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  4. [8-K] Unity Software Inc. Reports Material Event

Unity Software posts $122M profit in Q3 2026

Q4 2026 guidance calls for strategic revenue of $683 million to $691 million and adjusted EBITDA of $290 million to $295 million.

Available on EDGAR Accepted by SEC EDGAR
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Form Type
8-K

Rhea-AI Filing Summary

Unity Software Inc. reported third-quarter 2026 revenue of $622.092 million, up 32% year over year. Strategic revenue was $596.572 million, up 59%. Non-strategic revenue was $25.520 million, down 73%, primarily from the ironSource Ads network, sunset in the second quarter of 2026, and the Supersonic publishing business, sold August 4, 2026.

GAAP net income was $121.590 million, versus a $126.828 million loss in the third quarter of 2025. Nine-month GAAP net loss was $248.009 million, compared with $312.100 million in 2025. Adjusted EBITDA, a non-GAAP measure, was $256.598 million versus $109.497 million, and free cash flow was $219.707 million versus $151.291 million. Cash, cash equivalents and restricted cash totaled $2,651.469 million as of September 30, 2026. Q4 guidance calls for strategic revenue of $683 million to $691 million and adjusted EBITDA of $290 million to $295 million.

3 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 0 points

How the balance works

Positive

  • Moderate pointQ3 revenue increased 32% to $622.092 million year over year.
  • Moderate pointGAAP net income was $121.590 million, versus a $126.828 million loss a year earlier.
  • Moderate pointAdjusted EBITDA rose to $256.598 million from $109.497 million year over year.

Negative

  • None.

Filing Explained

The higher share count means unchanged holdings represent a smaller ownership percentage absent offsets; the November fifteenth convertible-note payoff remains a plan.

This Form 8-K reports Unity’s third-quarter results; its balance sheet lists issued and outstanding shares of 443,800 (in thousands) at September 30, 2026, versus 432,860 (in thousands) at December 31, 2025.

Comparing those dates, the higher share count means a holder with an unchanged share position has a lower ownership percentage, absent offsetting changes.

Unity also says it plans to pay off convertible notes due November 15, 2026; the filing describes a future plan, not a completed payment.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Revenue $622.092 million Q3 2026; up 32% year over year
Strategic revenue $596.572 million Q3 2026; up 59% year over year
GAAP net income $121.590 million Q3 2026; compared with a $126.828 million loss in Q3 2025
Adjusted EBITDA $256.598 million Q3 2026; compared with $109.497 million in Q3 2025
Free cash flow $219.707 million Q3 2026; compared with $151.291 million in Q3 2025
Cash, cash equivalents and restricted cash $2,651.469 million As of September 30, 2026
Q4 strategic revenue guidance $683 million to $691 million Q4 2026; up 65% to 67% year over year
Q4 adjusted EBITDA guidance $290 million to $295 million Q4 2026; up 132% to 136% year over year
Adjusted EBITDA financial
"Adjusted EBITDA for the quarter was $257 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted EPS financial
"Adjusted EPS for the quarter was $0.44"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
Free cash flow financial
"Free cash flow for the quarter was $220 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Non-Strategic Revenue financial
"Non-Strategic Revenue $25,520"
Revenue $622.092 million Up 32% year over year
GAAP net income $121.590 million Compared with a net loss of $126.828 million in Q3 2025
Adjusted EBITDA $256.598 million Compared with $109.497 million in Q3 2025
Net cash provided by operating activities $223.961 million Compared with $155.398 million in Q3 2025
Free cash flow $219.707 million Compared with $151.291 million in Q3 2025
Guidance

Q4 2026 strategic revenue of $683 million to $691 million, up 65% to 67% year over year; adjusted EBITDA of $290 million to $295 million, up 132% to 136% year over year.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was Unity (U)'s Q3 2026 revenue?
Unity's Q3 2026 revenue was $622.092 million, up 32% year over year. Strategic revenue was $596.572 million, up 59% year over year.

What is Unity (U)'s Q4 2026 guidance?
Unity guided to strategic revenue of $683 million to $691 million, up 65% to 67% year over year, and adjusted EBITDA of $290 million to $295 million, up 132% to 136% year over year.

What drove Unity (U)'s Q3 Create Solutions revenue?
Create Solutions revenue was $165 million, up 8% year over year. Unity said higher subscription revenue drove the increase, partially offset by lower cloud and hosting services revenue, which it attributed to its 2025 portfolio reset.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FALSE000181080600018108062026-11-052026-11-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2026
UNITY SOFTWARE INC.
(Exact name of registrant as specified in its charter)
Delaware001-3949727-0334803
(State or other jurisdiction
of incorporation)		(Commission File Number)(I.R.S. Employer
Identification No.)
116 New Montgomery Street
San Francisco, California 94105-3607
(Address, including zip code, of principal executive offices)
(415) 638-9950
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.000005 par valueUThe New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02    Results of Operations and Financial Condition.
On November 5, 2026, Unity Software Inc. (“Unity” or the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The Company also posted supplemental material dated November 5, 2026, on the Investor Relations page of its website at investors.unity.com.
The information in this Item 2.02 of this Current Report on Form 8-K and the exhibit attached hereto as 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01    Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number
Description of Exhibit
99.1
Press Release dated November 5, 2026 of Unity Software Inc.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UNITY SOFTWARE INC.
Date: November 5, 2026
By:/s/ Jarrod Yahes
Jarrod Yahes
Senior Vice President, Chief Financial Officer
(Principal Financial Officer)


Exhibit 99.1
unitylogoa.jpg
Unity Reports Third Quarter 2026 Financial Results
SAN FRANCISCO, November 5, 2026 -- Unity (NYSE: U), the world’s leading game engine, today announced financial results for the third quarter ended September 30, 2026.
"Third-quarter performance was our strongest ever, with Vector growing 126% year-over-year and 40% quarter-over-quarter, and the first GAAP profitable quarter since our IPO," said Matt Bromberg, President and CEO of Unity.
"We are seeing the compounding impact of our flywheel strategy: more creators make more games on our platform, and more games fuel the need for more discovery through advertising."
Select revenue highlights for Q3 2026 are as follows (in thousands):
Three Months Ended September 30,
20262025
YoY Change
Strategic Grow Revenue$431,502$226,77090%
Strategic Create Revenue$165,070$148,12211%
Total Strategic Revenue$596,572$374,89259%
Non-Strategic Revenue1$25,520$95,723(73)%
Total Revenue$622,092$470,61532%
Q4 2026 Guidance2
•Strategic Revenue of $683 million to $691 million, up 65% - 67% year-over-year
◦Strategic Grow Revenue of $515 million to $520 million, up 105% - 107% year-over-year
◦Strategic Create Revenue of $168 million to $171 million up 4% - 6% year-over-year
•Non-Strategic Revenue of $5 million
•Adjusted EBITDA of $290 million to $295 million, up 132% - 136% year-over-year
1 Consists primarily of revenue from (i) our ironSource Ads network, which was sunset in the second quarter of 2026, and (ii) our Supersonic publishing business which was sold on August 4, 2026.
2 These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. We have not reconciled our estimates for non-GAAP financial measures in this press release and in the earnings call referencing this press release to GAAP due to the uncertainty and potential variability of expenses that may be incurred in the future. As a result, a reconciliation is not available without unreasonable effort and we are unable to address the probable significance of the unavailable information. We have provided a reconciliation of other GAAP to non-GAAP financial measures in the financial statement tables for our third quarter non-GAAP results included in this press release.
© 2026 Unity Technologies
U N I T Y . C O M|
1

Earnings Webcast
Unity will hold a public webcast at 8:30 a.m. ET today to discuss the results for its third quarter 2026. The live public webcast can be accessed on Unity’s Investor Relations website at https://investors.unity.com. The webcast replay will also be available on the site.
Third Quarter 2026 Results:
Total Revenue Highlights:
•Revenue was $622 million, compared to $471 million in the third quarter 2025.
•Grow Solutions revenue was $457 million, compared to $318 million in the third quarter 2025.
•Create Solutions revenue was $165 million, compared to $152 million in the third quarter 2025.
Profitability Highlights:
•GAAP net income was $122 million, with a margin of 20%; GAAP basic net income per share was $0.27; GAAP diluted net income per share was $0.25.
•Adjusted EBITDA was $257 million, with a margin of 41%; adjusted EPS was $0.44.
•Net cash provided by operating activities was $224 million; free cash flow was $220 million.
Revenue
Revenue was $622 million, up 32% year-over-year. Strategic revenue was $597 million, up 59% year-over-year.
Grow Solutions revenue was $457 million, up 44% year-over-year. The change was due to growth in the Unity Ads Network, driven by Unity Vector, partially offset by decreases in the ironSource Ads Network.
Create Solutions revenue was $165 million, up 8% year-over-year. The increase was driven by increases in subscription revenue, partially offset by decreases in cloud and hosting services revenue, driven by our portfolio reset in 2025.
Basic and Diluted Net Income (Loss) per share
Basic net income per share was $0.27, as compared to a basic net loss per share of $0.30 for the same period in 2025.
Diluted net income per share was $0.25, as compared to a diluted net loss per share of $0.30 for the same period in 2025.
Net Income (Loss) and Net Cash Provided by Operating Activities
Net income for the quarter was $122 million, compared to a net loss of $127 million in the third quarter of 2025.
Net income (loss) margin was 20%, compared to (27)% in the third quarter of 2025.
Net cash provided by operating activities for the quarter was $224 million, compared to $155 million in the third quarter of 2025.
© 2026 Unity Technologies
U N I T Y . C O M|
2

Adjusted EBITDA, Free Cash Flow, and Adjusted EPS
Adjusted EBITDA for the quarter was $257 million, with a margin of 41%, compared to $109 million in the third quarter of 2025, with a margin of 23%. The year-over-year improvement was driven by higher revenue and continued cost control.
Free cash flow for the quarter was $220 million, compared to $151 million in the third quarter of 2025.
Adjusted EPS for the quarter was $0.44, compared to $0.20 in the third quarter of 2025.
Liquidity
As of September 30, 2026, our cash, cash equivalents, and restricted cash was $2,651 million, an increase of $587 million, compared with $2,064 million as of December 31, 2025. This increase was primarily driven by our operations.
About Unity
Unity [NYSE: U] offers a suite of tools to develop, deploy, and grow games and interactive experiences across all major platforms from mobile, PC, and console, to extended reality. For more information, visit Unity.com.
© 2026 Unity Technologies
U N I T Y . C O M|
3

UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share par value)
(Unaudited)
As of
September 30, 2026December 31, 2025
Assets
Current assets:
Cash and cash equivalents$2,646,439 $2,055,840 
Accounts receivable, net833,522 643,611 
Prepaid expenses and other91,200 113,012 
Total current assets3,571,161 2,812,463 
Property and equipment, net46,407 68,289 
Goodwill3,155,607 3,166,304 
Intangible assets, net86,403 650,544 
Other assets104,512 140,006 
Total assets$6,964,090 $6,837,606 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$18,161 $13,981 
Accrued expenses and other312,060 299,541 
Publisher payables513,236 431,494 
Deferred revenue248,652 224,405 
Current portion of convertible notes557,540 556,451 
Total current liabilities1,649,649 1,525,872 
Convertible notes1,680,905 1,678,899 
Long-term deferred revenue20,895 14,038 
Other long-term liabilities84,164 122,660 
Total liabilities3,435,613 3,341,469 
Commitments and contingencies
Redeemable noncontrolling interests273,279 252,637 
Stockholders' equity:
Common stock, $0.000005 par value:
Authorized shares - 1,000,000 and 1,000,000
Issued and outstanding shares - 443,800 and 432,860
2 2 
Additional paid-in capital7,632,029 7,378,295 
Accumulated other comprehensive income (loss)5,521 (2,156)
Accumulated deficit(4,388,696)(4,138,709)
Total Unity Software Inc. stockholders' equity3,248,856 3,237,432 
Noncontrolling interest6,342 6,068 
Total stockholders' equity3,255,198 3,243,500 
Total liabilities and stockholders' equity$6,964,090 $6,837,606 
© 2026 Unity Technologies
U N I T Y . C O M|
4

UNITY SOFTWARE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share amounts)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
Revenue$622,092 $470,615 $1,676,798 $1,346,559 
Cost of revenue112,505 120,332 575,851 348,500 
Gross profit509,587 350,283 1,100,947 998,059 
Operating expenses
Research and development251,148 244,357 783,848 679,789 
Sales and marketing103,471 165,869 431,216 489,395 
General and administrative54,321 65,913 168,868 201,418 
Total operating expenses408,940 476,139 1,383,932 1,370,602 
Operating income (loss)100,647 (125,856)(282,985)(372,543)
Interest expense(6,043)(6,043)(18,095)(17,964)
Interest income and other income (expense), net24,325 14,448 45,730 92,396 
Income (loss) before income taxes118,929 (117,451)(255,350)(298,111)
Provision for (benefit from) income taxes(2,661)9,377 (7,341)13,989 
Net income (loss)121,590 (126,828)(248,009)(312,100)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests361 (466)1,978 702 
Net income (loss) attributable to Unity Software Inc.121,229 (126,362)(249,987)(312,802)
Basic net income (loss) per share attributable to common stockholders of Unity Software Inc.$0.27 $(0.30)$(0.59)$(0.75)
Diluted net income (loss) per share attributable to common stockholders of Unity Software Inc.$0.25 $(0.30)$(0.59)$(0.75)
Net income (loss)121,590 (126,828)(248,009)(312,100)
Change in foreign currency translation adjustment2,841 1,353 9,712 5,247 
Comprehensive income (loss)$124,431 $(125,475)$(238,297)$(306,853)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests361 (466)1,978 702 
Foreign currency translation attributable to noncontrolling interest and redeemable noncontrolling interests600 282 2,035 1,100 
Comprehensive income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests961 (184)4,013 1,802 
Comprehensive income (loss) attributable to Unity Software Inc.$123,470 $(125,291)$(242,310)$(308,655)
© 2026 Unity Technologies
U N I T Y . C O M|
5

UNITY SOFTWARE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
Operating activities
Net income (loss)$121,590 $(126,828)$(248,009)$(312,100)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization84,886 135,893 297,616 329,038 
Stock-based compensation expense62,771 91,968 219,884 292,362 
Gain on repayment of convertible note— — — (42,744)
Impairment of intangible assets— — 270,506 — 
Impairment of property and equipment— 862 8,447 4,911 
Impairment of investments— — 15,000 — 
Other(3,055)3,452 (489)(4,520)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net(140,222)(3,773)(207,588)(25,834)
Prepaid expenses and other(4,300)(3,684)21,855 10,087 
Other assets3,980 18,669 16,247 30,558 
Accounts payable7,591 7,998 4,380 5,899 
Accrued expenses and other7,728 17,901 15,260 4,289 
Publisher payables72,037 24,471 96,671 2,906 
Other long-term liabilities(440)(18,795)(38,203)(31,656)
Deferred revenue11,395 7,264 29,292 38,324 
Net cash provided by operating activities223,961 155,398 500,869 301,520 
Investing activities
Purchases of non-marketable investments— — — (2,000)
Proceeds from sale of business37,152 — 37,152 — 
Purchases of property and equipment(4,254)(4,107)(12,746)(16,271)
Net cash provided by (used in) investing activities32,898 (4,107)24,406 (18,271)
Financing activities
Proceeds from issuance of convertible notes— — — 690,000 
Purchase of capped calls— — — (44,436)
Payment of debt issuance costs— — — (13,236)
Repayments of convertible note— — — (641,691)
Proceeds from issuance of common stock upon exercise of stock options and purchase of ESPP shares34,155 54,082 50,349 85,476 
Net cash provided by financing activities34,155 54,082 50,349 76,113 
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash3,334 2,208 11,544 21,845 
Increase in cash, cash equivalents, and restricted cash294,348 207,581 587,168 381,207 
Cash, cash equivalents, and restricted cash, beginning of period2,357,121 1,701,507 2,064,301 1,527,881 
Cash, cash equivalents, and restricted cash, end of period$2,651,469 $1,909,088 $2,651,469 $1,909,088 
© 2026 Unity Technologies
U N I T Y . C O M|
6

About Non-GAAP Financial Measures
To supplement our consolidated financial statements prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP) we use certain non-GAAP financial measures, as described below, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe the following non-GAAP measures are useful in evaluating our operating performance. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance.
However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our consolidated financial statements presented in accordance with GAAP.
We define adjusted EBITDA as GAAP net income or loss excluding stock-based compensation expense, amortization and impairment of intangible assets, depreciation expense, gain on sale of business, restructuring and reorganization costs, interest expense, interest income and other income (expense), net and the provision for income taxes. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We define adjusted gross profit as GAAP gross profit excluding stock-based compensation expense, amortization and impairment of intangible assets, depreciation expense, and restructuring and reorganization costs. We define adjusted gross margin as adjusted gross profit as a percentage of revenue.
We define adjusted cost of revenue as GAAP cost of revenue, excluding stock-based compensation expense, amortization and impairment of intangible assets, depreciation expense, and restructuring and reorganization costs. We define adjusted research and development expense as GAAP research and development expense, excluding stock-based compensation expense, amortization and impairment of intangible assets, depreciation expense, gain on sale of business, and restructuring and reorganization costs. We define adjusted sales and marketing expense as GAAP sales and marketing expense, excluding stock-based compensation expense, amortization and impairment of intangible assets, depreciation expense, gain on sale of business, and restructuring and reorganization costs. We define adjusted general and administrative expense as GAAP general and administrative expense excluding stock-based compensation expense, depreciation expense, impairment of intangible assets, gain on sale of business, and restructuring and reorganization costs. We define free cash flow as net cash provided by operating activities less cash used for purchases of property and equipment.
We define adjusted EPS as GAAP net income or loss excluding stock-based compensation expense, amortization and impairment of intangible assets, depreciation expense, gain on sale of business, restructuring and reorganization costs, and the income tax impact of the preceding adjustments (cumulatively "adjusted net income"), increased by the tax effected impacts from any relevant dilutive securities, divided by the diluted weighted-average outstanding shares. The effective tax rate used in calculating adjusted EPS is estimated for each period, based on the net income or loss adjusted for the items noted above, and may differ from the effective rate used in our financial statements. Shares of common stock that are excluded in our calculation of GAAP diluted net loss per share due to their antidilutive impact on such calculations, are included in the diluted weighted average outstanding shares used in our calculation of adjusted EPS, to the extent they have a dilutive impact on adjusted EPS given the adjusted net income in each period.
© 2026 Unity Technologies
U N I T Y . C O M|
7

UNITY SOFTWARE INC.
Non-GAAP Reconciliation
(In thousands, except per share amounts)
Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
Revenue$622,092 $470,615 $1,676,798 $1,346,559 
Adjusted EBITDA reconciliation
GAAP net income (loss)$121,590 $(126,828)$(248,009)$(312,100)
Add:
Stock-based compensation expense$63,076 $91,561 $215,521 $288,312 
Amortization of intangible assets$76,738 $125,345 $271,642 $297,213 
Depreciation expense$8,148 $10,548 $25,974 $31,825 
Impairment of intangible assets$— $— $278,666 $— 
Restructuring and reorganization costs$12,510 $7,899 $50,772 $39,130 
Gain on sale of business$(4,521)$— $(4,521)$— 
Interest expense$6,043 $6,043 $18,095 $17,964 
Interest income and other income (expense), net$(24,325)$(14,448)$(45,730)$(92,396)
Provision for (benefit from) income taxes$(2,661)$9,377 $(7,341)$13,989 
Adjusted EBITDA$256,598 $109,497 $555,069 $283,937 
GAAP net income (loss) margin20 %(27)%(15)%(23)%
Adjusted EBITDA margin41 %23 %33 %21 %
Adjusted gross profit reconciliation
GAAP gross profit$509,587 $350,283 $1,100,947 $998,059 
Add:
Stock-based compensation expense4,811 9,111 18,905 28,084 
Amortization of intangible assets5,695 27,293 39,314 80,990 
Depreciation expense1,314 1,734 4,254 5,214 
Impairment of intangible assets— — 226,516 — 
Restructuring and reorganization costs4,766 (23)8,628 786 
Adjusted gross profit$526,173 $388,398 $1,398,564 $1,113,133 
GAAP gross margin82%74%66%74%
Adjusted gross margin85%82%83%83%
© 2026 Unity Technologies
U N I T Y . C O M|
8

UNITY SOFTWARE INC.
Non-GAAP Reconciliation
(In thousands, except per share amounts)
Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
Operating expenses reconciliation
Cost of revenue
GAAP cost of revenue$112,505 $120,332 $575,851 $348,500 
Stock-based compensation expense(4,811)(9,111)(18,905)(28,084)
Amortization of intangible assets(5,695)(27,293)(39,314)(80,990)
Depreciation expense(1,314)(1,734)(4,254)(5,214)
Impairment of intangible assets— — (226,516)— 
Restructuring and reorganization costs(4,766)23 (8,628)(786)
Adjusted cost of revenue$95,919 $82,217 $278,234 $233,426 
GAAP cost of revenue as a percentage of revenue18%26%34%26%
Adjusted cost of revenue as a percentage of revenue15%18%17%17%
Research and development
GAAP research and development expense$251,148 $244,357 $783,848 $679,789 
Stock-based compensation expense(31,923)(45,654)(110,020)(147,299)
Amortization of intangible assets(51,820)(53,304)(154,591)(86,166)
Depreciation expense(3,979)(5,166)(12,705)(15,772)
Impairment of intangible assets— — (3,998)— 
Restructuring and reorganization costs(4,283)(1,503)(30,238)(14,430)
Gain on sale of business$335 $— $335 $— 
Adjusted research and development expense$159,478 $138,730 $472,631 $416,122 
GAAP research and development expense as a percentage of revenue40%52%47%51%
Adjusted research and development expense as a percentage of revenue26%30%28%31%
Sales and marketing
GAAP sales and marketing expense$103,471 $165,869 $431,216 $489,395 
Stock-based compensation expense(8,886)(17,893)(35,998)(53,420)
Amortization of intangible assets(19,223)(44,748)(77,737)(130,057)
Depreciation expense(1,667)(2,184)(5,268)(6,494)
Impairment of intangible assets— — (46,969)— 
Restructuring and reorganization costs(1,951)(361)(8,502)(9,514)
Gain on sale of business$296 $— $296 $— 
Adjusted sales and marketing expense$72,040 $100,683 $257,038 $289,910 
GAAP sales and marketing expense as a percentage of revenue17%35%26%36%
Adjusted sales and marketing expense as a percentage of revenue12%21%15%22%
© 2026 Unity Technologies
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UNITY SOFTWARE INC.
Non-GAAP Reconciliation
(In thousands, except per share amounts)
Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
General and administrative
GAAP general and administrative expense$54,321 $65,913 $168,868 $201,418 
Stock-based compensation expense(17,456)(18,903)(50,598)(59,509)
Depreciation expense(1,188)(1,464)(3,747)(4,345)
Impairment of intangible assets— — (1,183)— 
Restructuring and reorganization costs(1,510)(6,058)(3,404)(14,400)
Gain on sale of business$3,890 $— $3,890 $— 
Adjusted general and administrative expense$38,057 $39,488 $113,826 $123,164 
GAAP general and administrative expense as a percentage of revenue9%14%10%15%
Adjusted general and administrative expense as a percentage of revenue6%8%7%9%
Adjusted EPS reconciliation
GAAP net income (loss)$121,590 $(126,828)$(248,009)$(312,100)
Stock-based compensation expense63,076 91,561 215,521 288,312 
Amortization of intangible assets76,738 125,345 271,642 297,213 
Depreciation expense8,148 10,548 25,974 31,825 
Impairment of intangible assets— — 278,666 — 
Restructuring and reorganization costs12,510 7,899 50,772 39,130 
Gain on sale of business(4,521)— (4,521)— 
Income tax impact of adjusting items(64,417)(16,561)(138,253)(64,852)
Adjusted net income used for calculation of adjusted EPS, before impact of dilutive instruments$213,124 $91,964 $451,792 $279,528 
Increase from forgone financing costs on dilutive convertible notes, net of tax4,686 4,714 14,030 14,014 
Adjusted net income used for calculation of adjusted EPS, including impact of dilutive instruments$217,810 $96,678 $465,822 $293,542 
Weighted-average common shares used in GAAP basic net income (loss) per share attributable to common stockholders of Unity Software Inc.441,557 424,296 437,930 417,919 
Convertible notes41,348 41,348 41,348 37,770 
Stock options and PVOs3,780 6,510 3,007 6,253 
Unvested RSUs, PVUs, and PSUs11,480 13,055 8,624 7,598 
ESPP— 130 42 261 
Non-GAAP weighted-average common shares used in adjusted EPS498,165 485,339 490,951 469,801 
© 2026 Unity Technologies
U N I T Y . C O M|
10

UNITY SOFTWARE INC.
Non-GAAP Reconciliation
(In thousands, except per share amounts)
Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
GAAP diluted net income (loss) per share attributable to common stockholders of Unity Software Inc.$0.25 $(0.30)$(0.59)$(0.75)
Total impact on diluted net income (loss) per share attributable to common stockholders of Unity Software Inc. from non-GAAP adjustments and noncontrolling interests0.21 0.52 1.62 1.42 
Total impact on diluted net income (loss) per share attributable to common stockholders of Unity Software Inc. from antidilutive common stock now included(0.02)(0.02)(0.08)(0.05)
Adjusted EPS$0.44 $0.20 $0.95 $0.62 
Free cash flow reconciliation
Net cash provided by operating activities$223,961 $155,398 $500,869 $301,520 
Less:
Purchases of property and equipment(4,254)(4,107)(12,746)(16,271)
Free cash flow$219,707 $151,291 $488,123 $285,249 
Net cash provided by (used in) investing activities$32,898 $(4,107)$24,406 $(18,271)
Net cash provided by financing activities$34,155 $54,082 $50,349 $76,113 
© 2026 Unity Technologies
U N I T Y . C O M|
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Cautionary Statement Regarding Forward-Looking Statements
This press release and the earnings call referencing this press release contain “forward-looking statements,” as that term is defined under federal securities laws, including statements regarding Unity’s outlook and future financial performance, including, but not limited to: (i) Unity’s ability to further enhance its platform, accelerate product innovation and enhance financial performance; (ii) expectations regarding Vector, including expectations regarding Vector’s improvements, performance, growth, leveraging of behavioral data available through Unity runtime, and impact on Unity’s overall future growth prospects; (iii) Unity’s strategic initiatives, including its continued investment and focus on artificial intelligence tools and integrations with third-party coding agents, and their expected impact on developer adoption; (iv) Unity’s flywheel strategy and its expected impact on Unity’s business; (v) expectations regarding Unity Spark and Unity’s partnership with Google, including Unity Spark’s launch timing, pricing and monetization model, and impact on Unity’s revenues; (vi) statements regarding Unity’s product roadmap, products, projects, technology, ongoing product development and improvements, and customer demand for Unity products; (vii) statements regarding industry trends and business model evolution; (viii) statements regarding Unity’s market opportunity; (ix) expectations regarding Unity’s competitive position, core value proposition, and growth prospects; (x) expectations regarding improvements in operating margins, operating leverage, operating discipline and cost management; (xi) expectations regarding future profitability, including anticipated benefits of GAAP profitability; (xii) Unity’s plan to pay off its convertible notes due November 15, 2026 and expectations regarding capital allocation; and (xiii) Unity’s financial guidance for future periods. The words “aim,” “believe,” “may,” “will,” “estimate,” “continue,” “intend,” “expect,” “plan,” “project,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to, those related to: (i) the impact of macroeconomic conditions, such as inflation, high interest rates, tariffs, sanctions and trade barriers, and limited credit availability which could further cause economic uncertainty and volatility; (ii) Unity’s ability to compete effectively; (iii) adverse changes in the geopolitical relationship between the U.S. and China; (iv) Unity’s ability to develop, deploy, maintain, manage, or commercialize artificial intelligence-enabled products, its reliance on third-party artificial intelligence models, and the costs associated with such efforts; (v) Unity’s ability to address issues raised by the development or use of artificial intelligence in its offerings, or the use of artificial intelligence by its customers, personnel, vendors and competitors; (vi) Unity’s ability to execute its plans to realign its business and to right-size its investments, including the sunset of the ironSource Ads Network; (vii) the impact of any decisions to change how Unity prices its products and services; (viii) Unity’s ability to achieve and sustain profitability; (ix) Unity’s ability to retain existing customers and expand the use of its platform, or attract new customers; (x) Unity’s ability to further expand into adjacent business areas or new industries; (xi) the impact of any changes of terms of service, policies or technical requirements from operating system platform providers or application stores which may result in changes to Unity or its customers’ business practices; (xii) Unity’s ability to maintain favorable relationships with hardware, operating system, device, game console and other technology providers; (xiii) breaches in its security measures, unauthorized access to its platform, data, or its customers’ or other users’ personal data; (xiv) Unity’s ability to manage growth effectively and manage costs effectively; (xv) the rapidly changing and increasingly stringent laws, regulations, contractual obligations and industry standards that relate to privacy, data security and the protection of children; (xvi) Unity’s ability to attract, manage and retain its talent; (xvii) Unity’s ability to adapt effectively to rapidly changing technology, evolving industry standards, changing regulations, or changing customer needs, requirements, or preferences; and (xviii) the effectiveness of Vector. Further information on these and additional risks that could affect our results is included in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K filed with the SEC on February 11, 2026, our Quarterly Reports on Form 10-Q filed with the SEC on May 7, 2026 and August 6, 2026, and our future reports that we may file with the SEC from time to time, which could cause actual results to vary from expectations. Copies of reports filed with the SEC are available on the Unity Investor Relations website. Statements herein speak only as of the date of this release, and Unity assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release except as required by law.
© 2026 Unity Technologies
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12

Contacts:
Investor Relations:
Alex Giaimo, Head of Investor Relations
alex.giaimo@unity3d.com

Media Relations:
UnityComms@unity3d.com

Source: Unity Software Inc.
© 2026 Unity Technologies
U N I T Y . C O M|
13

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