Unity Software FY2026 Q1 Earnings Release

Exhibit 99.1
Unity Reports First Quarter 2026
SAN FRANCISCO, May 7, 2026
ended March31, 2026
cWe are delivering exceptional revenue growth and margin expansion while executing on the most
d.
Select revenue highlights for Q1 2026 are as follows:
Three Months Ended March 31,
2026 YoY Change
Total Revenue $508,238 $435,000 17%
Strategic Grow Revenue $278,681 $186,934 49%
Strategic Create Revenue $153,734 $133,309 15%
Total Strategic Revenue $432,415 $320,243 35%
Non-Strategic Revenue 1
$75,823 $114,757 (34)%
Q2 2026 2
N Total Revenue of $505 million to $515 million.
N Strategic Revenue of $455 million to $465 million, up 29% – 32% year-over-year
O Strategic Grow Revenue of $302 million to $306 million, up 50% – 52% year-over-year
O Strategic Create Revenue of $154 million to $158 million up 11% – 14% year-over-year,
when excluding the impact of a $12 million one-time revenue item in the second quarter
of 2025.
N Adjusted EBITDA of $130 million to $135 million, up 44% – 49% year-over-year
2026 Unity Technologies U N I T Y . C O M E 11
Consists primarily of revenue from (i) our ironSource Ad network, which was sunsetted effective April 30, 2026, and (ii) our Supersonic
publishing business which we intend to divest.
2
These statements are forward-looking and actual results may differ materially. Refer to the cForward-Looking Statementsd safe harbor
section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
quarter non-GAAP
results included in this press release.

Earnings Webcast
Unity will hold a public webcast at 8:30 a.m. ET today to discuss the results for its first quarter 2026
investors.unity.com. The webcast replay will also be available on the site.
First Quarter 2026
Revenue was quarter 2025 .
N Create Solutions revenue was quarter 2025 .
Grow Solutions revenue was $352 million , compared to quarter 2025 .
GAAP net loss was $347 million , with a v per
share was .
N Adjusted EBITDA was v a .
N Net cash
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Revenue was 17% year-over-year. Strategic revenue was $432 million, up 35% year-
over-year.
Create Solutions revenue was 4% year-over-year. The increase was driven by
increases in subscription revenue, partially offset by decreases in cloud and hosting services revenue,
driven by our portfolio reset in 2025.
24% year-over-year. The change was due to growth in
the Unity Ad Network, driven by cUnity Vectord, partially offset by decreases in the IronSource Ad
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Basic and diluted per share was $0.80 , as compared to for the same period in 2025 .
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Net Loss for the quarter was $347 million , which includes
quarter of 2025 .
margin was (68)% , compared to in the first quarter of 2025 .
Net cash $71 million , compared $13 million in the
first quarter of 2025 .
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, compared to
quarter of 2025 , with a margin of . The year-over-year improvement was driven by higher
$66 million , compared to quarter of 2025 .
, compared to quarter of 2025 .
2026 Unity Technologies U N I T Y . C O M E 2

Liquidity
d by .
About Unity
2026 Unity Technologies U N I T Y . C O M E 3

UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
As of
March 31, 2026
Assets
Current assets:
Cash and cash equivalents $ 2,140,861 $ 2,055,840
Accounts receivable, net 654,003 643,611
Prepaid expenses and other 128,467 113,012
Total current assets 2,923,331 2,812,463
Property and equipment, net 54,314 68,289
Goodwill 3,166,304 3,166,304
Intangible assets, net 262,624 650,544
Other assets 115,168 140,006
Total assets $ 6,521,741 $ 6,837,606
Liabilities and stockholders’ equity
Accounts payable $ 8,648 $ 13,981
Accrued expenses and other 313,155 299,541
Publisher payables 393,016 431,494
Deferred revenue 229,506 224,405
Current portion of convertible notes 556,810 556,451
Total current liabilities 1,501,135 1,525,872
Convertible notes 1,679,560 1,678,899
Long-term deferred revenue 16,831 14,038
Other long-term liabilities 83,091 122,660
Total liabilities 3,280,617 3,341,469
Commitments and contingencies
Redeemable noncontrolling interests 259,168 252,637
Stockholders’ equity:
Common stock, par value:
Authoried shares – and 1,000,000
Issued and outstanding shares – 436,401 and 432,860 2 2
Additional paid-in capital
257 (2,156)
Accumulated deficit (4,486,319) (4,138,709)
Total Unity Software Inc. stockholders’ equity 2,975,798 3,237,432
Noncontrolling interest 6,158 6,068
Total stockholders’ equity 2,981,956 3,243,500
Total liabilities and stockholders’ equity $ 6,521,741 $ 6,837,606
2026 Unity Technologies U N I T Y . C O M E 4

UNITY SOFTWARE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
Three Months Ended
March 31,
2026
Revenue $ 508,238 $ 435,000
Cost of revenue 351,637 113,957
Gross profit 156,601 321,043
Operating expenses
Research and development 254,425 220,625
Sales and marketing 195,377 162,013
General and administrative 58,212 66,340
Total operating expenses 508,014 448,978
Loss from operations (351,413) (127,935)
Interest expense (6,020) (5,891)
Interest income and other income (expense), net 3,464 58,111
Loss before income taxes (353,969) (75,715)
Provision for (benefit from) Income taxes (7,042) 2,192
Net loss (346,927) (77,907)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests 683 (265)
Net loss attributable to Unity Software Inc. (347,610) (77,642)
Basic and diluted net loss per share attributable to Unity Software Inc. $ (0.80) $ (0.19)
Weighted-average shares used in computation of basic and diluted net loss per share 434,255 411,852
Net loss (346,927) (77,907)
Change in foreign currency translation adjustment 3,048 1,178
Comprehensive loss $ (343,879) $ (76,729)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests 683 (265)
Foreign currency translation attributable to noncontrolling interest and redeemable noncontrolling interests 635 254
Comprehensive income (loss) attributable to noncontrolling interest and redeemable noncontrolling
1,318 (11)
Comprehensive loss attributable to Unity Software Inc. $ (345,197) $ (76,718)
2026 Unity Technologies U N I T Y . C O M E 5

2026
Operating activities
Net loss $ (346,927) $ (77,907)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortiation
77,165 98,790
Gain on repayment of convertible note L (42,744)
Impairment of intangible assets 270,506 L
Impairment of property and equipment 8,422 3,470
Impairment of investments 15,000 L
Other 1,469 (218)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net (10,196) 21,022
Prepaid expenses and other (18,398) (10,602)
Other assets 9,334 10,023
Accounts payable (5,238) 2,198
Accrued expenses and other 13,960 (21,029)
Publisher payables (38,478) (55,155)
Other long-term liabilities (39,947) (10,919)
Deferred revenue 7,359 (120)
Net cash provided by operating activities 71,286 13,026
Investing activities
Purchases of non-marketable investments L L
Purchases of intangible assets L L
Purchases of property and equipment (4,829) (5,718)
Net cash used in investing activities (4,829) (5,718)
Financing activities
Proceeds from issuance of convertible notes L 690,000
Purchase of capped calls L (44,436)
Payment of debt issuance costs L (13,236)
Repayments of convertible note L (641,691)
Proceeds from issuance of common stock upon exercise of stock options and purchase of ESPP shares 11,643 21,611
Net cash provided by financing activities 11,643 12,248
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
2,064,301 1,527,881
Cash, cash equivalents, and restricted cash, end of period $ 2,146,089 $ 1,551,634 UNITY SOFTWARE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
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About Non-GAAP Financial Measures
To supplement our consolidated financial statements prepared and presented in accordance with
generally accepted accounting principles in the United States (GAAP) we use certain non-GAAP
financial measures, as described below, to evaluate our ongoing operations and for internal planning
However, non-GAAP financial measures have limitations in their usefulness to investors because they
have no standardied meaning prescribed by GAAP and are not prepared under any comprehensive set
of accounting rules or principles. In addition, other companies, including companies in our industry, may
We define adjusted EBITDA as GAAP net income or loss excluding benefits or expenses associated with
stock-based compensation, amortiation and impairment of acquired intangible assets, depreciation,
. We define adjusted EBITDA margin as
. We define adjusted
We define adjusted cost of revenue as GAAP cost of revenue, excluding expenses associated with
stock-based compensation, amortiation and impairment of acquired intangible assets, depreciation,
. We define adjusted research and development expense as
. We define adjusted sales and marketing expense as GAAP sales and marketing
. We define adjusted
. We
less cash used for purchases of
property and equipment.
We define adjusted EPS as net income or loss excluding benefits or expenses associated with stock-
based compensation, amortiation and impairment of acquired intangible assets, depreciation,
,
U N I T Y . C O M E 7

Adjusted EBITDA reconciliation
$ 508,238 $ 435,000
GAAP net loss $ (346,927) $ (77,907)
Add:
Stock-based compensation expense $ 76,869 $ 95,316
Amortiation of intangible assets expense $ 117,414 $ 85,650
Depreciation expense $ 9,841 $ 10,567
Impairment of intangible assets $ 278,666 $ L
Restructuring and reorganiation costs $ 6,903 $ 20,345
Interest expense $ 6,020 $ 5,891
Interest income and other income (expense), net $ (3,464) $ (58,111)
Provision for (benefit from) income taxes $ (7,042) $ 2,192
Adjusted EBITDA $ 138,280 $ 83,943
GAAP net loss margin (68) % (18) %
Adjusted EBITDA margin 19 %
Adjusted gross profit reconciliation
$ 156,601 $ 321,043
Add:
Stock-based compensation expense 7,382 9,112
Amortiation of intangible assets expense 27,069 26,700
Depreciation expense 1,631 1,714
Impairment of intangible assets 226,516 L
Restructuring and reorganiation costs (53) 534
Adjusted gross profit $ 419,146 $ 359,103
GAAP gross margin 31% 74%
Adjusted gross margin
GAAP cost of revenue $ 351,637 $ 113,957
Stock-based compensation expense (7,382) (9,112)
Amortiation of intangible assets expense (27,069) (26,700)
Depreciation expense (1,631) (1,714)
Impairment of intangible assets (226,516) L
Restructuring and reorganiation costs 53 (534)
Adjusted cost of revenue $ 89,092 $ 75,897
GAAP cost of revenue as a percentage of revenue 69% 26%
Adjusted cost of revenue as a percentage of revenue 18% 18% UNITY SOFTWARE, INC.
Non-GAAP Reconciliation
Three Months Ended
March 31,
2026
2026 Unity Technologies U N I T Y . C O M E 8

Research and development
GAAP research and development expense $ 254,425 $ 220,625
Stock-based compensation expense (38,628) (50,595)
Amortiation of intangible assets expense (51,378) (16,530)
Depreciation expense (4,792) (5,266)
Impairment of intangible assets (3,998) L
Restructuring and reorganiation costs (3,576) (8,346)
Adjusted research and development expense $ 152,053 $ 139,888
GAAP research and development expense as a percentage of revenue 50% 51%
Adjusted research and development expense as a percentage of revenue 30% 32%
Sales and marketing
GAAP sales and marketing expense $ 195,377 $ 162,013
Stock-based compensation expense (14,172) (16,486)
Amortiation of intangible assets expense (38,967) (42,420)
Depreciation expense (2,013) (2,154)
Impairment of intangible assets (46,969) L
Restructuring and reorganiation costs (2,314) (7,900)
Adjusted sales and marketing expense $ 90,942 $ 93,053
GAAP sales and marketing expense as a percentage of revenue 38% 37%
Adjusted sales and marketing expense as a percentage of revenue 18% 21%
General and administrative
GAAP general and administrative expense $ 58,212 $ 66,340
Stock-based compensation expense (16,687) (19,123)
Depreciation expense (1,405) (1,433)
Impairment of intangible assets (1,183) L
Restructuring and reorganiation costs (1,066) (3,565)
Adjusted general and administrative expense $ 37,871 $ 42,219
GAAP general and administrative expense as a percentage of revenue 12% 15%
Adjusted general and administrative expense as a percentage of revenue 7% 10% UNITY SOFTWARE, INC.
Non-GAAP Reconciliation
Three Months Ended
March 31,
2026
2026 Unity Technologies U N I T Y . C O M E 9

Adjusted EPS reconciliation
$ (346,927) $ (77,907)
Stock-based compensation expense 76,869 95,316
Amortiation of intangible assets expense 117,414 85,650
Depreciation expense 9,841 10,567
Impairment of intangible assets 278,666 L
Restructuring and reorganiation costs 6,903 20,345
Income tax impact of adjusting items (37,534) (27,764)
Adjusted net income used for calculation of adjusted EPS, before impact of dilutive instruments $ 105,232 $ 106,207
Increase from forgone financing costs on dilutive convertible notes, net of tax 4,668 4,597
Adjusted net income used for calculation of adjusted EPS, including impact of dilutive instruments $ 109,900 $ 110,804
Weighted-average common shares used in GAAP diluted net loss per share attributable to Unity Software
Inc. 434,255 411,852
Convertible notes 41,348 30,494
Stock options and PVOs 2,941 6,863
Unvested RSUs, PVUs, and PSUs 6,805 5,166
ESPP 127 650
Non-GAAP weighted-average common shares used in adjusted EPS
(0.80) (0.19)
Total impact on diluted net loss per share attributable to Unity Software Inc. from non-GAAP adjustments 1.04 0.45
Total impact on diluted net loss per share attributable to Unity Software Inc. from antidilutive common
stock now included (0.01) (0.02)
Adjusted EPS
$ 71,286 $ 13,026
Less:
Purchases of property and equipment (4,829) (5,718)
Free cash flow 66,457 7,308
Net cash used in investing activities (4,829) (5,718)
Net cash provided by financing activities 11,643 12,248 UNITY SOFTWARE, INC.
Non-GAAP Reconciliation
Three Months Ended
March 31,
2026
2026 Unity Technologies U N I T Y . C O M E 10

Cautionary Statement Regarding
This press release and the earnings call referencing this press release contain cforward-looking statements,d as
that term is defined under federal securities laws, including statements regarding Unity_s outlook and future
looking statements. Risks include, but are not limited to, those related to: (i) the impact of macroeconomic
conditions, such as inflation, high interest rates, tariffs, sanctions and trade barriers, and limited credit availability
U N I T Y . C O M E 11

Contacts:
dcuE~duc
Alex Giaimo, Head of Investor Relations
alex.giaimo:unity3d.com
#dR~duc
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