program**: $1B accelerated buyback added to $375M/Qtr program, total $2.5B in first year of $5B authorization.
- **FY26 Outlook**: American football franchise expected to surpass $1B net bookings, with long-term focus on expanding live services and interactive sports ecosystem.

**【Q&A Key Takeaways】**
- **FC Acquisition Dynamics**: 40M+ players across HD titles caused slower migration to FC25. Post-update, competitive cohorts engagement trends returned to prior year levels.
- **Apex Legends Strategy**: Q3 performance in line with expectations; long-term plan includes major update post-Battlefield and expansion of creator tools.
- **Console Transition Impact**: New Switch console could drive incremental growth for franchises like The Sims, with 50% of MySims: Cozy Bundle purchases from new players.
- **College Football Growth**: FY26 launch of EA Sports College Football 26 positions the franchise for sustained ecosystem expansion alongside Madden NFL.


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