Abstract
Unity Software Inc. will release its quarterly results on February 11, 2026 Pre-Market; this preview summarizes market expectations for revenue, margins, GAAP net profit and adjusted EPS, with insights into the company’s main businesses and analyst majority views across recent coverage.
Market Forecast
Consensus forecasts for Unity Software Inc.’s current quarter indicate revenue of $0.49 billion, an estimated adjusted EPS of -$0.22, and an EBIT of -$0.10 billion, with year-over-year growth of 13.60% for revenue and 41.00% for EPS. Based on the company’s previous report structure, gross profit margin is expected to remain elevated in the low-to-mid 70.00% range, with net loss narrowing year over year and net profit margin improving alongside operating discipline. The main business is projected to be led by Growth Solutions with resilient advertiser demand and stabilization in Unity Ads, while Create Solutions continues to monetize seats and enterprise bundles with steady expansion. The most promising segment is Growth Solutions, which most recently generated $0.32 billion and is poised for mid-teens year-over-year growth as ad network efficiency and game developer spend trend higher.
Last Quarter Review
Unity Software Inc. reported last quarter revenue of $0.47 billion, a gross profit margin of 74.43%, GAAP net profit attributable to the parent company of -$0.13 billion with a net profit margin of -26.85%, and adjusted EPS of -$0.30, with revenue up 5.40% year over year and adjusted EPS improving modestly year over year. A key financial highlight was revenue exceeding estimates by $0.02 billion despite ongoing restructuring costs affecting EBIT and EPS. Main business highlights included Growth Solutions revenue of $0.32 billion and Create Solutions revenue of $0.15 billion, with Growth Solutions representing 67.63% of total revenue and benefiting from improving campaign performance; Create Solutions maintained consistent monetization with ongoing seat expansion and enterprise adoption.
Current Quarter Outlook
Main Business: Growth Solutions
Growth Solutions remains the engine of Unity Software Inc.’s model, driven by advertiser demand from mobile gaming and cross-platform developers. The segment’s mechanics rely on the network’s ability to convert high-quality installs into measurable return on ad spend, which has steadily improved, allowing developers to allocate higher budgets. With platform optimization and buyer tools that enhance campaign targeting, the revenue trajectory aligns with the forecasted mid-teens growth, contributing the majority of top-line expansion. Gross margin support comes from the relatively asset-light nature of ad mediation and demand-side software, so segment profitability tends to improve as volumes scale, aiding overall margin resilience.
Most Promising Business: Growth Solutions Upside Factors
Growth Solutions presents the largest near-term upside given both its scale and sensitivity to advertiser efficiency. Several factors can drive outperformance: improved signal quality from privacy-compliant measurement aids user acquisition; continuous iteration in bidding algorithms boosts monetization rates; and deeper integrations with top-grossing developers can unlock incremental spend. If Unity Software Inc. executes audience segmentation and real-time optimization effectively, conversion rates can lift, translating to revenue above forecast. Additionally, partnerships that extend demand to new geographies or genres can diversify and expand the revenue base. The primary risk is volatility in mobile ad budgets, but the forecasted narrowing of losses suggests operating leverage is improving.
Stock Price Drivers This Quarter
Three forces are likely to shape investor reaction: revenue mix and margin quality, visibility on adjusted profitability, and commentary on product roadmap execution. Investors will parse whether revenue upside is driven by sustainable ad demand or one-off client campaigns, as the former carries better forward visibility. Management’s guidance on adjusted EPS trajectory and EBIT path toward breakeven will be crucial, with the market favoring evidence of cost control, disciplined opex, and improving unit economics. Product updates—such as enhancements to ad tools and seat-based monetization in Create Solutions—will influence sentiment by showing progress on recurring revenue expansion and customer retention. If Unity Software Inc. demonstrates margin stabilization near the mid-70.00% level with a tangible plan for narrowing net losses, shares could respond positively to the increased confidence in the operating model.
Analyst Opinions
Analyst sentiment has skewed bullish over the past six months, with a majority of recent notes leaning positive against a minority of Sell reiterations. Citi maintained a Buy rating with a $52.00 price target on January 29, 2026, pointing to improving fundamentals and a clearer path to profitability. Needham reiterated Buy with a $50.00 target, highlighting strong performance drivers in advertising and platform efficiency, while William Blair sustained an Outperform stance and emphasized growth potential supported by strategic execution. Citizens JMP also reiterated Buy with a $35.00 target, citing stabilization in core metrics and opportunities to unlock operating leverage. While Bank of America Securities reiterated Sell with concerns around valuation and growth consistency, the balance of coverage favors the bullish view, underpinned by expectations of mid-teens revenue growth, improving adjusted EPS, and continued strength in Growth Solutions. The prevailing buy-side narrative expects Unity Software Inc. to deliver on revenue forecasts near $0.49 billion, maintain gross margin resilience around the low-to-mid 70.00% range, and show credible progress on narrowing losses, which together could support re-rating dynamics if management’s guidance confirms sustained momentum.
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