$U · Unity Software Inc.
Unity reported Q3 FY2026 results: revenue of $622.1M (up 32% YoY), GAAP net income of $122M (vs. a $127M loss a year ago), and adjusted EBITDA of $257M (41% margin). Strategic revenue grew 59% to $597M, led by Vector-driven Grow revenue up 90%. The company guided Q4 strategic revenue of $683M-$691M and adjusted EBITDA of $290M-$295M.
- GAAP net income of $122M, the first profitable quarter since IPO, vs. a $127M loss in Q3 2025.
- Revenue of $622.1M, up 32% YoY; strategic revenue of $597M, up 59%.
- Adjusted EBITDA of $257M (41% margin), up from $109M a year ago.
- Free cash flow of $220M, up from $151M in Q3 2025.
- Cash and equivalents of $2.65B, up $587M from year-end 2025.
Shares jumped 14.08% in extended-hours trading to $48.44, signaling strong investor approval of the first GAAP profit and raised guidance.
Unity's first GAAP profit since IPO and 32% revenue growth mark a decisive inflection in its turnaround, validated by a 14% after-hours pop.
Unity's pivot to its Vector ad network and portfolio reset is now compounding, with Grow revenue up 90% and non-strategic revenue down 73% as legacy assets are sunset.
Non-strategic revenue fell 73% to $25.5M as ironSource Ads was sunset and Supersonic was sold; Q4 guidance assumes just $5M of non-strategic revenue. The company recorded $270.5M of intangible asset impairments in the nine-month period.