French publisher and developer Don’t Nod has warned that there is “material uncertainty” over its ability to continue operating beyond January 31, 2027, unless it secures further external financing. The warning was issued alongside the company’s first-half 2026 results and further detail on a restructuring plan first announced on September 1.

Financial results and liquidity position

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. By the end of July 2026, gross cash had declined further to $9.3 million (€8 million).

Total operating revenue, which includes capitalized production costs, fell 56 percent year over year to $7.1 million (€6.1 million), down from $16.2 million (€13.9 million). Revenue alone, covering sales and development work, fell 14 percent to $7.1 million (€6.1 million) from $8.1 million (€7 million).

Sales declined to $4.1 million (€3.5 million), while development revenue rose 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.

Project funding and restructuring

Don’t Nod 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.

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.”

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.” He added: “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.”

Earlier financial warnings

This is not the first warning over Don’t Nod’s finances this year. GamesIndustry.biz reported in June that the company’s auditors warned it could run out of cash by November 2026 without further financing. That warning came 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.

Next steps

Don’t Nod has not announced a completed financing arrangement. The company’s stated liquidity runway extends to January 31, 2027, subject to securing additional external funding. Employee consultation and union negotiations over the proposed reduction of up to 90 positions in France are now under way. Any decision on further financing or the final scope of the restructuring has not been announced.