Ubisoft Entertainment shares plummeted this Thursday by up to 18.99% on the Paris Stock Exchange, after the French video game company reported losses of 1.475 billion euros in its last fiscal year, a figure that multiplies by six the 'red numbers' recorded the previous year.
The group's revenue, responsible for sagas such as 'Assassin's Creed' or 'Far Cry', fell by 21.8% in the period, to 1.396 billion euros, while net bookings fell by 17.4% year-on-year, to stand at 1.525 billion.
At the close of the fiscal year, the French group's workforce stood at 16,590 employees, which represents around 1,200 fewer workers than a year earlier. Fixed costs amounted to approximately 1.435 billion euros, with an annual drop of 8% that brings the accumulated reduction since the 2022-23 fiscal year to almost 325 million euros.
Looking ahead to the coming years, Ubisoft has reiterated its objective of completing the third and final phase of its cost containment plan, with the goal of reducing its fixed cost base to 1.250 billion euros annually by March 2028. To achieve this, the company is committed to maintaining strict discipline in new hires, undertaking selective restructurings, and studying possible asset divestments.
"The past fiscal year was decisive for Ubisoft," said Yves Guillemot, co-founder and CEO of the company, alluding to the strategic readjustment carried out in its 2025-26 fiscal year with the implementation of a new operating model, the rationalization of its game catalog, and the launch of a cost reduction program.
"In fiscal year 2026-27, we will continue with the execution of this transformation and will continue to invest towards a much more solid and sustained content cycle," added the CEO of Ubisoft, anticipating that this fiscal year will mark "a low point" in the evolution of free cash flow, accompanied by a less intense release schedule and costs related to restructurings.
In this context, the company estimates that in the first quarter of the current fiscal year, net bookings will be around 250 million euros, although for the entire fiscal year it anticipates a high single-digit percentage drop, between 8% and 9%.
At the same time, Ubisoft has remarked that it has sufficient liquidity to meet short-term debt maturities with available cash, and that it is evaluating different financing alternatives to cover upcoming payments, extend its debt schedule, and preserve its financial room to maneuver.
Looking beyond the 2026-27 fiscal year, Guillemot foresees a relevant recovery supported by a much more robust portfolio of new releases and the continuation of fixed cost adjustments, with the expectation that free cash flow will return to positive territory in the 2027-28 fiscal year and reach a comfortable level in 2028-29.
On the stock market, Ubisoft shares, which fell by as much as 18.99% of their value this Thursday on the Parisian exchange, have accumulated a correction of 38% so far this year.