Press Release: Nacon: Sales for the 2nd Quarter 2026-2027 at €40.7m - Continued Implementation of the Redeployment Plan

Nacon’s Q2 sales fell 13% amid ongoing court-supervised restructuring and major staff cuts.

What the company is saying

Nacon reports second quarter 2026-2027 sales of €40.7 million, a 13.0% year-on-year decline, and frames this drop as a result of an exceptionally strong prior-year release schedule. The company highlights solid Accessories segment growth, with Q2 sales up 28.7% to €11.6 million, attributing this to US market recovery and new RIG headset launches. Management emphasizes ongoing judicial reorganisation proceedings, with the observation period extended to March 2, 2027, and preparation of a reorganisation plan including liability restructuring to be submitted to the Lille Métropole Commercial Court. The announcement details aggressive cost-cutting: headcount dropped from 1,125 to 814 in six months, including a 28% reduction at headquarters, and three development studios were closed with two others restructured. The company spotlights upcoming product launches—MXGP 26, Hunting Simulator 3, Edge of Memories, and the Revolution 5 Unlimited controller—as near-term sales drivers. The tone is factual and measured, with no attempt to minimize the seriousness of the sales decline or the restructuring process.

What the data suggests

The disclosed figures show deteriorating core performance: Q2 sales fell 13.0% to €40.7 million, and first-half sales dropped 6.1% to €73.3 million. The Games segment, which remains the largest revenue contributor, saw Q2 sales plunge 24.4% to €27.8 million, with new catalogue sales down 40.0% to €13.7 million, only partially offset by a 0.9% rise in back catalogue sales to €14.1 million. Accessories sales grew 28.7% in Q2 to €11.6 million, and Other (mobile and audio) rose 30.8% to €1.3 million, but these segments are not large enough to offset the decline in games. Staff reductions were severe, with total headcount cut by 311 in six months, and headquarters staff down 28%. The company’s IFRS revenue for 2025/2026 was €160.8 million, indicating a shrinking run-rate. The announcement provides no profitability, cash flow, or debt figures, but the ongoing judicial reorganisation and liability restructuring signal acute financial distress. The company attributes the sales decline to a tough comparison base, but the scale of the drop and the need for court-supervised restructuring point to deeper structural issues.

Analysis

The announcement is factual and restrained, with no evidence of exaggerated or promotional language. The majority of claims are realised and supported by detailed sales figures, segment breakdowns, and operational updates. The only forward-looking statements concern the preparation and future submission of a reorganisation plan and upcoming product launches, but these are presented as procedural or scheduled events rather than aspirational targets. There is no attempt to frame the deteriorating sales or ongoing judicial reorganisation in a positive light. The capital intensity flag is set because the company is undergoing a court-supervised restructuring of its liabilities, a process that typically involves significant financial commitments and uncertainty about future earnings. However, the tone remains neutral and the narrative does not overstate progress or prospects.

Risk flags

• ●The company is under judicial reorganisation, with the observation period extended to March 2027, indicating ongoing financial distress and uncertainty over its ability to meet obligations. This process introduces significant risk of creditor-driven outcomes, including possible asset sales or changes in control.
• ●Sales in the core Games segment declined sharply, with catalogue sales down 40.0% and total Games revenue down 24.4% in Q2, raising questions about the sustainability of the business model and the company's ability to generate future cash flow.
• ●The restructuring plan, including liability restructuring, has not yet been submitted or approved by the court, so the path to financial stability remains uncertain and subject to judicial and creditor approval.
• ●Aggressive staff and studio cuts—headcount down 28% at headquarters and three studios closed—may impair the company’s ability to deliver future products or maintain operational quality, especially if further reductions are required.
• ●No profitability, cash flow, or debt figures are disclosed, making it impossible to assess the sufficiency of current actions or the risk of insolvency beyond the fact of court supervision.

Bottom line

Nacon’s Q2 results confirm a sharp sales decline in its core games business, with total sales down 13.0% and catalogue sales plunging 40.0%, despite strong Accessories growth. The company is in the midst of a court-supervised restructuring, with staff cut by over 300 and three studios closed, but the restructuring plan is not yet finalized or approved. The absence of profitability or cash flow data, combined with the need for judicial oversight, signals a high-risk situation with no clear evidence of a turnaround. Upcoming product launches may provide a short-term sales boost, but the underlying business remains under severe pressure. Investors face material uncertainty until the court rules on the restructuring plan and the company demonstrates sustained improvement in its core business. The most important takeaway is that Nacon’s financial and operational risks remain elevated, and recovery is not assured.

Announcement summary

(LSE:0A9N) Nacon reported sales for the 2nd quarter of 2026-2027 at €40.7 million, compared to €46.8 million in the same period of the previous year, representing a decrease of 13.0%. The company is undergoing judicial reorganisation proceedings initiated by a judgment of the Lille Métropole Commercial Court dated March 2, 2026, with the observation period extended until March 2, 2027. Nacon is preparing a reorganisation plan, including a restructuring of its liabilities, to be submitted to the court. First quarter sales (April-June) were €32.6 million, up 4.1% from €31.3 million in 2025-26. Second quarter sales (July-September) were €40.7 million, down 13.0% from €46.8 million. Games segment sales in Q2 were €27.8 million, down 24.4% from €36.7 million. Catalogue sales were €13.7 million, down 40.0% from €22.8 million, while back catalogue sales were €14.1 million, up 0.9% from €14.0 million. Accessories sales in Q2 were €11.6 million, up 28.7% from €9.0 million. Other sales (mobile and audio) were €1.3 million, up 30.8% from €1.0 million. For the first half (April-September), total sales were €73.3 million, down 6.1% from €78.1 million. First half games sales were €50.1 million, down 11.1% from €56.4 million. Catalogue sales for the half were €17.5 million, down 38.3% from €28.4 million, while back catalogue sales were €32.6 million, up 16.4% from €28.0 million. Accessories sales for the half were €20.8 million, up 4.6% from €19.8 million. Other sales for the half were €2.4 million, up 29.8% from €1.8 million. The Mound™ and Tour de France 26™ were among the largest launches, but the prior year’s high base included Hell is Us™, Rugby League™, and RoboCop: Rogue City – Unfinished Business™. The Accessories segment’s growth was attributed to the recovery of the US market and the success of new RIG headset ranges. Upcoming releases in Q3 include MXGP™ 26 (released October 1), Hunting Simulator 3 (scheduled for October 29), and Edge of Memories™ (scheduled for December 3). Accessories sales will be supported by new RIG headsets and the October release of the Revolution 5 Unlimited premium controller, which features an integrated control screen and is officially licensed for Playstation 5. Nacon has closed three development studios and restructured two others, with staff numbers reduced from 1,125 as of March 31, 2026, to 814 as of September 30, 2026, including a 28% decrease at headquarters. Marketing expenses have been optimized and adapted to the new group scope. The company published the main terms and deadlines of its financial restructuring in a press release dated September 22, 2026. Nacon’s IFRS revenue for 2025/2026 was €160.8 million. The company has more than 800 employees, 23 subsidiaries, and a distribution network in 100 countries. The next event is the release of first-half 2026-2027 results on November 30, 2026, after market close.

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