The French video game publisher Ubisoft delivered sobering financial news Wednesday, projecting continued losses and declining revenue following what executives described as a record-breaking annual deficit.
The gaming company disclosed an International Financial Reporting Standards operating deficit of 1.3 billion euros ($1.40 billion) for the fiscal year ending March 2026. During a media briefing, Chief Financial Officer Frederic Duguet characterized this figure as unprecedented for the company. Meanwhile, net bookings dropped 17.4% to reach 1.53 billion euros.
Looking ahead to fiscal year 2026-27, Ubisoft projected revenue will decline between 8% and 9%, accompanied by a high single-digit operating loss margin and potential cash expenditures reaching 500 million euros. Company officials anticipate returning to profitability and positive free cash flow during 2027-28, banking on an improved game release schedule and expansion of live-service, online multiplayer titles designed to generate ongoing player spending similar to Riot Games “League of Legends.”
The publisher has faced mounting challenges stemming from disappointing game launches, production delays, and a January reorganization that negatively impacted stock prices. Management indicated the company maintains sufficient cash reserves for immediate debt obligations and is currently negotiating with financial institutions to refinance upcoming payment deadlines.
In a significant leadership development, the company announced that Nicolo Laurent, the former chief executive of Tencent-owned Riot Games, will join Vantage Studios as a special adviser. Vantage Studios represents a joint venture between Tencent and Ubisoft focused on managing the publisher’s most valuable gaming properties.
For the upcoming first quarter, Ubisoft forecasts net bookings of approximately 250 million euros, timed with the launch of “Assassin’s Creed Black Flag Resynced,” an updated version of the popular 2013 Caribbean-themed adventure.
As part of its cost-reduction strategy, the publisher eliminated roughly 1,200 positions during the previous year, bringing total employment to about 16,600 workers. The company also reduced fixed expenses by 118 million euros to 1.435 billion euros in 2025-26, with plans to further decrease costs to 1.25 billion euros by March 2028 as it works to achieve financial stability.
