Unity Technologies 8-K
EarningsNew guidanceImpairment / charge
Unity Vector drove Grow Solutions growth; the ironSource Ads Network sunset and planned Supersonic divestiture led to a $279M impairment.
Filed 2026-05-07 07:03 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q1 2026 results with Q2 guidance. Revenue rose 17% Y/Y as Grow Solutions grew on the Unity Ad Network and Vector; Create Solutions growth reflected higher subscriptions. A $279M impairment related to the ironSource Ads Network sunset and planned Supersonic divestiture contributed to the GAAP net loss. Unity expects to become GAAP profitable in Q4 2026.
Key Figures
| Metric | Q1 2026 | Q1 2025 | Y/Y |
|---|---|---|---|
| Revenue | $508M | $435M | 17% |
| Loss from operations | $(351)M | $(128)M | n/m |
| Net loss, GAAP | $(347)M | $(77.9)M | n/m |
| Diluted net loss per share, GAAP | $(0.80) | $(0.19) | n/m |
| Adjusted EPS, non-GAAP | $0.23 | $0.24 | -4% |
| Adjusted EBITDA, non-GAAP | $138M | $83.9M | 65% |
| Net cash provided by operating activities | $71.3M | $13.0M | 447% |
| Free cash flow | $66.5M | $7.31M | 810% |
| Strategic Revenue | $432M | $320M | 35% |
| Grow Solutions revenue | $352M | $285M | 24% |
- Create Solutions revenue was $157M, up 4% Y/Y: subscription growth was partly offset by lower cloud and hosting revenue following the 2025 portfolio reset. Grow Solutions growth was driven by Unity Vector and partly offset by lower ironSource Ad Network revenue.
- The $279M impairment was associated with the planned ironSource Ads Network sunset and Supersonic divestiture. The ironSource Ads Network sunset took effect 4/30/2026.
- Cash, cash equivalents and restricted cash totaled $2.15B at 3/31/2026, up $82M from 12/31/2025, primarily due to operations.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Total Revenue | Q2 2026 | $505M-$515M | — | — |
| Strategic Revenue | Q2 2026 | $455M-$465M; 29%-32% Y/Y | — | — |
| Strategic Grow Revenue | Q2 2026 | $302M-$306M; 50%-52% Y/Y | — | — |
| Strategic Create Revenue | Q2 2026 | $154M-$158M; 11%-14% Y/Y, excluding a $12M Q2 2025 one-time revenue item | — | — |
| Adjusted EBITDA, non-GAAP | Q2 2026 | $130M-$135M; 44%-49% Y/Y | — | — |
| GAAP profitability | Q4 2026 | Become GAAP profitable | — | — |
Investor Takeaways
- Q2 results will show whether total and Strategic Revenue, including Grow and Create, fall within the guided ranges.
- Watch for progress toward Unity’s stated expectation of GAAP profitability in Q4 2026.
The summary is written by an AI model reading the filing.
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