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Unity (U) Stock Jumps 12.8% on First GAAP Profit Since IPO
Unity stock rose 12.8% on November 5, 2026 after third-quarter revenue grew 32% to $622 million and the company posted its first GAAP profit since its IPO.
Unity stock (NYSE: U) was up 12.8% in early trading on November 5, 2026, after the game engine maker reported third-quarter 2026 results. The quarter was its first profitable one since its IPO under GAAP, the standard US accounting rules: net income was $122 million, against a net loss of $127 million a year earlier.
What Unity reported
| Metric | This period | A year earlier | Change |
|---|---|---|---|
| Total revenue | $622 million | $471 million | +32% |
| Strategic revenue | $597 million | $375 million | +59% |
| Adjusted EBITDA | $257 million | $109 million | +134% |
| Adjusted EPS | $0.44 | $0.20 | +120% |
| GAAP gross margin | 82% | 74% | +8 points |
Adjusted EBITDA is profit before interest, tax, depreciation, amortisation, stock-based pay and one-off items. Adjusted EPS is profit per share with similar items removed. Non-strategic revenue fell 73% to $25.5 million. It comes mainly from the ironSource Ads network, shut down in the second quarter, and the Supersonic publishing business, sold on August 4, 2026.
For the fourth quarter, Unity's guidance (its own forecast) is strategic revenue of $683 million to $691 million, up 65% to 67%. It expects adjusted EBITDA of $290 million to $295 million, up 132% to 136%.
Why the stock rose 12.8%
The move was about four and a half times the size of a typical day's swing for the stock. The main driver was advertising. Strategic Grow revenue, the ads business, rose 90% to $431.5 million. CEO Matt Bromberg said its Vector ad platform grew "126% year-over-year and 40% quarter-over-quarter" and called the quarter "our strongest ever". The shift to a GAAP profit also came as sales and marketing spending fell to $103 million from $166 million.
What to watch next for Unity stock
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Strategic Create revenue (the engine and subscriptions business), guided to grow only 4% to 6% in the fourth quarter.
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Non-strategic revenue, guided to about $5 million in the fourth quarter.
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Whether the fourth quarter is also profitable under GAAP. Unity's guidance covers only adjusted EBITDA.
FAQ
Is Unity profitable for the full year 2026?
Not yet. For the nine months to September 30, 2026, Unity had a net loss of $248 million. That figure includes about $279 million of write-downs on intangible assets earlier in the year.
How much cash does Unity have?
Cash, cash equivalents and restricted cash were $2,651 million on September 30, 2026, up from $2,064 million at the end of 2025. Against that, Unity carries about $2.24 billion of convertible notes.
Sources
This article is for information only and is not investment advice.