Unity Software, Inc. (U)
NYSE:U
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Earnings Data
Report Date
Aug 11, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
-0.1Last Year’s EPS
0.18Same Quarter Last Year
Moderate Buy
Based on 13 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong top-line and margin momentum across both Create and Grow businesses, driven by rapid adoption of Vector and an expanding AI-native product roadmap. Management provided clear financial improvements (revenue growth, record adjusted EBITDA, margin expansion, strong cash flow) and a pulled-forward path to GAAP profitability, while noting near-term transitional costs from strategic exits, elevated cloud/AI investments and that runtime data benefits will compound over time rather than produce immediate spikes.Company Guidance
Strong Strategic Revenue Growth
Company reported strategic revenue growth of 35% year-over-year for Q1 2026 with Q2 strategic revenue guidance of $455M–$465M implying 29%–32% year-over-year growth.
Robust Grow Segment Performance
Strategic Grow revenue was $279M in Q1, up 49% year-over-year; Q2 guidance for strategic Grow calls for 50%–52% year-over-year growth driven by Unity Vector.
Consistent Create Segment Growth
Strategic Create revenue was $154M in Q1, up 15% year-over-year with four straight quarters of mid-teens growth; Q2 Create guidance is +11%–14% year-over-year (ex-large customer comp).
Record Adjusted EBITDA and Margin Expansion
Adjusted EBITDA was $138M in Q1 (best in over 2 years), up 65% year-over-year, with adjusted EBITDA margin of 27% (improved 800 basis points year-over-year). Q2 adjusted EBITDA guidance is $130M–$135M (up ~44%–49% YoY).
Vector: Rapid Revenue and Sequential Growth
Vector revenue grew 15% sequentially (fourth straight quarter of ~15% QoQ growth) and is reported as ~80% larger year-over-year; product improvements (e.g., day-28 ROAS) drove meaningful lift (example: 37% ROAS improvement vs. day-7 benchmarks).
Unity AI & Product Roadmap Momentum
Unity AI (Vector-driven) entered public beta with strong early engagement (70% of adopters still using it after 5 days); company outlined an AI-native product pipeline slated for launches through 2026 intended to expand Create and Grow use cases.
Healthy Balance Sheet and Cash Generation
Cash balance of $2.15B and trailing-12-month free cash flow of $463M (up 50% YoY from $308M); management intends to use cash to pay down a $558M convertible due in November 2026.
Operating Discipline and Path to GAAP Profitability
Stock-based compensation down 20% YoY ($76M in Q1, 15% of revenue). M&A amortization expected to decline materially (Q1 $117M → Q2/Q3 ~$80M each → Q4 $55M → 2027 full year sub-$25M), enabling forecasted GAAP net income profitability by Q4 2026.
Investments in AI and R&D While Expanding Margins
Adjusted R&D spend up 9% YoY and AI-focused R&D up 17% YoY while adjusted S&M and G&A have declined YoY as a percentage of revenue; management highlights ability to reinvest in AI while growing margins via operating leverage.
Platform & Market Adoption Signals
New Unity sign-ups grew 20% quarter-over-quarter (fastest since 2020); newly released mobile apps were up 60% YoY across iOS/Android; newly published 'Made with Unity' games up 12% sequentially; developer data opt-in rates exceed 90%; Create holds ~70% share of mobile game creation.
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 |
|---|---|---|---|
May 07, 2026 | $27.28 | $26.73 | -2.02% |
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% |
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, Inc. (U) report earnings?
Unity Software, Inc. (U) is schdueled to report earning on Aug 11, 2026, After Close (Confirmed).
What is Unity Software, Inc. (U) earnings time?
Unity Software, Inc. (U) earnings time is at Aug 11, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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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 (Q2) is -0.1.
