Nacon (NACON) H2 25/26 & Q1 26/27 earnings summary

Executive summary

• Judicial reorganisation proceedings initiated in March 2026, with observation period renewed in July 2026.

• Strategic review led to focus on low-risk projects and cost structure reduction, including workforce adjustments.

• Judicial liquidation of three French entities and reorganisation for two studios; recovery plan to be submitted.

Financial highlights

• FY 2025-2026 sales: €160.8M, down from €167.9M year-over-year.

• Gross margin: €103.7M (64.5% of sales), nearly flat year-over-year.

• Net loss: €366.1M, driven by a €342.9M impairment of fixed assets and goodwill.

• Q1 2026-2027 sales up 4.1% to €32.6M; Games activity up 13.8% to €22.4M.

Outlook and guidance

• Upcoming releases in racing, action/adventure, and simulation genres expected to support growth.

• Back Catalogue sales projected to grow, leveraging prior year releases.

• Accessories segment may return to growth, driven by new products and favorable US market.

• Transformation plan focuses on selective investment, agility, centralized governance, and strong IPs.