Ubisoft shares fall, Assassin’s Creed maker warns of annual profit loss

Ubisoft shares plunged 14% on Thursday after the Assassin’s Creed maker warned of further losses this year.

The French game maker posted an operating loss of 1.3 billion euros ($1.5 billion) in its 2026 financial year. Net bookings came in at 1.5 billion euros, a drop of 17.4% from the previous year.

Ubisoft said it expects full-year net bookings to decline by a high single-digit percentage with a single-digit operating loss margin.

The stock was last trading down 16.7% and has fallen around 38% in the year-to-date.

The move comes after years of stock price declines for the game developer following the Covid-19 pandemic, delays to major releases and financial struggles. Shares in the company fell 34% in January after the company announced a major restructuring.

The upcoming financial year is “expected to represent a low point in our free cash flow trajectory along with a softer release slate and restructuring costs,” CEO and Cofounder Yves Guillemot said in a Wednesday statement.

“This two-year transformation comes with difficult decisions and a disappointing short-term financial performance, but I firmly believe that, together, these actions are better positioning Ubisoft to deliver sustainable free cash flow over time,” he added.

The stock was last trading down 14.4% and has fallen around 38% in the year-to-date.

As part of the restructuring, Ubisoft has discontinued seven projects and delayed six others, the company said.

Its fixed cost base is a core priority and its initial cost reduction program was achieved one year ahead of schedule, the company added. Fixed costs stood at 1.4 billion euros in 2026. Ubisoft is looking to shave nearly 200 million euros more off its cost base by March 2028.