Ubisoft stock fell sharply on Thursday, dropping more than 18% to €9.55 per share following a fourth-quarter earnings report that disappointed investors and triggered renewed concerns about the company’s financial direction.
Nobody liked that earnings call. pic.twitter.com/zYPTT1J3Sb
— Grummz (@Grummz) May 15, 2025
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For the fiscal year ending March 31, 2025, Ubisoft reported net bookings of €1.85 billion ($2.1 billion), marking a 20.5% year-over-year decline. The company also posted an operating loss of €15.1 million for the year.
While Ubisoft pointed to Assassin’s Creed: Shadows, released in March, as a contributing factor to the year’s results, the overall impact was not enough to reverse the downward trend. The company cited “lower than expected partnerships” as a primary reason for the decline in bookings.
Understanding Net Bookings
Ubisoft’s reported €1.85 billion in net bookings reflects the total value of products and services sold or committed to during the fiscal year, including digital and physical game sales, in-game purchases, subscriptions, and preorders. Unlike standard revenue, which is recognized only when a product is delivered or a service is rendered, net bookings are a forward-looking measure of demand and expected income.
Key art for XDefiant (2024), Ubisoft
The 20.5% decline signals a significant drop in both consumer engagement and Ubisoft’s near-term revenue pipeline. For investors, weakening bookings are often seen as an early warning sign of future financial strain.
Guidance and Market Reaction
Ubisoft’s outlook for the 2025–26 fiscal year also failed to inspire confidence. The publisher said it expects net bookings to remain stable year-over-year and is aiming to break even on a non-IFRS operating income basis.
A screenshot from Assassin’s Creed Shadows (2024), Ubisoft
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Investors reacted swiftly. Thursday’s Ubisoft stock drop brings the company’s total decline to nearly 60% over the past 12 months, with its market value now sitting well below key debt thresholds. The earnings call followed a string of financial challenges, including internal restructuring, layoffs, and growing pressure from shareholders.
Tencent Subsidiary Deal Still Under Fire
In March, Ubisoft announced it would transfer its top franchises—Assassin’s Creed, Far Cry, and Rainbow Six—into a new Tencent-backed subsidiary. Tencent will invest €1.16 billion for a 25% stake in the new unit, while Ubisoft retains majority control and earns royalties on future sales.
Ubisoft expects the transaction to be finalized by the end of 2025. However, the deal has sparked backlash among minority shareholders.
Yves Guillemot via Ubisoft North America YouTube
As That Park Place previously reported, AJ Investments, along with a coalition of other shareholders, has filed a legal challenge demanding that Ubisoft hold an Extraordinary General Meeting (EGM) to vote on the Tencent agreement.
The coalition has proposed two resolutions:
- Restructure the deal as a direct asset sale valued at no less than €4 billion.
- Distribute an extraordinary dividend of €23 per share—equating to €3 billion—to investors, while preserving €1 billion for corporate obligations.
In their open letter to Ubisoft, the group argued the deal was “structured to bypass mandatory public offer rules” and entrenched control by the Guillemot family, who currently hold less than 10% economic interest in the company.
A screenshot of Star Wars Outlaws (2024), Ubisoft
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They also pointed to the stock’s recent volatility and high-volume trading as signs of investor rejection, with Ubisoft’s share price having dropped 24% since the deal was announced.
A Volatile Year Ahead
Between the steep drop in earnings, investor backlash to structural changes, and the ongoing licensing lawsuit over The Crew, Ubisoft enters FY2025–26 under mounting pressure.
A screenshot from Assassin’s Creed Shadows (2024), Ubisoft
With core assets already spun off into a new subsidiary and shareholders demanding greater transparency and accountability, the company faces a turbulent year ahead—financially, legally, and strategically.
How do you feel about this massive Ubisoft stock drop? Sound off in the comments and let us know!
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B…b..but 3 million players!
Judging by how painstakingly they avoid sold copies subject, the game flopped hard.
I am almost certain that it sold much worse than Valhalla, Odessey and Origin.
This must have been the hardest flop especially compared to Outlaws.
If I were You Be Soft, I wouldn’t be holding my breath on that deal with Tencent. China’s falling apart thanks to the trade war fracturing twelve years of illusory economic growth and revealing how rotten the entire system is. The CCP will no doubt try and seize the money from investment firms like Tencent and NetEase in the next few months because they’re running out of it in every other sector.
As I’m Japanese, I thought about buying Assassin’s Creed: Shadows when it was announced. Even though they said they would be including Yasuke, I thought they were making it with respect for Japan.
But in reality they have done no research or consideration for Japanese culture at all, and their view of Japanese history is on the same level as a Yasuke hobbyist, so I no longer feel like buying it.
I think the current UBI trend is just a planned move to lower the stock price.
Will the next Assassin’s Creed feature an unfamous fictional black person?