Don’t Nod has expressed concerns regarding its ability to sustain operations beyond January 31, 2027, unless it secures additional external funding.
This caution was disclosed alongside the release of the French publisher and developer’s financial results for the first half of 2026, along with further information on a restructuring plan initially announced on September 1.
The company’s gross cash reserves decreased from $17.9 million (€15.4 million) at the end of 2025 to $11.4 million (€9.8 million) by the end of June 2026, and further dropped to $9.3 million (€8 million) by the end of July.
Don’t Nod’s total operating revenue, which encompasses capitalized production costs, saw a 56% decline year-over-year to $7.1 million (€6.1 million), down from $16.2 million (€13.9 million).
The company also revealed that neither its sci-fi adventure game Aphelion nor an undisclosed project, internally known as P14, met the funding requirements despite receiving expressions of interest.
Revenue from sales and development work alone decreased by 14% to $7.1 million (€6.1 million) from $8.1 million (€7 million), with sales dropping to $4.1 million (€3.5 million) and development revenue increasing to $3 million (€2.6 million), largely due to a narrative game developed in Montreal based on a “major” Netflix property. Operating EBITDA loss widened to $5 million (€4.3 million), compared to $2.3 million (€2 million) in the same period last year.
As part of its restructuring efforts, Don’t Nod announced plans to streamline its operations in France around a single production line, consolidating the necessary expertise to initiate new projects before current ones are completed.
The company also mentioned a potential transformation project that could result in reducing up to 90 positions in France. The plan was approved by the board on September 4, with initial discussions with employee representatives and union negotiations already underway.
CEO Oskar Guilbert acknowledged the challenges facing the industry, stating, “The proposed measures are demanding; we understand the potential impact on affected employees and are taking steps to provide necessary support.”
This isn’t the first time concerns have been raised about Don’t Nod’s financial situation this year. GamesIndustry.biz reported in June that the company’s auditors cautioned about a possible cash shortfall by November 2026 without additional funding, following Tencent’s refusal of a request for a short-term capital increase, as they are the largest shareholder of Don’t Nod.
In 2025, the company also underwent job cuts after a previous restructuring focusing on three genres: RPG, narrative adventure, and action adventure.