Unity Software earnings date
Unity Software (US3) Q3 2026 Earnings Report
DE:US3 Q3 2026 EPS Results
- Actual EPS
- EUR 0.23
- Consensus EPS
- EUR 0.03
- Beat/Miss
- Beat by +EUR 0.20
- One Year Ago EPS
- EUR 0.18
DE:US3 Q3 2026 Revenue Results
- Actual Revenue
- EUR 562.33M
- Expected Revenue
- EUR 512.55M
- Beat/Miss
- Beat by +EUR 49.77M
- YoY Revenue Growth
- +32.19%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- Before Open
- Conference Call
- Thursday, November 5, 2026
Unity Software's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive, marked by 59% strategic revenue growth, 134% adjusted EBITDA growth, record profitability, record free cash flow, accelerating fourth-quarter guidance, and significant momentum in Vector, AI-enabled creation, and advertiser adoption. The main cautions were that Strategic Create is growing more slowly than Strategic Grow, non-strategic Grow revenue will end in 2027, Spark remains pre-launch with pricing still undecided, and management does not expect every quarter to match Vector's 40% sequential growth.
Unity is guiding for fourth-quarter total strategic revenue of $683 million to $691 million, implying year-over-year revenue growth of 65% to 67%; Strategic Grow year-over-year revenue growth of 105% to 107%, including 21% to 23% sequential growth for Unity Vector; Strategic Create year-over-year revenue growth of 4% to 6%; $5 million in non-strategic Grow revenue, going to 0 in 2027; adjusted EBITDA of $290 million to $295 million, representing 132% to 136% growth year-over-year and a 42% adjusted EBITDA margin, with another 100 basis points of margin expansion next quarter; fourth-quarter amortization expenses of $50 million from $77 million in the third quarter; 2027 amortization expense of $15 million per quarter, stock comp expense of $75 million per quarter and an effective tax rate of 5% to 10%; Strategic Create growth of 9% year-over-year for the full year 2026 and similar levels of annual growth going forward; and Unity Spark in closed beta this year with a full launch in 2027.
- Record Strategic Revenue GrowthUnity delivered Q3 strategic revenue of $597 million, representing 59% year-over-year growth.
- Adjusted EBITDA Growth and Margin ExpansionAdjusted EBITDA grew 134% year-over-year to $257 million, with a 41% adjusted EBITDA margin, up 1,800 basis points year-over-year. Fourth-quarter guidance calls for adjusted EBITDA of $290 million to $295 million, representing 132% to 136% year-over-year growth and a 42% margin.
- First GAAP-Profitability Quarter Since IPOUnity achieved GAAP profitability for the first time since its IPO, delivering $122 million in Q3 net income and a 20% net income margin.
- Strong Fourth-Quarter Revenue GuidanceUnity guided to fourth-quarter strategic revenue of $683 million to $691 million, implying 65% to 67% year-over-year growth and a seventh consecutive quarter of accelerating revenue growth.
- Strategic Grow Accelerated by VectorStrategic Grow revenue was $432 million, up 90% year-over-year, and represented 69% of total revenue. Fourth-quarter Strategic Grow revenue is expected to grow 105% to 107% year-over-year.
- Vector Revenue OutperformanceVector revenue grew 126% year-over-year and 40% quarter-over-quarter, exceeding the company's 20% sequential-growth guidance. Fourth-quarter guidance assumes Vector sequential growth of 21% to 23%.
- Vector Growth Drivers and Customer ValueVector performance was driven by continuous optimization of self-learning AI models, high-quality data, customer-focused product releases including Day 28 Optimizer, infrastructure efficiency, and improved return on advertising spend. Management said accelerating growth was primarily due to higher install volumes and player values rather than changes in take rate.
- Broad-Based Vector PerformanceVector growth was broad-based across customers, operating systems, campaign types, and geographies. The number of Vector advertiser accounts increased 27% quarter-over-quarter in Q3.
- Existing and New Advertiser MomentumManagement said 90% of Q3 Vector growth came from existing advertisers, while the number of new Vector advertisers increased 27% sequentially. New advertisers were described as testing and experimenting with the platform after onboarding.
- Strategic Create GrowthStrategic Create revenue was $165 million, up 11% year-over-year, driven by average revenue per user growth and strength in China. Fourth-quarter Strategic Create revenue is expected to grow 4% to 6% year-over-year, while full-year 2026 growth is expected to be 9%.
- Improved Gross Margins and Expense DisciplineAdjusted gross margin improved 200 basis points sequentially, primarily due to leverage in cloud costs included in cost of goods sold. Adjusted R&D, sales and marketing, and G&A expenses all declined as a percentage of revenue and were flat to down in dollar terms from Q2.
- Sales and Marketing Cost ReductionAdjusted sales and marketing expense declined $22 million sequentially and represented 12% of revenue. Management attributed the reduction primarily to the sale of Supersonic.
- Record Free Cash Flow and Strong Cash PositionQ3 free cash flow was a record $220 million, resulting in an ending cash balance of $2.65 billion.
- Debt Repayment and Capital Allocation FlexibilityUnity expects to repay the convertible debt coming due on November 15 using cash on the balance sheet. Management said cash generation provides flexibility for product-road-map investments, potential M&A, and returning capital to shareholders.
- Operating Leverage OutlookUnity expects amortization expense to decline from $77 million in Q3 to $50 million in Q4 and to $15 million per quarter in 2027. Management also expects stock compensation expense as a percentage of revenue to fall and operating leverage to continue increasing.
- Expanded Creator Engagement Through AIUnity opened its authoring platform to coding agents and added a command-line interface, creating a model-agnostic, programmable agentic automation target. Use of coding agents increased sharply, and overall daily active users were up 25% since early August.
- Unity Spark and Google PartnershipUnity announced a strategic partnership with Google and Unity Spark, a browser-based collaborative creation platform designed to enable game development without prior coding experience. Spark is expected to enter closed beta in 2026, launch fully in 2027, and potentially reach billions of Google consumer-product users.
- Spark Monetization OpportunitiesAlthough pricing has not yet been announced, management described a potential Spark model combining freemium access, paid subscriptions, consumption-based revenue, and advertising. Unity also expects opportunities from owned-and-operated advertising inventory and Unity Asset Store transactions.
- Unity Asset Store and Cross-Platform Distribution AdvantagesManagement highlighted the Unity Asset Store as the largest asset store of its type and said its artist-created assets can be integrated into Spark. Unity also emphasized its ability to build once and distribute high-performance experiences across more than 25 platforms.
- Runtime Data and Player-Engagement OpportunityManagement said Unity's runtime provides publishers with real-time feedback on player behavior, engagement, and spending. Opt-in for runtime data on newly created projects remains above 90%, and 30% of the top 1,000 Vector spenders are sharing runtime data.
- Large Addressable Mobile Advertising MarketManagement described the mobile-game advertising opportunity as at least $40 billion and growing at double-digit rates.
- Large Unity User and Consumer ReachNearly 3 billion individual consumers play a Made with Unity game each month. Management also said the number of creators, platform usage intensity, and overall platform growth are increasing.
DE:US3 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 04, 2027 | 2026 (Q4) | 0.29- | -0.19 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | 0.030.23 | 0.18 | 25.00% (+0.05) | |
| Aug 06, 2026 | 2026 (Q2) | -0.10-0.05 | 0.16 | -127.78% (-0.21) | |
| May 07, 2026 | 2026 (Q1) | -0.19-0.72 | 0.22 | -433.33% (-0.94) | |
| Feb 11, 2026 | 2025 (Q4) | 0.19-0.19 | 0.21 | -188.98% (-0.40) | |
| Nov 05, 2025 | 2025 (Q3) | 0.170.18 | 0.2 | -9.50% (-0.02) | |
| Aug 06, 2025 | 2025 (Q2) | 0.120.16 | 0.24 | -32.84% (-0.08) | |
| May 07, 2025 | 2025 (Q1) | 0.110.22 | 0.32 | -31.82% (-0.10) | |
| Feb 20, 2025 | 2024 (Q4) | 0.140.21 | 0.43 | -50.00% (-0.21) | |
| Nov 07, 2024 | 2024 (Q3) | 0.130.20 | 0.29 | -31.37% (-0.09) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
