Ubisoft is facing increasingly serious concerns in the stock market, having closed its fiscal year 2025-26 with net losses of €1.475,2 million. This figure significantly exceeds the company’s current market value, which stands at around €600 million with its stock priced at approximately €4.54 per share. How do they plan to turn the situation around? Well, by using something as controversial as what led them to this point: a pivot from “woke” to AI.
In addition to the staggering financial loss, Ubisoft has experienced a sharp decline in revenue, significant cash burn, a weaker release pipeline for the upcoming fiscal year, and a clear message from the company: fewer projects, tighter internal control, and, as mentioned, a strong focus on AI.
When Riding the Wave Goes Wrong: Ubisoft’s Stock Sinks as Losses Double Its Current Value
With this scenario laid out, Ubisoft has presented its financial results, revealing the true extent of the damage and offering statements on how it intends to navigate out of this crisis. The numbers come first, followed by the company’s plan to streamline costs, development, and upcoming releases. Prepare for a shock.
For the full fiscal year, IFRS 15 sales were €1.395,7 million, down from €1.785,3 million the previous year. Net bookings closed at €1.525,1 million, below the previous €1.846,4 million. The IFRS operating result was -€1.322,3 million, while the non-IFRS operating result ended at -€1.044,7 million. After a brief look at these figures, here’s the crucial point: the attributable net loss reached the €1.475,2 million that has ultimately defined the group’s entire financial picture.
The last quarter also presented an uncomfortable picture. In Q4 fiscal year 2026, there was a 54% decrease. The company noted that this figure was €25 million above its internal forecast, but the decline remains very evident. The company has €1.345,4 million in cash, which is all they have left. While this seems like a substantial amount, it’s considerably less when compared to 2018, when their valuation was much higher.
Cancellations, Delays, and Acceleration Using AI: What Could Go Wrong?
Following the presentation of these results, Ubisoft outlined part of its roadmap. Frédérick Duguet, the company’s CFO, stated that they have canceled 7 projects and delayed another 6 as part of a more rigorous selection process with higher quality demands. The company also made it clear that it wants to focus on opportunities with the greatest potential, leveraging its well-known franchises and a more disciplined structure for deciding what moves forward and what doesn’t.
Artificial Intelligence was another major focus of their announcement, representing the new wave the company is attempting to ride. Ubisoft stated that it is already using AI to enhance the player experience and improve efficiency within its teams. This includes Teammates, their first playable generative AI experience, as well as internal tools for quality control, production processes, more intelligent NPCs, and more reactive game worlds.
In conjunction with this, the company emphasizes its work with “La Forge” and its expertise in open worlds and systemic gameplay, aiming to reach 2027 with less fanfare, fewer open projects, and more focus on each major release. After the stock market hit, where shares plummeted, and following the failures of games that have struggled to gain traction, Ubisoft intends to cling to AI as its salvation.
As always, the players will ultimately decide if Ubisoft’s future releases convince them or not. However, given their expenses, they have very little room for error, as they are depleting nearly €500 million annually. If these losses continue, total closure could be a reality in a few years, placing them at a critical juncture where they must either recover or face their demise.
