Ubisoft's Disaster Continues. The Corporation Lost Over Another Billion Euros

Ubisoft reported a significant annual loss amidst a massive restructuring, game cancellations and postponements, and cost-cutting measures that continue to weigh on the company's financial results for the second consecutive year.

Ubisoft reported an annual operating loss of 1.3 billion euros ($1.41 billion) for the 2026 fiscal year. The company attributes the results to restructuring and high research and development costs, including project cancellations and postponements.

Ubisoft's loss decreased compared to fiscal year 2025, when it was 1.46 billion euros ($1.58 billion), but the company remains in the red for the second consecutive year. The main impact came from research and development costs – 1.855 billion euros ($2.01 billion), of which approximately 1.402 billion euros ($1.52 billion) was due to accelerated depreciation of canceled and delayed games.

The company expects fiscal year 2027 to also end with a loss. A positive free cash flow is planned from 2028, and growth from 2029.

Ubisoft confirmed plans to release new installments of the Assassin’s Creed, Far Cry, and Ghost Recon series by March 2029.

The company is also undergoing the final stage of cost reduction, which may lead to new layoffs. The goal is to reduce costs to 1.25 billion euros ($1.35 billion) per year from the current level of 1.435 billion euros ($1.55 billion).

CEO Yves Guillemot stated:

The two-year transformation has involved difficult decisions and disappointing short-term financial results, but I firmly believe that these measures will allow Ubisoft to sustainably grow its free cash flow in the future.