New York, Feb 12, 2026, 05:32 EST — Premarket
- Unity hovered around $21.41 ahead of the bell, after plunging 26.3% the day before.
- Unity sees its first-quarter revenue landing in the $480 million to $490 million range, which misses the $492.1 million LSEG estimate.
- Unity’s drawing analyst attention as the company tries to spark demand for its Create tools and breathe new life into the Grow ad business. AI concerns still loom over the outlook.
Unity Software Inc (NYSE: U) sat at $21.41 right before Thursday’s bell, showing almost no movement after a brutal 26.3% drop the previous session. The videogame-engine company shook up Wall Street by slashing its first-quarter revenue outlook, prompting analysts to revisit their forecasts.
This is a pivotal moment for Unity. The company’s entire valuation is riding on what happens in the upcoming quarters, not on recent results. Investors are combing through the details, trying to figure out if demand merely slowed, or if there’s a more permanent downtrend. Another wildcard: it’s unclear how much new AI tools could chip away at what game engines like Unity typically deliver.
And it’s not just about gaming software. “The market is pricing in worst-case AI disruption scenarios that are unlikely to materialize over the next three to six months,” wrote JPMorgan strategists led by Dubravko Lakos-Bujas this week. 1
Unity expects first-quarter revenue in the $480 million to $490 million range, missing the $492.1 million analysts were looking for, according to LSEG. The stock has faced selling as investors weigh whether Alphabet’s Google might use AI-driven tools to build interactive environments that could cut into demand for traditional game engines. Still, shares nearly doubled in 2025. 2
Unity divides its operations into two main arms: Create, responsible for development subscriptions, and Grow, which handles advertising and monetization. Its toolkit targets game creation and interactive 3D projects.
Revenue for the fourth quarter jumped to $503 million from $457 million last year, while the company posted a GAAP net loss of $89 million. Adjusted EBITDA hit $125 million and free cash flow totaled $119 million. “Comfortably exceeded the high-end of our guidance,” Chief Executive Matt Bromberg said, crediting a faster-than-expected rollout of Unity 6. 3
Create posted $165 million in revenue, up 8% from a year earlier. Grow pulled in $338 million, an increase of 11%. Unity said Vector drove 56% of Grow’s total, while the ironSource ad network made up 11%. As of Dec. 31, cash, cash equivalents, and restricted cash totaled $2.064 billion.
Unity’s engine is best known for its role in videogame development, but it’s found in simulations, digital modeling, and filmmaking as well. The company touts that broader scope to investors. Still, the shares haven’t reflected much enthusiasm—Wall Street seems to want clearer proof of momentum.
Unity posted its earnings and accompanying press release through a Form 8-K on Wednesday, per the regulatory filing. Investors can find additional materials on Unity’s IR site. 4
This week, Unity added gaming industry veteran Bernard Kim to its board, with his term starting May 1. The company also revealed that co-founder David Helgason and director Tomer Bar‑Zeev both left the board back on Feb. 5. Board chair Jim Whitehurst described Kim’s arrival as a move to deepen Unity’s know-how “at the intersection of games and technology.” 5
But changing expectations can cut both ways. Unity’s own forecast shows Grow revenue flat compared to last quarter. If ad demand weakens further, or AI-generated content gains ground faster, the company’s room for error shrinks.
Trading picks up at 9:30 a.m. ET on Thursday. Unity’s stock is front and center—can it keep its head above $20? Some traders are scanning for signs of bargain hunting following Wednesday’s slide.
