AI-extracted from the 10-Q filed 2026-08-06 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Unity Q2 revenue grew 24% YoY to $546.5M, driven by Grow Solutions expansion, but net loss of $23.6M reflects $279M impairment charges from sunsetting ironSource Ads Network and divesting Supersonic publishing.
Biggest Revenue Drivers
Grow Solutions$388.9M+35% YoY
Growth driven by Unity Ads Network expansion via 'Unity Vector', partially offset by ironSource Ads Network decline
Create Solutions$157.6M+3% YoY
Increases in subscription revenue offset by decreases in cloud and hosting services from 2025 portfolio reset
Biggest Revenue Drivers
Total revenue: $546.5M+24% YoY
Grow Solutions$388.9M+35% YoY
Growth driven by Unity Ads Network expansion via 'Unity Vector', partially offset by ironSource Ads Network decline
Create Solutions$157.6M+3% YoY
Increases in subscription revenue offset by decreases in cloud and hosting services from 2025 portfolio reset
Largest Expense Items
Research and development$278.3M+29% YoY
Increased amortization from change in useful lives of intangible assets and higher hosting expenses
Sales and marketing$132.4M-18% YoY
Decreased amortization from Q1 2026 impairment, offset by $47M impairment charge within the six-month period
Cost of revenue$111.7M-2% YoY
Decreased amortization of intangible assets from impairment offset by higher hosting and advertising direct costs
General and administrative$56.3M-19% YoY
Decreased allocated overhead and personnel costs from reduced real estate footprint and headcount restructuring
Margins: Gross margin improved to 80% in Q2 2026 from 74% in Q2 2025, primarily due to lower amortization following the $279M impairment charge. Operating margin remained negative at -6% despite revenue growth, weighed by $279M in impairment charges ($227M in cost of revenue, $47M in sales/marketing) and $38M in employee separation costs.
Watch Items from the Filing
Accumulated deficit reached $4.5B as of June 30, 2026; company has generated losses since inception and may require additional capital for strategic initiatives.
Sunsetting of ironSource Ads Network (effective April 30, 2026) and divestiture of Supersonic publishing (completed August 4, 2026 for $40M) resulted in $279M impairment charges; customer and revenue attrition risk acknowledged.
Non-strategic portfolio revenue declined from $204M (H1 2025) to $136M (H1 2026), representing significant portfolio contraction in Grow Solutions.
Convertible notes totaling $2.2B outstanding including $558M due November 2026; company believes existing cash ($2.4B) sufficient to repay 2026 Notes but faces refinancing risk.
Free cash flow of $268.4M generated in H1 2026 vs. $134.0M in H1 2025, demonstrating improved operating cash conversion despite losses.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Unity Software Inc. (U): stock profile, AI score and financials
Unity Software Inc. (U) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores U at 37.8/100 on a composite quality score built from its SEC filings, placing it at rank #2,214 of 2,925 stocks — the bottom half of the AI-ranked universe. U scores in the top quartile across free cash flow (80.8). Areas of concern include profitability (13.0) and balance sheet strength (18.0), which score below median versus the broader universe. Shareholder dilution risk is elevated at 8.3/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Unity Software Inc. reports quarterly revenue of $546.5M, net income of $-23.6M, an operating margin of -5.9%. Top institutional holders of U by reported 13-F value include Silver Lake Group, L.L.C., SC US (TTGP), LTD., BlackRock, based on the most recent SEC filings. U trades on the NYSE exchange and files with the SEC under CIK 1810806. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate U daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Unity Software Inc. directly from SEC EDGAR.