Unity Software beats Q1 revenue estimates, but net loss widens

Unity Software

07/05/2026 12:16

Overview

Game engine provider's Q1 revenue rose 17%, beating analyst expectations

Adjusted EBITDA for Q1 beat analyst expectations

Q1 GAAP net loss per share missed analyst estimates due to impairment charges

Outlook

Unity expects Q2 2026 revenue of $505 mln to $515 mln

Company sees Q2 2026 adjusted EBITDA of $130 mln to $135 mln

Result Drivers

UNITY VECTOR - Growth in Grow Solutions revenue was driven by the Unity Ad Network, particularly the 'Unity Vector' product

SUBSCRIPTION REVENUE - Create Solutions revenue increased due to higher subscription revenue, partly offset by lower cloud and hosting services revenue

IMPAIRMENT CHARGES - Net loss included $279 mln in impairment charges related to the sunset of the ironSource Ads Network and planned divestiture of Supersonic publishing business

Company press release: ID:nBw2btbnka

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$508.24 mln
$500.05 mln (21 Analysts)
Q1 EPS
Miss
-$0.80
-$0.23 (11 Analysts)
Q1 Net Income
-$346.93 mln
Q1 Adjusted EBITDA
Beat
$138 mln
$122.65 mln (19 Analysts)
Q1 Free Cash Flow
$66.5 mln
Q1 Operating Income
-$351.41 mln


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)