Unity (NYSE: U) beats Q1 guidance and plans exit of ironSource Ads Network

Rhea-AI Filing Summary

Unity Software Inc. reported preliminary first quarter 2026 results that are expected to come in above its earlier guidance and outlined a shift away from certain advertising businesses. The company now expects revenue of $505 million to $508 million, compared with prior guidance of $480 million to $490 million, and anticipates Adjusted EBITDA of $130 million to $135 million versus guidance of $105 million to $110 million, implying about 58% year-over-year growth. Unity expects Grow revenue of about $352 million and Create revenue of about $155 million, with total Strategic revenue of $431 million growing 34% year-over-year. As part of a portfolio refocus, Unity will sunset the ironSource Ads Network effective April 30, 2026, and has engaged a financial advisor to explore divesting its Supersonic game publishing business. Management expects these changes, once completed, to support faster revenue growth, higher Adjusted EBITDA, and stronger margins, with Unity Vector highlighted as a key driver of performance.

Insights

Equity research analyst

Unity posts a clear beat to Q1 guidance and begins exiting lower-priority ad assets.

Unity is signaling a stronger-than-expected start to 2026. Preliminary Q1 revenue of $505M–$508M exceeds guidance of $480M–$490M, while Adjusted EBITDA of $130M–$135M is well ahead of the prior $105M–$110M range.

The mix also matters. Grow revenue is expected at $352M with 24% year-over-year growth, while Strategic Grow revenue of $279M is growing 48%. This suggests faster expansion in the higher-priority parts of the ads and monetization portfolio.

Unity plans to sunset the ironSource Ads Network by April 30, 2026 and is exploring a sale of its Supersonic publishing unit. Management states these steps should lift growth and margins, supported by Unity Vector, which is expected to grow 15% sequentially in Q1. Future filings with full GAAP results and any divestiture agreement will clarify the long-term earnings profile.

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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): March 26, 2026

UNITY SOFTWARE INC.

(Exact name of registrant as specified in its charter)

Delaware			001-39497			27-0334803
(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 class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.000005 par value

U

The 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 7.01    Regulation FD Disclosure

On March 26, 2026, Unity Software Inc. (“Unity” or the “Company”) issued a press release announcing select preliminary unaudited financial results for the quarter ended March 31, 2026 and the planned exit of certain non-strategic businesses. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. The Company also posted supplemental material dated March 26, 2026, on the Investor Relations page of its website at investors.unity.com.

The information under Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is intended to be furnished and shall not be deemed to be “filed” for the 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, except as 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 March 26, 2026 of Unity Software Inc.
104						Cover 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: March 26, 2026						By:			/s/ Jarrod Yahes
									Jarrod Yahes
									Senior Vice President, Chief Financial Officer
									(Principal Financial Officer)

Exhibit 99.1

Unity Releases Preliminary First Quarter Results Exceeding Guidance; Will Enhance Growth and Profitability by Exiting Non-Strategic Ad Businesses

SAN FRANCISCO – March 26, 2026 – Unity (NYSE: U), the world’s leading game engine, today announced preliminary revenue and Adjusted EBITDA for the first quarter 2026 above guidance. Unity expects to report revenue of $505 Million to $508 Million, compared to guidance of $480 Million to $490 Million. Unity expects Adjusted EBITDA of $130 Million to $135 Million, compared to guidance of $105 Million to $110 Million, representing year-over-year growth of 58%.

The outperformance is driven by Unity Vector, which is expected to increase 15% sequentially in the first quarter of 2026, as well as better than expected performance in Create. Unity expects Grow revenue of approximately $352 Million and Create revenue of approximately $155 Million.

Unity also announced it will be sunsetting the ironSource Ads Network, effective April 30th, and that it has engaged a financial advisor to assist with the divestiture of its Supersonic game publishing business. Once completed, Unity expects these changes to result in faster revenue growth, increased Adjusted EBITDA, and higher Adjusted EBITDA margins.

In the first quarter of 2026, Strategic Grow revenue, which excludes the contribution from the ironSource Ads Network and Supersonic, is expected to increase 48% year-over-year, 2x the 24% year-over year growth expected for total Grow in the first quarter. Strategic Create revenue is expected to grow 14% year-over-year in the first quarter.

"Unity Vector continues to deliver robust growth each quarter, driving results meaningfully above our guidance. Today’s actions will accelerate Vector’s impact on our business, enhancing both revenue growth and profitability,” said Matt Bromberg, President and CEO of Unity.

Unity expects minimal revenue contribution from the ironSource Ads Network after the first quarter of 2026. Additional information including historical revenue of the ironSource Ads Network and Supersonic businesses is available at [https://investors.unity.com/overview/default.aspx].

			Q1 2026 Preliminary Results			Q1 Guidance			YoY Growth
Grow Revenue			$352mm			-			24%
Create Revenue			$155mm			-			3%
Total Revenue			$505mm - $508mm			$480mm - $490mm			17%
Adjusted EBITDA			$130mm - $135mm			$105mm - $110mm			58%
Adjusted EBITDA Margin			26%			22%

			Q1 2026 Preliminary Results			YoY Growth
Strategic Grow Revenue			$279mm			48%
Strategic Create Revenue			$152mm			14%
Total Strategic Revenue			$431mm			34%

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.

Preliminary Results Disclaimer

The expected revenue and adjusted EBITDA results for the first quarter of 2026 included in this press release are preliminary, unaudited and subject to completion and are based on management’s initial analysis of results of operations for the first quarter of 2026. Unity’s consolidated financial statements for the first quarter of 2026 are not yet available, remain subject to completion of the first quarter of 2026, financial closing procedures and potential final adjustments and have not been reviewed by Unity’s independent registered public accounting firm. These estimates should not be viewed as a substitute for financial statements prepared in accordance with U.S. generally accepted accounting principles in the United States (GAAP) and are not necessarily indicative of future results. There can be no assurance that actual results will not differ from the preliminary estimates in this press release.

About Non-GAAP Financial Measures

To supplement Unity’s consolidated financial statements prepared and presented in accordance with GAAP we use certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA as estimated above excludes estimates for stock-based compensation, amortization of acquired intangible assets, depreciation, restructurings and reorganizations, interest, income tax, and other non-operating activities, which primarily consist of foreign exchange rate gains or losses. Adjusted EBITDA margin as estimated above is defined as Adjusted EBITDA as a percentage of revenue.

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 use certain non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe non-GAAP measures are useful in evaluating our operating performance. We are presenting Adjusted EBITDA and Adjusted EBITDA margin because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance. We have provided Adjusted EBITDA and Adjusted EBITDA margin in this release in order to enable investors to compare estimated actual performance with Unity’s guidance for its first quarter of 2026.

A reconciliation of Adjusted EBITDA to GAAP net loss and Adjusted EBITDA margin to GAAP net loss margin is not available without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that are not determinable until the completion of our quarter-end closing process. We have provided a reconciliation of historical GAAP to non-GAAP financial measures in the financial statement tables for our fourth quarter 2025 non-GAAP results that are included on the Unity Investor Relations website.

Forward-Looking Statements

This publication contains forward-looking statements that involve risks and uncertainties, including, without limitation, statements regarding Unity’s preliminary unaudited first quarter 2026 financial results (which remain subject to completion of the quarter, financial closing procedures, and adjustment), expectations regarding growth of Vector and its impact on Unity’s business, expectations regarding revenue from Unity’s Grow, Strategic Grow, Create and Strategic Create businesses, the impact of the sunsetting of Unity’s ironSource Ads Network and its plans to divest its Supersonic game publishing business on Unity’s outlook and future financial performance, and Unity’s plans, strategies, and objectives. The words “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, including completion of Unity’s normal quarterly accounting and financial statement closing procedures for the first quarter of 2026. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Additional information on potential factors that could affect Unity’s results is included in Unity’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our other filings with the Securities and Exchange Commission (SEC), which 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 publication except as required by law.

There can be no assurance that the exploration of a divestiture of Supersonic will result in any specific transaction or other outcome. Unity does not intend to discuss or disclose further developments unless and until it determines that further disclosure is appropriate.

Contacts:

Investor Relations:

Alex Giaimo, Head of Investor Relations

alex.giaimo@unity3d.com

Media Relations:

UnityComms@unity3d.com

FAQ

How did Unity (U) perform versus its Q1 2026 guidance?

Unity expects Q1 2026 revenue of $505M–$508M, above prior guidance of $480M–$490M. Adjusted EBITDA is projected at $130M–$135M, topping the $105M–$110M range. This indicates both sales and profitability are tracking ahead of earlier company expectations.

What are Unity’s preliminary Q1 2026 revenue and profit figures?

Unity projects Q1 2026 revenue between $505M and $508M and Adjusted EBITDA between $130M and $135M. That implies about 17% year-over-year revenue growth and roughly 58% Adjusted EBITDA growth, with an expected Adjusted EBITDA margin of about 26%.

What strategic changes is Unity (U) making to its advertising businesses?

Unity plans to sunset the ironSource Ads Network effective April 30, 2026, and has hired a financial advisor to help divest its Supersonic game publishing business. The company expects minimal revenue from ironSource Ads Network after Q1 2026 following these actions.

How fast are Unity’s Strategic Grow and Strategic Create revenues growing?

For Q1 2026, Unity expects Strategic Grow revenue of $279M, growing 48% year-over-year, and Strategic Create revenue of $152M, growing 14% year-over-year. Combined, total Strategic revenue of $431M is anticipated to grow 34% compared with the prior-year quarter.

What is driving Unity’s outperformance in Q1 2026?

Management cites Unity Vector as a key driver, expecting about 15% sequential growth in Q1 2026, along with better-than-expected performance in Create. These trends support higher total revenue and stronger Adjusted EBITDA relative to earlier guidance provided by the company.

Are Unity’s Q1 2026 figures final GAAP results?

No. The Q1 2026 numbers are preliminary, unaudited estimates based on management’s initial analysis. They remain subject to completion of normal quarterly closing procedures, potential adjustments, and review by Unity’s independent registered public accounting firm before final GAAP results are issued.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 23.1 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 1.7 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 21.1 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 12.2 KB