| (Exact name of registrant as specified in its charter) | ||||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address, including zip code, of principal executive offices) | ||||||||
( | ||||||||
(Registrant's telephone number, including area code) | ||||||||
| Not applicable | ||||||||
| (Former name or former address, if changed since last report) | ||||||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit Number | Description of Exhibit | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
| UNITY SOFTWARE INC. | |||||||||||
Date: August 6, 2026 | By: | /s/ Jarrod Yahes | |||||||||
| Jarrod Yahes | |||||||||||
| Senior Vice President, Chief Financial Officer | |||||||||||
| (Principal Financial Officer) | |||||||||||

| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | 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 Revenue2 | $60,057 | $89,005 | (33)% | ||||||||
| Total Revenue | $546,468 | $440,944 | 24% | ||||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 1 | |||||||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 2 | |||||||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 3 | |||||||||||
| UNITY SOFTWARE INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| As of | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| 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 | — | ||||||
| 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 | ||||||||
| Current liabilities: | ||||||||
| 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 | — | ||||||
| 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, $0.000005 par value: | ||||||||
Authorized shares - 1,000,000 and 1,000,000 | ||||||||
Issued and outstanding shares - 439,987 and 432,860 | 2 | 2 | ||||||
| Additional paid-in capital | 7,540,533 | 7,378,295 | ||||||
| Accumulated other comprehensive income (loss) | 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 | | | 4 | |||||||||||
| UNITY SOFTWARE INC. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| 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 noncontrolling interests | 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 noncontrolling interests | 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 redeemable noncontrolling interests | 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 | | | 5 | |||||||||||
| UNITY SOFTWARE INC. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| (In thousands) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| 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 amortization | 85,475 | 96,928 | 212,730 | 193,145 | ||||||||||
| Stock-based compensation expense | 79,948 | 101,604 | 157,113 | 200,394 | ||||||||||
| Gain on repayment of convertible note | — | — | — | (42,744) | ||||||||||
| Impairment of intangible assets | — | — | 270,506 | — | ||||||||||
| Impairment of property and equipment | 25 | 579 | 8,447 | 4,049 | ||||||||||
| Impairment of investments | — | — | 15,000 | — | ||||||||||
| 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 | — | (2,000) | — | (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 | — | — | — | 690,000 | ||||||||||
| Purchase of capped calls | — | — | — | (44,436) | ||||||||||
| Payment of debt issuance costs | — | — | — | (13,236) | ||||||||||
| Repayments of convertible note | — | — | — | (641,691) | ||||||||||
| Proceeds from issuance of common stock upon exercise of stock options and purchase of ESPP shares | 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 restricted cash | 4,522 | 15,440 | 8,210 | 19,637 | ||||||||||
| Increase in cash, cash equivalents, and restricted cash | 211,032 | 149,873 | 292,820 | 173,626 | ||||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 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 | ||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 6 | |||||||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 7 | |||||||||||
| UNITY SOFTWARE, INC. | ||||||||||||||
| Non-GAAP Reconciliation | ||||||||||||||
| (In thousands) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Adjusted EBITDA reconciliation | ||||||||||||||
| Revenue | $ | 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 | ||||||
| Amortization 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 | $ | — | $ | — | $ | 278,666 | $ | — | ||||||
| Restructuring and reorganization 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 | 29 | % | 21 | % | 28 | % | 20 | % | ||||||
| Adjusted gross profit reconciliation | ||||||||||||||
| GAAP gross profit | $ | 434,759 | $ | 326,733 | $ | 591,360 | $ | 647,776 | ||||||
| Add: | ||||||||||||||
| Stock-based compensation expense | 6,712 | 9,861 | 14,094 | 18,973 | ||||||||||
| Amortization 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 | — | — | 226,516 | — | ||||||||||
| Restructuring and reorganization 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 | 83 | % | 83 | % | 83 | % | 83 | % | ||||||
| Operating expenses reconciliation | ||||||||||||||
| Cost of revenue | ||||||||||||||
| GAAP cost of revenue | $ | 111,709 | $ | 114,211 | $ | 463,346 | $ | 228,168 | ||||||
| Stock-based compensation expense | (6,712) | (9,861) | (14,094) | (18,973) | ||||||||||
| Amortization 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 | — | — | (226,516) | — | ||||||||||
| Restructuring and reorganization 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 | % | ||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 8 | |||||||||||
| UNITY SOFTWARE, INC. | ||||||||||||||
| Non-GAAP Reconciliation | ||||||||||||||
| (In thousands) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| 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) | ||||||||||
| Amortization 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 | — | — | (3,998) | — | ||||||||||
| Restructuring and reorganization 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) | ||||||||||
| Amortization 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 | — | — | (46,969) | — | ||||||||||
| Restructuring and reorganization 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 | — | — | (1,183) | — | ||||||||||
| Restructuring and reorganization 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 | % | ||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 9 | |||||||||||
| UNITY SOFTWARE, INC. | ||||||||||||||
| Non-GAAP Reconciliation | ||||||||||||||
| (In thousands) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Adjusted EPS reconciliation | ||||||||||||||
| GAAP net loss | $ | (22,672) | $ | (107,365) | $ | (369,599) | $ | (185,272) | ||||||
| Stock-based compensation expense | 75,576 | 101,435 | 152,445 | 196,751 | ||||||||||
| Amortization 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 | — | — | 278,666 | — | ||||||||||
| Restructuring and reorganization 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 dilutive instruments | $ | 133,436 | $ | 81,357 | $ | 238,668 | $ | 187,564 | ||||||
| Increase from forgone financing costs on dilutive convertible notes, net of tax | 4,676 | 789 | 9,344 | 9,299 | ||||||||||
| Adjusted net income used for calculation of adjusted EPS, including impact of dilutive instruments | $ | 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 | — | 4 | 63 | 327 | ||||||||||
| Non-GAAP weighted-average common shares used in adjusted EPS | 489,491 | 448,423 | 487,476 | 461,967 | ||||||||||
| GAAP diluted net loss per share attributable to Unity Software Inc. | (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 | 0.28 | 0.18 | 0.51 | 0.43 | ||||||||||
| Free cash flow reconciliation | ||||||||||||||
| Net cash provided by operating activities | $ | 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 | ||||||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 10 | |||||||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 11 | |||||||||||
© 2026 Unity Technologies | U N I T Y . C O M | | | 12 | |||||||||||