FinancialUbisoft

Ubisoft FY25 Earnings Release

14 May 202515 pages~6 min full read

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Key insights

7 takeaways · ~3 min read

01
Ubisoft reported €1.85 billion in net bookings for FY25, falling slightly short of initial targets while achieving a positive free cash flow of €128 million.See it on page 5
02
The company reduced its headcount by approximately 3,000 employees since September 2022, contributing to a 12% reduction in its fixed cost base.See it on page 11
03
Cost-reduction initiatives have already yielded over €200 million in savings, with an additional €100 million in reductions planned over the next two years.See it on page 11
04
Ubisoft’s core brands—Assassin’s Creed, Rainbow Six, and Far Cry—continue to drive engagement, collectively supporting over 100 million unique active players.See it on page 10
05
The company is establishing a new subsidiary specifically dedicated to accelerating the growth of its three most iconic intellectual properties.See it on page 10
06
Financial projections for FY26 anticipate stable net bookings and break-even operating income, with a return to positive non-IFRS EBIT and free cash flow targeted for FY27.See it on page 13
07
Future strategy focuses on scaling into mobile and Chinese markets while prioritizing a product roadmap centered on open-world adventures and live-service, evergreen franchises.See it on page 10

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Summary

The fiscal year 2025 earnings release outlines Ubisoft’s financial performance and strategic pivot toward a more streamlined, evergreen-focused business model. For the fiscal year ending in 2025, the company reported net bookings of €1.85 billion, a figure slightly below initial objectives due to timing impacts on partnerships. Despite this, the company achieved a positive free cash flow of €128 million, exceeding its internal targets. The firm’s core brands, including Assassin’s Creed, Rainbow Six, and Far Cry, maintained strong engagement, collectively supporting over 100 million unique active players.

Operational efficiency remains a primary focus, with the company successfully completing an initial cost-reduction program that yielded over €200 million in savings, surpassing the original goal. This was achieved through a headcount reduction of approximately 3,000 employees since September 2022 and a 12% reduction in the fixed cost base. Building on this momentum, the company has committed to an additional €100 million in cost reductions over the next two years. These measures are part of a broader organizational transformation, which includes the creation of a new subsidiary dedicated to accelerating the growth of its three most iconic intellectual properties.

Looking ahead, the company is optimizing its product roadmap to prioritize open-world adventures and live-service experiences. While the fiscal year 2026 outlook anticipates stable net bookings and a break-even operating income, the company expects to return to positive non-IFRS EBIT and free cash flow generation by fiscal year 2027. The strategy emphasizes scaling into underpenetrated markets, such as mobile and China, while leveraging a refined technological stack to transition its portfolio toward long-term, evergreen franchises.