Ubisoft Entertainment FY2026 H1 Earnings Release

H1 FY26 EARNINGS
November 21 , 2025

DISCLAIMER
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This slide show may contain estimated financial data, information on future projects and transactions and future
financial results/performance . Such forward -looking data are provided for information purposes only . They are
subject to market risks and uncertainties and may vary significantly compared with the actual results that will be
published . The estimated financial data have not been reviewed by the Statutory Auditors . (Additional
information is specified in the most recent Ubisoft Universal Registration Document filed on June 19 , 2025 with the
French Financial Markets Authority (l’Autorité des marchés financiers)) .
D I S C L A I M E R
Yves Guillemot, Chairman and Chief Executive Officer
Frédérick Duguet, Chief Financial Officer

AGENDA
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H 1 F Y 2 6 P E R F O R M A N C E
F Y 2 6 T A R G E T S

FY18
NET
BOOKINGS
€686m , +30% YoY, 89 % of total net bookings
€741m , +50% YoY , 96 % of net bookings
6 -MONTH S
€772m , +20 % YoY
BACK
CATALOG
DIGITAL
REVENUES
PLAYER
RECURRING
IN V ES TME N T
€475m , +52% YoY, 62 % of total net bookings )
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H1 FY26 NET BOOKINGS

Q 2 net bookings exceeded expectations
▪ Net bookings of € 491 million, above guidance and up 39 % YoY
▪ Outperformance driven by stronger -than -expected partnerships, demonstrating
the power and attractiveness of the Group’s portfolio as well as meaningful
contribution from live TV and animated series
▪ Excluding partnerships, back -catalog was robust and in line with expectations, but
marked by contrasted dynamics
▪ AC franchise overperformed, confirming its positive momentum
▪ R6SX : Softer trends reflecting a phase of evolution for the game in a highly competitive FPS
environment
▪ TD 2: Continued strong momentum with H1 bookings exceeding last year’s annual bookings
▪ AFOP : Strong performance on the back of 3rd person announcement and From The Ashes
expansion reveal
H 1 metrics
▪ Overall, net bookings for the semester stood at € 772 million, up 20 % year -on -year
▪ 34 m MAUs and 88 m Unique Active Users in H 1, slightly down when excluding XDefiant
KEY HIGHLIGHTS –
Q2 & H1 PERFORMANCE
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KEY HIGHLIGHTS –
CONTINUED PROGRESS ON GROUP TRANSFORMATION
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▪ Tencent’s € 1.16 Bn investment in Vantage Studios on track to close in the coming
days ; all conditions precedent have been satisfied
• The transaction will deleverage the Group . It will also enable the acceleration of
Vantage Studios’ IP growth, support selected investment opportunities across the
rest of the company, and facilitate ongoing reorganization efforts
▪ Design of Group’s new operating model, built around Creative Houses, to be
finalized by year end with full details unveiled in January 2026
▪ Net debt position of € 1.15 bn at end September, with a cash position of € 668 m ; the
€ 1.16 bn proceeds from the Tencent transaction will significantly deleverage the
Group, notably enabling early repayment of the € 286 m Term Loan and Schuldschein
loans
▪ Cost reduction program on track , targeting at least € 100 m in additional fixed cost
reductions by FY 2026 -27 vs . FY 2024 -25 , supported by targeted restructurings and
continued discipline in recruitment

H1 FY26: NON – IFRS P&L
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in € millions, except for per share data H1 2025 -26 H1 2024 -25
% %
IFRS15 Sales 657.8 671.9
Restatements related to IFRS15 standard 114.6 (29.7)
Net bookings 772.4 642.3
Gross profit based on net bookings 692.2 89.6 552.0 85.9
Non -IFRS R&D expenses (411.6) (53.3 ) (503.5) (78.4 )
Non -IFRS Selling expenses (129.1) (16.7) (178.4) (27.8 )
Non -IFRS G&A expenses (124.5) (16.1) (122.2) (19.0 )
Non -IFRS SG&A expenses (253.6) (32.8) (300.6) (46.8 )
Non IFRS current operating income 27.1 (3.5) (252.1) (39.3)
Net Financial Income (30.4 ) (22.9)
Income Tax (33.7) 67.1
Non IFRS consolidated net income (37.1) (207.9)
Net income attributable to owners of the parent company (37.1) (208.1)
Net income attributable to non -controlling interests 0.0 0.2
Non IFRS Diluted earnings per share attributable to parent company (0.28) (1.64)
Number of shares fully diluted 131,176 127,027
• SG&A down 47.0 M€
◦ Variable marketing expenses: 81 M€ or 10.5% of net bookings (128 M€ & 19.9% in H1 FY25)
◦ Structure costs: 173 M€ or 22.3% of net bookings (173 M€ & 26.9% in H1 FY25)

H1 FY26: R&D
*mostly Post -Launch content
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In € millions H1 2025 -26 H1 2024 -25
Depreciation of in -house software -related production 200.6 275.7
Depreciation of external software -related production and licenses 5.4 8.8
Royalties 11.5 9.9
Non Capitalized R&D & others * 194.1 209.1
Total R&D P&L 411.6 503.5
Capitalized in-house software -related production 331.1 386.7
Capitalized external software -related production and licenses 6.4 7,1 (excluding future commitments )
Royalties 11.5 9.9
Non Capitalized R&D & others * 193.8 208.8
Total R&D Cash 542.8 612.5

H1 FY26 : CASH FLOWS & CLOSING CASH POSITION
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In € millions H1 2025 -26 H1 2024 -25
Non -IFRS Opening cash position (885.1) (985.1)
Cash flows from operation (138.9 ) (290.9)
Change in WCR (101.5 ) 184.9
Cash flows from operating activities (240.3) (106.1)
Net investment in capital assets (10.3) (20.2)
Net free cash flow (250.7) (126.3)
Net acquisitions/disposals 0.0 0.0
Proceeds from issue of capital and other financial flows 12.8 33.3
Net acquisitions/disposals of own shares 0.0 0.0
Equity component (OCEANE) (12.5) (13.0)
Effect of exchange rate fluctuations (13.3) (11.0)
Decrease/(increase) in net debt (263.8) (117.0)
Closing cash position (1,148.8) (1,102.2)

COST REDUCTION PLAN WELL ON TRACK
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*Includes P&L structure costs + fixed portion of COGS (customer service and supply chain) + cash R&D (excluding performance -base d
royalties) and excludes all profitability bonuses
**As of September 30, 2025
Total headcount stood at 17,097 representing a decrease of around 1,500
employees over the past 12 months and about 700 since the end of March
2025
Fixed cost base standing at around € 701 million at end H1FY26, representing
a reduction of around €69 million year -on -year, including a favorable
foreign exchange impact
UPDATE **
€200m reduction in the fixed cost base* by FY26 compared to FY23
achieved in FY25, ahead of schedule and slightly above the objective
INITIAL
PLAN
At least an additional €100m reduction in fixed costs base by FY27
compared to FY25 NEW PLAN

IFRS UPDATE: FY25 RESTATEMENT & IMPACT ON
H1 FY26 ACCOUNTS
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▪ Following its auditors’ position as part of its review of the H 1 financial accounts,
the Company has reviewed its analysis relating to the IFRS 15 revenue
recognition of a partnership in FY 2024 -25 that has led it to restate its FY 2024 –
25 accounts as per IAS 8. Utilization -based payment schedules lead this
partnership to be recognized under IFRS 15 as revenues over utilization .
▪ This position now applied by the Group going forward has also resulted in a
partnership signed in Q 2 FY 2025 -26 not being recognized in IFRS 15 revenues .
▪ This results in the Company not complying with its leverage covenant ratio
under certain existing financing agreements at September 30 , 2025 . However,
this is being addressed by the actions relating to the concerned debt
instruments, notably the early repayment of the Term Loan and Schuldschein
loans which have an outstanding principal amount of c.€ 286 m .
▪ This IFRS accounting restatement has no impact on the Group’s non -IFRS
indicators .

AGENDA
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H 1 F Y 2 6 P E R F O R M A N C E
F Y 2 6 T A R G E T S

OUTLOOK – MAINTAINED FY TARGETS
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• Stable N et Bookings year -on -year
• Approximately break -even N on -IFRS Operating Income
• Negative Free Cash Flow
• Following the closing of the Tencent transaction, the group expects
to maintain a consolidated net debt position of around zero
• H2 line -up:
FY26 e
• Net bookings: around €305m Q3
FY26 e
Beyond
FY26
The Group expects to return to positive non -IFRS EBIT and Free Cash Flow generation
in FY27 and to see significant content coming from its largest brands in FY27 and FY28
Unannounced
title

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APPENDIX

H1 FY26: IFRS / NON – IFRS RECONCILIATION
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In € millions
except for per share data
H1 202 5-26 H1 2024 -25
IFRS Adjustments Non -IFRS IFRS Adjustments Non -IFRS
IFRS 15 Sales 657.8 671.9
Restatements related to IFRS 15 114.6 (29.7)
Net bookings 114.6 772.4 642.3
Total Operating expenses (778.0) 32.7 (745.3) (943.7) 49.3 (894.4)
Financing component 0.0 0.0 0.0 6.2 (6.2) 0.0
Stock -based compensation (23.4) 23.4 0.0 (35.4) 35.4 0.0
Non current operating income & expense (9.2) 9.2 0.0 (20.2) 20.2 0.0
Operating Income (120.2) 147.2 27.1 (271.8) 19.7 (252.1)
Net Financial income (43.1) 12.6 (30.4) (37.0) 14.0 (22.9)
Income tax 1.8 (35.6) (33.7) 62.2 4.9 67.1
Consolidated Net Income (161.4) 124.3 (37.1) (246.5) 38.6 (207.9)
Net income attributable to owners of the parent
company (161.3) (37.1) (246.7) (208.1)
Net income attributable to non -controlling interests 0.0 0.0 0.2 0.2
Weighted average number of shares in issue 131,176,067 131,176,067 127,026,713 127,026,713
Diluted earnings per share attributable to parent
company (in €) (1.23) 0.95 (0.28) (1.94) 0.30 (1.64)