UBISOFT Entertainment

UBI

Equity

ISIN FR0000054470 / Valor 491199

Euronext - Euronext Paris (2026-07-31)

EUR 5.69-2.57%

UBISOFT Entertainment
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About company

Ubisoft Entertainment is a multinational company engaged in the creation, development, and publishing of video games. It operates a network of studios worldwide, with a workforce of approximately 17,000 employees, and focuses on both developing original titles and licensing high-profile games. Recently, the company secured cloud streaming rights for a major slate of games—including titles like Call of Duty—through an agreement contingent on the completion of Microsoft’s acquisition of Activision Blizzard, positioning these titles on its Ubisoft+ service as well as through licensing to other digital gaming platforms. Additionally, Ubisoft invests in technological tools that enhance accessibility in gaming, such as its open-source colorblind simulation software, supporting developers in creating more inclusive content.

Summarized from source with an LLMView SourceSector: Technology

Key financials (Q4 & FY2025-26)

Full-year net bookings €1,525.1m (‑17.4% YoY); IFRS operating income loss €(1,322.3)m; Non‑IFRS operating income €(1,044.7)m. Non‑IFRS diluted EPS €(9.38); IFRS diluted EPS €(11.16). Q4 net bookings €415.0m (‑54% YoY vs. record prior Q4) and IFRS 15 Q4 sales €419.5m (‑47.3% YoY).

Cash, debt and liquidity

Cash and cash equivalents €1,345m at March 31, 2026. The Tencent strategic transaction brought €1.16bn in cash, helping deleveraging: non‑IFRS net cash position improved to €(187.3)m (from €(885.1)m a year earlier); IFRS net debt €449m. Management is reviewing financing options to address upcoming maturities.

Profitability & cash flow

Non‑IFRS cash flows from operating activities were negative €408.2m and Free Cash Flow was negative €442.7m for FY2025-26. FY2025-26 reflects deliberate choices (lighter release slate and restructuring) that produced a high single-digit negative non‑IFRS operating margin target for FY2026-27 and expected FCF consumption ≤ €500m for that year.

Q4 performance highlights

Q4 net bookings beat guidance (€415m vs ~€390m) driven by stronger-than-expected back‑catalog and stable MAUs; back‑catalog net bookings were €243m in Q4. Rainbow Six Siege and several live titles showed re‑engagement and improved metrics, while some new releases had slower starts on mobile.

Cost reductions, organization and quality

Fixed cost base down to ~€1.435bn, a €118m reduction vs FY2024‑25 and ~€325m cumulatively since FY2022‑23. Headcount reduced to ~16,590 (~1,200 fewer employees). Ubisoft discontinued 7 projects and delayed 6 to refocus the roadmap. Recent premium releases achieved better quality (Metacritic >80).

Strategic actions & transformation

Major steps include the €1.16bn transaction with Tencent, creation of Vantage Studios with new leadership for Assassin’s Creed, leadership hires across Creative Houses, and accelerated AI initiatives (Teammates and production tools). These moves are positioned to support a steadier release cadence and higher quality.

Outlook

Guidance for FY2026-27: net bookings down a high single-digit percentage, a high single-digit negative non‑IFRS operating margin, and FCF consumption of no more than €500m. Management expects a rebound with positive FCF and non‑IFRS EBIT in FY2027-28 and robust FCF in FY2028-29.

Summarized from source with an LLMView Source

Key figures

-38.6%1Y

-81.4%3Y

-89.4%5Y

Performance

75.2%1Y

61.8%3Y

55.5%5Y

Volatility