Unity Software's first quarter 2026 revenue grew 17% beating estimates, but key Strategic Grow segment missed expectations.

Unity reported first quarter 2026 revenue of $508.2 million, an increase of 17% year-over-year, and adjusted EPS of $0.23. The results surpassed analyst expectations for both revenue and earnings, driven by the company's ongoing portfolio realignment.

Key Highlights

• Strategic revenue, which excludes businesses being divested or sunsetted, increased 35% year-over-year to $432.4 million.
• The company's Strategic Grow revenue segment grew 49% year-over-year to $278.7 million, falling short of analyst estimates of $352 million.
• Adjusted EBITDA margin improved significantly, reaching 27% compared to 19% in the prior year, with free cash flow growing to $66 million from $7 million.