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Q1 26 EPS
$0.23
MISS 4.25%
Est. $0.24
Q1 26 Revenue
$508.2M
BEAT +0.64%
Est. $505.0M
vs S&P Since Q1 26
+3.3%
BEATING MARKET
U +5.3% vs S&P +2.1%
Market Reaction
Did U Beat Earnings? Q1 2026 Results
Unity Software posted a mixed but broadly encouraging set of Q1 2026 results, delivering a modest revenue beat while falling just short on the bottom line, as $279 million in impairment charges tied to the sunset of the ironSource Ads Network clouded… Read more Unity Software posted a mixed but broadly encouraging set of Q1 2026 results, delivering a modest revenue beat while falling just short on the bottom line, as $279 million in impairment charges tied to the sunset of the ironSource Ads Network clouded an otherwise improving operational picture. Revenue climbed 16.8% year-over-year to $508.24 million, edging past the $505.01 million consensus, while adjusted EPS of $0.23 came in slightly below the $0.24 estimate, snapping a four-consecutive-quarter streak of beating EPS consensus. The impairment charges pushed the GAAP net loss to $347 million, but adjusted EBITDA expanded sharply to $138.28 million, reflecting a 27% margin versus 19% a year ago, with the company's AI-driven Unity Vector advertising platform emerging as a key growth catalyst within the Grow Solutions segment. Free cash flow surged to $66.46 million from just $7.31 million in the prior-year period, underscoring improving cash generation. Looking ahead, Unity guided Q2 revenue of $505 million to $515 million and reiterated expectations for GAAP profitability by Q4 2026, offering investors a clearer path through the ongoing portfolio transformation.
Key Takeaways
- • Unity Ad Network growth driven by Unity Vector technology
- • Subscription revenue increases in Create Solutions
- • Continued cost control driving adjusted EBITDA margin expansion from 19% to 27%
- • Strategic revenue growth of 35% year-over-year
U Forward Guidance & Outlook
For Q2 2026, Unity guides total revenue of $505 million to $515 million; strategic revenue of $455 million to $465 million (up 29-32% YoY), comprising strategic Grow revenue of $302 million to $306 million (up 50-52% YoY) and strategic Create revenue of $154 million to $158 million (up 11-14% YoY excluding a $12 million one-time item in Q2 2025); and adjusted EBITDA of $130 million to $135 million (up 44-49% YoY). The company expects to achieve GAAP profitability by Q4 2026.
U YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
U Revenue by Segment
With YoY comparisons, source: SEC Filings
“We are delivering exceptional revenue growth and margin expansion while executing on the most exciting product roadmap in Unity's history.”
— Matt Bromberg, Q1 2026 Earnings Press Release
U Earnings Trends
U vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
U EPS Trend
Earnings per share: estimate vs actual
U Revenue Trend
Quarterly revenue: estimate vs actual
U Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.24 | $0.23 | -4.25% | $508.2M | +0.64% |
| Q4 25 BEAT FY | $-0.21 | $0.24 | +214.61% | $503.1M | +2.08% |
| FY Full Year | $-0.94 | $0.86 | +191.66% | $1.85B | +0.53% |
| Q3 25 BEAT | $-0.23 | $0.20 | +188.57% | $470.6M | +3.87% |
| Q2 25 BEAT | $-0.28 | $0.18 | +163.85% | $440.9M | +3.34% |
| Q1 25 BEAT | $-0.37 | $0.24 | +165.48% | $435.0M | +4.41% |