Ubisoft delays earnings report after accounting snag tied to Tencent transaction

Ubisoft postponed its expected earnings release after discovering an accounting issue related to revenue recognition from a partnership tied to its soon‑to‑be‑finalized deal with Tencent. The company has now published its first‑half 2025‑26 results and disclosed a restatement of FY2024‑25 accounts.

The restatement affected revenue reported under IFRS15 and meant a partnership signed in Q2 FY2025‑26 was not recognized in revenues. That adjustment pushed Ubisoft out of compliance with a leverage covenant under certain financing agreements as of September 30, 2025. Ubisoft says it is addressing the financing ramifications via actions on the affected debt instruments.

Key points

• Tencent investment: An imminent €1.16 billion (≈$1.36 billion) investment from Tencent is expected to close “in the coming days” and should help Ubisoft pay down outstanding debt.
• Vantage Studios: The partnership will support the launch and acceleration of Vantage Studios, a new Ubisoft subsidiary that will oversee major franchises including Assassin’s Creed, Far Cry and Rainbow Six; Tencent will take a 25% stake in that studio.
• Financials: Ubisoft reported net bookings of €491 million (~$564 million) for the quarter, a 39% year‑on‑year increase. Assassin’s Creed Shadows notably overperformed and is slated for a Switch 2 port next month.
• Market access: With the earnings published, Ubisoft has asked Euronext to resume trading its shares.

Why this matters

Restatements and covenant breaches can rattle investors and complicate financing, but the incoming Tencent funds appear designed to provide immediate balance‑sheet relief. The deal also signals strategic collaboration: Tencent’s minority stake in Vantage Studios ties a major global publisher to one of China’s largest tech companies, with potential implications for funding, distribution and co‑development.

What to watch next

• Official close of the Tencent investment and any final terms or conditions attached to the financing.
• Further details on Vantage Studios’ remit, leadership and how the three flagship IPs will be managed across platforms and markets.
• Potential market and regulatory responses to the funding and the restated financials.

For official investor materials and future updates, check Ubisoft’s investor relations page (opens in a new tab): ubisoft.com – Investors. You can also review market notices on Euronext (opens in a new tab): euronext.com.

Discussion: Does Tencent’s investment and the creation of Vantage Studios reassure you about Ubisoft’s future — or raise concerns about third‑party influence over major franchises?