Unity Software Inc.

"Due to this event, we have evaluated the long-lived assets associated with those businesses and determined that the undiscounted cash flows are less than the carrying value of the asset group. As a result, during the first quarter of 2026 we have recorded $279 million of impairment charges"

"We expect to continue to incur operating losses on a GAAP basis for the foreseeable future due to the investments we will continue to make in research and development, sales and marketing, and general and administrative"

"We expect that our sales and marketing expense will decrease as a result of the divestiture of the Supersonic business"

"We expect to continue to incur operating losses on a GAAP basis for the foreseeable future due to the investments we will continue to make in research and development, sales and marketing, and general and administrative."

"We believe our existing sources of liquidity will be sufficient to meet our working capital and capital expenditures for at least the next 12 months, including our current intent to settle the principal amount of the 2026 Notes with cash upon maturity in November 2026."

"During the year ended December 31, 2025, we had reductions to our workforce and our office footprint, that resulted in approximately $33 million in employee separation costs, and $14 million of non-employee charges associated with these reductions."

"Our dollar-based net expansion rate as of September 30, 2025 was driven primarily by growth in subscriptions revenue, due to broad price increases in our subscription services and existing Create Solutions customers upgrading to enterprise offerings."

"Starting in the third quarter of 2025 we revised down our estimate of the remaining useful life of certain intangible assets from four to seven years, down to one to three years. These assets are primarily 'developed technology' within intangible assets, and primarily relate to assets arising from our acquisition of Weta FX Limited in 2021."

"We expect our gross profit to increase in absolute dollars in the long term but fluctuate in the short term as we stabilize our business following our reset efforts."

"These changes contributed to the Unity Ad Network growing 15% from the three months ended March 31, 2025 to the three months ended June 30, 2025, and now represents 49% of total Grow Solutions revenue"

"The shortened useful lives are due to certain assets no longer being actively developed and absence of currently established plans for incorporation into future Unity offerings"

"In the six months ended June 30, 2025, we had reductions to our workforce and our office footprint, that resulted in approximately $20 million in employee separation costs"

"Our dollar-based net expansion rate as of March 31, 2025 was driven primarily by decreases in Grow Solutions revenue, due to competition in the advertising market, and to a lesser extent decreases in professional services revenue within Create Solutions, offset by growth in subscriptions revenue."

"To improve the performance of Grow Solutions, in the first quarter of 2025, we started migrating a portion of our traffic to our new AI Platform, which we call 'Unity Vector'. While we expect related revenue to improve as Unity Vector is implemented, this may be partially or fully offset by declines in select areas of the business that do not utilize Unity Vector."

"We expect to continue to incur operating losses on a GAAP basis for the foreseeable future due to the investments we will continue to make in research and development, sales and marketing, and general and administrative."

"Our dollar-based net expansion rate as of December 31, 2024 was driven primarily by decreases in Grow Solutions revenue, due to competition in the advertising market"

"To be more competitive we are focused on enhancing our machine learning stack and data infrastructure capabilities, which we believe will take some time to manifest in sustainable increased performance"

"In the near term, we are transitioning to use the new machine learning stack, and we expect that this transition will negatively impact our Grow Solutions revenue, and improve gradually as our model improves and learns over time"

"We have a history of losses and may not achieve or sustain profitability on a GAAP basis in the future."

"Competition in the advertising market and ongoing restrictions related to the gaming industry in China have impacted our growth rates and may continue to do so."

"In the third quarter of 2024, before the pricing changes took effect, we announced the cancellation of those pricing changes, the reversion to a subscription-based model, and price increases, for gaming customers. While the initial customer response to this announcement has been positive and we expect this change to benefit our business over the long term, the ultimate impact remains uncertain."

"We have a history of losses and may not achieve or sustain profitability on a GAAP basis in the future."

"Increased competition in the advertising market and ongoing restrictions related to the gaming industry in China have impacted our growth rates and may continue to do so."

"Our ability to successfully manage executive transitions and to retain Mr. Bromberg and other senior executives is critical to our success, and their timing and full impact on our future results of operations, cash flows, or financial condition are uncertain."

"In January 2024, we committed to a plan to eliminate approximately 25% of our workforce, and we mutually agreed to the departure of the founders of ironSource Ltd. Following these announcements, we incurred incremental employee separation costs of approximately $193 million in the first quarter of 2024."

"The decrease in total revenue was further driven by a decrease in Grow Solutions revenue, which was negatively impacted by increased competition."

"We expect our gross profit to increase in absolute dollars in the long term but decrease in the short term as a result of the reset of our product portfolio to focus on the Unity Engine and Monetization solutions."

"In the third quarter of 2023, we announced changes to our pricing model for our Create Solutions, to become effective beginning in 2024. We experienced a high volume of negative customer feedback including a boycott and a slow down of signing new contracts and renewals as a result of these changes."

"In the fourth quarter of 2023, we underwent a CEO change and began a comprehensive assessment of our product portfolio to focus on those offerings that are most valuable to our customers, which are the core aspects of our Create and Grow Solutions. This assessment will likely lead us to decide to discontinue certain offerings, reduce our workforce and reduce our office footprint."

"The timing and full impact of these types of changes on our future results of operations, cash flows, or financial condition are uncertain, and for those reasons we are currently unable to reasonably quantify the potential impacts through the fourth quarter of 2023."

"Recent negative macroeconomic factors, such as high and persistent inflation, rising interest rates, and limited credit availability has and could further cause economic uncertainty and volatility."

"In May 2023, we announced a workforce reduction of approximately 8% of our then total workforce as we restructured specific teams in order to continue to position ourselves for long-term and profitable growth."

"We expect to continue to incur operating losses on a GAAP basis for the foreseeable future due to the investments we will continue to make in research and development, sales and marketing, and general and administrative."