| Net Income (Loss) per Share of Common Stock |
Net Income (Loss) per Share of Common Stock Basic net income (loss) per share is calculated using our weighted-average outstanding shares of common stock, including the impact of the redeemable noncontrolling interest from our China JV. Diluted net income (loss) per share is calculated using our weighted-average outstanding common stock including the dilutive effect of convertible notes using the if-converted method, and the dilutive effect of stock awards as determined under the treasury stock method. Stock awards include outstanding stock options, PVOs, RSUs, PVUs, PSUs, and ESPP units. Potential dilutive shares of common stock are excluded from the computation of diluted net income (loss) per share, if the impact of including them would have been antidilutive. The following table shows the calculation of basic and diluted net income (loss) per share (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Net income (loss) attributable to Unity Software Inc. | $ | 121,229 | | | $ | (126,362) | | | $ | (249,987) | | | $ | (312,802) | | | Accretion for redeemable noncontrolling interests | (2,982) | | | — | | | (7,756) | | | — | | | Net income (loss) attributable to common stockholders of Unity Software Inc. | $ | 118,247 | | | $ | (126,362) | | | $ | (257,743) | | | $ | (312,802) | | | | | | | | | | | Weighted-average shares used in computation of basic net income (loss) per share | 441,557 | | | 424,296 | | | 437,930 | | | 417,919 | | | Basic net income (loss) per share attributable to common stockholders of Unity Software Inc. | $ | 0.27 | | | $ | (0.30) | | | $ | (0.59) | | | $ | (0.75) | | | | | | | | | | | Net income (loss) attributable to common stockholders of Unity Software Inc. | $ | 118,247 | | | $ | (126,362) | | | $ | (257,743) | | | $ | (312,802) | | | Increase from forgone financing costs on dilutive convertible notes, net of tax | 4,686 | | | — | | | — | | | — | | | Diluted net income (loss) attributable to common stockholders of Unity Software Inc. | $ | 122,933 | | | $ | (126,362) | | | $ | (257,743) | | | $ | (312,802) | | | | | | | | | | | Weighted-average shares used in computation of basic net income (loss) per share | 441,557 | | | 424,296 | | | 437,930 | | | 417,919 | | | Convertible notes | 41,348 | | | — | | | — | | | — | | | | | | | | | | | Stock options and PVOs | 3,780 | | | — | | | — | | | — | | | Unvested RSUs, PVUs, and PSUs | 11,480 | | | — | | | — | | | — | | | | | | | | | | | Weighted-average shares used in computation of diluted net income (loss) per share | 498,165 | | | 424,296 | | | 437,930 | | | 417,919 | | | | | | | | | | | Diluted net income (loss) per share attributable to common stockholders of Unity Software Inc. | $ | 0.25 | | | $ | (0.30) | | | $ | (0.59) | | | $ | (0.75) | | | | | | | | | |
The following table presents the total number of potentially dilutive common stock, which were excluded from the computation of diluted net income (loss) per share since their effect would have been antidilutive, outstanding as of the end of each period (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | Convertible notes | — | | | 41,348 | | | 41,348 | | | 41,348 | | | | | | | | | | | Stock options and PVOs | 1,529 | | | 14,395 | | | 9,481 | | | 14,395 | | | Unvested RSUs, PVUs, and PSUs | 3,443 | | | 28,301 | | | 25,061 | | | 28,301 | | | | | | | | | |
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