# Unity Software Inc. (U)

Informational only - not investment advice.

CIK: 0001810806
SIC: 7372 Services-Prepackaged Software
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/)
Latest 10-K filed: 2026-02-11
SEC page: https://www.sec.gov/edgar/browse/?CIK=1810806
Filing source: https://www.sec.gov/Archives/edgar/data/1810806/000181080626000011/unity-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-11 · accession 0001810806-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001810806.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,849,648,000 USD | 2025 | verified |
| Net income | -402,765,000 USD | 2025 | verified |
| Assets | 6,837,606,000 USD | 2025 | verified |
| Free cash flow | 403,931,000 USD | 2025 | computed |
| Net margin | -21.78% | 2025 | computed |
| Operating margin | -25.90% | 2025 | computed |
| Revenue YoY | +2.01% | 2025 | computed |
| ROE | -12.44% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | U | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -21.8% | 1.5% | 14 | 122 |
| Operating margin | -25.9% | 1.3% | 11 | 121 |
| Revenue growth | 2.0% | 13.5% | 18 | 124 |
| FCF margin | 21.8% | 19.3% | 59 | 120 |
| ROE | -12.4% | 2.0% | 27 | 112 |
| ROA | -5.9% | 0.9% | 24 | 124 |
| Liabilities / equity | 1.03 | 0.91 | 57 | 113 |
| Current ratio | 1.84 | 1.57 | 63 | 124 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7372 Services-Prepackaged Software, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1849648000 | USD | 2025 | 2026-02-11 |
| Net income | -402765000 | USD | 2025 | 2026-02-11 |
| Assets | 6837606000 | USD | 2025 | 2026-02-11 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001810806.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 380,755,000 | 541,779,000 | 772,445,000 | 1,110,526,000 | 1,391,024,000 | 2,187,317,000 | 1,813,255,000 | 1,849,648,000 |
| Net income |  | -131,602,000 | -163,190,000 | -282,308,000 | -532,607,000 | -921,062,000 | -822,011,000 | -664,114,000 | -402,765,000 |
| Operating income |  | -130,301,000 | -150,669,000 | -274,812,000 | -531,665,000 | -882,213,000 | -832,794,000 | -755,149,000 | -479,053,000 |
| Gross profit |  | 299,488,000 | 423,182,000 | 600,098,000 | 856,896,000 | 948,524,000 | 1,453,595,000 | 1,332,402,000 | 1,371,909,000 |
| Diluted EPS |  |  | -2.39 | -1.66 | -1.89 | -2.96 | -2.16 | -1.68 | -0.96 |
| Operating cash flow |  | -81,059,000 | -67,936,000 | 19,913,000 | -111,449,000 | -59,431,000 | 234,700,000 | 315,553,000 | 422,955,000 |
| Capital expenditures |  | 38,019,000 | 27,035,000 | 40,156,000 | 41,938,000 | 57,138,000 | 55,921,000 | 29,549,000 | 19,024,000 |
| Share buybacks |  | 0.00 | 286,375,000 | 110,000 | 0.00 | 1,500,000,000 | 250,000,000 | 0.00 | 0.00 |
| Assets |  |  | 762,860,000 | 2,671,225,000 | 4,841,346,000 | 7,833,985,000 | 7,243,441,000 | 6,737,407,000 | 6,837,606,000 |
| Liabilities |  |  | 368,949,000 | 634,082,000 | 2,446,955,000 | 4,079,856,000 | 3,829,063,000 | 3,310,259,000 | 3,341,469,000 |
| Stockholders' equity | 256,390,000 | 316,127,000 | 393,911,000 | 2,037,143,000 | 2,394,391,000 | 3,528,268,000 | 3,182,642,000 | 3,190,671,000 | 3,237,432,000 |
| Cash and cash equivalents |  | 258,731,000 | 129,959,000 | 1,272,578,000 | 1,055,776,000 | 1,485,084,000 | 1,590,325,000 | 1,517,672,000 | 2,055,840,000 |
| Free cash flow |  | -119,078,000 | -94,971,000 | -20,243,000 | -153,387,000 | -116,569,000 | 178,779,000 | 286,004,000 | 403,931,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | -34.56% | -30.12% | -36.55% | -47.96% | -66.21% | -37.58% | -36.63% | -21.78% |
| Operating margin |  | -34.22% | -27.81% | -35.58% | -47.88% | -63.42% | -38.07% | -41.65% | -25.90% |
| Return on equity |  | -41.63% | -41.43% | -13.86% | -22.24% | -26.11% | -25.83% | -20.81% | -12.44% |
| Return on assets |  |  | -21.39% | -10.57% | -11.00% | -11.76% | -11.35% | -9.86% | -5.89% |
| Liabilities / equity |  |  | 0.94 | 0.31 | 1.02 | 1.16 | 1.20 | 1.04 | 1.03 |
| Current ratio |  |  | 1.09 | 4.13 | 3.44 | 2.34 | 2.60 | 2.50 | 1.84 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001810806.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.84 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.67 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.51 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 544,210,000 | -124,071,000 | -0.32 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 609,268,000 | -252,749,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 460,380,000 | -291,074,000 | -0.75 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 449,259,000 | -125,574,000 | -0.32 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 446,517,000 | -124,739,000 | -0.31 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 457,099,000 | -122,727,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 435,000,000 | -77,642,000 | -0.19 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 440,944,000 | -108,798,000 | -0.26 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 470,615,000 | -126,362,000 | -0.30 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 503,089,000 | -89,963,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 508,238,000 | -347,610,000 | -0.80 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 546,468,000 | -23,606,000 | -0.05 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from U's latest 10-K: [/company/U/business/](/company/U/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from U's latest 10-K: [/company/U/risk-factors/](/company/U/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1810806/000181080626000043/unity-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and related notes included under Part I, Item 1 of this Quarterly Report on Form 10-Q. The following discussion and analysis contains forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that attempt to forecast or anticipate future developments in our business, financial condition, or results of operations. When reviewing the discussion below, you should keep in mind the substantial risks and uncertainties that could impact our business. In particular, we encourage you to review the risks and uncertainties described in “Part I, Item 1A. Risk Factors” of our Annual Report on Form 10-K filed with the SEC on February 11, 2026, “Part II, Item 1A. Risk Factors” of our Form 10-Q filed with the SEC on May 7, 2026, and "Part II, Item 1A. Risk Factors" included elsewhere in this report. These risks and uncertainties could cause actual results to differ materially from those projected in forward-looking statements contained in this report or implied by past results and trends. Forward-looking statements, like all statements in this report, speak only as of their date (unless another date is indicated), and we undertake no obligation to update or revise these statements in light of future developments. See the section titled "Note Regarding Forward-Looking Statements" in this report.

Overview

Unity offers a suite of tools to develop, deploy, and grow games and interactive experiences across all major platforms from mobile, PC, and console, to extended reality (XR).

Our platform consists of two complementary sets of solutions: Create Solutions and Grow Solutions.

Recent Developments in Our Business

In the first quarter of 2026, we announced we would sunset the ironSource Ads Network, one of our monetization networks, effective April 30, 2026, and we began the process of exiting our Supersonic game publishing business. As a result, revenue from these businesses is now included in non-strategic revenue for all periods presented. The sunset of the ironSource Ads Network was substantially completed in the second quarter of 2026, and the sale of our Supersonic business was completed on August 4, 2026.

As a result of these decisions, we incurred impairments on related long-lived assets of $279 million, in the six months ended June 30, 2026. The impairment charges include $227 million within cost of revenue, and $47 million within sales and marketing expense.

For additional details, refer to the section titled "Risk Factors."

20

[[GREPCENT_TABLE]]
[["Table of Contents","","Unity Software Inc."]]
[[/GREPCENT_TABLE]]

Results of Operations

The following table summarizes our condensed consolidated statements of operations data for the periods indicated (in thousands):

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","2026","","2025"],["Revenue","$","546,468","","","$","440,944","","","$","1,054,706","","","$","875,944"],["Cost of revenue","111,709","","","114,211","","","463,346","","","228,168"],["Gross profit","434,759","","","326,733","","","591,360","","","647,776"],["Operating expenses"],["Research and development","278,275","","","214,807","","","532,700","","","435,432"],["Sales and marketing","132,368","","","161,513","","","327,745","","","323,526"],["General and administrative","56,335","","","69,165","","","114,547","","","135,505"],["Total operating expenses","466,978","","","445,485","","","974,992","","","894,463"],["Loss from operations","(32,219)","","","(118,752)","","","(383,632)","","","(246,687)"],["Interest expense","(6,032)","","","(6,030)","","","(12,052)","","","(11,921)"],["Interest income and other income (expense), net","17,941","","","19,837","","","21,405","","","77,948"],["Loss before income taxes","(20,310)","","","(104,945)","","","(374,279)","","","(180,660)"],["Provision for (benefit from) Income taxes","2,362","","","2,420","","","(4,680)","","","4,612"],["Net loss","$","(22,672)","","","$","(107,365)","","","$","(369,599)","","","$","(185,272)"]]
[[/GREPCENT_TABLE]]

The following table sets forth the components of our condensed consolidated statements of operations data as a percentage of revenue for the periods indicated:

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","2026","","2025"],["Revenue","100","%","","100","%","","100","%","","100","%"],["Cost of revenue","20","","","26","","","44","","","26"],["Gross profit","80","","","74","","","56","","","74"],["Operating expenses"],["Research and development","51","","","48","","","50","","","50"],["Sales and marketing","24","","","37","","","31","","","37"],["General and administrative","11","","","16","","","11","","","15"],["Total operating expenses","86","","","101","","","92","","","102"],["Loss from operations","(6)","","","(27)","","","(36)","","","(28)"],["Interest expense","(1)","","","(1)","","","(1)","","","(1)"],["Interest income and other income (expense), net","3","","","4","","","2","","","8"],["Loss before income taxes","(4)","","","(24)","","","(35)","","","(21)"],["Provision for (benefit from) Income taxes","\u2014","","","\u2014","","","\u2014","","","\u2014"],["Net loss","(4)","%","","(24)","%","","(35)","%","","(21)","%"]]
[[/GREPCENT_TABLE]]

Revenue

Create Solutions

We generate Create Solutions revenue primarily through our suite of Create Solutions subscriptions inclusive of enterprise support, professional services, and consumption services. Our subscriptions provide customers access to technologies that allow them to edit, run, and iterate interactive, RT3D and 2D experiences that can be created once and deployed to a variety of platforms. Enhanced support services are provided to our enterprise customers and are generally sold separately from the Create

21

[[GREPCENT_TABLE]]
[["Table of Contents","","Unity Software Inc."]]
[[/GREPCENT_TABLE]]

Solutions subscriptions. Professional services are provided to our customers which are primarily platform integrations, but also include consulting, training, and custom application and workflow development. Consumption services consist of cloud and hosting services provided to our customers to simplify and enhance the way our users access and harness our solutions.

Grow Solutions

We generate Grow Solutions revenue primarily through our monetization solutions and game publishing services. Our monetization solutions allow publishers, original equipment manufacturers, and mobile carriers to sell available advertising inventory on their mobile applications or hardware devices to advertisers for in-application or on-device placements. Our revenue represents the amount we retain from the transaction we are facilitating through our auction and mediation platform. Our game publishing services provide game developers with the infrastructure and expertise to launch their mobile games and manage their growth; this is achieved through marketability testing tools, live games management tools and game design support, and optimizing the implementation of the customer's commercial model. Through these publishing services, we generate revenue from in-app advertising and related purchases in published games.

As a result of the sunsetting of the ironSource Ads Network (one of our monetization networks), and divestiture of our Supersonic game publishing services, we expect Grow Solutions revenue to consist primarily of our "Unity Ads Network" (our principal monetization network), by the end of 2026.

Our total revenue is summarized as follows (in thousands):

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Six Months Ended"],["","June 30,","","June 30,"],["","2026","","2025","","2026","","2025"],["Create Solutions","$","157,618","","","$","153,782","","","314,265","","","304,160"],["Grow Solutions","388,850","","","287,162","","","740,441","","","571,784"],["Total revenue","$","546,468","","","$","440,944","","","$","1,054,706","","","$","875,944"]]
[[/GREPCENT_TABLE]]

Total revenue increased in the three and six months ended June 30, 2026, compared to the comparable prior year periods, primarily due to an increase in Grow Solutions revenue from growth in the Unity Ads Network, driven by “Unity Vector”, partially offset by decreases in revenue from the ironSource Ads Network.

The increase in total revenue was further driven by a slight increase in Create Solutions revenue, primarily due to increases in subscription revenue, partially offset by decreases in cloud and hosting services revenue, driven by our portfolio reset in 2025. Create Solutions subscription revenue in 2025 also benefited from the sale of a term license for approximately $12 million in the second quarter of that year.

Included in revenue in the six months ended June 30, 2026 and 2025, are approximately $136 million and $204 million, respectively, of non-strategic portfolio revenue, primarily in Grow Solutions.

Cost of Revenue, Gross Profit, and Gross Margin

Cost of revenue consists primarily of the amortization and impairment of intangible assets, hosting expenses, personnel costs (including salaries, benefits, and stock-based compensation) for employees and subcontractors associated with our product support and professional services organizations, and direct costs associated with our advertising offerings.

Gross profit, or revenue less cost of revenue, has been and will continue to be affected by various factors, including our product mix, the costs associated with third-party hosting services and the extent to which we expand and drive efficiencies in our hosting costs, professional services, and customer support organizations. We expect our gross profit to increase in absolute dollars in the long term, but to fluctuate from period to period as a percentage of revenue.

22

[[GREPCENT_TABLE]]
[["Table of Contents","","Unity Software Inc."]]
[[/GREPCENT_TABLE]]

Cost of revenue for the three months ended June 30, 2026 was approximately flat, compared to the comparable prior year period, primarily due to decreases in amortization of intangible assets, driven by the impairment we recognized in the first quarter of 2026, offset by increases in hosting expenses, and in direct costs associated with our advertising offerings.

Cost of revenue for the six months ended June 30, 2026 increased, compared to the comparable prior year period, primarily due to an impairment of long-lived intangible assets in the first quarter of 2026.

Operating Expenses

Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses. The most significant component of our operating expenses is personnel-related costs, including salaries and wages, sales commissions, bonuses, benefits, stock-based compensation, and payroll taxes.

During 2025 we had workforce reductions from our ongoing restructuring efforts. In the six months ended June 30, 2025, we incurred incremental employee separation costs related to these actions of approximately $20 million, primarily within research and development, and sales and marketing. In addition, we incurred approximately $11 million of non-employee charges associated with this restructuring in 2025.

In the first quarter of 2026, we announced we would sunset the ironSource Ads Network, effective April 30, 2026, and we began the process of exiting our Supersonic game publishing business. Following these announcements, we incurred incremental impairment charges of $279 million, in the six months ended June 30, 2026, associated with these decisions. The impairment charges include $227 million within cost of revenue, and $47 million within sales and marketing expense. Furthermor

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1810806/000181080626000011/unity-20251231.htm
Complete FY 2025 MD&A: /company/U/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-11
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes included under Part II, Item 8 of this Annual Report on Form 10-K. The following discussion and analysis contains forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that attempt to forecast or anticipate future developments in our business, financial condition, or results of operations. When reviewing the discussion below, you should keep in mind the substantial risks and uncertainties that could impact our business. In particular, we encourage you to review the risks and uncertainties described in "Part I, Item 1A. Risk Factors" included elsewhere in this report. These risks and uncertainties could cause actual results to differ materially from those projected in forward-looking statements contained in this report or implied by past results and trends. Forward-looking statements, like all statements in this report, speak only as of their date (unless another date is indicated), and we undertake no obligation to update or revise these statements in light of future developments. See the section titled "Note Regarding Forward-Looking Statements" in this report.

This section of this Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussion of 2023 and year-over-year comparisons between

41

[[GREPCENT_TABLE]]
[["Table of Contents","","Unity Software Inc."]]
[[/GREPCENT_TABLE]]

fiscal 2024 and 2023 that are not included in this Form 10-K can be found under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operation" in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, that was filed with the SEC on February 21, 2025, and are incorporated by reference herein.

Overview

Unity offers a suite of tools to develop, deploy, and grow games and interactive experiences across all major platforms from mobile, PC, and console, to extended reality (XR).

Our platform consists of two complementary sets of solutions: Create Solutions and Grow Solutions. Starting in the fourth quarter of 2023, we began to reset our product and service offerings to focus on our core businesses, which we refer to as our "Strategic Portfolio": primarily, the Unity Engine and related consumption services, and monetization solutions.

Recent Developments in Our Business

In the year ended December 31, 2025, we had reductions to our workforce and our office footprint, that resulted in approximately $33 million in employee separation costs, and $14 million of non-employee charges associated with these reductions. We will continue to evaluate our facility needs.

For additional details, refer to the section titled "Risk Factors."

Results of Operations

The following table summarizes our consolidated statements of operations data for the periods indicated (in thousands):

[[GREPCENT_TABLE]]
[["","","","Year Ended December 31,"],["","","","","","2025","","2024","","2023"],["Revenue","","","","","$","1,849,648","","","$","1,813,255","","","$","2,187,317"],["Cost of revenue","","","","","477,739","","","480,853","","","733,722"],["Gross profit","","","","","1,371,909","","","1,332,402","","","1,453,595"],["Operating expenses"],["Research and development","","","","","929,516","","","924,830","","","1,053,588"],["Sales and marketing","","","","","652,907","","","752,649","","","834,625"],["General and administrative","","","","","268,539","","","410,072","","","398,176"],["Total operating expenses","","","","","1,850,962","","","2,087,551","","","2,286,389"],["Loss from operations","","","","","(479,053)","","","(755,149)","","","(832,794)"],["Interest expense","","","","","(24,007)","","","(23,542)","","","(24,580)"],["Interest income and other income (expense), net","","","","","107,862","","","111,558","","","59,529"],["Loss before income taxes","","","","","(395,198)","","","(667,133)","","","(797,845)"],["Provision for (benefit from) Income taxes","","","","","6,295","","","(2,846)","","","28,477"],["Net loss","","","","","$","(401,493)","","","$","(664,287)","","","$","(826,322)"]]
[[/GREPCENT_TABLE]]

42

[[GREPCENT_TABLE]]
[["Table of Contents","","Unity Software Inc."]]
[[/GREPCENT_TABLE]]

The following table sets forth the components of our consolidated statements of operations data as a percentage of revenue for the periods indicated:

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["","2025","","2024","","2023"],["Revenue","100","%","","100","%","","100","%"],["Cost of revenue","26","","","27","","","34"],["Gross profit","74","","","73","","","66"],["Operating expenses"],["Research and development","50","","","51","","","48"],["Sales and marketing","35","","","41","","","38"],["General and administrative","15","","","23","","","18"],["Total operating expenses","100","","","115","","","104"],["Loss from operations","(26)","","","(42)","","","(38)"],["Interest expense","(1)","","","(1)","","","(1)"],["Interest income and other income (expense), net","6","","","6","","","2"],["Loss before income taxes","(21)","","","(37)","","","(37)"],["Provision for (benefit from) Income taxes","1","","","0","","","1"],["Net loss","(22)","%","","(37)","%","","(38)","%"]]
[[/GREPCENT_TABLE]]

Revenue

Create Solutions

We generate Create Solutions revenue primarily through our suite of Create Solutions subscriptions inclusive of enterprise support, professional services, and consumption services. Our subscriptions provide customers access to technologies that allow them to edit, run, and iterate interactive, RT3D and 2D experiences that can be created once and deployed to a variety of platforms. Enhanced support services are provided to our enterprise customers and are generally sold separately from the Create Solutions subscriptions. Professional services are provided to our customers which are primarily platform integrations, but also include consulting, training, and custom application and workflow development. Consumption services consist of cloud and hosting services provided to our customers to simplify and enhance the way our users access and harness our solutions.

Grow Solutions

We generate Grow Solutions revenue primarily through our monetization solutions and game publishing services. Our monetization solutions allow publishers, original equipment manufacturers, and mobile carriers to sell available advertising inventory on their mobile applications or hardware devices to advertisers for in-application or on-device placements. Our revenue represents the amount we retain from the transaction we are facilitating through our auction and mediation platform. Our game publishing services provide game developers with the infrastructure and expertise to launch their mobile games and manage their growth; this is achieved through marketability testing tools, live games management tools and game design support, and optimizing the implementation of the customer's commercial model. Through these publishing services, we generate revenue from in-app advertising and related purchases in published games.

43

[[GREPCENT_TABLE]]
[["Table of Contents","","Unity Software Inc."]]
[[/GREPCENT_TABLE]]

Our total revenue is summarized as follows (in thousands):

[[GREPCENT_TABLE]]
[["","Year Ended"],["","December 31,"],["","2025","","2024","","2023"],["Create Solutions","$","621,409","","","$","613,966","","","$","859,174"],["Grow Solutions","1,228,239","","","1,199,289","","","1,328,143"],["Total revenue","$","1,849,648","","","$","1,813,255","","","$","2,187,317"]]
[[/GREPCENT_TABLE]]

Total revenue increased in the year ended December 31, 2025, compared to the comparable prior year period, primarily due to an increase in Grow Solutions revenue driven by migrating one of our advertising networks, which we call the "Unity Ad Network", to our new AI Platform, which we call “Unity Vector”, partially offset by decreases in our other advertising network, which we call the "IronSource Ad Network". As a result of these changes the Unity Ad Network and IronSource Ad Network represent 56% and 11%, respectively, of total Grow Solutions revenue for the fourth quarter of 2025.

The increase in total revenue was further driven by an increase in Create Solutions revenue, driven by increases in subscription revenue, offset by decreases in consumption services revenue, driven by our portfolio reset.

Included in revenue in the years ended December 31, 2025 and 2024, are approximately $28 million and $90 million, respectively, of revenue associated with the non-strategic portfolio, primarily in Create Solutions, generated mainly in North America and Europe.

Cost of Revenue, Gross Profit, and Gross Margin

Cost of revenue consists primarily of personnel costs (including salaries, benefits, and stock-based compensation) for employees and subcontractors associated with our product support and professional services organizations, hosting expenses, the amortization of intangible assets, and direct costs associated with our advertising offerings.

Gross profit, or revenue less cost of revenue, has been and will continue to be affected by various factors, including our product mix, the costs associated with third-party hosting services and the extent to which we expand and drive efficiencies in our hosting costs, professional services, and customer support organizations. We expect our gross profit to increase in absolute dollars in the long term, but to fluctuate from period to period as a percentage of revenue.

Cost of revenue for the year ended December 31, 2025 was roughly flat, compared to the comparable prior year period, due to a decrease in personnel costs, driven by our reductions in headcount, offset by an increase in hosting and other direct costs to support the revenue growth in our advertising networks.

Operating Expenses

Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses. The most significant component of our operating expenses is personnel-related costs, including salaries and wages, sales commissions, bonuses, benefits, stock-based compensation, and payroll taxes.

In January 2024, we commenced a plan to reduce our workforce, and we mutually agreed to the departure of the founders of ironSource Ltd. Following these announcements and substantially in the first quarter of 2024, we incurred incremental employee separation costs of approximately $214 million in the year ended December 31, 2024, largely driven by the acceleration and modification of equity awards, including $15 million within cost of revenue, $48 million within research and development expense, $58 million within sales and marketing expense, and $93 million within general and administrative expense. In addition, we incurred approximately $53 million of non-employee charges associated with this restructuring in 2024, largely within research and development expense.

44

[[GREPCENT_TABLE]]
[["Table of Contents","","Unity Software Inc."]]
[[/GREPCENT_TABLE]]

Further, during 2025 we had additional workforce reductions. In the year ended December 31, 2025, we incurred incremental employee separation costs related to these actions of approximately $33 million, primarily within research and development, and sales and marketing. In addition, we incurred approximately $14 million of non-employee charges associated with this restructuring in 2025.

Additionally, starting in the third quarter of 2025 we revised down our estimate of the remaining useful life of certain intangible assets, due to those assets no longer being actively developed or planned for incorporation into future Unity offerings. These intangible assets primarily arose from our acquisition

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/U/mda/fy2025/
All MD&A years: /company/U/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/U/mda/fy2024/): filed 2025-02-21; accession 0001810806-25-000026 (https://www.sec.gov/Archives/edgar/data/1810806/000181080625000026/unity-20241231.htm)
- [FY 2023 MD&A](/company/U/mda/fy2023/): filed 2024-02-29; accession 0001810806-24-000053 (https://www.sec.gov/Archives/edgar/data/1810806/000181080624000053/unity-20231231.htm)
- [FY 2022 MD&A](/company/U/mda/fy2022/): filed 2023-02-27; accession 0001810806-23-000016 (https://www.sec.gov/Archives/edgar/data/1810806/000181080623000016/unity-20221231.htm)
- [FY 2021 MD&A](/company/U/mda/fy2021/): filed 2022-02-22; accession 0001810806-22-000004 (https://www.sec.gov/Archives/edgar/data/1810806/000181080622000004/unity-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7372 Services-Prepackaged Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/U.md · JSON record: /company/U.json · verified financials: /company/U/financials.json / /company/U/financials.csv · machine TOC for the whole site: /llms.txt