Unity Software Inc
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Earnings Call Q2 2026
August 6, 2026 - AI Summary
Strong Q2 performance + accelerating Vector growth (core driver)
- Unity delivered record Q2 results: Strategic revenue +38% YoY and adjusted EBITDA +77% YoY with adjusted EBITDA margins ~29% (+800 bps YoY).
- Unity Vector / Strategic Grow: $329M revenue, +63% YoY; +23% QoQ, which *outperformed* the company’s 12–13% expected QoQ range.
- CEO cited 4 straight quarters of ~15% growth before stepping up to the near-23% level—implying a momentum step-up rather than a linear trend.
Guidance: another acceleration in Q3 with margins expanding
- Q3 Strategic revenue guidance: $540M–$550M (+44% to +47% YoY).
- Q3 Strategic Grow (Vector): +68% to +70% YoY, assuming Vector +19% to +21% sequential QoQ growth.
- Q3 Strategic Create: +7% to +10% YoY, driven by ARPU growth and strength in China.
- Q3 adjusted EBITDA: $185M–$190M with ~33% margins (+69% to +74% YoY), and management expects 6th consecutive quarter of margin expansion (+400 bps vs Q2).
AI “flywheel” + runtime data are positioned as a compounding moat—but impact is early
- Management claims the strategy is a flywheel across segments: more games → more platform usage → harder discovery → higher ad demand → better ad outcomes → more value to creators/Unity ecosystem.
- Vector AI updates (20+ major updates in Q2) and improved prediction/data quality are cited as the primary reason for performance.
- Surprising / key milestone: Unity began for the first time to incorporate runtime player signals into Vector AI models late in Q2.
- Management says it’s very early and avoids quantifying runtime’s isolated effect; they instead stress the results are from the sum of improvements and should self-perpetuate as the models learn.
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$2.42
94.3% downside
Current Fair Value
94.3% downsideOvervalued by 94.3% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $18.60 Billion |
|---|---|
| Enterprise Value | $18.72 Billion |
| Earnings per Share | $-0.96 |
| Beta | 2.11 |
| Outstanding Shares | 437,898,000 |
Return
| Return on Equity | -19.32% |
|---|---|
| Return on Assets | -8.80% |
| Return on Invested Capital | -11.75% |
Valuation & Multiples
| P/E Ratio | -27.72 |
|---|---|
| PEG | 35.4 |
| Price to Sales | 10.62 |
| Price to Book Ratio | 6.07 |
| Enterprise Value to Revenue | 9.23 |
| Enterprise Value to EBIT | -31.3 |
| Enterprise Value to Net Income | -32 |
| Total Debt to Enterprise | 0.13 |
| Debt to Equity | 0.82 |
Revenue Sources
No data
Last Earnings Call
Report Date
November 4, 2026
EPS Estimate
$0.03
Consensus analyst estimateRevenue Estimate
$566.55 M
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 1.73, the ratio is above 1, so institutions hold more puts than calls. That is a more cautious stance.
| Put/Call Ratio | 1.7309▲ 90.01% |
|---|---|
| Total Calls | 66,900▼ 99.71% |
| Total Puts | 115,800▼ 99.40% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 2.21%▼ 83.54% |
|---|---|
| Total Invested | $397.04M▼ 96.30% |
| Investors Holding | 179▼ 439.00% |