Ubisoft announced Thursday that it recorded double-digit year-on-year revenue growth, exceeding its expectations in the third quarter of its shifted fiscal year, ending in December. However, this performance does not seem sufficient to fully reassure the market after last month's dramatic profit warning. The French video game group reported net bookings of 338 million euros over the last three months of 2025, representing a 12% year-on-year increase.
For comparison, on January 21, Ubisoft had provided an indicative net bookings figure of around 330 million euros for the quarter.
In a statement, the company explained that this better-than-expected performance was mainly driven by its partnerships and the "Assassin's Creed" franchise, while its back-catalogue business grew by 11% year-on-year, notably boosted by the titles "Avatar" and "The Division".
Recently Lowered 2025/2026 Targets Confirmed
The group also maintained its financial objectives for the 2025/2026 fiscal year, which it had revised downward last month, starting with its forecast of net bookings of around 1.5 billion euros for the year.
Over the first nine months of its shifted fiscal year, ending in December, its net bookings totaled 1.1 billion euros, up 18% year-on-year, driven by "Assassin's Creed" (almost x2), "The Division" (x2), "Anno" (x4), and "Avatar" (+20%).
The company also reaffirmed its forecast of a non-IFRS operating loss (Ebit) of around 1 billion euros, with negative free cash flow expected between -400 million euros and -500 million euros.
But the Underlying Problems Remain...
As a reminder, at the end of January, Ubisoft announced a significant downward revision of its 2025/2026 targets, as well as the abandonment of those planned for 2026/2027.
The company also unveiled a major overhaul of its organization and operating model, marked by a refocusing of its portfolio and job cuts—measures that led to a 39% plunge in its share price in a single trading session. The stock has since recovered by barely 3%.
Ubisoft Entertainment is one of the world's leading developers and publishers of interactive video games for consoles, PCs, smartphones and tablets. Net sales break down by activity as follows:
- publishing of video games (69.6%);
- edition and production of video games (30.4%).
Net sales by source of income are divided between online sales of video games (86.9%), video game boxes (7.9%), services (3.6%; including digital or physical delivery of content, update, correction, enhancement and maintenance services) and licenses (1.6%).
Net sales are distributed geographically as follows: Europe (32.1%), North America (45.7%) and other (22.2%).
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