v3.26.1
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock‑Based Compensation
Stock-based compensation expense is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of revenue$7,572 $9,861 $14,954 $18,973 
Research and development42,590 51,051 81,515 101,645 
Sales and marketing13,281 19,208 27,452 39,169 
General and administrative16,505 21,484 33,192 40,607 
Total stock-based compensation expense$79,948 $101,604 $157,113 $200,394 
Stock Options
A summary of our stock option, including price-vested options ("PVO"), activity is as follows:
Options Outstanding
Stock
Options
Outstanding		Weighted-Average
Exercise
Price		Weighted-Average
Remaining
Contractual
Term
(In Years)
Balance as of December 31, 202512,474,347 $25.39 4.40
Exercised(687,834)$10.97 
Forfeited, cancelled, or expired(586,602)$61.09 
Balance as of June 30, 202611,199,911 $24.41 3.98
Restricted Stock Units
A summary of our restricted stock units ("RSU"), including price-vested units ("PVU"), and performance-based restricted stock units ("PSU"), activity is as follows:
Unvested RSUs
Number of
Shares		Weighted-Average
Grant-Date
Fair Value
Unvested as of December 31, 202524,927,722 $25.18 
Granted11,913,193 $20.35 
Vested(5,882,630)$25.38 
Forfeited(3,314,342)$23.80 
Unvested as of June 30, 202627,643,943 $23.23 
Price-Vested Options and Price-Vested Units
The vesting for each of the PVOs and PVUs is subject to the fulfillment of both a service period that extends up to four years and the achievement of a stock price hurdle during the relevant performance period that extends up to six and seven years, respectively. The fair value of each PVO and PVU award is estimated using a Monte Carlo simulation that uses assumptions determined on the date of grant. No outstanding options or units, which had not already met their price hurdle in a prior period, attained their price hurdle in 2026.
Performance-Based Restricted Stock Units
Starting in the first quarter of 2025, we have periodically issued PSUs to certain executives as part of their compensation. The vesting for each PSU is subject to the fulfillment of both a service period of three years, and the level of achievement of certain performance goals (revenue and EBITDA metrics), over three annual performance periods ("tranche"). These goals are set as a range of target outcomes, in the first quarter of each year, and can be attained at a rate between 0% and 200%, based on where in the range the final results fall. The fair value of each PSU is estimated separately for each tranche of the award, using the closing price of Unity's common stock on the grant date. The grant date is the later of the day the performance goals are set for that tranche, or the date the units were issued. The expense is the fair value of the award multiplied by the expected attainment of the related performance goals as of the balance sheet date, recognized ratably for each tranche over the period between the grant date, and the end of the service period. The expense is adjusted each period for any changes in the expected attainment of the performance goals.
Fair Value Assumptions
The calculated grant-date fair value of stock options, PVUs, and PVOs granted, were estimated using the Black-Scholes option-pricing model for stock options, and a Monte Carlo simulation for the PVUs and PVOs, with the following assumptions:
Six Months Ended June 30,
2025
Expected dividend yield—
Risk-free interest rate4.1%
Expected volatility69.5%
Expected term (in years)6.25
Fair value of underlying common stock$24.72
Employee Stock Purchase Plan
The fair value of shares offered under our Employee Stock Purchase Plan ("ESPP") was determined on the grant date using the Black-Scholes option pricing model. The following table summarizes the assumptions used and the resulting grant-date fair values of our ESPP:
Six Months Ended June 30,
2025
Expected dividend yield—
Risk-free interest rate4.3%
Expected volatility73.4%
Expected term (in years)0.50
Grant-date fair value per share$9.26
Additional information related to the ESPP is provided below (in thousands, except per share amounts):
Six Months Ended June 30,
20262025
Shares issued under the ESPP558,351693,873
Weighted-average price per share issued$15.49$14.19
During 2025, we suspended the ESPP program, effective in the first quarter of 2026. As a result of the suspension, no new offering periods have commenced after March 2, 2026.