Ubisoft delayed earnings, breached debt covenants due to revenue correction, used Tencent funds to fix issues, and saw stock rise despite past losses.

Ubisoft delayed its H1 2025-26 earnings report after correcting revenue recognition under IFRS 15, triggering a debt covenant breach. The restatement, tied to a partnership’s revenue over utilization, halted trading for a week. To resolve the issue, Ubisoft will use $330 million from its €1.16 billion deal with Tencent to form Vantage Studios, reducing debt. Despite a 90% stock drop since 2018, shares rose 10% on the news. The company reported a 39% year-on-year bookings increase, driven by strong sales of Assassin’s Creed Shadows, Rainbow Six Siege, and other titles. Upcoming releases include remakes of Black Flag and Prince of Persia, Rainbow Six Mobile, and The Division Resurgence. Ubisoft plans structural changes in early 2026, shifting to franchise-based “creative houses,” while advancing generative AI initiatives.