Ubisoft shares plunge 14% after Assassin's Creed maker warns of annual profit loss

Ubisoft Shares Plunge 14% After Assassin's Creed Maker Warns of Annual Profit Loss

Ubisoft experienced a significant decline in its stock price, dropping 14% on Thursday as the developer of Assassin's Creed issued a warning about anticipated losses for the current year.

The French video game company reported an operating loss of 1.3 billion euros ($1.5 billion) for its financial year 2026, with net bookings totaling 1.5 billion euros—a 17.4% decrease compared to the previous year.

The company has projected that full-year net bookings will decline by a high single-digit percentage, accompanied by a single-digit operating loss margin.

At the time of reporting, shares were observed trading down 16.7%, marking a decline of approximately 38% year-to-date.

This downturn follows a prolonged period of stock price decreases for the game developer, exacerbated by the Covid-19 pandemic, delays of significant game releases, and ongoing financial challenges. In January, shares plummeted by 34% after Ubisoft disclosed a substantial restructuring plan.

The upcoming financial year is expected to signify a low point in the company’s free cash flow trajectory, coupled with a less robust slate of game releases and associated restructuring costs, according to CEO and co-founder Yves Guillemot in a statement released on Wednesday.

“This two-year transformation involves difficult choices and an unsatisfactory short-term financial outcome, but I firmly believe that these initiatives will better position Ubisoft for sustainable free cash flow in the long run,” Guillemot expressed.

As part of the restructuring efforts, Ubisoft has halted seven projects and postponed six others, highlighting its commitment to optimizing its operations.

The company is prioritizing its fixed cost base, having achieved its initial cost reduction program one year ahead of schedule. In 2026, fixed costs amounted to 1.4 billion euros, with Ubisoft aiming to further reduce its cost base by nearly 200 million euros by March 2028.