Core Insights - Unity Software (NYSE: U) experienced a significant decline of 30% in premarket trading following the release of its Q4 earnings, which exceeded estimates but provided disappointing guidance for the current quarter [1] Financial Performance - The company reported Q4 results that were ahead of market expectations, indicating strong performance in that quarter [1] - Despite the positive Q4 results, the guidance for the upcoming quarter was described as tepid, leading to investor disappointment [1]

Core Insights - Unity Software's shares fell nearly 30% following a forecast for first-quarter revenue that was below Wall Street expectations, indicating weak demand for its software products [1] Company Summary - Unity Software is a videogame engine maker that has recently experienced a significant drop in its stock price due to disappointing revenue forecasts [1] - The company's forecast suggests challenges in meeting market expectations, which may reflect broader trends in the gaming industry [1] Industry Summary - The decline in Unity Software's stock may signal sluggish demand within the videogame industry, potentially impacting other companies in the sector [1] - The forecasted revenue shortfall could indicate a cooling market for videogame development tools and engines, which may affect investment sentiment in the industry [1]

Financial Data and Key Metrics Changes - Unity experienced exceptional momentum in Q4 2025, achieving the fastest growth and highest margin in the past two years, with Grow revenue at $338 million, up 6% sequentially and 11% year-over-year [20][21] - Adjusted EBITDA for the quarter was $125 million, representing 25% margins, an improvement of 200 basis points year-over-year and sequentially [22] - Free cash flow grew 41% in 2025 to just over $400 million, with a conversion rate of 99% of Adjusted EBITDA to free cash flow [24] Business Line Data and Key Metrics Changes - Grow revenue was significantly driven by Vector, which represented 56% of Grow revenue, up from 49% two quarters ago, and experienced mid-teen sequential growth for three consecutive quarters [21] - Create revenue was $165 million, up 8% year-over-year, with a healthy 16% growth when excluding non-strategic revenue [22] - The Create business saw nearly 50% growth in China, driven by interoperability with local platforms [8] Market Data and Key Metrics Changes - The ironSource ad network's revenue declined by $7 million sequentially, representing 11% of Grow revenue for the quarter, but is expected to diminish as Vector grows [21][6] - January 2026 was Vector's best revenue month ever, 72% larger than January of the previous year, indicating strong market demand [6] Company Strategy and Development Direction - Unity is focusing on enhancing its advertising business through Vector, with expectations of significant growth and improved profitability as the ironSource ad network diminishes [6][12] - The company plans to transform its Create business by making authoring workflows accessible via web browsers and integrating AI-driven authoring tools [15][17] - Unity aims to democratize game development, making it accessible to a broader audience through AI and enhanced collaboration tools [19][69] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory of Vector, indicating no natural ceiling for its future growth [32] - The company is confident in its ability to compete with major players like Meta and Google, emphasizing its focus on the gaming industry [42] - Management highlighted the positive impact of AI on the video game industry, predicting increased leisure time and efficiency in game creation [47] Other Important Information - Unity successfully refinanced $690 million of its 2026 convertible notes, extending maturities to 2030, and exited the year with over $2 billion in cash [25] - The company is moving towards GAAP profitability, reducing stock compensation expenses significantly [24] Q&A Session Summary Question: Growth trajectory of Vector and impact of ironSource - Management expressed excitement about Vector's growth, indicating it has exceeded expectations and is not significantly impacted by the declining ironSource business [31][33] Question: Demand for commerce tools - Initial customer reactions to the commerce tools have been very positive, with strong interest across various segments [34][35] Question: Competitive landscape with Meta - Management noted that Meta has been competitive but has not significantly impacted Unity's growth, emphasizing their focus on the gaming sector [42] Question: AI's impact on game development - Management believes AI will enhance efficiency in game creation, allowing developers to focus on innovation [47][49] Question: Economics of the commerce solution - Unity participates in the economics of commerce transactions at high margins, aiming to enhance customer value and engagement [54][56]

Financial Data and Key Metrics Changes - Unity experienced exceptional momentum in Q4 2025, achieving the fastest growth and highest margin in the past two years, with Grow revenue at $338 million, up 6% sequentially and 11% year-over-year [18][19] - Adjusted EBITDA for the quarter was $125 million, representing 25% margins, an improvement of 200 basis points year-over-year and sequentially [20][21] - Free cash flow grew 41% in 2025 to just over $400 million, with a conversion rate of 99% of Adjusted EBITDA to free cash flow [23] Business Line Data and Key Metrics Changes - Grow revenue in Q4 was significantly driven by Vector, which represented 56% of Grow revenue, up from 49% two quarters ago, with Vector experiencing mid-teen sequential growth [19] - Create revenue was $165 million, up 8% year-over-year, with a healthy 16% growth when excluding non-strategic revenue [20] - The Create business saw nearly 50% growth in China, driven by interoperability with local platforms [6] Market Data and Key Metrics Changes - The ironSource ad network is expected to represent less than 6% of total Unity revenue in Q1 2026, indicating a shift towards higher-quality AI platform revenue [5][6] - Unity's advertising business is anticipated to benefit from the growth of Vector, which is expected to exceed a $1 billion annual revenue run rate by the end of 2026 [5][19] Company Strategy and Development Direction - Unity is focusing on enhancing its advertising business through Vector and integrating AI into the creation process, aiming to democratize game development [9][17] - The company plans to make authoring workflows accessible via web browsers, expanding its addressable market by allowing collaboration among various stakeholders [12][13] - AI-driven authoring tools are set to be unveiled, enabling developers to create games using natural language prompts, which will lower barriers to entry for new creators [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory of Vector, emphasizing that the business is in the early stages of a multi-year growth story [19][32] - The company is confident in its ability to compete with major players in the industry, noting that competition from companies like Meta has not significantly impacted its growth [42] - Management highlighted the importance of AI as a tailwind for the video game industry, predicting increased leisure time and efficiency in game creation [47] Other Important Information - Unity successfully refinanced $690 million of its 2026 convertible notes, extending maturities to 2030, and ended the year with over $2 billion in cash [24] - The company is focused on cost discipline and prudent capital allocation, which has positively impacted profitability and cash flow [22] Q&A Session Summary Question: What is the growth outlook for Vector and the impact of ironSource? - Management expressed excitement about Vector's growth, noting January was its best month ever, and indicated that ironSource will become less material to overall revenue as Vector continues to grow [31][33] Question: What is the demand for the commerce tools? - Management reported strong customer interest in the upcoming commerce tools, highlighting benefits such as accelerated adaptation to regulatory changes and integration with existing systems [34][35] Question: How is Meta's competition affecting Unity? - Management stated that Meta has been competitive for some time but emphasized that it has not had a meaningful impact on Unity's growth, maintaining focus on its core business [42] Question: What are the implications of AI advancements for Unity? - Management believes AI will significantly enhance game development efficiency and create opportunities for monetization, allowing for a larger customer base [47][75]

周三，Unity Software(U.US)盘前股价暴跌，截至发稿，该股跌超23%，报22.32美元。大跌主要源于公 司最新业绩指引不及市场预期。该公司预计2026年第一季度营收中值为4.85亿美元，低于分析师普遍预 期的4.918亿美元，虽然下调幅度仅约1.4%，在当前软件板块整体面临增长可持续性和估值重估压力的 背景下，任何指引层面的"边际走弱"都会被市场迅速放大，引发投资者对公司未来增长前景的担忧。 ...

智通财经APP获悉，周三，Unity Software(U.US)盘前股价暴跌，截至发稿，该股跌超23%，报22.32美 元。大跌主要源于公司最新业绩指引不及市场预期。该公司预计2026年第一季度营收中值为4.85亿美 元，低于分析师普遍预期的4.918亿美元，虽然下调幅度仅约1.4%，在当前软件板块整体面临增长可持 续性和估值重估压力的背景下，任何指引层面的"边际走弱"都会被市场迅速放大，引发投资者对公司未 来增长前景的担忧。 ...

Core Insights - Unity Software Inc. reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, compared to a loss of $0.30 per share a year ago, representing an earnings surprise of +20.00% [1] - The company achieved revenues of $503.09 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.21% and showing an increase from year-ago revenues of $457.1 million [2] - Unity Software has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] Earnings Outlook - The sustainability of Unity Software's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $494.38 million, while for the current fiscal year, the estimate is $0.93 on revenues of $2.1 billion [7] Industry Context - The Internet - Software industry, to which Unity Software belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Unity Software's stock performance [5]

智通财经APP获悉，全球领先游戏引擎开发商Unity Software(U.US)周二公布2025年第四季度财报，在市 场深陷"AI 削弱传统软件价值"的疑虑中，Unity 用一份核心指标双杀预期的战报给出了有力回击。受AI 驱动的Vector业务连续三个季度实现中双位数环比增长及Create业务创两年最佳表现推动，公司季度营 收首次站上5亿美元关口。 数据显示，公司Q4总营收为5.031亿美元，超越市场一致预期的4.8895亿美元;每股收益(EPS)为0.24美 元，较分析师预期值0.21美元高出0.03美元。 核心业务拆解：AI 并非挑战者，而是增长引擎 公司高管发表了乐观言论。Unity总裁兼首席执行官马特·布朗伯格表示："第四季度业绩再次轻松超越指 引上限。Vector展现迅猛增长动能，该业务已连续三个季度实现中双位数环比营收增长，同时Create业 务也创下逾两年来最快增速。" "随着Vector展现迅猛增长动能，Unity 6引擎采用速度达到我们历史上最高水平，公司成为下一代交互 娱乐核心基础设施的战略目标正愈发清晰。" 盈利能力方面，Q4 GAAP 净亏损显著收窄至 8900 万美元，亏损率优化 ...

The maker of game-development software beats earnings expectations but issues weak guidance for the current quarter. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR For the transition period from _______ to _______ Commission File Number: 001-39497 UNITY SOFTWARE INC. (Exact name of registrant as specified in its charter) Delaware 27-0334803 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 116 Ne ...