Unity Software's first-quarter earnings were strong, with the stock soaring 13%, as it exited the advertising business.

LootboxPhobia · 2026-03-27T04:01:39+00:00

Unity Software's first-quarter performance exceeded expectations, with revenue forecasted between $505 million and $508 million, a 17% increase. The company plans to shut down the ironSource advertising network and sell the Supersonic business to boost revenue and profitability.

LootboxPhobia

2026-03-27 04:01:39

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Investing.com – Unity Software (NYSE: U) shares jumped 13% in post-market trading on Thursday after the company reported preliminary first-quarter results that beat guidance and announced plans to exit its non-strategic advertising business.

Unity expects first-quarter revenue of $505 million to $508 million, above its $480 million to $490 million guidance and above the street’s consensus estimate of $488.7 million. That figure represents a 17% increase year over year. Adjusted EBITDA is expected to be $130 million to $135 million, well above guidance of $105 million to $110 million, and up 58% year over year.

The results beating expectations were mainly driven by Unity Vector, which is expected to grow 15% quarter over quarter, and by Create performing better than expected. The company expects Grow revenue of about $352 million and Create revenue of about $155 million.

Unity announced it will shut down the ironSource ad network on April 30 and has hired a financial adviser to sell its Supersonic game publishing business. The company expects these changes will lead to faster revenue growth, higher adjusted EBITDA, and higher adjusted EBITDA margins.

Strategic Grow revenue (excluding contributions from the ironSource ad network and Supersonic) is expected to grow 48% year over year in the first quarter, double the expectation of total Grow revenue growth of 24% year over year. Strategic Create revenue is expected to grow 14% year over year in the first quarter.

Matt Bromberg, President and CEO of Unity, said: “Unity Vector continues to deliver strong growth each quarter, driving results well above our guidance. Today’s actions will accelerate Vector’s impact on our business, improving revenue growth and profitability.”

Unity expects that after the first quarter of 2026, the revenue contribution from the ironSource ad network will be negligible.

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