Shares of the developer of the Assassin's Creed game have plummeted. What disappointed investors?
Shares of Assassin's Creed game developer collapsed - he's expecting a bad year / Photo: Chebotaeva Ekaterina / Shutterstock.com
Ubisoft Entertainment, the developer of Assassin's Creed and Star Wars Outlaws, fell 16% as trading began on the Paris Stock Exchange on Ma. 21. The company reported a drop in revenue last fiscal year and shared a disappointing outlook for the current one.
Details
Shares in video game maker Ubisoft collapsed 16% to €4 on the Paris stock exchange, after the company reported a 17% drop in net revenue for the 2025-2026 fiscal year that ended March 31. The figure fell to €1.5 billion as Ubisoft released few new games.
Net loss for the same period soared sixfold to €1.48 billion, or €11.16 per share, according to international financial reporting standards.
The outlook for the 2026-2027 fiscal year also upset investors, with the company expecting free cash flow to shrink to a minimum, Ubisoft CEO and co-founder Yves Guimault said. He said the transformation the game developer is going through "involves difficult decisions and disappointing short-term financial performance."
Guimault believes the company will achieve positive cash flow as early as fiscal 2027-2028 and return to sustainable growth the following year.
What's going on with the company
In January, Ubisoft announced a major restructuring: it would stop developing several games, close two divisions and record a €1 billion loss in the 2025-2026 fiscal year. In fact, it turned out to be higher.
The company was prompted to make the change by the difficulties of delayed game releases, which led to weak financial results in the 2024-2025 financial year. The developer tried to solve the problems by creating a new division that would get the rights to a number of its products, and also agreed to finance the new structure with Chinese technology giant Tencent Holdings.
However, the difficulties did not end there. In November 2025, Ubisoft postponed the publication of semi-annual financial statements without explanation and asked Euronext to suspend trading in its securities. The company later attributed the move to the improper recognition of a portion of revenue, resulting in a breach of its credit agreement. Ubisoft resolved the issue by selling 26.3% in its new division to tech giant Tencent for €1.16 billion.
