EarningsQ2 2026 Earnings Report
MX:U Q2 2026 EPS Results
Actual EPS-$0.86
Consensus EPS-$1.83
Beat/MissBeat by +$0.98
One Year Ago EPS$3.09
MX:U Q2 2026 Revenue Results
Actual Revenue$9.37B
Expected Revenue$8.82B
Beat/MissBeat by +$544.23M
YoY Revenue Growth+23.93%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
MX:U Upcoming Earnings
Unity Software's next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:U Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong positive operational and financial momentum: rapid Vector-led revenue growth, significant margin expansion, record cash generation, and accelerated path to GAAP profitability. Several strategic product launches (Unity 7, Unity AI, Commerce) and the incorporation of runtime data underpin the growth thesis. Lowlights are mainly execution and timing risks — Create’s more modest growth rate, early-stage nature of runtime/AI contributions, and reduced nonstrategic revenue following portfolio simplification. Overall, the positives (high growth, profitability, cash flow, and product catalysts) substantially outweigh the limited near-term risks.Company Guidance
Outstanding Vector Momentum and Adoption
Unity Vector delivered 23% quarter-over-quarter growth (vs. an expected 12-13%), achieved over $1 billion in annual run rate two quarters earlier than expected, and contributed to Strategic Grow revenue up 63% year-over-year. Vector executed 20+ major updates in Q2 and is guiding 19-21% sequential growth for Q3 with Strategic Grow expected to grow 68-70% year-over-year.
Strong Top-Line and Profitability Expansion
Company strategic revenue grew 38% year-over-year while adjusted EBITDA grew 77% year-over-year. Adjusted EBITDA for Q2 was $160 million with adjusted EBITDA margins of 29%, representing an 800 basis-point expansion year-over-year.
Robust Cash Generation and Balance Sheet Improvement
Free cash flow was $202 million in Q2, up 59% year-over-year, bringing cash balance to $2.36 billion and flipping Unity from net debt to net cash. Management expects to pay off the 2026 convertible in November.
Ambitious Guidance and Accelerated Profitability Timeline
Q3 guidance calls for strategic revenue of $540–$550 million (44%–47% year-over-year growth) and adjusted EBITDA of $185–$190 million (implying ~33% margins). Management pulled forward the expectation for GAAP net income profitability from Q4 2026 to Q3 2026.
Product and Platform Innovations (Unity 7, Unity AI, Commerce)
Announced Unity 7 (rearchitected authoring platform), Unity AI entered open beta in May, and Unity Commerce reached general availability on June 30. Unity 7 opens APIs/CLI, enables coding-agent workflows, and aims to expand the top of the creation funnel.
Runtime Data Integration and Day-28 ROAS Rollout
Runtime signals were incorporated into Vector late in Q2 (early but encouraging results). Day-28 ROAS rollout saw campaign spend grow nearly 3x from Q1, with over 25% of the advertising base adopting the longer ROAS window.
Operational Discipline and Cost Efficiency
Stock-based compensation expense declined 25% year-over-year and was 14% of revenue (lowest level ever). Adjusted gross margins are structurally high (~82%–83%), and adjusted S&M and G&A decreased both as percentages of revenue and in absolute dollars.
Strategic Portfolio Actions
Closed sale of Supersonic to Tripledot (Aug 4) and substantially completed closure of ironSource Ad Network (Apr 30); also made strategic investment in AppsFlyer alongside major partners — actions positioned to improve margins and focus the business.
MX:U Earnings History
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.
Beat
Missed