Unity Q2 Revenue Jumps 24% to $546M, Adjusted EBITDA Surges 77%
U has more than doubled off its 52-week low of $16.78 on elevated volume (1.9× avg).
Summary
Unity reported Q2 2026 revenue of $546.5M (up 24% YoY), adjusted EBITDA of $160.2M (up 77%), and free cash flow of $202M. The company guided for Q3 strategic revenue of $540M-$550M and adjusted EBITDA of $185M-$190M, signaling continued strong momentum.
Key Events · Earnings and Guidance · U
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Q2 Revenue Beats, Up 24%
Total revenue reached $546.5M, driven by 63% growth in Strategic Grow revenue to $329M. Strategic Create revenue rose 5% to $157.5M.
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Profitability Inflects Sharply
GAAP net loss narrowed to $22.7M from $107.4M a year ago. Adjusted EBITDA surged 77% to $160.2M, with margin expanding to 29% from 21%.
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Free Cash Flow More Than Doubles
Free cash flow hit $202M, up from $127M in Q2 2025, driven by strong operating cash flow of $206M.
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Q3 Guidance Implies Continued Momentum
Unity guided for Q3 strategic revenue of $540M-$550M (up 44-47% YoY) and adjusted EBITDA of $185M-$190M (up 69-74% YoY).
Analysis · U · Technology
Unity delivered its strongest quarter as a public company, with revenue up 24% and adjusted EBITDA nearly doubling. The GAAP net loss shrank to just $23 million, putting the company within striking distance of its stated goal of GAAP profitability by Q4 2026. Free cash flow more than doubled to $202 million, and the balance sheet holds $2.36 billion in cash. Q3 guidance implies continued momentum, with strategic revenue expected to grow 44-47% year-over-year. The sale of the Supersonic business removes a non-core drag, sharpening the focus on the high-growth Strategic portfolio. This report validates the turnaround narrative and the Vector AI-driven ad growth story.
At the time of this filing, U was trading at $40.74 on NYSE in the Technology sector, with a market capitalization of approximately $15.5B. The 52-week trading range was $16.78 to $52.15. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.