Ubisoft Entertainment (UBI) Q1 26/27 earnings summary

Executive summary

• Q1 net bookings reached €256 million, down 9% year-over-year but slightly above guidance, driven by a record quarter for Invincible: Guarding the Globe while the rest of the catalog performed as expected.

• Assassin's Creed Black Flag Resynced launched in July, selling 3.5 million copies in 14 days, exceeding annual expectations, and becoming the highest-rated Assassin's Creed title since 2013.

• Transformation initiatives advanced, including targeted right-sizing, resource reallocation, and leadership changes to focus on high-potential opportunities.

Financial highlights

• IFRS 15 sales for Q1 were €268.2 million, down 13.7% year-over-year; net bookings were €256 million, down 9% year-over-year but above the €250 million target.

• Back catalog bookings were €220 million, down 15% year-over-year; digital net bookings were €206 million, down 18% year-over-year.

• Digital net bookings accounted for 80.6% of total net bookings; mobile net bookings rose to 19% of total, up from 10% last year, led by Invincible: Guarding the Globe.

• PRI (Player Recurring Investment) was €151 million, stable year-over-year, representing 59% of total net bookings.

Outlook and guidance

• Fiscal 2027 guidance confirmed: net bookings expected to decline by a high single-digit percentage, high single-digit negative non-IFRS operating margin, and free cash flow consumption capped at €500 million.

• Q2 net bookings expected around €370 million, with limited partnership contributions compared to last year.

• Beyond fiscal 2027, a rebound is expected with positive free cash flow and non-IFRS EBIT in fiscal 2028, and robust free cash flow in fiscal 2029.