We prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. The condensed consolidated financial statements include the accounts of Unity Software Inc., its wholly owned subsidiaries, and entities consolidated under the voting interest model. We have eliminated all intercompany balances and transactions. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, all adjustments, which include normal recurring adjustments necessary for a fair presentation, have been included. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year or other periods. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2025 Annual Report on Form 10-K.

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. For us, these estimates are used for, but not limited to, revenue recognition, contingent liabilities, the measurement of liabilities for uncertain tax positions and deferred tax assets and liabilities, the measurement of liabilities for future payments related to employee separation, the fair value of stock-based compensation, the fair value of redeemable noncontrolling interests, the fair value and useful lives of long-lived assets, and the fair value of equity investments where we use the measurement alternative. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations.

We evaluate intangible assets and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. In March 2026, we announced we would sunset the ironSource Ads Network, one of our monetization networks, effective April 30, 2026, and we began the process of exiting our Supersonic game publishing business. Due to this event, we evaluated the long-lived assets associated with those businesses and determined that the undiscounted cash flows were less than the carrying value of the asset group.

As a result, during the first quarter of 2026 we recorded $279 million of impairment charges, including $227 million within cost of revenue, and $47 million within sales and marketing expense. These impairment charges reduced our Intangible assets, net by $271 million, including $225 million in "Developed technology" and $46 million in "Customer relationships". The fair values of these assets were determined using a combined discounted cash flow analysis and market approach.

Furthermore, as a result of this evaluation, we revised our estimates of the remaining useful lives for certain assets within the asset group, from two to three years down to one to two years, effective April 1, 2026. These assets are primarily included in “Intangible assets, net” on our consolidated balance sheets, and are “developed technology” within intangible assets. The shortened useful lives are due to the shortened remaining time that Unity intends to operate these related businesses, as discussed in the above announcement. The effect of this change in estimate for the three months ended September 30, 2026, was an increase in amortization expense and decrease in operating income of approximately $3 million, a reduction in net income of approximately $2 million, a decrease in our basic net income per

share of approximately $0.01 per share, and no change to the diluted net income per share. The effect of this change in estimate for the nine months ended September 30, 2026, was an increase in amortization expense and decrease in operating income of approximately $6 million, an increase in net loss of approximately $4 million, and an increase in our basic and diluted net loss per share of approximately $0.01 per share.

As of June 30, 2026, we classified certain assets and liabilities associated with our Supersonic business as held-for-sale in connection with our strategic decision to exit the Supersonic business. We subsequently completed the sale of our Supersonic business on August 4, 2026. Proceeds from the sale were $38.0 million net of direct expenses incurred as part of the sale, and subject to certain post-close adjustments. This resulted in a gain on sale of business of $4.5 million for the three and nine months ended September 30, 2026, recorded primarily within general and administrative expense.

The assets sold consisted primarily of developed technology and customer relationship intangible assets, accounts receivable, and an allocated portion of goodwill associated with the Supersonic business. Upon classification as held-for-sale, the related long-lived assets ceased being depreciated or amortized. The liabilities sold primarily included publisher payables, accrued expenses, and other operating liabilities directly associated with Supersonic.

In connection with the held-for-sale classification, we evaluated the recoverability of long-lived assets within the Supersonic disposal group and subsequently measured the disposal group at the lower of its carrying amount and fair value less cost to sell. As a result of this evaluation, we recognized no impairment charges during the three and nine months ended September 30, 2026.


	As of
	August 4, 2026

Accounts receivable, net	$	19,212
Prepaid expenses and other	866
Property and equipment, net	175
Goodwill	10,697
Intangible assets, net	21,992

Assets held-for-sale	$	52,942

Accounts payable	$	36
Accrued expenses and other	3,092
Publisher payables	14,928


Other long-term liabilities	1,453
Liabilities held-for-sale	$	19,509

In connection with our ongoing restructuring efforts, we incurred incremental employee separation costs and other non-employee charges of approximately $51 million in the nine months ended September 30, 2026, mainly related to the planned closure of Unity France. The majority of these incremental charges were recorded within research and development. As of September 30, 2026, we have accrued $24 million of these incremental employee separation costs, primarily in "Accrued expenses and other" on our condensed consolidated balance sheets.

In November 2024, the FASB issued a new Accounting Standards Update ("ASU 2024-03") amending the existing disclosure requirement for expenses within Statement of Operations, primarily requiring more disaggregated disclosure for certain costs and expenses on an annual and interim basis. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted, and can be applied on either a prospective or retroactive basis. We are currently evaluating ASU 2024-03 to determine its impact on our expense disclosures.

In September 2025, the FASB issued a new Accounting Standards Update ("ASU 2025-06") amending existing internal-use software guidance, changing the timing and thresholds for capitalizing these software costs. ASU 2025-06 is effective for annual and interim reporting periods beginning after December 15, 2027, with early adoption permitted and can be applied on either a prospective, modified, or retrospective basis. We are currently evaluating ASU 2025-06 to determine its impact on our financial statements.