Ubisoft (UBSFY)
OTHER OTC:UBSFY
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UBISOFT Entertainment
(OTC:UBSFY)
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Rating:44Neutral
Price Target:
$1.00
▼(-35.06% Downside)
Action:Reiterated
Date:05/22/26
The score is held down primarily by deteriorating profitability and declining revenue, along with leverage and volatile cash-flow history. Technicals also reflect a broader downtrend. The earnings call adds modest support from improved liquidity and cost actions, but near-term guidance remains weak, and valuation is constrained by loss-making results.
Positive Factors
Improved balance sheet & liquidity
Net-debt fell materially to €187m while cash sits near €1.35bn, providing multi-quarter liquidity. This stronger balance sheet reduces near-term rollover risk, funds the transformation and gives management optionality to invest in pipeline or weather a light release slate until FY28–29 recovery.
Negative Factors
Declining net bookings & revenue
Net bookings declined 17% in FY26 and Q4 saw a sharper drop versus the prior-year blockbuster quarter, reflecting a deliberately lighter release slate and cancellations/delays. A smaller, uneven release cadence reduces structural revenue visibility and limits reinvestment capacity until the pipeline reaccelerates.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved balance sheet & liquidity
Net-debt fell materially to €187m while cash sits near €1.35bn, providing multi-quarter liquidity. This stronger balance sheet reduces near-term rollover risk, funds the transformation and gives management optionality to invest in pipeline or weather a light release slate until FY28–29 recovery.
Read all positive factors
UBISOFT Entertainment (UBSFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$833.91M
Dividend YieldN/A
Average Volume (3M)109.84K
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth-20.34%
EPS Growth-827.83%
CountryUS
Employees18,666
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-2.26
Shares Outstanding679,726,260
10 Day Avg. Volume172,482
30 Day Avg. Volume109,837
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.33
Price to Sales (P/S)0.34
P/FCF Ratio1.94
Enterprise Value/Market Cap2.83
Enterprise Value/Revenue1.69
Enterprise Value/Gross Profit-6.32
Enterprise Value/Ebitda-2.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.33
Revenue Forecast (FY)$1.74B
UBISOFT Entertainment Business Overview & Revenue Model
Company Description
Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, incl...
How the Company Makes Money
Ubisoft primarily makes money by developing and publishing video games and monetizing them through multiple channels. A major revenue stream is the sale of full games (physical and digital) on platforms such as PlayStation, Xbox, Nintendo, and PC ...
UBISOFT Entertainment Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The call communicates a balanced story: management delivered tangible financial and operational improvements (notably large debt reduction, comfortable cash position, cost savings, strong live-game engagement and an EBIT roughly in line with targets) but also outlined significant near-term pain (17% full-year bookings decline, a 54% Q4 YoY decline, a EUR 650 million accelerated depreciation hit, continued free cash flow consumption in FY27 and sizable upcoming debt maturities). The narrative is focused on a deliberate short-term reset to enable a stronger, cash-generative pipeline in FY28–FY29, which supports a cautious and constructive medium-term view while acknowledging real short-term challenges.Positive Updates
Transformation and New Operating Model
Company initiated an ambitious 2-year transformation to refocus portfolio, implement a new operating model and rightsized organization aimed at improving long-term free cash flow and quality of releases.
Negative Updates
Decline in Full-Year Net Bookings
Full-year net bookings were EUR 1.525 billion, down 17% year-on-year, primarily due to a softer new release schedule.
Read all updates
Q4-2026 Updates
Positive
Negative
Transformation and New Operating Model
Company initiated an ambitious 2-year transformation to refocus portfolio, implement a new operating model and rightsized organization aimed at improving long-term free cash flow and quality of releases.
Read all positive updates
Company Guidance
Management's guidance for the transformation period centered on a light FY27 release slate and a near-term cash consumption profile: FY26 net bookings were €1.525bn (down 17% YoY) with Q4 net bookings €415m (€25m above guidance, down 54% YoY) and back-catalog Q4 net bookings €243m; FY26 non‑IFRS EBIT was €1.040bn, free cash flow consumption was €443m (within the €400–500m target), R&D P&L was €1.086bn (including €650m accelerated depreciation) while cash R&D fell €151m (‑12%), total cash R&D reduction of €156m of capitalized spend, total digital net bookings €390m, PRI €301m, mobile €29m, MAUs 36m and 129m unique users; balance sheet metrics include non‑IFRS net debt €187m (vs €885m a year earlier) and cash ≈€1.35bn, headcount 16,590 (‑~1,200), fixed costs ~€1.435bn (down €118m or 8%, cumulative savings since FY23 ~€325m); looking to FY27 management expects net bookings down low single digits, a high single‑digit negative non‑IFRS operating margin, free cash flow consumption of ≤€500m (Q1 ≈€250m), majority of restructuring cash charges (≈50–60% of the €118m program, ~€59–71m) occurring in FY27, stock‑based comp ≈€25m, non‑IFRS net financial charge ≈€38m, diluted shares ≈133m, and a return to positive non‑IFRS EBIT and free cash flow in FY28 with robust free cash flow in FY29 and positive cumulative free cash flow over FY27–FY29.UBISOFT Entertainment Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
46
Neutral
Cash Flow
44
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.41B | 1.90B | 2.30B | 1.81B | 2.13B |
| Gross Profit | -361.31M | 1.70B | 2.10B | 1.60B | 1.86B |
| EBITDA | 382.05M | 670.30M | 1.11B | 719.30M | 799.90M |
| Net Income | -1.49B | -159.00M | 157.80M | -494.20M | 79.10M |
Balance Sheet | |||||
| Total Assets | 3.95B | 4.70B | 5.12B | 4.67B | 4.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.35B | 990.00M | 1.21B | 1.49B | 1.45B |
| Total Debt | 1.80B | 2.17B | 2.51B | 2.46B | 2.07B |
| Total Liabilities | 2.56B | 2.90B | 3.24B | 3.19B | 3.15B |
| Stockholders Equity | 1.47B | 1.79B | 1.88B | 1.48B | 1.81B |
Cash Flow | |||||
| Free Cash Flow | 247.25M | 126.90M | -465.60M | -425.80M | -282.20M |
| Operating Cash Flow | 282.28M | 168.80M | 537.60M | -354.20M | -191.60M |
| Investing Cash Flow | -687.68M | -49.00M | -1.01B | -107.90M | -152.00M |
| Financing Cash Flow | 772.15M | -300.40M | 204.70M | 588.60M | 139.90M |
UBISOFT Entertainment Technical Analysis
Positive
1.54
Price Trends
1.06
Positive
1.10
Positive
1.49
Negative
Market Momentum
0.03
Positive
58.07
Neutral
28.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UBSFY, the sentiment is Positive. The current price of 1.54 is above the 20-day moving average (MA) of 1.17, above the 50-day MA of 1.06, and above the 200-day MA of 1.49, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 58.07 is Neutral, neither overbought nor oversold. The STOCH value of 28.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UBSFY.
UBISOFT Entertainment Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $50.39B | 57.46 | 14.19% | 0.37% | 1.72% | -17.04% | |
65 Neutral | $7.34B | 78.26 | 8.04% | ― | 11.20% | ― | |
63 Neutral | $42.14B | -153.77 | -8.57% | ― | 18.16% | 93.64% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $34.48B | -40.91 | -276.20% | ― | 38.10% | -16.91% | |
52 Neutral | $1.30B | -4.57 | 113.59% | 9.98% | 7.30% | -307.46% | |
44 Neutral | $833.91M | ― | -4.39% | ― | -20.34% | -827.83% |
* Communication Services Sector Average
UBSFY
UBISOFT Entertainment
1.23
-0.95
-43.71%
EA
Electronic Arts
200.97
54.71
37.40%
TTWO
Take-Two
227.55
1.28
0.57%
BILI
Bilibili
17.23
-1.70
-9.00%
PLTK
Playtika Holding
3.42
-0.76
-18.14%
RBLX
Roblox
48.16
-37.27
-43.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.