Unity Q1 revenue rises 17%, posts $347m loss following IronSource closure
Net loss includes $279 million of impairment charges related to IronSource and divestiture of mobile publisher Supersonic
Unity has published its financial results for the first quarter ended March 31, 2026, with overall revenue rising 17% to $508 million, up from $435 million during the same quarter last year.
The company also reported growth in both Create Solutions and Grow Solutions, with Grow Solutions posting a 23% year-on-year increase.
However, Unity reported a substantial loss of $347 million this quarter compared to $78 million during Q1 2025, following the closure of IronSource and the divestiture of mobile publisher Supersonic earlier this year.
Here's what you need to know:
The numbers
- Revenue: $508 million (up 17% year-on-year)
- Create Solutions revenue: $157 million (up 4% year-on-year)
- Grow Solutions revenue: $352 million (up 23% year-on-year)
- Net loss: $347 million (with a margin of 68%)
The highlights
Unity attributed the 4% increase in Create Solutions sales to higher subscription income, partially offset by declines in cloud and hosting services following its portfolio reset in 2025.
The 23% rise in Grow Solutions earnings was driven by growth in the Unity Ad Network, particularly due to Unity Vector, which launched in 2025.
Unity noted revenue from this segment was partially offset by decreases in the IronSource Ad Network, which shut down in March 2026, and the sale of Supersonic.
The company closed IronSource to streamline its business and focus on higher-growth segments such as Vector.
Unity's net loss for the quarter included $279 million of impairment charges related to the sunset of IronSource and the divestiture of Supersonic. In comparison, the total net loss in the first quarter of 2025 was $78 million.
Unity merged with IronSource in 2022, a platform that enabled developers to monetise their apps and grow their businesses.
It was alleged to be one of the reasons for Unity's Runtime Fee in 2023, which would have charged developers a per-install fee that could be waived if they used IronSource's mediation platform.
The Runtime Fee was walked back after a public boycott, and CEO John Riccitiello stepped down shortly after.
Before releasing its latest financial results, Unity launched a new suite of AI tools to help creators accelerate game development. It entered into an open beta this week for all developers using Unity 6 or later.