unity-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2025
OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			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 New Montgomery Street
	San Francisco, California 94105-3607
	(Address, including zip code, of principal executive offices)
	(415) 638-9950
	(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.000005 par value

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S‑T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non‑accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes ☐ No x

As of October 28, 2025, there were 427,912,843 shares of the registrant's common stock outstanding.

UNITY SOFTWARE INC.

FORM 10‑Q

For the Quarter Ended September 30, 2025

TABLE OF CONTENTS


		Page
PART I—FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	1

	Condensed Consolidated Balance Sheets	1

	Condensed Consolidated Statements of Operations	2

	Condensed Consolidated Statements of Comprehensive Loss	3

	Condensed Consolidated Statements of Stockholders' Equity	4

	Condensed Consolidated Statements of Cash Flows	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28

Item 4.	Controls and Procedures	29

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	30

Item 1A.	Risk Factors	30

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30

Item 3.	Defaults Upon Senior Securities	30

Item 4.	Mine Safety Disclosures	30

Item 5.	Other Information	30

Item 6.	Exhibits	31

SIGNATURES		32

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10‑Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact, including statements regarding our future results of operations or financial condition, business strategy and plans, and objectives of management for future operations are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "aim," "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," "would," or the negative of these words or other similar terms or expressions.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10‑Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. Readers are cautioned that these forward‑looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified and discussed in greater detail in “Part I, Item 1A. Risk Factors” of our Annual Report on Form 10-K filed with the SEC on February 21, 2025 and below, under "Part II, Item 1A. Risk Factors."

The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10‑Q. While we believe such information provides a reasonable basis for these statements, such information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this Quarterly Report on Form 10‑Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10‑Q or to reflect new information, actual results, revised expectations, or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments.

Additional Information

Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q to "we," "us," "our," "our company," "Unity," and "Unity Technologies" refer to Unity Software Inc. and its consolidated subsidiaries. The Unity design logos, "Unity" and our other registered or common law trademarks, service marks, or trade names appearing in this Quarterly Report on Form 10-Q are the property of Unity Software Inc. or its affiliates.

Investors and others should note that we may announce material business and financial information using our investor relations website (www.investors.unity.com), our filings with the Securities and Exchange Commission, press releases, public conference calls, and public webcasts as means of complying with our disclosure obligations under Regulation FD. We encourage investors and others interested in our company to review the information that we make available.


Table of Contents						Unity Software Inc.

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements


UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)

	As of
	September 30, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	1,898,558	$	1,517,672

Accounts receivable, net	600,117		573,884
Prepaid expenses and other	123,885		133,795

Total current assets	2,622,560		2,225,351
Property and equipment, net	76,626		98,819

Goodwill	3,166,304		3,166,304
Intangible assets, net	769,022		1,066,235

Other assets	148,785		180,698
Total assets	$	6,783,297	$	6,737,407
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	20,006	$	13,948
Accrued expenses and other	299,394		294,951
Publisher payables	397,190		394,284

Deferred revenue	225,645		186,304


Total current liabilities	942,235		889,487
Convertible notes	2,234,307		2,238,922
Long-term deferred revenue	16,749		16,846

Other long-term liabilities	135,376		165,004
Total liabilities	3,328,667		3,310,259
Commitments and Contingencies (Note 7)
Redeemable noncontrolling interests	245,160		230,627
Stockholders' equity:


Common stock, $0.000005 par value:
Authorized shares - 1,000,000 and 1,000,000
Issued and outstanding shares - 427,778 and 409,393	2		2
Additional paid-in capital	7,257,519		6,936,038
Accumulated other comprehensive loss	(5,278)		(9,425)
Accumulated deficit	(4,048,746)		(3,735,944)

Total Unity Software Inc. stockholders' equity	3,203,497		3,190,671
Noncontrolling interest	5,973		5,850
Total stockholders' equity	3,209,470		3,196,521
Total liabilities and stockholders' equity	$	6,783,297	$	6,737,407

See accompanying Notes to Condensed Consolidated Financial Statements.


Table of Contents						Unity Software Inc.


UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Revenue	$	470,615	$	446,517	$	1,346,559	$	1,356,156
Cost of revenue	120,332		112,054		348,500		365,316
Gross profit	350,283		334,463		998,059		990,840
Operating expenses
Research and development	244,357		215,197		679,789		706,860
Sales and marketing	165,869		176,423		489,395		576,902
General and administrative	65,913		69,989		201,418		338,573
Total operating expenses	476,139		461,609		1,370,602		1,622,335
Loss from operations	(125,856)		(127,146)		(372,543)		(631,495)
Interest expense	(6,043)		(5,839)		(17,964)		(17,703)
Interest income and other income (expense), net	14,448		15,350		92,396		102,450
Loss before income taxes	(117,451)		(117,635)		(298,111)		(546,748)
Provision for (benefit from) Income taxes	9,377		6,913		13,989		(4,984)
Net loss	(126,828)		(124,548)		(312,100)		(541,764)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests	(466)		191		702		(377)

Net loss attributable to Unity Software Inc.	$	(126,362)	$	(124,739)	$	(312,802)	$	(541,387)

Basic and diluted net loss per share attributable to Unity Software Inc.	$	(0.30)	$	(0.31)	$	(0.75)	$	(1.38)
Weighted-average shares used in computation of basic and diluted net loss per share	424,296		398,810		417,919		392,855

See accompanying Notes to Condensed Consolidated Financial Statements.


Table of Contents						Unity Software Inc.


UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Net loss	$	(126,828)	$	(124,548)	$	(312,100)	$	(541,764)
Other comprehensive income, net of taxes:
Change in foreign currency translation adjustment	1,353		7,412		5,247		2,558


Other comprehensive income	1,353		7,412		5,247		2,558
Comprehensive loss	(125,475)		(117,136)		(306,853)		(539,206)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests	(466)		191		702		(377)
Foreign currency translation attributable to noncontrolling interest and redeemable noncontrolling interests	282		1,501		1,100		536
Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interests	(184)		1,692		1,802		159
Comprehensive loss attributable to Unity Software Inc.	$	(125,291)	$	(118,828)	$	(308,655)	$	(539,365)

See accompanying Notes to Condensed Consolidated Financial Statements.


Table of Contents						Unity Software Inc.


UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands, except share data)
(Unaudited)

		Three Months Ended September 30, 2025
							Accumulated
					Additional		Other					Unity Software Inc.
	Common Stock		Paid-In		Comprehensive		Accumulated				Stockholders'	Noncontrolling		Total
		Shares	Amount		Capital		Loss		Deficit			Equity		Interest (1)		Equity
Balance at June 30, 2025		420,440,864	$	2	$	7,116,124	$	(6,349)	$	(3,922,384)		$	3,187,393	$	5,985	$	3,193,378


Issuance of common stock from employee equity plans		4,577,455			54,082							54,082				54,082
Issuance of common stock for settlement of RSUs		2,759,765										—				—



Stock‑based compensation expense					91,948							91,948				91,948

SEC Form 10-Q filed by Unity Software Inc.