Shares in Ubisoft plummeted by 33 per cent on Thursday after the French video game publisher announced a major reorganisation and the cancellation of six upcoming titles, including a highly anticipated Prince of Persia remake. The stock fell in delayed trading, leading losses on Paris' SBF 120 index and putting the company on track for its largest single-day decline since its 1996 listing.
The Paris-based firm plans to restructure into five distinct creative divisions, grouping its titles by genre. The first unit, Vantage Studios, established in November with a €1.16 billion investment from China's Tencent, will manage Ubisoft's biggest franchises, including Assassin's Creed. The four other units will focus on multiplayer shooters, live services, narrative-driven games, and casual and family games.
Concurrently, Ubisoft narrowed its net bookings forecast for 2026 and withdrew its previous guidance for the 2026/27 fiscal year. It now forecasts net bookings of around €1.5 billion and an operating loss of roughly €1 billion, including a €650 million hit from game cancellations and delays. It previously expected net bookings of around €1.9 billion and to break even at operating level.
“The prospect of a return to positive cash generation appears distant, and the financial structure is likely to be weakened again in the near term,” said Corentin Marty, analyst at TP ICAP Midcap. Shares were trading at €4.6 in early Thursday trading, giving Ubisoft a market value of €616 million ($720 million). Its shares nearly halved in value last year, falling below €1 billion of market capitalisation, compared to their peak of €11 billion in 2018.
Ubisoft anticipates net debt of €150-250 million by the end of 2026, with cash reserves of €1.25-1.35 billion. Free cash flow is projected to be negative €400-500 million. The company's cost reduction program of €100 million is expected to be fully achieved by March, one year after its initial target, and it is setting a new cost savings target of an additional €200 million over the next two years. It will continue to consider potential asset sales and plans to outline medium-term projections in May 2026.
