Ubisoft surprised markets with stronger-than-expected H1 2025–26 earnings (€772.4 million net bookings ≈ $835 million USD), but the results were overshadowed by an unusual trading suspension and restated accounts linked to its Tencent deal.
- Net bookings: €772.4 million, up +20.3% year-on-year.
- USD equivalent: approximately $835 million (using €1 ≈ $1.08).
- Digital strength: €685.8 million in digital net bookings, a +30.2% increase, showing Ubisoft’s reliance on digital distribution.
- Back-catalog resilience: €741.4 million from older titles, up +50%, proving Ubisoft’s franchises like Assassin’s Creed and Rainbow Six continue to generate revenue.
- Operating income: Non-IFRS operating income was €27.1 million, a modest margin of 3.5%.
These figures were described as “ahead of expectations”, giving Ubisoft breathing room after several underperforming launches.
The Tencent Deal: A Lifeline
- Ubisoft confirmed its €1.16 billion ($1.25 billion USD) partnership with Tencent is set to close “in the coming days”.
- The deal involves Tencent acquiring a stake in Ubisoft’s IP subsidiary, valued at around €4 billion, aimed at reducing debt and strengthening global monetization strategies.
- For Ubisoft, this investment is critical: without Tencent’s capital injection, the company risked breaching debt covenants.
What made this earnings season remarkable wasn’t just the numbers—it was the week-long suspension of Ubisoft’s stock and bond trading on Euronext Paris.
- Reason for delay: Ubisoft had to restate its FY2024–25 accounts due to improper revenue recognition.
- Impact: The restated figures revealed Ubisoft was not in compliance with debt covenant leverage ratios, raising alarm among investors.
- Market reaction: Trading was halted to prevent volatility while the company corrected its books and finalized the Tencent deal.
This kind of suspension is rare for a major publisher and highlights the fragility of Ubisoft’s financial position despite the headline growth.
Strategic Outlook
- Ubisoft expects €100 million in savings through restructuring, including 1,500 job cuts and stricter hiring discipline.
- The Tencent partnership is positioned as a stabilizer, offering both capital and access to China’s massive gaming market.
- However, the stock’s 49% year-to-date decline shows investor skepticism remains high, and the unusual halt in trading may linger in memory as a warning sign.
Ubisoft’s H1 2025–26 earnings report is a paradox: strong headline growth in bookings and digital sales, yet clouded by accounting restatements and a rare trading suspension. The Tencent deal provides a much-needed lifeline, but the episode underscores how fragile Ubisoft’s financial health has become. For investors and industry watchers, this is less a celebration of growth than a reminder of how quickly confidence can erode when transparency falters.
About The Author
