Live-Service Revenue Drives EA’s Final Financial Report Before $55B Take-Private Deal

 Electronic Arts has released what is expected to be its final financial report as a publicly traded company, just ahead of its planned $55 billion acquisition by an investor consortium that includes Saudi Arabia’s sovereign wealth fund.

The deal is expected to close on August 4, 2026, following regulatory approval despite concerns raised by some U.S. lawmakers over the proposed buyout.

EA reported strong financial results for the first quarter ended June 30, with net revenue rising 19% year-on-year to $1.98 billion. Operating income also climbed 89% to $513 million.

Live Services Lead EA’s Growth

The publisher’s live-service business was the biggest contributor to the quarter’s performance. Live-service revenue increased 7% year-on-year to $1.47 billion, driven largely by additional content and ongoing spending tied to Battlefield 6 and EA Sports FC.

Net bookings rose 4% year-on-year to $1.39 billion. EA attributed the increase primarily to EA Sports FC, Apex Legends, Madden NFL, and EA Sports College Football.

Full-game revenue reached $514 million, with $438 million coming from digital sales. EA noted that digital distribution has become increasingly dominant across its major console platforms.

According to the company's filing, an estimated 81% of units sold on Xbox One, Xbox Series X|S, PlayStation 4, and PlayStation 5 during fiscal 2026 were sold digitally, compared with 78% in fiscal 2025 and 73% in fiscal 2024.

EA said the continued shift toward digital sales, combined with growing live-service revenue, generally improves gross margins because digital distribution carries lower costs than physical retail sales.

A New Chapter for EA

The financial results arrive at a significant moment for EA as the company prepares to transition from public ownership to private ownership under the proposed $55 billion deal.

At the same time, the publisher continues to face challenges across its workforce. EA has carried out layoffs in recent years, including job cuts affecting Skate developer Full Circle and parts of its Battlefield organization.

CEO Andrew Wilson received $38.6 million in salary, bonuses and stock awards, reflecting the company's strong franchise performance and its continued investment in technologies such as generative AI.

EA’s latest results underline how heavily the publisher now relies on recurring player spending, digital distribution and long-running franchises. As the company enters private ownership, the performance of these live-service businesses is likely to remain central to its future strategy.

Source: Gamedeveloper

Behind the Headline

EA’s results highlight how modern game development increasingly extends beyond the initial launch, with live services, digital content and ongoing player engagement becoming major drivers of long-term revenue. 

The figures also show how successful game development is increasingly tied to maintaining evolving ecosystems around established franchises rather than relying solely on new releases.