Today, Ubisoft announced its financial results for the fiscal year 2024-2025, including the period between April 2024 and March 2025.
Thanks to the press release, we learn that net bookings for the quarter (you can think of “net bookings” as revenue, albeit it’s a slight simplification) were €1.85 billion, which Ubisoft defines as slightly below its target. This is down 20.5% year-on-year.
Operating income was in line with guidance, with Ubisoft actually not making any income at all and losing €82.6 million in the fiscal year.
The Assassin’s Creed and Rainbow Six franchises both had around 30 million unique active players for the year for the fourth consecutive year. Far Cry had 20 million, and other brands scored 100 million unique active players cumulatively.
The company intends to announce details about its new organization by the end of the year, with the objective of best serving player needs, delivering
superior game quality and drive disciplined capital allocation.
This includes optimizing the product roadmap “towards a more evergreen offering,” the creation of the new subsidiary involving investment from Tencent for IPs like Assassin’s Creed, Rainbow Six, and Far Cry (which should be done by the end of 2025), and further cost reduction.
Ubisoft says that it has already achieved slightly above its €200 million cost reduction objective ahead of schedule and plans to continue with an additional €100 million cut over the next two years.
Speaking of the new subsidiary, in which Tencent will have approximately a 25% economic interest, it’ll focus on the following.
- Improving the quality of narrative-driven solo experiences,
- Expanding live service offerings with richer multiplayer features and more frequent content
updates, - Significantly enhancing content creation by leveraging Ubisoft’s technological stack,
- Scaling into underpenetrated markets such as mobile and China.
Looking at the outlook, for the current fiscal year ending in March 2026 Ubisoft expects net bookings to be essentially flat compared to the past fiscal year, and to approximately break even in terms of non-IFRS operating income. Yet, free cash flow will still be in the red.
Beyond the next fiscal year, Ubisoft expects to return to positive operating income and free cash flow generation in the fiscal year ending in March 2027. This will be due to “significant content coming from its largest brands” in said fiscal year and the following one ending in March 2028.
This is because Ubisoft has decided to delay some of its biggest games in order to give them additional time in the oven. According to the company, this has already provided positive effects with Assassin’s Creed Shadows.
Incidentally, among the franchises that Ubisoft considers its biggest are Assassin’s Creed, Far Cry, Rainbow Six, The Division, and Ghost Recon, as mentioned by CFO Frederick Duguet.
As usual, we also get a comment from CEO Yves Guillemot.
“This year has been a challenging one for Ubisoft, with mixed dynamics across our portfolio, amid intense industry competition.
Despite these headwinds, Ubisoft managed to deliver positive free cash flow generation over the fiscal year, reflecting the discipline applied across the Group.
Aware of the challenges ahead, we took decisive steps to continue strengthening the company’s future.The launch of Assassin’s Creed Shadows was a defining moment. It reaffirmed the powerof the Assassin’s Creed brand, with a highly favorable community response from long-time fans and new players alike.
We also completed our initial cost savings program ahead of schedule. We are committed to going further, with additional savings of at least €100m over the next two years to drive structural efficiencies and reinforce the foundations of our organization.
This continued focus on discipline will support our growth ambitions and the profound transformation of Ubisoft. We are currently working on reshaping the Group’s operating model and plan to announce a new organization by the end of the year.
A major step in this transformation was the announcement in March of the creation of a new subsidiary, backed by Tencent as a core strategic partner. Focused on accelerating the growth of three of our most iconic IPs, this new subsidiary will play a pivotal role in building evergreen, billion-euro brand ecosystems. We are progressing steadily toward the closing of the transaction by year-end, a key milestone that will fully deleverage the Company and position us for sustainable, long-term growth.
Additionally, after a review of our pipeline, we have decided to provide additional development time to some of our biggest productions in order to create the best conditions for success. As a consequence, FY2026-27 and FY2027-28 will see significant content coming from our largest brands.
Ubisoft is entering a new chapter, and I am confident in our ability to build a stronger, more resilient company for the benefit of all our stakeholders.”
According to the company, Assassin’s Creed Shadows achieved the second-highest Day 1 sales revenue in franchise history, following Assassin’s Creed Valhalla. It actually had the best Day 1 performance of Ubisoft’s history on the PlayStation Store.
Both consumer spending (DLC sales) and player count for Assassin’s Creed Shadows are actually outperforming Valhalla. Players have accumulated 160 million hours in the game.
Ubisoft expects the game to provide a strong contribution to earnings during the current fiscal year, especially when the Claws of Awaji expansion releases.
If you’d like to compare these results with historical data, you can read our report about the previous quarter of the fiscal year, based on data released in February.
Other gaming companies have also already announced their financial results this quarter, including Koei Tecmo, Microsoft, Electronic Arts, Nintendo, Bandai Namco, Konami, Marvelous Entertainment, Sega, Capcom, Sony, and Square Enix. You can expect more reports on this topic over the coming few days.
