Unity Software Q2 revenue rises on subscription growth

Unity Software

06/08/2026 12:39

Overview
Game engine provider's Q2 revenue rose 24% yr/yr but missed analyst expectations
Q2 adjusted EBITDA beat analyst expectations, driven by higher revenue and cost control
Company's revenue growth led by Unity Vector AI and Grow Solutions; non-strategic revenue declined

Outlook
Unity sees Q3 strategic revenue of $540 mln to $550 mln, up 44% to 47% YoY
Company expects Q3 adjusted EBITDA of $185 mln to $190 mln, up 69% to 74% YoY

Result Drivers
UNITY VECTOR AI - Co said growth in Unity Ads Network, driven by Unity Vector AI, contributed to higher Grow Solutions revenue
SUBSCRIPTION REVENUE - Co said Create Solutions revenue increase was driven by higher subscription revenue, partially offset by declines in cloud and hosting services
NON-STRATEGIC REVENUE DECLINE - Co said decrease in non-strategic revenue was primarily due to the sunset of ironSource Ads Network and sale of Supersonic publishing business

Company press release: ID:nBw4V6X7Za

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$328.96 mln
$514.61 mln (20 Analysts)
Q2 Adjusted EPS
 
$0.28
 
Q2 Loss Per Share
Beat
$0.05
$0.09 (13 Analysts)
Q2 Net Loss
 
$22.67 mln
 
Q2 Adjusted EBITDA
Beat
$160 mln
$136.28 mln (19 Analysts)
Q2 Free Cash Flow
 
$202 mln
 
Q2 Operating Income
 
-$32.22 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Unity Software Inc. is $37.00, about 4.3% above its August 5 closing price of $35.47

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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.)