UBISOFT Entertainment (UBSFY) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: N/A
• Average Volume (3M): 6.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -18.50%
• EPS Growth: -205.73%
• Country: US
• Employees: 18,666
• Sector: Communication Services
• Sector Strength: 92
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.24
• Shares Outstanding: 662,993,200
• 10 Day Avg. Volume: 593
• 30 Day Avg. Volume: 6,612
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 31.41
• 1Y Price Target: $2.00
• Price Target Upside: -9.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $2.00 ▼(-9.91% Downside)

UBISOFT Entertainment's overall stock score is primarily impacted by its challenging financial performance, with declining revenues and profitability. Technical analysis provides some positive short-term signals, but the negative valuation due to unprofitability weighs heavily on the score. The absence of earnings call data and corporate events leaves these areas unaddressed.

UBISOFT Entertainment Business Overview & Revenue Model

Company Description

UBISOFT Entertainment (UBSFY) is a leading global video game publisher and developer headquartered in France. Established in 1986, the company specializes in creating engaging and innovative gaming experiences across various platforms, including PC, consoles, and mobile devices. Ubisoft is known for its popular franchises such as Assassin's Creed, Far Cry, and Just Dance, catering to a diverse audience and covering multiple genres. Additionally, Ubisoft invests in emerging technologies and trends in the gaming industry, including virtual reality and cloud gaming, to enhance player experiences and expand its market reach.

How the Company Makes Money

Ubisoft generates revenue through multiple key streams, primarily focusing on game sales, digital downloads, and in-game purchases. The company earns income from both physical and digital copies of its games, with a significant shift towards digital distribution in recent years, which offers higher margins. In-game purchases, including downloadable content (DLC), season passes, and microtransactions, provide ongoing revenue from existing titles. Ubisoft also earns licensing fees and royalties from merchandise related to its franchises. Additionally, strategic partnerships with platforms like PlayStation, Xbox, and various online marketplaces enhance its distribution reach. The company invests in live services, creating ongoing engagement with players and generating recurring revenue through subscriptions and seasonal content updates.

UBISOFT Entertainment Financial Statement Overview

Summary

UBISOFT Entertainment faces financial headwinds, with declining revenues and profitability impacting overall performance. High leverage and negative cash flow growth present risks, while strong gross margins offer some resilience. The company needs to address operational inefficiencies and improve cash generation to enhance financial stability.

Income Statement

UBISOFT Entertainment's income statement shows a challenging financial performance. The company experienced a significant decline in revenue growth, with a negative growth rate of -11.12% in the latest period. Gross profit margins remain strong at 89.33%, indicating efficient cost management, but the net profit margin is negative at -8.37%, reflecting substantial losses. EBIT and EBITDA margins have also deteriorated, highlighting operational challenges.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is relatively high at 1.21, indicating significant leverage which could pose risks in a volatile market. Return on equity is negative, suggesting inefficiencies in generating returns for shareholders. However, the equity ratio stands at a reasonable level, providing some stability.

Cash Flow

Cash flow analysis reveals concerning trends. Free cash flow growth is significantly negative, and the operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash despite net losses, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90B	1.90B	2.30B	1.81B	2.13B	2.22B
Gross Profit	1.70B	1.70B	2.10B	1.60B	1.86B	1.90B
EBITDA	90.70M	670.30M	1.11B	719.30M	898.40M	915.00M
Net Income	-159.00M	-159.00M	157.80M	-494.20M	79.10M	103.10M
Balance Sheet
Total Assets	4.70B	4.70B	5.12B	4.67B	4.96B	4.88B
Cash, Cash Equivalents and Short-Term Investments	990.00M	990.00M	1.21B	1.49B	1.45B	1.87B
Total Debt	2.17B	2.17B	2.51B	2.46B	2.07B	2.09B
Total Liabilities	2.90B	2.90B	3.24B	3.19B	3.15B	3.22B
Stockholders Equity	1.79B	1.79B	1.88B	1.48B	1.81B	1.66B
Cash Flow
Free Cash Flow	967.00M	126.90M	-465.60M	-425.80M	-282.20M	107.90M
Operating Cash Flow	1.01B	168.80M	537.60M	-354.20M	-191.60M	957.90M
Investing Cash Flow	-846.00M	-49.00M	-1.01B	-107.90M	-152.00M	-868.20M
Financing Cash Flow	-343.50M	-300.40M	204.70M	588.60M	139.90M	463.80M

UBISOFT Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.22 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 2.16, and below the 200-day MA of 2.39, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 41.32 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EA	77 Outperform	$43.09B	43.24	15.46%	0.44%	2.68%	-6.15%
RBLX	72 Outperform	$86.49B	―	-401.21%	―	27.39%	16.59%
BILI	68 Neutral	$9.41B	309.23	1.58%	―	22.89%	―
Sector *	60 Neutral	$44.05B	4.50	-12.81%	4.08%	1.86%	-43.08%
PLTK	59 Neutral	$1.38B	15.97	-220.61%	10.84%	4.98%	-60.29%
TTWO	55 Neutral	$42.58B	―	-89.29%	―	7.33%	-7.46%
UBSFY	49 Neutral	$1.43B	―	-8.84%	―	-18.50%	-205.73%