What was live-services growth excluding Apex, and are expectations for Battlefield/skate changing?

Live services ex-Apex grew low single digits. Apex improved 2 points in-quarter versus an originally H1-loaded ~5-point headwind assumption, and EA has accelerated the improvement through H1, leaving it well positioned for the rest of the year. “On the Apex, we had a low single-digit growth on live service outside of Apex.”

How is Ultimate Team cohort spending trending, and why is implied full-year constant-currency bookings ~100-200 bps lower with unchanged guidance?

FC cohort spending picked up strongly in Q1 with strong retention across core cohorts; the constant-currency differential is attributed to unchanged FX assumptions (originally a 1-point headwind), with potential H2 tailwinds if rates hold. “We saw a strong pickup inside of Q1 with the key cohorts that we built out from back into Q4.”

How does Battlefield marketing differ this cycle, and what is the timing/magnitude of the marketing spend?

EA is investing more behind Battlefield than ever, treating it as a platform built over four years by four studios, with a creator-led global reveal. Investment is more front-loaded into Q2 (go-to-market build-out) and continues into Q3 and beyond. “We've been investing more behind this Battlefield than any Battlefield product before it... we're really building out Battlefield as a platform.”

Electronic Arts (EA) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2025 (Q1 FY26)· Information Technology· Jul 29, 2025

Source: earnings call transcript

Executive summary

Electronic Arts Q1 FY26 — strong start above guidance ahead of biggest release cycle

EA framed Q1 as an above-guidance start built on durable live-service engagement in Global Football and a recovering Apex, setting up its most ambitious release cycle. Management is deliberately re-phasing sports content and absorbing a heavy near-term OpEx ramp behind Battlefield 6, so a softer Q2 masks an H2-loaded, unchanged full-year stance.

Highlights

Net bookings of $1.3B, up 3% YoY, exceeding the high end of guidance
Full game net bookings of $214M, up 27%, led by Split Fiction and a Star Wars Battlefront II resurgence
EA SPORTS F1 25 delivered a 27% YoY increase in net bookings; FC Mobile posted a record quarter with over 50M installs and YoY DAU growth
Global Football net bookings grew mid-single digits YoY with FC Online up double digits
Apex Legends came in ~2 points better than the assumed headwind, with net bookings flat sequentially and improved retention

Concerns

Live services net bookings of $1.08B were down 1% YoY
GAAP gross margin of 83.3%, down 90 bps on royalty-bearing titles like Split Fiction
Operating expenses of $1.12B, up 9%, driven by higher people costs
Q2 net bookings guided to $1.8B–$1.9B, down 13% to down 9%, including a 4-point FC deluxe-edition phasing headwind
American Football ecosystem expected to be an 8-point YoY headwind in Q2 as College Football 26 laps a pent-up-demand comp

Guidance & targets

Category	Target	Timeline	Confidence
Q2 FY26 net bookings	$1.8B to $1.9B (down 13% to down 9% YoY) high materiality	Q2 FY26	High
Q2 FY26 GAAP net revenue	$1.75B to $1.85B high materiality	Q2 FY26	High
Q2 FY26 GAAP cost of revenue	$430M to $450M medium materiality	Q2 FY26	High
Q2 FY26 GAAP operating expenses	~$1.215B to $1.235B (up 3% to up 4% YoY) high materiality	Q2 FY26	High
Q2 FY26 GAAP EPS	$0.29 to $0.46 high materiality	Q2 FY26	High
American Football ecosystem net bookings (Q2 FY26)	8-point YoY headwind for the quarter high materiality	Q2 FY26	Medium
American Football ecosystem net bookings (H2 FY26)	returning to growth high materiality	H2 FY26	Medium
FX impact on Q2 FY26 net bookings	1-point tailwind (if rates unchanged) medium materiality	Q2 FY26	Medium
Full-year FY26 outlook	unchanged high materiality	FY26	High
Apex Legends headwind phasing (FY26)	original ~5-point headwind accelerated / improved across H1 medium materiality	FY26	Medium
FY26 operating-expense growth (full year)	growth predominantly driven by new-launch investment, notably Battlefield medium materiality	FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Full game (net bookings) Full game net bookings of $214M, up 27% YoY, led by ongoing Split Fiction momentum and a resurgence in Star Wars Battlefront II. Drivers: Split Fiction momentum, Star Wars Battlefront II resurgence	$214M	+27%	—	—
Live services (net bookings) Live services net bookings of $1.08B, down 1%; excluding Apex Legends the segment grew low single digits, underscoring core-franchise resilience led by Global Football. Excluding Apex Legends: low-single-digit growthApex impact 2 points better than originally expected	$1.08B	-1%	—	—
Global Football (franchise) Global Football net bookings grew mid-single digits YoY, exceeding expectations on healthy live-event engagement; FC Mobile outperformed again with localized campaigns and growing web-store adoption. FC Online: up double digitsFC Mobile: record quarter, over 50M installs, YoY DAU growthGrowth across HD, FC Mobile and FC Online	—	mid-single digits	—	—
EA SPORTS F1 25 (franchise) F1 25 delivered a 27% YoY net bookings increase, aided by gameplay advancements and the cinematic F1 The Movie partnership with Apple. Refined physics/handling and enhanced career mode; F1 The Movie / Apple collaboration	—	+27% net bookings	—	—
Apex Legends (franchise) Apex net bookings were flat sequentially with significantly improved engagement and retention, establishing a solid foundation for Q2 and season 26. Impact 2 points better than originally expectedStrong retention among new and casual playersNew legend Sparrow; Legend Locker introduced	—	—	flat sequentially	—

Product announcements

Product	Type	Timeline
Battlefield 6	launch	FY26 (multiplayer showcase two days after the call; global launch later this fiscal year)
EA SPORTS FC 26	launch	worldwide launch September 26, 2025
Madden NFL 26	launch	worldwide launch August 14, 2025
EA SPORTS College Football 26	launch	launched (Q1 FY26)
skate.	launch	FY26
NHL 26	roadmap	FY26
Apex Legends: Showdown (Season 26)	launch	launching the week after the call
College basketball game (potential)	roadmap	not stated (teased, more to share later)

Deals & partnerships

Apple (MLS Season Pass) content integration / partnership

Integration of select matches from Apple's MLS Season Pass into FC Mobile, bridging real-world football with interactive entertainment.

Apple (F1 The Movie) cinematic content / marketing partnership

Collaboration merging the F1 The Movie cinematic content with EA's interactive F1 experience.

Sports leagues/bodies (NFL, College/NCAA, FC/football, F1, UFC, NHL) licensing partnerships long-term

EA's long-term sports licensing relationships underpin its EA SPORTS ecosystem across College, NFL, FC, F1, UFC and NHL franchises.

Risks & headwinds

Q2 net bookings decline Q2 FY26

Q2 net bookings guided down 13% to down 9% ($1.8B–$1.9B), including a 4-point FC deluxe-edition phasing headwind

Mitigation:Deluxe-edition content largely recognized in Q3; back half of FY26 supported by Battlefield 6, FC 26 and Madden 26; full-year guidance unchanged

American Football ecosystem comp / College Football normalization Q2 FY26

8-point YoY headwind to the ecosystem in Q2; last year ~50% of College Football units sold in the first week

Mitigation:Partial offset from Madden NFL 26 growth; strong College Football 26 retention and live-service performance; ecosystem expected to return to growth in H2

Gross margin compression Q1 FY26

GAAP gross margin down 90 bps YoY to 83.3%

Mitigation:Driven by mix from royalty-bearing titles (Split Fiction); no explicit mitigation stated

Rising operating expenses / heavy launch investment Q1 FY26 and Q2 FY26

Q1 OpEx up 9% to $1.12B; Q2 OpEx guided up 3%-4% (~$1.215B–$1.235B), front-loaded for Battlefield 6 go-to-market

Mitigation:Framed as disciplined, focused strategic investment behind largest franchises; progress toward long-term margin framework and operating leverage

Competitive intensity (Call of Duty, Rematch) FY26

Rumored October Call of Duty release; Rematch ~5M units (analyst-cited)

Mitigation:Management confident in Battlefield's launch window and FC's breadth of licenses, geographies, platforms and modes; very strong FC 26 demand metrics

FX volatility FY26

Original guide assumed a 1-point FX headwind; a 1-point Q2 tailwind possible if rates hold; implied full-year constant-currency bookings ~100-200 bps lower

Mitigation:Guidance not re-cut for volatile FX; potential H2 tailwind if rates remain unchanged given H2-loaded revenue

Full-game pricing / App Store economics uncertainty FY26 and beyond

Industry moves toward $80 pricing (Nintendo); App Store economics shifting post Apple-Epic ruling

Mitigation:No pricing changes factored into FY26 guidance; EA leverages broad pricing spectrum and web stores / bespoke funding mechanics to protect LTV and profitability

Q&A highlights

With Nintendo at $80 and uncertainty around Call of Duty pricing, where will EA price its games, particularly Battlefield?

EA is not making pricing changes at this stage; it already offers a broad spectrum from free-to-play to premium and deluxe editions and will keep optimizing for value/LTV. No pricing change is factored into FY26 guidance.

“We haven't factored in any different approach in pricing through the current fiscal year and current guidance.”

asked by Douglas Creutz · answered by Andrew Wilson

3 min read 6 chapters

Detailed narrative

Q1 net bookings beat led by full-game strength and catalog

EA delivered Q1 net bookings of $1.3 billion, up 3% and above the high end of guidance, with outperformance from Split Fiction, Global Football, catalog and Apex Legends. Full game net bookings were $214 million, up 27%, led by Split Fiction momentum and a resurgence in Star Wars Battlefront II.

Live services net bookings were $1.08 billion, down 1%; excluding Apex Legends — whose impact was 2 points better than originally expected — live services grew low single digits, underscoring core-franchise resilience led by Global Football.

Global Football and EA SPORTS momentum

Global Football net bookings grew mid-single digits YoY with FC Online up double digits and FC Mobile posting a record quarter, over 50 million installs and YoY DAU growth. EA integrated select Apple MLS Season Pass matches into FC Mobile and began unifying Southeast Asia under a single SKU.

F1 25, aided by the F1 The Movie collaboration with Apple and gameplay upgrades, delivered a 27% YoY net bookings increase. Management is applying FC 26 learnings toward deeper core-community engagement ahead of the September 26 worldwide launch.

American Football ecosystem and the College Football comp

College Football 26 launched to strong reviews and is showing strong competitive-cohort retention and deeper Ultimate Team engagement versus prior-year life-to-date. Management expects the franchise to settle into a normalized demand curve after 2025's pent-up-demand reintroduction, making frontline sales a tougher comp — last year ~50% of units sold occurred in the first week.

Combined with Madden NFL 26 (launching August 14), the American Football ecosystem is guided to an 8-point Q2 headwind before returning to growth in H2.

Apex Legends recovery

Apex Legends net bookings were flat sequentially with significantly improved engagement driven by strong retention, particularly among new and casual players, and a lift in player satisfaction tied to new legend Sparrow and the Legend Locker feature. Management improved the Apex headwind assumption by 2 points within the quarter, carried that into Q2, and positioned the franchise well for season 26 (Apex Legends: Showdown launching the following week).

Battlefield 6 as a platform bet

EA said it has invested more behind Battlefield 6 than any prior Battlefield, with four studios building toward the launch over the last four years, positioning it as a platform rather than a single product. Over 1 million registered players joined the skate. play-test.

A major multiplayer showcase was scheduled two days after the call, with hundreds of creators streaming first gameplay from Los Angeles, Berlin, Paris, London and Hong Kong. Q2 OpEx is front-loaded with the go-to-market ramp.

Financials and capital returns

GAAP net revenue was $1.67 billion, up 1%; cost of revenue was $279 million for an 83.3% gross margin, down 90 bps on royalty-bearing titles like Split Fiction. Operating expenses rose 9% to $1.12 billion on higher people costs, yielding EPS of $0.79.

Q1 operating cash flow was $17 million; on a trailing-12-month basis operating cash flow was $1.98 billion and free cash flow $1.75 billion. EA returned $423 million to shareholders via buybacks and dividends.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.