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…
Earnings analysis · 10-Q
U earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.8
What stood out
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Revenue Growth at 17%
Revenue increased to $508.2M in Q1 2026, up from $435M in Q1 2025.
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Free Cash Flow Surge
Free cash flow improved to $66.5M compared to $7.3M a year ago.
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Adjusted EPS Stability
Adjusted EPS remained relatively stable at $0.23, down slightly from $0.24.
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Create Solutions Revenue Growth
Create Solutions revenues grew from $150.4M to $156.6M year-over-year.
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Significant Increase in Total Revenue
Q1 2026 total revenue reached $508.2M from $503M in Q4 2025.
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Operational Cash Flow Improvement
Net cash provided by operating activities rose to $71.3M from $13.0M.
What to watch
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High Impairments Impacting Profitability
Impairment charges totaled $279M in Q1 2026, significantly contributing to net loss.
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Dependence on Strategic Earnings
Approximately $76M of revenue in Q1 2026 was categorized as non-strategic.
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Potential AI Investment Risks
Increased investment in AI may lead to higher operational costs and profitability issues.
Management's outlook
Outlook indicates revenue for Q2 2026 is expected to be between $505M and $515M.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.