News from: Galactic order
Ubisoft's stock (ticker: UBI.PA on Euronext Paris) has bottomed out at historic lows following a major company announcement on January 21, 2026.
The shares plunged dramatically on January 22, closing at €3.988 (down -39.83% from the previous close of €6.628), marking one of the worst single-day drops in the company's history since its 1996 listing.
In USD terms (approximate conversion using current EUR/USD rates around ~1.04–1.05, though exact intraday rates vary; OTC ADR equivalent UBSFY traded much lower due to its structure representing 1/5 share):
- Share price ≈ $4.15–$4.20 USD (direct conversion of €3.988).
- OTC ADR (UBSFY) closed around $0.95 (down -26.92% on the day, with intraday lows near $0.90), which aligns with the adjusted per-share value when accounting for the ADR ratio (effective ~$4.75 per full share equivalent, but liquidity is thin and prices can deviate).
Market capitalization dropped to roughly €537 million (~$560–$565 million USD), a tiny fraction of its past peaks (down over 95% from highs in prior years).
This crash stems from Ubisoft's major organizational, operational, and portfolio reset announced on January 21, aimed at reclaiming creative leadership, regaining agility, and restoring sustainable growth—but viewed by investors as a desperate overhaul amid years of struggles rather than a confident turnaround.
Key elements of the reset combining both the strategic overhaul and its severe financial fallout:
- New operating model: Splitting into five genre-focused "Creative Houses"(independent units with full responsibility for brands/genres like Assassin's Creed, Rainbow Six, Far Cry under Vantage Studios, etc.), each led by dedicated teams to sharpen focus and accountability.
- Portfolio refocus:
- Cancellation of six games, including the long-troubled Prince of Persia: The Sands of Time remake (in development for years with multiple restarts/delays) and five others (four unannounced, one mobile).
- Delays to seven additional projects, pushing back releases and revenue.
- Cost-cutting and rightsizing: Acceleration of reductions, including closure of two studios (Halifax, Canada, and Stockholm), further layoffs across the organization, a full return-to-office mandate (5 days/week), and initiatives targeting ~€200 million in savings. This follows prior waves of cuts and studio issues.
- Revised (sharply worse) financial guidance:
- For fiscal 2025-26 (ending March 2026): Net bookings ~€1.5 billion (down from prior ~€1.9 billion expectations), operating loss ~€1 billion (instead of breakeven), including a ~€650 million hit from cancellations/delays.
- Negative free cash flow expected, some net debt persistence.
- Withdrawal of longer-term 2026-27 outlook entirely.
- Broader context: This caps a multi-year decline—disappointing launches, repeated delays (e.g., Star Wars Outlaws underperformed, Skull and Bones flopped), prior Tencent minority investment, layoffs, and a stock that's been in freefall for years.
The market's harsh reaction reflects deep skepticism: the "reset" admits prolonged execution failures, scrapped major investments, and near-term pain (huge losses, no quick rebound signal), rather than inspiring hope.
Trading volume exploded, and the stock hit its lowest levels since the early 2010s.
As of January 22, 2026 (afternoon EST), volatility is extreme—check live sources like Yahoo Finance (UBI.PA or UBSFY), Investing.com, or Euronext for real-time updates, as prices can swing further on ongoing news digestion. This feels like a true bottom for many, but recovery depends on execution in the new structure.
