Don’t Nod has warned there is “material uncertainty” over its ability to continue operating beyond January 31, 2027, unless it secures further external financing.
The warning came alongside the French publisher and developer’s first-half 2026 results and further detail on a restructuring plan first announced on September 1.
Gross cash fell from $17.9 million (€15.4 million) at the end of 2025 to $11.4 million (€9.8 million) at the end of June 2026, and $9.3 million (€8 million) by the end of July.
Don’t Nod’s total operating revenue, which includes capitalized production costs, fell 56% year-over-year to $7.1 million (€6.1 million), down from $16.2 million (€13.9 million).
The company also said neither its sci-fi adventure game Aphelion nor an unannounced project, internally referred to as P14, met the funding-capacity criteria required, despite what it described as expressions of interest.
Revenue alone, covering sales and development work, fell 14% to $7.1 million (€6.1 million) from $8.1 million (€7 million), with sales declining to $4.1 million (€3.5 million) and development revenue rising to $3 million (€2.6 million), largely driven by a Montreal-based narrative game based on a “major” Netflix property. Operating EBITDA loss widened to $5 million (€4.3 million), from $2.3 million (€2 million) in the same period last year.
As part of its restructuring, Don’t Nod said it is “refocusing its operations in France around a single production line, bringing together the expertise required to launch new projects before the completion of current productions.”
The company said a transformation project under consideration could lead to the reduction of up to 90 positions in France. The board approved the plan on September 4, and initial talks with employee representatives and union negotiations have begun.
CEO Oskar Guilbert said the results “confirm the major challenges facing our industry,” adding: “The measures being considered today are difficult; we fully appreciate what they may mean for the employees affected and are ensuring that the necessary support measures are put in place.”
This isn’t the first warning over Don’t Nod’s finances this year. GamesIndustry.biz reported in June that the company’s auditors had warned it could run out of cash by November 2026 without further financing, after Tencent, Don’t Nod’s largest shareholder, declined a request for a short-term capital increase.
The company also cut an unspecified number of jobs in 2025 following an earlier restructuring around three genres: RPG, narrative adventure, and action adventure.