Ubisoft (video games) shares lost 16% on the Paris stock exchange after the company announced further expected losses in the current fiscal year. The collapse comes in a period of great difficulty for the French group, already marked by years of financial turbulence.
A decline that comes from afar
The crisis of Ubisoft, producer of popular video game franchises such as Assassin’s Creedhas its roots in the post-pandemic period. After covid-19, the value of shares has suffered a progressive erosion, aggravated by repeated postponements of expected titles, the lack of positioning in the stock market live service (i.e. a base game that is continuously updated with new content, stories and characters, such as Fortnite), outputs below fans’ expectations, and from recurring financial problems. In January, the stock had already lost 34% on the stock market, following the announcement of a broad restructuring plan. Strong financial pressure has led to violations of debt covenants (debt covenants) at the end of 2025, requiring a massive liquidity injection of 1.16 billion euros from the Chinese giant Tencent, which acquired 25% of the subsidiary Vantage Studios.
The words of the CEO
CEO and co-founder Yves Guillemot explained the situation in an official note. “The next financial year will likely represent the lowest point in our free cash flow trajectory, due to a less robust exit calendar and restructuring-related costs,” he said.
Guillemot, however, wanted to convey a message of confidence in the group’s future. “This transformation, expected to take place over two years, involves difficult decisions and disappointing financial results in the short term. However, I am convinced that these measures will help position Ubisoft more solidly, allowing the company to generate sustainable free cash flow in the long term,” he added.
The losses
The situation, in fact, is not simple. Historic record losses of approximately 1.5 billion euros are highlighted in the fiscal year 2025-2026, with net bookings plummeting by 17.4%. To stem the deficit, Guillemot’s emergency plan involves the closure of several studios (including Halifax and Stockholm) and the cutting of around 1,200 jobs over the last year, in a tense climate also marked by strikes in France against restrictions on working from home (there have also been protests in Italy due to the reduction of smart working). To optimize management, half of the development teams were reorganized into 5 macro-structures called “Creative Houses”.
The return to profitability
The hopes of an immediate recovery are entrusted to the launch of the remake, scheduled for July 9, 2026 Assassin’s Creed Black Flag Resyncedwhich is experiencing strong pre-order volume in China, while returning to full profitability is estimated no earlier than the 2027-2028 fiscal year.