Filing Flows › Unity Software (U) › Q1 2026
Unity Software (U) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 7, 2026
Unity Software (U) reported revenue of $508M for the first quarter 2026 (Q1 2026), +17% from a year earlier and +1% from the quarter before. Operating margin was -69.1%, net loss $347M (68.3% of revenue).
Unity Software, Q1 2026: revenue $508M (+17% year over year), operating margin -69.1%, net loss $347M, operating cash flow $71.3M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $508M | +1% | +17% |
| Operating profit | −$351M | — | — |
| Net earnings | −$347M | — | — |
| Operating cash flow | $71.3M | -41% | +447% |
| Free cash flow | $66.5M | — | +809% |
What changed
Revenue was $508.2M in Q1 2026, up 17% year over year and up 1% from the previous quarter. Grow Solutions was the largest line at 69% of revenue. Grow Solutions added $67.0M year over year (up 24%), 91% of the total change.
Gross margin was 30.8%, down 43.0 points from Q1 2025. Operating costs exceeded revenue by $351.4M, an operating margin of -69.1%. Operating expenses grew 13% against revenue growth of 17%. The fastest-growing cost line was Sales & marketing (+21%). The quarter ended with a net loss of $346.9M, wider than the previous quarter's $89.4M loss.
Operating cash flow was $71.3M (up 447% year over year). Non-cash charges added back $127.3M of depreciation and amortization and $77.2M of share-based compensation. Working capital and other items added $213.8M. After purchases of property and equipment ($4.8M), free cash flow as the company reports it was $66.5M.
Questions
What was Unity Software's revenue in the first quarter 2026?
Unity Software (U) reported revenue of $508M for the first quarter 2026 (Q1 2026), +17% from a year earlier and +1% from the quarter before.
Was Unity Software profitable in the first quarter 2026?
Operating loss was $351M (-69.1% of revenue) and net loss $347M.
Source: Unity Software 10-Q on SEC EDGAR.