Ubisoft has put an end to wild speculation following the postponement of its annual report and the suspension of trading on the stock exchange. The share price is stabilizing—the mountain of debt will soon be history.
Some outlets were already predicting doom and gloom when Ubisoft postponed its financial report for the first half of 2025/26 last week and suspended trading of its shares. Would the figures be absolutely disastrous? Had the deal with Tencent fallen through?
Was the French video game company on the brink of collapse?
The answers to these questions: no, no, and no.
The Tencent deal wipes out almost all debt
According to the annual report, Ubisoft’s net bookings in the second quarter amounted to just under €491 million, which is more than €40 million above its own expectations. The bottom line for the first half of 2025/26 is €772.4 million in net bookings. This is significantly better than feared after the weak first quarter.
The Tencent deal to outsource Ubisoft’s biggest brands to the new subsidiary “Vantage Studios” is expected to be finalized in the coming days. According to the report, all conditions have been met. Tencent is investing a total of €1.16 billion in this project, which will gradually make Ubisoft almost debt-free.
Mistakes with consequences: Ubisoft makes accounting error
This deal was also the trigger for the postponement of the annual report and the suspension of stock trading. To be more precise: Ubisoft’s incorrect accounting treatment of it. The publisher had booked part of the deal as revenue, even though it was not allowed to be recorded as such under international guidelines.
The service was usage-based and should therefore have been booked over several years. Ubisoft’s correction meant that key debt ratios were significantly worse, which, among other things, jeopardized compliance with loan agreements. And that’s what set the whole chaos of last week in motion.
Liquidity and increased freedom of action
This mistake and its consequences may have caused a slight loss of confidence. Nevertheless, the Tencent investment should be a financial turning point for Ubisoft. The repayment of a large part of its debt will logically stabilize the company. The consequences: liquidity and increased freedom of action.
The figures from the second quarter of the first half of 2025/26 also indicate an operational recovery. Ubisoft owes this upturn primarily to Assassin’s Creed Shadows and other titles in the series. The stock market price is stabilizing: the share is currently up around ten percent compared to November 13, when trading was suspended.
Europe’s largest employer in the video game segment is still far from healthy, but thanks to the Tencent deal, it can now work on its recovery in peace.
