Ubisoft's restructuring efforts are showing progress through cost reductions, balance sheet improvement, and the implementation of its new operating structure. Ubisoft's established franchises, including Assassin's Creed, Rainbow Six Siege, and The Division, continue driving strong recurring revenue and back-catalog performance. Ubisoft trades at an EV to EBITDA multiple of 2.13, suggesting the market still expects the company's turnaround efforts to fail.
Ubisoft shares plunged 18% on Thursday after the Assassin's Creed maker warned of further losses this year.
The French videogame group said it expects to return to positive non-IFRS operating profit and free cash flow generation in the fiscal year through March 2028, not in fiscal 2027 as previously planned.
French videogame publisher Ubisoft warned on Wednesday of another year of losses and lower sales after a record annual operating loss, deepening pressure on the company as it restructures.
Ubisoft remains highly speculative, with persistent operational underperformance and a negative earnings outlook through at least 2029E. Recent restructuring, project cancellations, and a focus on core IPs aim to restore quality and cut €200M in costs over two years. Despite a €600M cash cushion and Tencent's support, high debt (€2.1B) and ongoing game failures cloud near-term prospects.
Ubisoft Entertainment SA (OTCPK:UBSFY) Q2 2026 Earnings Call November 21, 2025 3:30 AM EST Company Participants Yves Guillemot - Co-Founder, Chairman, CEO, President & Chief Creative Officer Frédérick Duguet - Chief Finance Officer Conference Call Participants Aleksander Peterc - Sanford C. Bernstein & Co., LLC.
Ubisoft Entertainment has delayed the launch of its much-anticipated title “Assassin's Creed Shadows” and has “appointed advisors to review strategic options to extract the best value for stakeholders.
Ubisoft, which is behind the "Assassin's Creed" franchise, last week said it has postponed the release of the next title in the popular game series by three months to Feb. 14, 2025. Shares of Ubisoft, which also cut net bookings guidance for its full fiscal year and second quarter, have slumped to decade lows on the back of dismal investor expectations about the company's triple-A games pipeline and financial prospects.
Ubisoft's stock is not attractive due to weak game launches, damaged goodwill, and aggressive monetization practices, leading to potential commercial failures and boycotts. Latest earnings show bookings growth, but xDefiant underperformed Street expectations, highlighting the mistake to launch a game in a saturated market. Political controversies may have a larger impact on AC: Shadows, whose release has been delayed as Star Wars Outlaws, another needle-mover, underperformed on new aggressive pricing policies.
Shares in French video game giant Ubisoft plunged nearly 20 percent Thursday after it dropped its profit targets following a delay to its latest "Assassin's Creed" title.
"Assassin's Creed" maker Ubisoft faced a union call for three days of strike action on Thursday after the French videogame group told workers to return to the office.
An activist investor pushing for a sale of "Assassin's Creed" maker Ubisoft has gathered support from 10% of the French videogame publisher's shareholders, it said in a letter on Thursday that was exclusively shared with Reuters.