Unity Software FY2026 Q2 Earnings Release

Exhibit 99.1
Unity Reports Second Quarter 2026
SAN FRANCISCO, August 6, 2026
ended June30, 2026
cThis was arguably the best quarter in Unity_s history as a public company,d said Matt Bromberg,
Select revenue highlights for Q 2 2026 are as foll ows (in thousands):
Three Months Ended June 30,
2026 YoY Change
Strategic Grow Revenue $328,955 $201,334 63%
Strategic Create Revenue $157,456 $150,605 5% 1
Total Strategic Revenue $486,411 $351,939 38%
Non-Strategic Revenue 2
$60,057 $89,005 (33)%
Total Revenue $546,468 $440,944 24%
Q3 2026 3
N Strategic Revenue of $540 million to $550 million , 44% – 47% year-over-year
O Strategic Grow Revenue of $380 million to $385 million , 68% – 70% year-over-year
O Strategic Create Revenue of $159 million to $163 million up 7% – 10% year-over-year
N Non-Strategic Revenue of
O Incorporates approximately one month of revenue from the Supersonic business, which
was sold on August4, 2026
Adjusted EBITDA of $185 million to $190 million , 69% – 74% year-over-year
2026 Unity Technologies U N I T Y . C O M E 11
YoY Change was 14% when excluding the impact of a $12 million one-time revenue item in the second quarter of 2025.

2
Consists primarily of revenue from (i) our ironSource Ads network, which was sunset effective April 30, 2026, and (ii) our Supersonic
publishing business which was sold on

3
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 second quarter
2026
investors.unity.com. The webcast replay will also be available on the site.
Second Quarter 2026
Revenue was quarter 2025 .
N Create Solutions revenue was quarter
2025 .
Grow Solutions revenue was $389 million , compared to quarter 2025 .
GAAP net loss was $23 million , with a v per share
was $0.05 .
N Adjusted EBITDA was v a .
N Net cash
~ddd
Revenue was 24% year-over-year. Strategic revenue was $486 million , up year-
over-year.
Create Solutions revenue was 2% 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.
35% year-over-year. The change was due to growth in
the Unity Ads Network, driven by cUnity Vectord, partially offset by decreases in the ironSource Ads
qdEcEd
Basic and diluted per share was $0.05 , as compared to .
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Net Loss for the quarter was $23 million , compared to a of $107 million in the second quarter of
2025 .
margin was (4)% , compared to in the second quarter of 2025 .
Net cash $206 million , compared $133 million in
the quarter of 2025 .
ARcudR_ATA|EddIc|RARcudR_v
, compared to
quarter of 2025 , with a margin of . The year-over-year improvement was driven by higher
$202 million , compared to quarter of
2025 .
, compared to in the second 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
June 30, 2026
Assets
Current assets:
Cash and cash equivalents $ 2,351,987 $ 2,055,840
Accounts receivable, net 688,739 643,611
Prepaid expenses and other 83,590 113,012
Assets held-for-sale 56,030 L
Total current assets 3,180,346 2,812,463
Property and equipment, net 49,814 68,289
Goodwill 3,155,607 3,166,304
Intangible assets, net 163,141 650,544
Other assets 112,354 140,006
Total assets $ 6,661,262 $ 6,837,606
Liabilities and stockholders’ equity
Accounts payable $ 10,429 $ 13,981
Accrued expenses and other 304,134 299,541
Publisher payables 440,665 431,494
Deferred revenue 237,348 224,405
Current portion of convertible notes 557,173 556,451
Liabilities held-for-sale 19,946 L
Total current liabilities 1,569,695 1,525,872
Convertible notes 1,680,229 1,678,899
Long-term deferred revenue 20,278 14,038
Other long-term liabilities 84,167 122,660
Total liabilities 3,354,369 3,341,469
Commitments and contingencies
Redeemable noncontrolling interests 266,727 252,637
Stockholders’ equity:
Common stock, par value:
Authoried shares – and 1,000,000
Issued and outstanding shares – 439,987 and 432,860 2 2
Additional paid-in capital
3,280 (2,156)
Accumulated deficit (4,509,925) (4,138,709)
Total Unity Software Inc. stockholders’ equity 3,033,890 3,237,432
Noncontrolling interest 6,276 6,068
Total stockholders’ equity 3,040,166 3,243,500
Total liabilities and stockholders’ equity $ 6,661,262 $ 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 Six Months Ended
June 30, June 30,
2026 2026
Revenue $ 546,468 $ 440,944 $ 1,054,706 $ 875,944
Cost of revenue 111,709 114,211 463,346 228,168
Gross profit 434,759 326,733 591,360 647,776
Operating expenses
Research and development 278,275 214,807 532,700 435,432
Sales and marketing 132,368 161,513 327,745 323,526
General and administrative 56,335 69,165 114,547 135,505
Total operating expenses 466,978 445,485 974,992 894,463
Loss from operations (32,219) (118,752) (383,632) (246,687)
Interest expense (6,032) (6,030) (12,052) (11,921)
Interest income and other income (expense), net 17,941 19,837 21,405 77,948
Loss before income taxes (20,310) (104,945) (374,279) (180,660)
Provision for (benefit from) Income taxes 2,362 2,420 (4,680) 4,612
Net loss (22,672) (107,365) (369,599) (185,272)
Net income attributable to noncontrolling interest and redeemable
934 1,433 1,617 1,168
Net loss attributable to Unity Software Inc. (23,606) (108,798) (371,216) (186,440)
Basic and diluted net loss per share attributable to Unity Software Inc. $ (0.05) $ (0.26) $ (0.85) $ (0.45)
Weighted-average shares used in computation of basic and diluted net loss
per share 437,898 417,566 436,069 414,696
Net loss (22,672) (107,365) (369,599) (185,272)
Change in foreign currency translation adjustment 3,823 2,716 6,871 3,894
Comprehensive loss $ (18,849) $ (104,649) $ (362,728) $ (181,378)
Net income attributable to noncontrolling interest and redeemable
934 1,433 1,617 1,168
Foreign currency translation attributable to noncontrolling interest and
redeemable noncontrolling interests 800 564 1,435 818
Comprehensive income attributable to noncontrolling interest and
1,734 1,997 3,052 1,986
Comprehensive loss attributable to Unity Software Inc. $ (20,583) $ (106,646) $ (365,780) $ (183,364)
2026 Unity Technologies U N I T Y . C O M E 5

2026 2026
Operating activities
Net loss $ (22,672) $ (107,365) $ (369,599) $ (185,272)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortiation
79,948 101,604 157,113 200,394
Gain on repayment of convertible note L L L (42,744)
Impairment of intangible assets L L 270,506 L
Impairment of property and equipment 25 579 8,447 4,049
Impairment of investments L L 15,000 L
Other 1,097 (7,754) 2,566 (7,972)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net (57,170) (43,083) (67,366) (22,061)
Prepaid expenses and other 44,553 24,373 26,155 13,771
Other assets 2,933 1,866 12,267 11,889
Accounts payable 2,027 (4,297) (3,211) (2,099)
Accrued expenses and other (6,428) 7,417 7,532 (13,612)
Publisher payables 63,112 33,590 24,634 (21,565)
Other long-term liabilities 2,184 (1,942) (37,763) (12,861)
Deferred revenue 10,538 31,180 17,897 31,060
Net cash provided by operating activities 205,622 133,096 276,908 146,122
Investing activities
Purchases of non-marketable investments L (2,000) L (2,000)
Purchases of property and equipment (3,663) (6,446) (8,492) (12,164)
Net cash used in investing activities (3,663) (8,446) (8,492) (14,164)
Financing activities
Proceeds from issuance of convertible notes L L L 690,000
Purchase of capped calls L L L (44,436)
Payment of debt issuance costs L L L (13,236)
Repayments of convertible note L L L (641,691)
Proceeds from issuance of common stock upon exercise of stock options
4,551 9,783 16,194 31,394
Net cash provided by financing activities 4,551 9,783 16,194 22,031
Effect of foreign exchange rate changes on cash, cash equivalents, and
2,146,089 1,551,634 2,064,301 1,527,881
Cash, cash equivalents, and restricted cash, end of period $ 2,357,121 $ 1,701,507 $ 2,357,121 $ 1,701,507 UNITY SOFTWARE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
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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
. We
. We define free cash flow as net cash
provided by operating activities less cash used for purchases of property and equipment.
We define adjusted EPS as GAAP 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
$ 546,468 $ 440,944 $ 1,054,706 $ 875,944
GAAP net loss $ (22,672) $ (107,365) $ (369,599) $ (185,272)
Add:
Stock-based compensation expense $ 75,576 $ 101,435 $ 152,445 $ 196,751
Amortiation of intangible assets expense $ 77,490 $ 86,218 $ 194,904 $ 171,868
Depreciation expense $ 7,985 $ 10,710 $ 17,826 $ 21,277
Impairment of intangible assets $ L $ L $ 278,666 $ L
Restructuring and reorganiation costs $ 31,359 $ 10,886 $ 38,262 $ 31,231
Interest expense $ 6,032 $ 6,030 $ 12,052 $ 11,921
Interest income and other income (expense), net $ (17,941) $ (19,837) $ (21,405) $ (77,948)
Provision for (benefit from) income taxes $ 2,362 $ 2,420 $ (4,680) $ 4,612
Adjusted EBITDA $ 160,191 $ 90,497 $ 298,471 $ 174,440
GAAP net loss margin (4) % (24) % (35) % (21) %
Adjusted EBITDA margin 21 % 28 % 20 %
Adjusted gross profit reconciliation
$ 434,759 $ 326,733 $ 591,360 $ 647,776
Add:
Stock-based compensation expense 6,712 9,861 14,094 18,973
Amortiation of intangible assets expense 6,550 26,997 33,619 53,697
Depreciation expense 1,309 1,766 2,940 3,480
Impairment of intangible assets L L 226,516 L
Restructuring and reorganiation costs 3,915 275 3,862 809
Adjusted gross profit $ 453,245 $ 365,632 $ 872,391 $ 724,735
GAAP gross margin 80% 74% 56% 74%
Adjusted gross margin
GAAP cost of revenue $ 111,709 $ 114,211 $ 463,346 $ 228,168
Stock-based compensation expense (6,712) (9,861) (14,094) (18,973)
Amortiation of intangible assets expense (6,550) (26,997) (33,619) (53,697)
Depreciation expense (1,309) (1,766) (2,940) (3,480)
Impairment of intangible assets L L (226,516) L
Restructuring and reorganiation costs (3,915) (275) (3,862) (809)
Adjusted cost of revenue $ 93,223 $ 75,312 $ 182,315 $ 151,209
GAAP cost of revenue as a percentage of revenue 20% 26% 44% 26%
Adjusted cost of revenue as a percentage of revenue 17% 17% 17% 17% UNITY SOFTWARE, INC.
Non-GAAP Reconciliation
Three Months Ended Six Months Ended
June 30, June 30,
2026 2026
2026 Unity Technologies U N I T Y . C O M E 8

Research and development
GAAP research and development expense $ 278,275 $ 214,807 $ 532,700 $ 435,432
Stock-based compensation expense (39,469) (51,050) (78,097) (101,645)
Amortiation of intangible assets expense (51,393) (16,332) (102,771) (32,862)
Depreciation expense (3,934) (5,340) (8,726) (10,606)
Impairment of intangible assets L L (3,998) L
Restructuring and reorganiation costs (22,379) (4,581) (25,955) (12,927)
Adjusted research and development expense $ 161,100 $ 137,504 $ 313,153 $ 277,392
GAAP research and development expense as a percentage of revenue 51% 49% 50% 50%
Adjusted research and development expense as a percentage of revenue 30% 31% 30% 31%
Sales and marketing
GAAP sales and marketing expense $ 132,368 $ 161,513 $ 327,745 $ 323,526
Stock-based compensation expense (12,940) (19,041) (27,112) (35,527)
Amortiation of intangible assets expense (19,547) (42,889) (58,514) (85,309)
Depreciation expense (1,588) (2,156) (3,601) (4,310)
Impairment of intangible assets L L (46,969) L
Restructuring and reorganiation costs (4,237) (1,253) (6,551) (9,153)
Adjusted sales and marketing expense $ 94,056 $ 96,174 $ 184,998 $ 189,227
GAAP sales and marketing expense as a percentage of revenue 24% 37% 31% 37%
Adjusted sales and marketing expense as a percentage of revenue 17% 22% 18% 22%
General and administrative
GAAP general and administrative expense $ 56,335 $ 69,165 $ 114,547 $ 135,505
Stock-based compensation expense (16,455) (21,483) (33,142) (40,606)
Depreciation expense (1,154) (1,448) (2,559) (2,881)
Impairment of intangible assets L L (1,183) L
Restructuring and reorganiation costs (828) (4,777) (1,894) (8,342)
Adjusted general and administrative expense $ 37,898 $ 41,457 $ 75,769 $ 83,676
GAAP general and administrative expense as a percentage of revenue 11% 16% 11% 15%
Adjusted general and administrative expense as a percentage of revenue 7% 9% 7% 10% UNITY SOFTWARE, INC.
Non-GAAP Reconciliation
Three Months Ended Six Months Ended
June 30, June 30,
2026 2026
2026 Unity Technologies U N I T Y . C O M E 9

Adjusted EPS reconciliation
$ (22,672) $ (107,365) $ (369,599) $ (185,272)
Stock-based compensation expense 75,576 101,435 152,445 196,751
Amortiation of intangible assets expense 77,490 86,218 194,904 171,868
Depreciation expense 7,985 10,710 17,826 21,277
Impairment of intangible assets L L 278,666 L
Restructuring and reorganiation costs 31,359 10,886 38,262 31,231
Income tax impact of adjusting items (36,302) (20,527) (73,836) (48,291)
Adjusted net income used for calculation of adjusted EPS, before impact of
$ 133,436 $ 81,357 $ 238,668 $ 187,564
Increase from forgone financing costs on dilutive convertible notes, net of
tax
$ 138,112 $ 82,146 $ 248,012 $ 196,863
Weighted-average common shares used in GAAP diluted net loss per share
attributable to Unity Software Inc. 437,898 417,566 436,069 414,696
Convertible notes 41,348 20,896 41,348 35,951
Stock options and PVOs 2,660 5,385 2,801 6,124
Unvested RSUs, PVUs, and PSUs 7,585 4,572 7,195 4,869
ESPP L 4 63 327
Non-GAAP weighted-average common shares used in adjusted EPS
(0.05) (0.26) (0.85) (0.45)
Total impact on diluted net loss per share attributable to Unity Software
Inc. from non-GAAP adjustments 0.36 0.45 1.40 0.90
Total impact on diluted net loss per share attributable to Unity Software
Inc. from antidilutive common stock now included (0.03) (0.01) (0.04) (0.02)
Adjusted EPS
$ 205,622 $ 133,096 $ 276,908 $ 146,122
Less:
Purchases of property and equipment (3,663) (6,446) (8,492) (12,164)
Free cash flow 201,959 126,650 268,416 133,958
Net cash used in investing activities (3,663) (8,446) (8,492) (14,164)
Net cash provided by financing activities 4,551 9,783 16,194 22,031 UNITY SOFTWARE, INC.
Non-GAAP Reconciliation
Three Months Ended Six Months Ended
June 30, June 30,
2026 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
vii)
the impact of any decisions to change how Unity prices its products and servicesv (viii) Unity_s ability to achieve
, which could cause actual
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
2026 Unity Technologies U N I T Y . C O M E 12