Nacon: Net Loss of €366.1M in 2025-2026, Weighed Down by a €342.9M Impairment
Nacon announced its annual results for 2025-2026, showing a net loss of €366.1M, largely attributable to an extraordinary impairment of €342.9M following its placement into receivership (March 2, 2026) and the liquidation of three entities. Amidst this significant restructuring, annual revenue fell by 4.3% to €160.8M. However, the first quarter of the 2026-2027 fiscal year shows initial signs of operational stabilization, with a revenue increase of 4.1% to €32.6M.
Extraordinary €342.9M Impairment Turns Small Profit into Massive Loss
Nacon's 2025-2026 fiscal year recorded a net loss of €366.1M, compared to a moderate loss of €1.3M the previous year. This deterioration is due to an impairment of fixed assets (including goodwill of €136.6M) amounting to €342.9M, following the adjustment of enterprise value imposed by ongoing judicial proceedings. Before this extraordinary impairment, the operating result would have resembled that of the previous fiscal year (€1.1M in 2024-2025). Consolidated revenue stands at €160.8M, down 4.3% from €167.9M in 2024-2025. Gross margin remains stable at 64.5% (€103.7M), consistent with the previous year's 64.4%. Operating expenses are maintained at €48.1M versus €48.5M. The tax charge amounts to €11.3M, significantly higher than in 2024-2025 (tax credit of €3.3M), due to the deactivation of carryforward losses in the context of receivership.
Liquidation of Three Entities and Two Studios in Receivership
Since its placement into receivership on March 2, 2026 (observation period renewed on July 1, 2026), Nacon has undertaken a profound strategic review. The Lille Métropole Commercial Court has ordered the judicial liquidation of three French entities. Additionally, two development studios—Cyanide and Kylotonn—were placed into receivership on March 30, 2026. The company continues a rationalization plan that combines workforce adjustments (over 1,000 employees in total) and a significant reduction in cost structure. The goal is to build a more agile and sustainable organization. As of March 31, 2026, net debt stands at €104.2M, while net cash (after deducting bank overdrafts) reaches €10.1M, slightly down from €24.2M on March 31, 2025 (partially offset by operational cash flows). A recovery plan proposing debt restructuring is to be submitted to the Court.
Q1 2026-27: Games Growing, Accessories Still Under Pressure
The first quarter of 2026-2027 presents the initial post-restructuring indicators. Revenue reached €32.6M, up 4.1%, driven by the Games segment at €22.4M (+13.8%). The Back Catalogue records a 32% increase to €18.5M, benefiting from the volume of releases during the previous fiscal year. However, the Catalogue (new games) remains stagnant at €3.9M, reflecting a limited number of releases (Cthulhu: The Cosmic Abyss, Tour de France 26, Pro Cycling Manager 26). The Accessories segment declines by 15.4% to €9.2M, but the drop is less pronounced than in previous quarters, due to better market performance in the U.S. For the 2026-2027 fiscal year, Nacon plans the release of several major titles (MXGP 26, Endurance Motorsport, Edge of Memories, Hunting Simulator 3) and notes an excellent start for the game The Mound (released on July 15). In this context, the company aims for a more selective allocation of investments towards profitable projects, enhanced governance with shared support functions, and secured revenues through strong licenses and IP.
