Unity Software Inc.
Revenue
$546M
Net Income
$-24M
Unity Software Inc.
Revenue
$546M
Net Income
$-24M
Unity Software Inc.
CIK: 0001810806
Earnings Analysis
Analyzed 2 of 12 reports
Performance Summary - Q2 2026bullish (61)not_provided
Reality-Based Sentiment Analysisbullish61/100
Based on actual market data, not just management spin. Weighted score: 10% management tone + 40% earnings beat/miss + 30% price action + 20% guidance accuracy.
Financial Performance Trend
Overall Analysis & Outlook
Over the past 5 quarters, Unity Software Inc. has been showing mixed sentiment with stable guidance. Revenue has grown 7.5% during this period. The latest quarter shows neutral sentiment with neutral tone from management.
Latest Quarter Highlights:
Unity reported Q2 2026 quarterly revenue of $546.5 million (+24% YoY) with a net loss of $23.6 million, reflecting strategic portfolio rationalization through the exit of ironSource Ads Network and Supersonic game publishing business, which resulted in $279 million in impairment charges in H1 2026. Strong cash generation with $276.9 million operating cash flow despite losses, though the company remains unprofitable with challenged unit economics in its divested businesses. Management maintains a restructuring posture with ongoing headcount reductions and cost optimization while investing in AI/ML capabilities.
Detailed Quarterly Reports
In-depth analysis of each quarter's earnings filing
Q2 2026
10-Q • Filed 8/6/2026
Summary
Unity reported Q2 2026 quarterly revenue of $546.5 million (+24% YoY) with a net loss of $23.6 million, reflecting strategic portfolio rationalization through the exit of ironSource Ads Network and Supersonic game publishing business, which resulted in $279 million in impairment charges in H1 2026. Strong cash generation with $276.9 million operating cash flow despite losses, though the company remains unprofitable with challenged unit economics in its divested businesses. Management maintains a restructuring posture with ongoing headcount reductions and cost optimization while investing in AI/ML capabilities.
Revenue
$546.468M
Net Income
$-23.606M
Guidance
Tone
Capex
$8.492M(-30.2% YoY)
Partnerships
Key Quotes
"In the first quarter of 2026, we announced we would sunset the ironSource Ads Network, one of our monetization networks, effective April 30, 2026, and we began the process of exiting our Supersonic game publishing business."
"We expect that our sales and marketing expense will decrease as a result of the divestiture of the Supersonic business."
"We expect our research and development expenses to increase in absolute dollars in the long term, as we invest in new solutions, expand features and functionality with existing solutions, support our artificial intelligence (AI) and machine learning (ML) initiatives, and enter new markets."
Q1 2026
10-Q • Filed 5/7/2026
Summary
Unity Software reported Q1 2026 revenue of $508.2M (+16.8% YoY) but a GAAP net loss of $347.6M, driven primarily by $279M in impairment charges related to sunsetting its ironSource Ads Network and divesting Supersonic game publishing. The company faces significant headwinds with deteriorating gross margins (31% vs. 74% YoY) and mounting operating losses, though adjusted EBITDA remained positive at $138.3M. Management is in restructuring mode with ongoing workforce reductions and strategic portfolio reset, signaling defensive positioning amid challenging monetization dynamics.
Revenue
$508.238M
Net Income
$-347.61M
Guidance
Tone
Capex
$4.829M(-15.5% YoY)
Key Quotes
"In the first quarter of 2026, we announced we would sunset the ironSource Ads Network, one of our monetization networks, effective April 30, 2026, and engaged a financial advisor to assist with the planned divestiture of our Supersonic game publishing business."
"We expect 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."
"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."
Sector Comparison
How U performs vs Technology sector and Gaming peers
Sector Ranking (Technology)
Category Ranking (Gaming)
Key Metrics vs Averages
U
$546.468M
Gaming Avg
$1,007.734M
Technology Avg
$34,494.1M
U
-30.2%
Gaming Avg
3.7%
Technology Avg
40.7%
Guidance: not_provided • Tone: neutral