Ubisoft FY26 Earnings

Key insights

7 takeaways

01
Ubisoft reported FY26 net bookings of €1,525 million, a 17% year-over-year decline, with a non-IFRS consolidated net loss of €1,282 million.See it on page 12
02
The company successfully reduced its fixed cost base by €118 million in FY26, achieving a total reduction of approximately €325 million since FY23, with a target of €500 million in cumulative savings by March 2028.See it on page 10
03
A strategic transaction with Tencent provided €1.16 billion in cash, significantly deleveraging the group and improving the closing cash position to -€187.3 million compared to -€885.1 million in the prior year.See it on page 6
04
Operational restructuring included a focused portfolio review that resulted in the discontinuation of 7 projects and the delay of 6 others.See it on page 6
05
Digital revenues accounted for 87% of total net bookings, while player recurring investment grew 15% year-over-year to €925 million, representing 61% of total bookings.See it on page 4
06
The company expects continued financial pressure in FY27, projecting a high single-digit percentage decline in net bookings and a negative high single-digit operating margin before returning to positive free cash flow and EBIT in FY28.See it on page 12
07
Key franchise performance remained robust, with Rainbow Six Siege and the Assassin's Creed franchise each attracting over 30 million unique players during the fiscal year.See it on page 5

Summary

The fiscal year 2026 earnings report outlines a period of significant structural transformation for Ubisoft, characterized by aggressive cost-reduction initiatives and a strategic pivot toward a more focused operating model. The company reported net bookings of €1.525 billion, a 17% year-over-year decline, alongside a non-IFRS operating loss of €1.045 billion. Despite these financial headwinds, the company successfully executed a landmark strategic transaction with Tencent, which provided €1.16 billion in cash to facilitate deleveraging.

Operational performance remained anchored by a robust back-catalog, which accounted for 84% of total net bookings. Key franchises, including Rainbow Six Siege and the Assassin’s Creed series, maintained strong engagement, each attracting over 30 million unique players. The company’s transformation efforts included a comprehensive portfolio review that resulted in the discontinuation of seven projects and the delay of six others. These measures, combined with disciplined expense management, contributed to a €118 million reduction in the fixed cost base compared to the previous fiscal year. Since fiscal year 2023, the company has achieved a cumulative reduction of approximately €325 million in fixed costs, with a stated objective to reach €500 million in savings on a run-rate basis by March 2028.

Looking ahead, the company anticipates a transitional fiscal year 2027, projecting a high single-digit percentage decline in net bookings and continued negative operating margins. Management expects a return to positive free cash flow and non-IFRS EBIT by fiscal year 2028, supported by a strengthened content pipeline across major brands such as Far Cry and Ghost Recon. The current strategy prioritizes long-term stability through a rightsized organizational structure, improved quality control for new releases, and an accelerated focus on live-service monetization.