Unity Software Inc. (U) Earnings Call Transcripts

Unity Software Inc.'s Latest Earnings Call - Q1 FY2026

Unity Software Inc. reported a strong Q1 2026, with strategic revenue growth of 35% year-over-year, reaching $433 million. Adjusted EBITDA margin improved to 27%, up 800 basis points from the previous year, reflecting effective cost management and increased operational efficiency. Management raised guidance for Q2, expecting strategic revenue between $455 million and $465 million, indicating continued robust growth driven by their AI initiatives, particularly the Vector platform.

Reported metrics

Guidance from management

Unity expects Q2 strategic revenue of $455 million to $465 million and adjusted EBITDA of $130 million to $135 million, reflecting strong growth momentum. They anticipate achieving GAAP profitability by Q4 2026, ahead of previous timelines.

What management said

No, we're seeing very, very broad strength in Vector growth across all geographies, campaign types, genres, et cetera. And we're really pleased with that. So there's nothing I'd call out for you.

So we experienced $76 million of SBC this quarter. That's down 20% year-over-year. It's down to 15% as a percentage of revenue. It's literally been cut in half as a percentage of revenue year-over-year. You should expect it to remain relatively stable at current run rates, which as we grow our business, will also take it down as a percentage of revenues.

What analysts pressed on

Analysts expressed concerns regarding the impact of the sunset of the ironSource Ad Network on revenue and the potential for slower growth in the Create segment. There were also inquiries about the long-term implications of the runtime data integration and how it would affect conversion rates and overall revenue growth.

Main topics on the call

• Revenue Growth Acceleration — Unity achieved strategic revenue growth of 35% year-over-year, totaling $433 million in Q1 2026. Management stated, "Our first quarter results reflect this momentum with Unity posting strategic revenue growth of 35% year...
• Adjusted EBITDA Margin Expansion — The adjusted EBITDA margin reached 27%, a significant increase of 800 basis points year-over-year. This was attributed to operating leverage from revenue growth and cost management, as noted by management: "Adjusted EBIT...
• AI-Driven Growth Initiatives — Unity's Vector platform drove substantial growth, with revenue from this segment up 80% year-over-year. Management highlighted that "Vector revenue in the first quarter of 2026 is 80% larger than 1 year ago, an astonishi...
• Path to GAAP Profitability — Unity expects to achieve GAAP profitability by Q4 2026, accelerated from previous expectations. Management stated, "We now forecast Unity to be GAAP net income profitable by the fourth quarter of 2026."

Read the full Unity Software Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 24 Unity Software Inc. earnings call transcripts on record, spanning November 12, 2020 to August 6, 2026. Based on this history, Unity Software Inc. reports quarterly. The most recent call on file is dated August 6, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

U

Exchange

NYSE

Country

US

Sector

Information Technology

Industry

Software

Calls on record

24

First call

November 12, 2020

Most recent

August 6, 2026

Reporting cadence

quarterly