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Unity Software (U)
NYSE:U
Earnings Data
Report Date
May 12, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.21Last Year’s EPS
0.24Same Quarter Last Year
Moderate Buy
Based on 19 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlights a clear positive momentum: rapid and accelerating Vector growth, a returning Create business, improving profitability and exceptional free cash flow conversion, plus multiple product catalysts (runtime integration, browser authoring, AI authoring, commerce). Near‑term items tempering the picture include the decline of the IronSource network, seasonality in Q1, elevated near‑term operating spend, and some investor concerns about competitive dynamics and the multi‑quarter nature of runtime benefits. Overall, the positives (sustained high‑growth Vector, improving Create, strong margins and cash flow, and a constructive product roadmap) outweigh the lowlights.Company Guidance
Vector Rapid Growth and Traction
Vector delivered its third consecutive quarter of mid‑teen sequential revenue growth, grew 53% across its first three quarters since launch, and had its best month in January (January revenue >70% year‑over‑year). Management expects Vector to exceed a $1 billion annual run rate by 2026 and to continue compounding performance as runtime data is integrated.
Strong Q4 Grow Revenue
Grow revenue was $338 million in Q4, up 6% sequentially and 11% year‑over‑year, with Vector comprising 56% of Grow revenue (up from 49% two quarters earlier).
Create Business Rebound
Create revenue was $165 million in Q4, up 8% year‑over‑year. Excluding $10 million in non‑strategic 2024 revenue, Create grew 16% YoY, driven by subscription strength and price/renewal cadence; Create also grew nearly 50% in China over the year.
Improving Profitability and Cash Conversion
Adjusted EBITDA in Q4 was $125 million (25% margin), a 200 basis point improvement year‑over‑year and sequentially. For 2025, adjusted EBITDA margins increased to 22% and Unity converted 99% of adjusted EBITDA to free cash flow.
Significant Free Cash Flow Growth and Strong Liquidity
Free cash flow grew 41% in 2025 to just over $400 million. The company exited the year with over $2 billion in cash and successfully refinanced $690 million of convertible notes, extending maturities to 2030.
Product Momentum and Roadmap Catalysts
Unity 6 adoption is the fastest in company history (around 90% of active creators can use it free), Unity Studio (no‑code 3D editor) is in beta, browser‑based authoring and AI authoring (beta to be showcased at GDC) are key 2026 growth initiatives, and in‑app commerce is entering early access with GA planned in Q2.
Guidance Reflects Continued Growth and Margin Expansion
Q1 guidance: total revenue $480–490 million and adjusted EBITDA $105–110 million. Vector is expected to grow ~10% sequentially in Q1; Create is expected to deliver double‑digit YoY growth in Q1 excluding non‑strategic revenue. Management expects adjusted EBITDA margins to expand ~300 basis points YoY in Q1.
Acceleration of Organic Growth
Management noted that organic year‑over‑year revenue growth accelerated every quarter throughout 2025 across both Create and Grow, indicating improving top‑line momentum and execution consistency.
U Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
U Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 11, 2026 | $29.06 | $21.41 | -26.32% |
Nov 05, 2025 | $35.87 | $42.36 | +18.09% |
Aug 06, 2025 | $33.94 | $31.92 | -5.95% |
May 07, 2025 | $21.32 | $20.66 | -3.10% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Unity Software (U) report earnings?
Unity Software (U) is schdueled to report earning on May 12, 2026, After Close (Confirmed).
What is Unity Software (U) earnings time?
Unity Software (U) earnings time is at May 12, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is U EPS forecast?
U EPS forecast for the fiscal quarter 2026 (Q1) is 0.21.
