Ubisoft Reports €1.3B Loss in FY26 as Revenue and Bookings Plunge

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Ubisoft closed its fiscal year 2025-26 on March 31 with revenue of €1.4 billion, down 21.8% year-on-year, and net bookings of €1.5 billion, down 17.4%, driven by a softer release schedule and the rollout of a new operating model. Digital net bookings reached €1.33 billion, a 16.0% decline, while back-catalogue net bookings fell just 1.1% to €1.28 billion, making legacy titles the primary engine of net bookings for the year. Operating losses widened from €196.5 million the prior year to €1.3 billion.

Okay, so the latest financial results weren’t great, honestly. Revenue for the last three months was down quite a bit – almost 47% – landing at €419.5 million. New bookings were also way down, dropping 54% to €415 million. But here’s the slightly good news: it wasn’t as bad as Ubisoft expected! They were predicting around €390 million in bookings, so they actually beat that. Apparently, the launch of Assassin’s Creed Shadows helped, and they made a lot more money through partnerships than usual. Plus, older games still brought in a solid €243 million in bookings, which is a nice bonus.

Ubisoft shares swung violently on Thursday, shedding nearly 20% intraday before recovering to close 2.2% lower. The stock has declined approximately 26% year-to-date, extending a slide rooted in post-pandemic delays and financial setbacks. Shares had already lost 34% in January after the company unveiled its restructuring plans.

Co-founder and CEO Yves Guillemot framed the results as the cost of deliberate change. “This past fiscal year was one of decisive action for Ubisoft,” he said. “We initiated one of the most ambitious transformations in the company’s history, building a more focused, agile and disciplined organization that is capable of consistently delivering high-quality experiences to players through a sustained release cadence while supporting value creation over time.”

In January 2026, Ubisoft underwent a major reorganization, grouping its teams into five creative divisions. This restructuring included cost reductions, a requirement for more employees to return to the office, and a streamlining of its game development plans. As part of this, seven games were cancelled and six were pushed back to later dates. Even with these changes, Ubisoft still reached 36 million monthly players and 129 million players on consoles and PC, not including the game XDefiant which is no longer supported.

The workforce reductions that followed were extensive. Ubisoft ended game development at Red Storm Entertainment and laid off 105 workers there, closed its Halifax studio weeks after employees voted to unionize, quietly made 29 people redundant at its Abu Dhabi studio in November 2025, and cut 40 jobs at Ubisoft Toronto in February 2026. The previously unannounced social simulation game Alterra was also cancelled during this period.

Workers responded in force. Approximately 1,200 employees went on strike on February 10, 2026, days after two union representatives publicly called for Guillemot’s resignation. Five unions in France then organized a three-day international strike, demanding leadership take accountability for what they described as catastrophic management.

On the games side, Rainbow Six Siege peaked at over 10 million monthly active users in March, The Division 2 saw net bookings more than double across the full year, and Assassin’s Creed closed the period with over 30 million players and year-on-year engagement growth. Avatar: Frontiers of Pandora, The Crew Motorfest, and For Honor all grew, with Motorfest hitting record quarterly users.

Ubisoft guided for FY2026-27 net bookings to decline by a high single-digit percentage with a single-digit operating loss margin, describing the year as the expected low point in its free cash flow trajectory. Free cash flow is projected to turn positive in FY2027-28 and reach a robust level by FY2028-29. The near-term release slate centers on Rainbow Six Siege, Assassin’s Creed Black Flag Resynced on July 9, and other premium titles built on established Ubisoft franchises.

Guillemot admitted the changes have been challenging, but defended the company’s strategy. He explained that while the last two years have involved tough choices and weaker financial results, he’s confident these steps will ultimately allow Ubisoft to generate consistent profits in the long run.

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2026-05-22 16:16