Ubisoft Entertainment S.A.

Fiscal '26 net bookings were EUR 1.525 billion, down 17% year-on-year. Q4 net bookings were EUR 415 million, EUR 25 million above guidance, while free cash flow consumption was EUR 443 million, in line with the updated target range of EUR 400 million to EUR 500 million. Gross margin was stable year-on-year, non-IFRS EBIT was EUR 1.040 billion, and P&L R&D was EUR 1.086 billion, up significantly year-on-year due to accelerated depreciation tied to portfolio changes. Non-IFRS net debt improved to EUR 187 million from EUR 885 million a year earlier, and cash and cash equivalents were around EUR 1.35 billion. For fiscal '27, Ubisoft guided to net bookings down by a single-digit percentage, a high single-digit negative non-IFRS operating margin, and free cash flow consumption of no more than EUR 500 million; Q1 net bookings are expected at approximately EUR 250 million.

Yves Guillemot framed the year as a deliberate but painful reset, saying Ubisoft is building a more focused, agile, and disciplined organization. He emphasized a two-year transformation centered on stronger quality, a tighter portfolio, a right-sized cost base, and a better release cadence, with live games and established brands driving the next phase. His tone was confident but sober: he repeatedly pointed to fiscal '26 and '27 as low points before a stronger content cycle and positive free cash flow in fiscal '28 and robust levels in fiscal '29.

Frédérick Duguet focused on the numbers behind the reset. He said gross margin was stable, SG&A fell 13%, non-IFRS EBIT reached EUR 1.040 billion, and free cash flow consumption of EUR 443 million was within the EUR 400 million to EUR 500 million range. He also highlighted reduced total cash R&D, fixed cost base savings of EUR 118 million versus last year, headcount of 16,590, and net debt of EUR 187 million, with cash and equivalents at about EUR 1.35 billion. For fiscal '27, he pointed to a lighter lineup, restructuring charges amounting to 50% to 60% of the EUR 118 million cost reduction program, and continued balance-sheet flexibility while refinancing options are reviewed.

Analysts pressed on refinancing, the path to positive cumulative free cash flow across fiscal '27 to '29, restructuring cash costs, the scale of Assassin's Creed Resynced, debt maturities, Vantage Studio minority interest, and the outlook for Rainbow Six Mobile and The Division Resurgence. Management said the refinancing review is actively progressing, that liquidity above EUR 1.3 billion provides flexibility, and that they will update the market in due time. On growth, they said fiscal '27 bookings are down because of partnerships, while excluding partnerships the business would grow; they also said Resynced preorders are among the best in the franchise for the first three weeks, but the game is not full price. On mobile, they said both new launches were well received but started slower than expected, and they are remaining cautious until they see more meaningful audience growth.