Want to see UBSFY full AI Analyst Report?
UBISOFT Entertainment (UBSFY) AI Stock Analysis
UBISOFT Entertainment
(Other OTC:UBSFY)
Poor financial performance from earnings volatility and losses is the largest drag, followed by weak valuation; technical momentum and medium-term earnings call outlook provide limited offset.
UBISOFT Entertainment (UBSFY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $604.63M
- Dividend Yield
- ―
- Average Volume (3M)
- 62.01K
- Price to Earnings (P/E)
- -0.4
- Beta (1Y)
- 1.05
- Revenue Growth
- -20.34%
- EPS Growth
- -812.70%
- Country
- US
- Employees
- 16,590
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Electronic Gaming & Multimedia
UBISOFT Entertainment Business Overview & Revenue Model
Company Description
Ubisoft Entertainment SA is a holding company, which engages in the production, publication, and distribution of multimedia, audiovisual, and information technology products. It creates and publishes video games, educational and cultural software, ca...
How the Company Makes Money
Ubisoft primarily makes money by selling video games and related digital content across multiple platforms. A significant portion of its revenue comes from digital sales, including full-game downloads via console and PC storefronts, as well as post-l...
UBISOFT Entertainment Earnings Call Summary
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.
Q4-2026 Updates
Positive Updates
Negative 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
High revenue volatility with sharp declines and large net losses in 2025-2026; moderate balance sheet leverage but inconsistent cash flows create ongoing risks.
Income Statement
25NegativeBalance Sheet
55NeutralCash Flow
35Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39B | 1.41B | 1.90B | 2.30B | 1.81B | 2.13B |
| Gross Profit | -373.66M | -361.31M | 1.70B | 2.10B | 1.60B | 1.86B |
| EBITDA | 300.24M | 382.05M | 670.30M | 1.11B | 719.30M | 800.08M |
| Net Income | -1.49B | -1.49B | -159.00M | 157.80M | -494.20M | 79.10M |
Balance Sheet | ||||||
| Total Assets | 3.95B | 3.95B | 4.70B | 5.12B | 4.67B | 4.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.35B | 1.35B | 990.00M | 1.21B | 1.49B | 1.45B |
| Total Debt | 1.80B | 1.80B | 2.17B | 2.51B | 2.46B | 2.07B |
| Total Liabilities | 2.56B | 2.56B | 2.90B | 3.24B | 3.19B | 3.15B |
| Stockholders Equity | 1.47B | 1.47B | 1.79B | 1.88B | 1.48B | 1.81B |
Cash Flow | ||||||
| Free Cash Flow | 247.16M | 247.25M | 126.90M | -465.60M | -425.80M | -282.20M |
| Operating Cash Flow | 282.27M | 282.28M | 168.80M | 537.60M | -354.20M | -191.60M |
| Investing Cash Flow | -686.86M | -687.68M | -49.00M | -1.01B | -107.90M | -152.00M |
| Financing Cash Flow | 778.47M | 772.15M | -300.40M | 204.70M | 588.60M | 139.90M |
UBISOFT Entertainment Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UBSFY, the sentiment is Negative. The current price of 0.92 is below the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.15, and below the 200-day MA of 1.13, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 24.83 is Positive, neither overbought nor oversold. The STOCH value of 3.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UBSFY.
UBISOFT Entertainment Peers Comparison
Overall Rating
NTES83.4Outperform
BILI68Neutral
TTWO54Neutral
RBLX50Neutral- UBSFY48Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| NTES | 83Outperform | $71.72B | 14.79 | 20.04% | 2.58% | 9.83% | -2.22% |
| BILI | 68Neutral | $5.37B | 23.41 | 9.84% | ― | 10.34% | 620.66% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| TTWO | 54Neutral | $35.56B | -109.92 | -9.12% | ― | 15.30% | 92.77% |
| RBLX | 50Neutral | $30.77B | -31.14 | -397.76% | ― | 32.13% | 4.15% |
| UBSFY | 48Neutral | $639.37M | -0.37 | -97.34% | ― | -20.34% | -812.70% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| UBSFY | Ubisoft | 0.92 | -0.68 | -42.57% | |
| NTES | Netease | 113.64 | -24.14 | -17.52% | |
| TTWO | Take-Two Interactive | 190.17 | -65.48 | -25.61% | |
| BILI | Bilibili | 12.68 | -17.51 | -58.00% | |
| RBLX | Roblox Corp. | 42.99 | -64.67 | -60.07% |
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.
Date of analysis: Aug 22, 2026