French videogame publisher Ubisoft (EU:UBI) warned on Wednesday that it expects another difficult financial year ahead after reporting a record operating loss for the year ended March 2026, intensifying pressure on the company as it continues its restructuring efforts.
The group posted an International Financial Reporting Standards (IFRS) operating loss of €1.3 billion (US$1.40 billion), which chief financial officer Frederic Duguet described during a press call as a record result for the company. Net bookings declined 17.4% year-on-year to €1.53 billion.
Investor reaction was sharply negative, with Ubisoft shares falling more than 15% in early Thursday trading by 08:04 GMT.
Looking ahead, Ubisoft said it expects revenue in 2026-27 to decline by around 8% to 9%, while forecasting a high single-digit operating loss margin and potential cash burn of up to €500 million. Management said the company aims to return to profitability and positive free cash flow in 2027-28, supported by a stronger pipeline of game releases and expansion in live-service multiplayer titles designed to encourage long-term player spending, similar to Riot Games’ “League of Legends.”
The company added that it currently has sufficient liquidity to meet near-term debt obligations and confirmed it is in discussions with lenders regarding refinancing upcoming maturities.
“Ubisoft appears to be responding to the (difficult) market environment, but with significant uncertainties around delivery as well as effectiveness of the new operational structure, we expect the risk-reward to remain wide,” Morgan Stanley analysts commented on the stock in a post-earnings note.
Ubisoft also announced that Nicolo Laurent, former chief executive of Tencent-owned Riot Games, will join Vantage Studios — the Tencent-Ubisoft partnership overseeing Ubisoft’s major franchises — as a special adviser.
The publisher said first-quarter net bookings are expected to reach around €250 million, ahead of the launch of “Assassin’s Creed Black Flag Resynced,” a remake of the company’s 2013 Caribbean-themed hit title.
As part of its restructuring programme, Ubisoft reduced its workforce by around 1,200 employees over the past year, leaving total headcount at approximately 16,600 staff. The group also cut fixed costs by €118 million to €1.435 billion during 2025-26 and is targeting a further reduction to €1.25 billion by March 2028 as it works to stabilise cash flow generation.
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