$U · Unity Software Inc.
Unity Software's 10-Q for the quarter ended September 30, 2026 shows revenue of $622.1M, up 32.2% year over year, with gross margin of 81.9% and operating margin of 16.2%. The company swung to GAAP net income of $121.2M (diluted EPS $0.25) versus a $126.4M loss a year earlier. Nine-month results remain in the red, with a net loss of $250.0M and operating loss of $283.0M, including a $270.5M intangible-asset impairment.
- Q3 revenue rose 32.2% YoY to $622.1M.
- GAAP net income of $121.2M versus a $126.4M loss a year ago.
- Gross margin reached 81.9%; operating margin 16.2%.
- Nine-month net loss of $250.0M includes a $270.5M intangible-asset impairment.
- Sold Supersonic business for $38.0M net proceeds, recording a $4.5M gain.
Extended-hours last trade of $50.81 is +19.67% vs the $42.46 regular close, signaling a strongly positive reaction to the swing to profitability and revenue acceleration.
Unity's first quarterly GAAP profit in the period, paired with 32% revenue growth, marks a potential inflection for a stock that has long traded on losses.
Unity's return to quarterly GAAP profitability and 32% revenue growth contrasts with a still-loss-making nine-month period, reflecting a cost-discipline turnaround in the game-engine/monetization space.
Nine-month results remain loss-making, and the $270.5M intangible-asset impairment plus the exit of the ironSource Ads Network and Supersonic publishing business signal ongoing portfolio restructuring risk.