U earnings analysis
What we found in U's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Unity reported Q1 2026 earnings with revenue of $508.2 million, marking a 17% increase from $435 million a year earlier. Adjusted EPS was $0.23, down from $0.24 in the prior year, with a significant net loss of $347 million attributed mainly to impairment charges. The company is anticipating modest revenue growth for Q2 2026, projecting revenue between $505 and $515 million.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth at 17%
- Revenue increased to $508.2M in Q1 2026, up from $435M in Q1 2025.
- Free Cash Flow Surge
- Free cash flow improved to $66.5M compared to $7.3M a year ago.
- Adjusted EPS Stability
- Adjusted EPS remained relatively stable at $0.23, down slightly from $0.24.
- Create Solutions Revenue Growth
- Create Solutions revenues grew from $150.4M to $156.6M year-over-year.
- Significant Increase in Total Revenue
- Q1 2026 total revenue reached $508.2M from $503M in Q4 2025.
- Operational Cash Flow Improvement
- Net cash provided by operating activities rose to $71.3M from $13.0M.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- High Impairments Impacting Profitability
- Impairment charges totaled $279M in Q1 2026, significantly contributing to net loss.
- Dependence on Strategic Earnings
- Approximately $76M of revenue in Q1 2026 was categorized as non-strategic.
- Potential AI Investment Risks
- Increased investment in AI may lead to higher operational costs and profitability issues.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.8
- Gross margin
- 31%
- Operating margin
- -69%
- Segment
- Create Solutions: $156.6M
- Segment
- Grow Solutions: $351.6M
What they said about what is next.
Outlook indicates revenue for Q2 2026 is expected to be between $505M and $515M.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 11, 2026
- Unity positions itself as a two-pronged platform (Create Solutions and Grow Solutions) focused on real‑time 2D/3D creation, AI-enabled tooling, and ad/monetization products (including Unity Vector). Q4 FY2025 showed…
- 10-Q · November 5, 2025
- Unity reported Q3 revenue of $470,615,000, up $24,098,000 (+5.4%) versus Q3 2024, with gross profit of $350,283,000 (≈74.4% margin). Operating loss narrowed slightly to $(125,856,000) (operating margin -26.7%) while…
- 10-Q · August 6, 2025
- Unity reported Q2 revenue of $440,944,000 and maintained a gross margin of 74.1%, while operating loss narrowed to $(118,752,000) and GAAP net loss attributable to Unity was $(108,798,000) (loss per share $(0.26)).…
- 10-Q · May 7, 2025
- Unity reported revenue of $435,000 (amounts in thousands) for the quarter ended March 31, 2025, down from $460,380 in Q1 2024, while gross profit rose to $321,043 and gross margin improved. Operating loss narrowed to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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