Unity Posts Quarterly Revenue of $622 Million Amid Unresolved Acquisition Talks
Key Facts
Unity reported on November 5 results for the third quarter ended September 30, 2026, posting revenue of $622.092 million, up 32% from $470.615 million in the same period a year earlier. The announcement came as Reuters reported that the company had recently held talks with a consortium including Silver Lake and Saudi Arabia’s Public Investment Fund about an acquisition. No agreement has been confirmed, and details of the talks do not constitute a final offer. The strong financial results provide a backdrop to the deal discussions but do not determine their outcome. According to Reuters, the investors approached Unity in the preceding weeks.
Investors discussed a valuation of about $25 billion before Unity’s latest results were announced, Reuters reported, adding that the results lifted the company’s market capitalization to about $21.5 billion. The $25 billion figure was a valuation discussed by the consortium, not a confirmed offer value. The news agency also said the plan and terms could change and that completion of the deal was not guaranteed. The talks therefore concern exploring a possible acquisition, not an announced agreement specifying a price or timeline. The available information included no details on subsequent negotiating steps or when a decision might be made.
On profitability, Unity posted net income of $121.590 million in the third quarter of 2026, compared with a net loss of $126.828 million in the same quarter of 2025. The chief executive said the quarter was the company’s first profitable period under generally accepted accounting principles since its public listing. The shift from loss to profit presents a different picture from the company’s previous period as a provider of tools and software for the gaming industry. The result came alongside annual revenue growth, making the quarter’s performance an important focus for investors assessing the business. GAAP net income remains separate from the adjusted earnings measure the company also reported.
Unity said its Vector platform grew 126% year over year and 40% quarter over quarter in the third quarter. Create Solutions revenue was about $165 million, up 8% from a year earlier. The company attributed the increase in Create revenue to subscription growth, partly offset by declines in cloud and hosting services related to the 2025 portfolio reset. The strategic revenue breakdown showed Grow at $431.502 million, versus $226.770 million in the third quarter of 2025, up 90% year over year. Strategic Create revenue was $165.070 million, compared with $148.122 million a year earlier, an increase of 11%.
Adjusted earnings before interest, taxes, depreciation and amortization were $257 million in the third quarter, with a 41% margin, compared with $109 million and a 23% margin in the same period of 2025. Unity attributed the improvement to higher revenue and continued cost discipline. The margin comparison puts the improvement in adjusted profitability alongside the return of GAAP net income to positive territory. Silver Lake owned about 8% of Unity at the time of the report, according to Reuters, and it and the fund had approached the company in recent weeks. The investors had previously joined forces in a consortium that acquired Electronic Arts in a $55 billion deal that closed in August.
For the following period, Unity forecast strategic revenue of between $683 million and $691 million in the fourth quarter of 2026, including Grow revenue of between $515 million and $520 million and Create revenue of between $168 million and $171 million. It also forecast adjusted earnings before interest, taxes, depreciation and amortization of between $290 million and $295 million. The forecast includes year-over-year growth of between 105% and 107% in strategic Grow revenue and between 65% and 67% in total strategic revenue. These are management estimates for the coming period, not reported results. While the company works to deliver on those forecasts, Reuters said Unity was working with an investment bank to evaluate its options after the investors approached it, with the acquisition plan and terms still unresolved.