Ubisoft announced first-half earnings “above expectations” and confirmed it is on track to secure a €1.16 billion partnership deal with Tencent.
This follows a week of speculation sparked by official delay in Ubisoft earnings results and corresponding halt in stock trading. This delay was due to the restatement of revenues for fiscal years 2024-2025. “This position, which the Group now applies going forward, also resulted in the partnership signed in the second quarter of the 2025/26 financial year not being recognized in revenue under IFRS 15,” the company said.
Notably, the company published its results under both International Financial Reporting Standards (IFRS) and non-IFRS rules.
Numbers
For the first half of the 2025-26 financial year:
- Total net orders: €772.4 million (up 20.3% year-on-year)
- Digital net bookings: €685.8 million (up 30.2% year-on-year)
- Net bookings by back catalogue: €741.4 million (up 50% year-on-year)
- Operating profit according to IFRS: -120.2 million euros (vs. -271.8 million euros YoY)
- Non-IFRS operating profit: €27.1 million (vs. -€252.1 million YoY)
- Operating net profit according to IFRS: -EUR 161.3 million (vs. EUR -246.5 million YoY)
- Non-IFRS operating net profit: -EUR 37.0 million (vs. EUR -208.1 million YoY)
Highlights
The second-half results were attributed to “stronger-than-expected partnerships” as well as strong performances from Assassin's Creed and The Division, which offset the soft performance of Rainbow Six.
The company said the launch of the Tencent-funded subsidiary Vantage Studios is “inevitable” and “all preconditions have been met.” Vantage will own the company's flagship brands Assassin's Creed, Far Cry and Rainbow Six, with 25% held by Tencent in exchange for a cash injection of €1.16 billion, which will be used to pay down Ubisoft's net debt, which currently stands at €1.15 billion. Ubisoft announced a partnership with Tencent in March.
The creation of Vantage is the first part of the Ubisoft project. reorganization into Creative Houseswhich CEO Yves Guillemot described as “autonomous, efficient, focused and accountable business units, each with its own leadership, creative vision and strategic roadmap.” The remaining Creative Houses will be announced in January 2026, the company said.
Ubisoft described its cost reduction process as “on track” and the company plans to save an additional €100 million in fixed costs in 2026-27 compared with the 2024-25 financial year thanks to restructuring and “maintaining discipline in recruitment.” The press release mentions cuts at Scandinavian studios, citing previously announced job cuts in RedLynx And Mass entertainment.
At the end of September 2025, the company's total headcount was 17,097, reflecting a reduction of 1,500 employees over the last 12 months. 700 jobs have been cut since the end of March 2025.
Assassin's Creed Shadows was called “excellent” along with the Assassin's Creed back catalogue. The company noted an increase in player “session days” on average over two years, driven by DLC for Shadows and a free update for Assassin's Creed Mirage, bringing the game's total player count to 10 million. Meanwhile, Rainbow Six missed revenue expectations due to a “temporary spike in cheating” that the company said was being resolved. It also points to the strong debut of Netflix show Tom Clancy's Splinter Cell: Deathwatch and positive reviews for Anno 117: Pax Romana, leading to “solid consumer spending growth” during its first week on sale.
“Our portfolio experienced contrasting dynamics this quarter,” Guillemot said, “with softer trends for Rainbow Six Siege reflecting the game's evolutionary phase in the intense first-person shooter environment, offset by strong performance across the rest of the catalogue.” The Assassin's Creed franchise has exceeded our expectations, confirming its positive momentum and ability to engage players over time. “The Division 2 also continued to perform well, benefiting from the momentum of the Battle for Brooklyn DLC with the game's first semester already exceeding annual orders last year.”
In July, the company announced second-quarter 2025 earnings were below expectations and said it would business reorganization in Creative houses. Earlier this week, the company's UK office warned of a fall in annual revenuewhich is attributed to a decline in new game sales as consumers spend more time on office games.
Ubisoft's share price has fallen over the past five years from a pandemic peak of nearly €85 to €6.77 yesterday, partly due to the post-pandemic slump that has impacted investment in the gaming industry. The company is currently heavily indebted, although the Tencent injection is expected to allow it to repay two loans early and “begin discussions with banking partners” about financing its new structure.
“The progress we have made in addressing our fixed cost base brings with it confidence that we can continue to improve structural efficiencies across the organization, which, together with revenue growth, will support a return to robust cash generation in the coming years,” Guillemot said in the earnings release.
