Q2 26 EPS Adjusted
$0.28
BEAT +12.40%
Est. $0.25
GAAP net loss includes $77.5 million amortization of intangible assets, $75.6 million stock-based compensation, $31.4 million restructuring and reorganization costs, and $8.0 million depreciation expense
Q2 26 Revenue
$546.5M
BEAT +6.17%
Est. $514.7M
Market Reaction
Did U Beat Earnings? Q2 2026 Results
Unity Software delivered a standout second quarter for fiscal 2026, with revenue of $546.47 million rising 23.9% year-over-year and adjusted EPS of $0.28 clearing the $0.25 consensus estimate by 12.40%, as the company's AI-driven advertising platform… Read more Unity Software delivered a standout second quarter for fiscal 2026, with revenue of $546.47 million rising 23.9% year-over-year and adjusted EPS of $0.28 clearing the $0.25 consensus estimate by 12.40%, as the company's AI-driven advertising platform proved to be the central growth engine. The Grow Solutions segment surged 35% year-over-year to $389 million, powered by the Unity Vector product embedded in the Unity Ads Network, while adjusted EBITDA expanded to $160.19 million at a 29% margin, up from $90.50 million and 21% a year ago. GAAP net loss narrowed sharply to $22.67 million from $107.36 million in the prior-year period, with management now targeting GAAP profitability as soon as Q3 2026. Free cash flow of $201.96 million and a cash position of $2.36 billion give Unity the runway to retire its 2021 convertible notes in November. Looking ahead, the company guided Q3 strategic revenue to $540 million to $550 million, up 44% to 47% year-over-year, with adjusted EBITDA of $185 million to $190 million.
Key Takeaways
- • Unity Vector AI driving growth in Unity Ads Network
- • Subscription revenue increases in Create Solutions
- • Higher revenue and continued cost control improving adjusted EBITDA margin to 29%
- • GAAP gross margin expansion to 80% from 74% YoY
U Forward Guidance & Outlook
For Q3 2026, Unity guides Strategic Revenue of $540 million to $550 million, up 44%-47% year-over-year, with Strategic Grow Revenue of $380 million to $385 million (up 68%-70% YoY) and Strategic Create Revenue of $159 million to $163 million (up 7%-10% YoY). Non-Strategic Revenue is expected at approximately $20 million, incorporating roughly one month of Supersonic revenue following its August 4 sale. Adjusted EBITDA is guided to $185 million to $190 million, up 69%-74% year-over-year. The company expects to achieve GAAP profitability by Q3 2026 and plans to pay off its 2021 convertible notes in November 2026 to de-lever the balance sheet.
U YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
U Revenue by Segment
With YoY comparisons, source: SEC Filings
“This was arguably the best quarter in Unity's history as a public company. The ongoing success of Unity Vector AI, combined with the most exciting product roadmap in Unity's history, is helping drive substantial value for creators, players, and shareholders.”
— Matt Bromberg, Q2 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
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT GAAP net loss includes $77.5 million amortization of intangible assets, $75.6 million stock-based compensation, $31.4 million restructuring and reorganization costs, and $8.0 million depreciation expense | $0.25 | $0.28 | +12.40% | $546.5M | +6.17% |
| 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% |