Unity reported a 17% increase in first-quarter revenue but also confirmed a $347 million loss, which followed the completion of its acquisition of IronSource

Image credit: Unity

Unity reported its financial performance for the first quarter ending March 31, 2026, showing a 17% increase in total revenue, reaching $508 million, compared to $435 million in the same quarter of the previous year.

The company's sections, Create Solutions and Grow Solutions, both experienced revenue growth, with Grow Solutions seeing a 23% rise annually.

Nevertheless, the company faced a major loss of $347 million this quarter, a notable increase from a $78 million loss in Q1 2025, influenced by shutting down IronSource and selling mobile publisher Supersonic earlier in the year.

Key Figures

Revenue: $508 million (17% increase from last year)
Create Solutions revenue: $157 million (4% annual growth)
Grow Solutions revenue: $352 million (23% annual growth)
Net loss: $347 million (68% margin)

Main Points

The 4% rise in Create Solutions revenue was mainly due to higher subscription payments. This was somewhat counterbalanced by a reduction in cloud and hosting services as a result of a portfolio overhaul in 2025.

The surge in Grow Solutions income by 23% was largely attributed to expansion within the Unity Ad Network, particularly fueled by Unity Vector, launched in 2025.

Unity's net loss included $279 million from impairments tied to IronSource's closure and the Supersonic sale. In contrast, the company recorded a net loss of $78 million for the first quarter of 2025.

Unity and IronSource officially merged in 2022, offering developers opportunities to monetize and expand their apps.

Allegedly, the merger played a part in Unity's Runtime Fee policy in 2023, which proposed charging developers a fee for each game installation. An exemption was possible if developers utilized IronSource’s mediation platform, a policy Unity later revised.

Following a significant public backlash, the Runtime Fee was withdrawn, and soon after, CEO John Riccitiello resigned.

Prior to announcing its latest quarterly results, Unity introduced a new suite of AI tools intended to speed up game creation. They have entered open beta this week for developers utilizing Unity 6 or newer.