GoKawiilUbisoft shares plunged 19% on Thursday after the Assassin's Creed maker warned it expects further losses this year.
The French game maker posted an operating loss of 1.3 billion euros ($1.5 billion) in its 2026 financial year. Net bookings came in at 1.5 billion euros, a drop of 17.4% from the previous year.
Ubisoft said it expects full-year net bookings to decline by a high single-digit percentage with a single-digit operating loss margin.
The stock has fallen around 38% in the year-to-date.
The move comes after years of stock price declines for the game developer following the Covid-19 pandemic, delays to major releases and financial struggles. Shares in the company fell 34% in January after the company announced a major restructuring.
The upcoming financial year is "expected to represent a low point in our free cash flow trajectory along with a softer release slate and restructuring costs," CEO and Cofounder Yves Guillemot said in a Wednesday statement.
"This two-year transformation comes with difficult decisions and a disappointing short-term financial performance, but I firmly believe that, together, these actions are better positioning Ubisoft to deliver sustainable free cash flow over time," he added.