Ubisoft beats Q1 bookings guidance as Black Flag remake exceeds annual expectations

Ubisoft reported first-quarter net bookings of €256M, slightly above guidance, as the Assassin's Creed Black Flag remake exceeded annual expectations within two weeks of launch.

"This launch illustrates the enduring appeal of the Assassin's Creed brand, as well as the early benefits of our ongoing transformation," Yves Guillemot, co-founder and chief executive officer at Ubisoft, said.

Net bookings fell 9.2% year-on-year to €255.8M in the three months ended June 30, compared with €281.6M a year earlier, reflecting a high comparison base that included significant bookings from Assassin's Creed Shadows following its March 2025 release. Digital net bookings totaled €206.2M, down 17.6%, representing 80.6% of total net bookings. Player recurring investment bookings reached €151.3M, down 0.4%, accounting for 59.1% of the total.

The company confirmed its full-year outlook, expecting net bookings to decline by a high single-digit percentage and free cash flow consumption of no more than €500M. Second-quarter net bookings are forecast at around €370M. The confirmed lineup includes Rayman Legends Retold, launching Oct. 1, and Just Dance Decades of Hits, releasing Oct. 13.

Assassin's Creed Black Flag Resynced, released July 9, achieved an 84 score on OpenCritic and Metacritic, making it the highest-rated Assassin's Creed title since the original Black Flag launched in 2013. The game reached about 105,000 concurrent players on Steam, a record for the franchise on PC, with sales led by the US and Chinese markets.

The company continued executing its transformation plan, appointing former Take-Two Interactive executive Christoph Hartmann as general manager of Creative House 2, where he will oversee franchises including Tom Clancy's The Division, Ghost Recon and Splinter Cell. Ubisoft closed its Winnipeg and Belgrade studios and restructured its Barcelona studio as part of targeted rightsizing.

Chief Financial Officer Frederick Duguet said some major productions had been pushed to fiscal 2028 and fiscal 2029 to improve quality in a more selective market, without providing specific titles. The company expects a significantly stronger pipeline over fiscal 2027-28 and 2028-29, supported by releases across major brands including Assassin's Creed, Far Cry and Ghost Recon, as well as an acceleration of live services driven by Rainbow Six Siege.

On the mobile side, Invincible: Guarding the Globe delivered a record quarter in net bookings more than two years after launch, driven by the March release of the TV series' fourth season and a new in-game character.

The guidance confirmation signals management expects near-term pressure from the transition year, while the delay of major titles to 2028-29 creates a pipeline gap that investors will need to weigh against the early success of the Black Flag remake. The company's next catalyst is the Rayman Legends Retold launch on Oct. 1 and the second-quarter earnings report in October.

This article is for informational purposes only and does not constitute investment advice.