Unity Software Inc. (U)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$2.0B

Revenue growth

14.0%

Net income, last twelve months

-$587.5M

Earnings per share

-$1.36

Gross margin

64.9%

Operating margin

-30.4%

Net margin

-29.0%

Free cash flow

$538.4M

Return on equity

-19.4%

Market value

$17.4B

Cash

$2.4B

Debt

$2.2B

Debt to equity

0.74

Shares outstanding

440.0M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter 2026 results, filed 6 August 2026.

• Revenue rose 24% to $546M. The company reported second-quarter revenue of $546 million, up 24% from $441 million a year earlier.
• Strategic revenue rose 38%. Strategic revenue was $486 million, up 38%. It is the sum of Strategic Grow and Strategic Create in the highlights table.
• Prior-year one-time item noted. A footnote gives the year-over-year change as 14% excluding a $12 million one-time revenue item in second-quarter 2025.
• Grow Solutions revenue up 35%. Grow Solutions revenue was $389 million, up 35% from $287 million a year earlier.
• Strategic Grow revenue up 63%. Strategic Grow revenue was $329 million, up 63%. Strategic Create revenue was $157 million, up 5%.
• Create Solutions revenue up 2%. Create Solutions revenue was $158 million, up 2% from $154 million a year earlier.
• Unity Vector drove ads growth. Management attributed Grow growth to the Unity Ads Network, driven by Unity Vector, partly offset by lower ironSource Ads Network revenue.
• Subscriptions drove Create growth. Management attributed the Create increase to growth in subscription revenue.
• Adjusted gross margin held at 83%. Adjusted gross margin was 83% in the second quarter, the same as in the second quarter of 2025.
• Adjusted R&D spend rose. Adjusted research and development expense was $161.1 million, or 30% of revenue, against $137.5 million and 31% a year earlier.
• Sales and marketing costs fell. Adjusted sales and marketing expense was $94.1 million, or 17% of revenue, down from $96.2 million and 22% a year earlier.
• GAAP net loss narrowed. GAAP net loss was $23 million, a (4)% margin and $0.05 per share, compared with $107 million a year earlier.
• Adjusted EBITDA reached $160M. Adjusted EBITDA was $160 million with a 29% margin, against $90 million and 21% a year earlier.
• Adjusted EPS rose to $0.28. Adjusted EPS was $0.28, compared with $0.18 in the second quarter of 2025.

Revenue by segment

As the company reports it in the segment note of its annual report.

By product, FY2025

By region, FY2025

Company events

The newest 8-K filings of 75 held.

Every filing

The newest filings with the SEC of 177 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Trades by members of the House

From each member's periodic transaction report.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

640 funds held it at 30 Jun 2026: 284 added and 161 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Microsoft Corp. (MSFT): revenue $346.4B, market value $3.95T
• Palantir Technologies Inc. (PLTR): revenue $6.2B, market value $473.1B
• Oracle Corp. (ORCL): revenue $71.8B, market value $436.3B
• SAP SE (SAP): revenue $41.6B, market value $276.7B
• CrowdStrike Holdings, Inc. (CRWD): revenue $5.4B, market value $273.1B
• Shopify Inc. (SHOP): revenue $13.3B, market value $218.4B
• Salesforce, Inc. (CRM): revenue $43.9B, market value $199.5B
• ServiceNow, Inc. (NOW): revenue $15.4B, market value $155.6B
• Snowflake Inc. (SNOW): revenue $5.4B, market value $119.8B
• Cloudflare, Inc. (NET): revenue $2.5B, market value $113.0B

What the company does

Unity Software Inc. makes software for building, running and growing games and interactive experiences. The company calls Unity the leading platform for this work. Its tools cover mobile, PC, console and extended reality (XR). Creators use them in gaming and in fields such as automotive, retail, manufacturing, healthcare, the public sector and robotics. At 31 December 2025 it had 4,412 full-time employees across 25 offices in 16 countries.

How the business is organised

Unity describes its platform as two sets of solutions, Create Solutions and Grow Solutions. Starting in the fourth quarter of 2023 it began to reset its product and service offerings to focus on core businesses that it calls its "Strategic Portfolio". These are primarily the Unity Engine and related consumption services, and monetization solutions.

What Create Solutions covers

Create Solutions are tools and services for building, shipping and running high-definition, real-time 2D and 3D content. They include Unity's own real-time 3D engine and development environment with a high-definition render pipeline. They also include AI-driven content creation, graphics, animation and audio tools, and navigation, networking and user interface tools. Cloud services add asset management, DevOps tools and multiplayer game support. Content can be created once and deployed to a variety of platforms.

Create Solutions revenue comes mainly from subscriptions. Enterprise support is generally sold separately. Professional services are mostly platform integrations, with some consulting, training, and custom application and workflow development. Consumption services are cloud and hosting services. Subscription revenue is recognised ratably over the term of the agreement.

What Grow Solutions covers

Grow Solutions are mainly ads products. They help customers acquire users and earn money from their content, whether or not it was built in Unity. The products include a mediation platform, ad networks and an offerwall. The ad networks are the Unity Ad Network, powered by Unity Vector, and the IronSource Ad Network. In the fourth quarter of 2025 they made up 56% and 11% of Grow Solutions revenue.

Publishers, original equipment manufacturers and mobile carriers sell advertising inventory through Unity's auction and mediation platform. Unity's revenue is the amount it retains from each transaction. - Supersonic from Unity is a publishing solution for small studios and independent developers. It provides marketability testing tools, live games management tools and game design support, and earns revenue from in-app advertising and related purchases in published games. - Aura from Unity lets app developers reach users through on-device app discovery, and lets telecom operators engage and monetize their users.

Who it sells to

Customers range from the largest enterprises to mid-market companies, government and non-profit institutions, and small and independent businesses and individual developers. Third-party platforms partner with Unity so that creators can deploy content onto their platforms.

How it competes

In Create Solutions, Unity competes mainly with engines that large game studios build in-house, and with Cocos2d-x (Chukong Technologies), Godot and Unreal Engine (Epic Games). Outside gaming it also competes with other 2D and 3D design platforms and software.

In Grow Solutions the field is fragmented. It includes private companies and large public companies such as Amazon, Meta, Google, Microsoft and Tencent, most of which are also Unity's partners and customers. Other competitors named are AppLovin, Voodoo, Moloco and Digital Turbine. The filing lists the main competitive factors as: - - - - ease of use - price -

Its people and intellectual property

Of the 4,412 full-time employees, 2,887 work in technical roles, about 65% of the total. About 77% are located outside the United States. Unity also engages contractors and consultants.

Unity relies on patents, trademarks, copyrights, trade secrets, license agreements and confidentiality agreements. As of 31 December 2025 it held 204 issued utility patents in the United States and 29 in other jurisdictions. It had 51 utility patent applications pending, including 1 provisional application. It also held 1 registered design patent in the United States and 28 outside it. The company says no single patent is material to it as a whole.

*From Unity's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1810806/000181080626000011/unity-20251231.htm)*

From the company's 10-K.