Unity's first-quarter net loss to shareholders was $347.61 million, with $279 million of impairments

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

Unity filed Form 10-Q, the quarterly report a US-listed company files with the SEC, on May 7, 2026. For the quarter to Mar 31, 2026, revenue was $508.24 million, up 16.8% from $435 million a year earlier. The net loss attributable to Unity's shareholders was $347.61 million, against $77.64 million a year earlier, and the diluted loss was $0.80 a share against $0.19. The operating loss was $351.41 million, against $127.94 million.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11^,12

In the first quarter, Unity announced it would sunset the ironSource Ads Network, one of its monetization networks, effective Apr 30, 2026, and engaged a financial advisor for what the filing calls the planned divestiture of its Supersonic game publishing business. It incurred impairments of $279 million on related long-lived assets in the quarter, including $227 million in cost of revenue and $47 million in sales and marketing expense. The filing counts the revenue of those businesses as non-strategic for every period it shows, and that revenue was about $76 million in the quarter against about $115 million a year earlier. The filing said Unity expected Grow Solutions revenue to consist mainly of the Unity Ad Network by the end of 2026.13^,14^,15^,16^,17

Grow Solutions, the advertising and game publishing side, brought in $351.59 million, up 23.5%, and Create Solutions, the subscription side, $156.65 million, up 4.2%. The filing says Grow rose on the Unity Ad Network, driven by Unity Vector, partly offset by declines at the IronSource Ad Network; Create rose on subscriptions, partly offset by lower cloud and hosting revenue, which it ties to its portfolio reset in 2025.18^,19^,20^,21^,22^,23^,24^,25

Research and development expense rose on higher amortization after a 2025 change to the useful lives of certain intangible assets, sales and marketing expense rose on an impairment of intangible assets, and general and administrative expense fell on lower personnel costs and overhead. Interest income and other income fell, which the filing ties to a $42.7 million gain on repurchasing convertible debt in the first quarter of 2025 and a $15.0 million impairment of an equity investment in the first quarter of 2026.26^,27^,28^,29

In the quarter, net cash provided by operating activities was $71.3 million, against $13.0 million a year earlier. Free cash flow, a non-GAAP measure the company defines as that cash less purchases of property and equipment, was $66.5 million against $7.3 million. Its adjusted EBITDA, a non-GAAP measure that leaves out items including impairments of acquired intangible assets, was $138.3 million against $83.9 million. Matt Bromberg, Unity's president and chief executive, said in the earnings release that more games, creators and game discovery were fueling its growth.30^,31^,32^,33^,34

In our records, the 10-Q is held as its management discussion: the notes to its financial statements and its other exhibits are not held, so this article does not draw on them. Our records also keep one value for each period of an SEC filer, so they cannot show whether the year-earlier comparisons were restated.35^,36