Financial Trends -- 7/10

Unity's revenue bottomed at $435M in Q1 2025 and has reaccelerated for five consecutive quarters to $508M in Q1 2026 (+16.8% YoY). Adjusted EBITDA margins expanded +800bps to 27%. FCF grew 41% to $404M in FY2025. GAAP profitability remains negative due to ~$380M/year in SBC. Weight: 25%
Q1 2026 Revenue
$508M
+16.8% YoY, 5th consecutive quarter of acceleration
Adj. EBITDA
$138M
27% margin, +800bps YoY
FY2025 FCF
$404M
+41% YoY
Non-GAAP Gross Margin
82%
Stable across all recent quarters
Total Revenue (quarterly)
MetricQ1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026
Revenue ($M)$460M$449M$447M$457M$435M$441M$471M$503M$508M
YoY Growth-8.0%-15.8%-18.0%-25.0%-5.5%-1.8%+5.4%+10.1%+16.8%
TrendDecelDecelDecelTroughAccelAccelAccelAccelAccel
Segment Revenue (quarterly)
SegmentQ1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026
Create ($M)$164M$151M$147M$152M$150M$154M$152M$165M$157M
Create YoY-12.7%-21.9%-22.0%-47.5%-8.1%+2.0%+3.4%+8.4%+4.2%
Grow ($M)$297M$298M$299M$305M$285M$287M$318M$338M$352M
Grow YoY-5.2%-12.3%-15.8%-4.5%-4.1%-3.8%+6.4%+10.9%+23.5%
Key trends
Source: Daloopa. All figures linked to source records.
Adjusted EBITDA and Margin (quarterly)
MetricQ1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026
Adj. EBITDA ($M)$79M$113M$92M$106M$84M$90M$109M$125M$138M
Adj. EBITDA Margin17%25%21%23%19%21%23%25%27%
EBITDA YoY————+6.9%-20.3%+19.4%+17.7%+64.8%
Key trends
Source: Daloopa
Free Cash Flow (quarterly)
MetricQ1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026
FCF ($M)$(15)M$80M$115M$106M$7M$127M$151M$119M$66M
FCF Margin-3.2%17.8%25.8%23.2%1.7%28.7%32.1%23.6%13.1%
Key trends
Source: Daloopa
EPS (GAAP and Adjusted, quarterly)
MetricQ1 2025Q2 2025Q3 2025Q4 2025Q1 2026
GAAP EPS$(0.19)$(0.26)$(0.30)$(0.21)$(0.80)
Adjusted EPS$0.24$0.18$0.20$0.24$0.23
Key trends
Source: Daloopa
Share Count and Debt
MetricFY2022FY2023FY2024FY2025Q1 2026
Diluted Shares (M)311M380M396M421M434M
YoY Dilution+10.0%+22.5%+4.1%+6.3%—
Convertible Notes ($M)$2,707M$2,712M$2,239M$1,679M$1,680M
Key trends
Annual Revenue Series
MetricFY2020FY2021FY2022FY2023FY2024FY2025
Revenue ($M)$772M$1,111M$1,391M$2,187M$1,813M$1,850M
YoY Growth—+43.8%+25.2%+57.3%-17.1%+2.0%
Adj. EBITDA ($M)——$(71)M$448M$390M$409M
FCF ($M)$(20)M$(153)M$(117)M$179M$286M$404M
Score rationale

Revenue reacceleration and margin expansion are convincing -- 5 consecutive quarters of accelerating YoY growth, EBITDA margins up 800bps, FCF growing 41% to $404M. However, persistent GAAP losses from ~$380M/year SBC and ~6% annual share dilution prevent a higher score. The trajectory is clearly positive -- if Q2-Q4 2026 deliver on guided 30%+ growth and the company reaches GAAP profitability as targeted, this score would move higher. Score: 7/10.

Data sourced from Daloopa, company filings, and sell-side consensus estimates.