Unity Q1 revenue rises 17%, posts $347m loss following IronSource closure
Unity Technologies reported mixed financial results for Q1 2026, with strong revenue growth significantly offset by substantial losses tied to the closure of ad network IronSource and the ongoing divestiture of mobile publisher Supersonic.
The company posted revenue of $508 million, representing a 17% year-on-year increase from $435 million in Q1 2025. Both Create Solutions and Grow Solutions segments showed growth, with Grow Solutions achieving a notable 23% year-on-year increase. The Vector ad product demonstrated particularly strong momentum, with revenue climbing 80% year-on-year.
However, Unity reported a net loss of $347 million for the quarter, a dramatic deterioration from the $78 million loss in Q1 2025. The shortfall includes $279 million in impairment charges related to the IronSource closure and the writedown from Supersonic’s divestiture, with the Supersonic sale still in progress.
Management outlined an optimistic trajectory during the earnings call, projecting a return to profitability by Q4 2026. The company is expanding investment in artificial intelligence capabilities through new UnityAI tools, positioning them alongside the Vector ad product as key growth drivers. CEO Bromberg highlighted the accelerating adoption of AI among game developers, citing research showing 90% of game developers already incorporate AI into their development workflows. Bromberg emphasized that AI tools are significantly accelerating game production across development partners of all sizes.