The quarter cleared the main market hurdle. Available published estimates clustered around $524.9 million of revenue, while another published estimate put adjusted EPS near $0.24; Unity delivered $546.5 million of revenue and $0.28 of adjusted EPS. EPS estimates varied by methodology, making revenue the cleaner benchmark, but the filing still shows a clear top-line beat and a narrower adjusted-EPS beat.
| Metric | Q2 2026 | Q2 2025 / expectation | Read |
|---|---|---|---|
| Total revenue | $546.5M | $440.9M / ~$524.9M consensus | 24% YoY; above published consensus (Financial Highlights) |
| Strategic revenue | $486.4M | $351.9M | 38% YoY (Financial Highlights) |
| Strategic Grow revenue | $329.0M | $201.3M | 63% YoY (Financial Highlights) |
| Strategic Create revenue | $157.5M | $150.6M | 5% YoY; only modest growth (Financial Highlights) |
| Adjusted EBITDA | $160.2M | $90.5M | Margin expanded to 29% from 21% (Non-GAAP Reconciliation) |
| Adjusted EPS | $0.28 | $0.18 / ~$0.24 published estimate | Above the available estimate (Adjusted EPS reconciliation) |
| Free cash flow | $202.0M | $126.7M | Stronger cash conversion (Free Cash Flow reconciliation) |
| GAAP net loss | $(22.7)M | $(107.4)M | Loss narrowed, but profitability is not yet achieved (Income Statement) |
Grow is doing the heavy lifting, not the whole portfolio. Strategic Grow revenue rose 63%, with management attributing the increase to the Unity Ads Network and Vector, while Strategic Create revenue increased only 5%. That makes the headline growth more dependent on the newer advertising engine than on a broad-based recovery in Unity’s core creation tools (Strategic Revenue Highlights; Revenue discussion).
The profitability improvement is meaningful, but adjusted metrics do much of the presentation work. Adjusted EBITDA reached $160.2 million and free cash flow reached $202.0 million, both materially better year over year. However, Unity still posted a $22.7 million GAAP net loss, used 489.5 million diluted shares for adjusted EPS, and recorded $79.9 million of quarterly stock-based compensation plus $77.5 million of intangible amortization (Non-GAAP Reconciliation; Cash Flow statement; Adjusted EPS reconciliation). The business is generating cash, but the filing does not yet show durable GAAP earnings.
The Q3 outlook keeps the positive trajectory intact, while also exposing the cost of the portfolio reset. Unity guided to $540 million-$550 million of Strategic revenue and $185 million-$190 million of adjusted EBITDA, but only $20 million of Non-Strategic revenue after the ironSource advertising shutdown and Supersonic sale. No reliable published Q3 consensus was available here, so the guidance cannot be labeled a beat; its significance is that management expects strategic growth to continue even as it removes non-core revenue (Q3 2026 Guidance).
Net read: better than expected, with execution risk concentrated in Vector and Grow. The combination of a revenue beat, stronger adjusted profitability, higher cash generation, and aggressive strategic-revenue guidance is clearly favorable versus the available expectation. The main qualification is that Create remains subdued, GAAP losses persist, and first-half results include a $270.5 million intangible-asset impairment and rising share count, so the quarter improves the operating picture more decisively than it resolves the longer-term quality-of-earnings question (Cash Flow statement; Balance Sheet; Income Statement).
Read the original 8-K on SEC EDGAR ↗