Overview
- Don't Nod disclosed this week, in its first-half 2026 results, that a 'material uncertainty' exists over its ability to continue operating past January 31, 2027 unless it finds new outside funding.
- The company reported a 56% drop in total operating revenue to €6.1 million and an operating EBITDA loss of €4.3 million for H1 2026, a sharp deterioration from a year earlier.
- By the end of July 2026 Don't Nod had about €8 million in cash, a level company filings and auditors say gives it only a few months of runway without fresh capital.
- The board has approved a restructuring to focus French operations on a single production line and started talks with employee representatives about measures that could cut up to 90 jobs.
- Don't Nod says two recent projects, Aphelion and an internal title codenamed P14, failed to meet funding-capacity criteria and the studio faces a tight external financing market after its largest shareholder declined a short-term capital increase.