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Sentiment · FY2026 Q2
As of FY2026 Q1, the Tellvest earnings-call sentiment score for Unity Software Inc. (U) is 9/10.
Unity posted strategic revenue growth of 35% year-over-year and its best adjusted EBITDA margin in over two years at 27%, up 65% year-over-year. Strategic Grow revenue of $279 million grew 49% on Vector, whose revenue is now 80% larger than a year ago after a fourth straight quarter of 15% sequential growth, while Create strategic revenue of $154 million rose 15%. Adjusted EBITDA of $138 million and margin expansion of 800 basis points, combined with stock comp down 20% and M&A amortization running off, led management to forecast GAAP net income profitability by the fourth quarter of 2026. The cash balance reached $2.15 billion as trailing twelve-month free cash flow grew 50% to $463 million. GAAP results remained a net loss (EPS -$0.80, inflated by one-time strategic-action and amortization charges), but the accelerating strategic business, margin trajectory and Unity AI and commerce launches guided the company toward its first-ever GAAP profitability.
Scored from Unity Software Inc.’s FY2026 Q1 earnings call. The newest quarter is available with Tellvest Pro.
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| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Gross margin | Op margin | Net margin | FCF |
|---|---|---|---|---|---|---|---|---|
| FY2024 Q4 | $457M | -25.0% | $-0.30 | +54.5% | — | -27.1% | -26.8% | $106M |
| FY2025 Q1 | $435M | -5.5% | $-0.19 | +74.7% | — | -29.4% | -17.8% | $7M |
| FY2025 Q2 | $441M | -1.9% | $-0.26 |
| +18.8% |
| — |
| -26.9% |
| -24.7% |
| $127M |
| FY2025 Q3 | $471M | +5.4% | $-0.30 | +3.2% | — | -26.7% | -26.9% | $151M |
| FY2025 Q4 | $503M | +10.1% | $-0.21 | +30.0% | — | -19.5% | -17.9% | $119M |
| FY2026 Q1 | $508M | +16.8% | $-0.80 | -321.1% | — | -69.1% | -68.3% | $66M |
| FY2026 Q2 | $546M | +23.9% | $-0.05 | +80.8% | — | -5.9% | -4.3% | $202M |