Don't Nod Update on Business Performance for the First Half of 2026

DON'T NOD, an independent French video game developer and publisher, faces significant financial instability as of the first half of 2026. The company reported revenue of €6.1 million, representing a 14% decline compared to the same period in 2025. Operating EBITDA resulted in a loss of €4.3 million, a deterioration from the €2.0 million loss recorded in the first half of 2025. Total operating revenue, which includes capitalized production costs, plummeted by 56% year-over-year, as the company ceased capitalizing production costs for its current projects due to funding constraints.

The company’s financial position is characterized by a decline in gross cash reserves, which fell from €15.4 million at the end of 2025 to €8.0 million by July 2026. Management has identified material uncertainty regarding the company's ability to continue as a going concern beyond January 31, 2027, contingent upon securing additional external financing. These results reflect broader systemic pressures within the global video game industry, specifically the increasingly selective nature of project financing and the difficulty of achieving commercial success for original intellectual properties.

To address these challenges, the company is initiating a major organizational transformation plan aimed at restoring long-term competitiveness. This strategy involves refocusing operations in France around a single production line to improve resource allocation and operational efficiency. The restructuring may result in the reduction of up to 90 positions, with management currently engaging in negotiations with employee representative bodies. This transformation is intended to align the studio’s cost structure with its secured business volume and ensure the continuity of its development pipeline.