UNITY SOFTWARE INC., 10-K filed on 2/11/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2025
Jan. 30, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-39497    
Entity Registrant Name UNITY SOFTWARE INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 27-0334803    
Entity Address, Address Line One 116 New Montgomery Street    
Entity Address, City or Town San Francisco    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94105-3607    
City Area Code 415    
Local Phone Number 638-9950    
Title of 12(b) Security Common stock, $0.000005 par value    
Trading Symbol U    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction Flag false    
Entity Shell Company false    
Entity Public Float     $ 9.0
Entity Common Stock, Shares Outstanding   432,987,611  
Documents Incorporated by Reference
Portions of the registrant’s definitive proxy statement for the 2026 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days after the registrant's fiscal year ended December 31, 2025, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.
   
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001810806    
v3.25.4
Audit Information
12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location San Francisco, California
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 2,055,840 $ 1,517,672
Accounts receivable, net 643,611 573,884
Prepaid expenses and other 113,012 133,795
Total current assets 2,812,463 2,225,351
Property and equipment, net 68,289 98,819
Goodwill 3,166,304 3,166,304
Intangible assets, net 650,544 1,066,235
Other assets 140,006 180,698
Total assets 6,837,606 6,737,407
Current liabilities:    
Accounts payable 13,981 13,948
Accrued expenses and other 299,541 294,951
Publisher payables 431,494 394,284
Deferred revenue 224,405 186,304
Current portion of convertible notes 556,451 0
Total current liabilities 1,525,872 889,487
Convertible notes 1,678,899 2,238,922
Long-term deferred revenue 14,038 16,846
Other long-term liabilities 122,660 165,004
Total liabilities 3,341,469 3,310,259
Commitments and Contingencies (Note 10)
Redeemable noncontrolling interests 252,637 230,627
Stockholders' equity:    
Common stock, $0.000005 par value: Authorized shares - 1,000,000 and 1,000,000, Issued and outstanding shares - 432,860 and 409,393 2 2
Additional paid-in capital 7,378,295 6,936,038
Accumulated other comprehensive loss (2,156) (9,425)
Accumulated deficit (4,138,709) (3,735,944)
Total Unity Software Inc. stockholders' equity 3,237,432 3,190,671
Noncontrolling interest 6,068 5,850
Total stockholders' equity 3,243,500 3,196,521
Total liabilities and stockholders' equity $ 6,837,606 $ 6,737,407
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Common stock, par value (USD per share) $ 0.000005 $ 0.000005
Common stock, authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, issued (in shares) 432,860,000 409,393,000
Common stock, outstanding (in shares) 432,860,000 409,393,000
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Revenue $ 1,849,648 $ 1,813,255 $ 2,187,317
Cost of revenue 477,739 480,853 733,722
Gross profit 1,371,909 1,332,402 1,453,595
Operating expenses      
Research and development 929,516 924,830 1,053,588
Sales and marketing 652,907 752,649 834,625
General and administrative 268,539 410,072 398,176
Total operating expenses 1,850,962 2,087,551 2,286,389
Loss from operations (479,053) (755,149) (832,794)
Interest expense (24,007) (23,542) (24,580)
Interest income and other expense, net 107,862 111,558 59,529
Loss before income taxes (395,198) (667,133) (797,845)
Provision for (benefit from) Income taxes 6,295 (2,846) 28,477
Net loss (401,493) (664,287) (826,322)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests 1,272 (173) (4,311)
Net loss attributable to Unity Software Inc. $ (402,765) $ (664,114) $ (822,011)
Basic net loss per share attributable to Unity Software Inc. (USD per share) $ (0.96) $ (1.68) $ (2.16)
Diluted net loss per share attributable to Unity Software Inc. (USD per share) $ (0.96) $ (1.68) $ (2.16)
Weighted-average shares used in computation of basic net loss per share (in shares) 420,914 395,951 380,457
Weighted-average shares used in computation of diluted net loss per share (in shares) 420,914 395,951 380,457
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net loss $ (401,493) $ (664,287) $ (826,322)
Other comprehensive income (loss), net of taxes:      
Change in foreign currency translation adjustment 9,201 (5,544) (4,556)
Change in unrealized gains on derivative instruments 0 0 289
Other comprehensive income (loss) 9,201 (5,544) (4,267)
Comprehensive loss (392,292) (669,831) (830,589)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests 1,272 (173) (4,311)
Foreign currency translation attributable to noncontrolling interest and redeemable noncontrolling interests 1,932 (1,128) (949)
Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interests 3,204 (1,301) (5,260)
Comprehensive loss attributable to Unity Software Inc. $ (395,496) $ (668,530) $ (825,329)
v3.25.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Thousands
Total
Unity Software Inc. Stockholders' Equity
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Loss
Accumulated Deficit
Noncontrolling Interest
[1]
Beginning balance (in shares) at Dec. 31, 2022     374,243,196        
Beginning balance at Dec. 31, 2022 $ 3,534,566 $ 3,528,268 $ 2 $ 5,779,776 $ (1,691) $ (2,249,819) $ 6,298
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock from employee equity plans (in shares)     6,242,222        
Issuance of common stock from employee equity plans 75,985 75,985   75,985      
Issuance of common stock for settlement of RSUs (in shares)     11,944,558        
Purchase and retirement of common stock (in shares)     (7,558,415)        
Purchase and retirement of common stock (250,000) (250,000)   (250,000)      
Stock‑based compensation expense 664,853 664,853   664,853      
Net loss (822,305) (822,011)       (822,011) (294)
Adjustments to redeemable noncontrolling interest (11,135) (11,135)   (11,135)      
Other comprehensive income (loss) (3,383) (3,318)     (3,318)   (65)
Ending balance (in shares) at Dec. 31, 2023     384,871,561        
Ending balance at Dec. 31, 2023 $ 3,188,581 3,182,642 $ 2 6,259,479 (5,009) (3,071,830) 5,939
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock from employee equity plans (in shares) 8,790,694   9,952,298        
Issuance of common stock from employee equity plans $ 76,692 76,692   76,692      
Issuance of common stock for settlement of RSUs (in shares)     14,568,665        
Stock‑based compensation expense 605,909 605,909   605,909      
Net loss (664,126) (664,114)       (664,114) (12)
Adjustments to redeemable noncontrolling interest (6,042) (6,042)   (6,042)      
Other comprehensive income (loss) $ (4,493) (4,416)     (4,416)   (77)
Ending balance (in shares) at Dec. 31, 2024 409,393,000   409,392,524        
Ending balance at Dec. 31, 2024 $ 3,196,521 3,190,671 $ 2 6,936,038 (9,425) (3,735,944) 5,850
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock from employee equity plans (in shares) 9,245,255   10,378,326        
Issuance of common stock from employee equity plans $ 119,454 119,454   119,454      
Issuance of common stock for settlement of RSUs (in shares)     13,089,091        
Purchase of capped calls (44,436) (44,436)   (44,436)      
Stock‑based compensation expense 386,263 386,263   386,263      
Net loss (402,679) (402,765)       (402,765) 86
Adjustments to redeemable noncontrolling interest (19,024) (19,024)   (19,024)      
Other comprehensive income (loss) $ 7,401 7,269     7,269   132
Ending balance (in shares) at Dec. 31, 2025 432,860,000   432,859,941        
Ending balance at Dec. 31, 2025 $ 3,243,500 $ 3,237,432 $ 2 $ 7,378,295 $ (2,156) $ (4,138,709) $ 6,068
[1] Excludes redeemable noncontrolling interests.
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities      
Net loss $ (401,493) $ (664,287) $ (826,322)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 460,944 408,980 563,916
Stock-based compensation expense 385,214 596,249 648,696
Gain on repayment of convertible note (42,744) (61,371) 0
Impairment of property and equipment 5,882 22,791 0
Other (3,683) 23,309 24,613
Changes in assets and liabilities, net of effects of acquisitions:      
Accounts receivable, net (69,078) 37,359 21,791
Prepaid expenses and other 24,071 (11,203) 20,314
Other assets 33,819 (2,746) 45,047
Accounts payable (545) 742 (6,313)
Accrued expenses and other 4,361 (6,671) (21,069)
Publisher payables 37,210 9,170 (60,509)
Other long-term liabilities (44,825) (47,963) (47,245)
Deferred revenue 33,822 11,194 (128,219)
Net cash provided by operating activities 422,955 315,553 234,700
Investing activities      
Purchases of short-term investments 0 0 (212)
Proceeds from principal repayments and maturities of short-term investments 0 0 102,673
Purchases of non-marketable investments (2,000) 0 (2,500)
Purchases of intangible assets (3,000) (12,860) 0
Purchases of property and equipment (19,024) (29,549) (55,921)
Net cash provided by (used in) investing activities (24,024) (42,409) 44,040
Financing activities      
Proceeds from issuance of convertible notes 690,000 0 0
Purchase of capped calls (44,436) 0 0
Payment of debt issuance costs (13,236) 0 0
Repayments of convertible note (641,691) (414,999) 0
Repurchase and retirement of common stock 0 0 (250,000)
Proceeds from issuance of common stock upon exercise of stock options and purchase of ESPP shares 119,454 76,692 75,985
Net cash provided by (used in) financing activities 110,091 (338,307) (174,015)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash 27,398 (11,223) (6,146)
Increase (decrease) in cash, cash equivalents, and restricted cash 536,420 (76,386) 98,579
Cash, cash equivalents, and restricted cash, beginning of period 1,527,881 1,604,267 1,505,688
Cash, cash equivalents, and restricted cash, end of period 2,064,301 1,527,881 1,604,267
Supplemental disclosure of cash flow information:      
Cash paid for interest 20,000 20,000 20,389
Income Taxes Paid, Net 10,589 26,363 22,471
Cash paid for operating leases 46,328 49,974 42,905
Supplemental disclosures of non‑cash investing and financing activities:      
Assets acquired under operating lease $ 18,555 $ 24,459 $ 43,831
v3.25.4
Accounting Policies
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Accounting Policies Accounting Policies
Description of Business
We offer a suite of tools across all major platforms from mobile, PC, and console, to extended reality (XR).
We are headquartered in San Francisco, California and have operations in the United States and various other international locations.
We market our solutions directly through our online store and field sales operations in North America, China, France, the U.K., Israel, Japan, and South Korea, and indirectly through independent distributors and resellers worldwide.
Basis of Presentation and Consolidation
We prepared the accompanying consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC"). The 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. In our opinion, all adjustments, which include normal recurring adjustments necessary for a fair presentation, have been included.
Use of Estimates
The preparation of 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, the measurement of liabilities for uncertain tax positions and deferred tax assets and liabilities, the fair value of stock-based compensation, the fair value of redeemable noncontrolling interests, and the useful lives of long lived assets. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations.
We review the useful lives of assets with a finite life on a recurring basis. Effective July 1, 2025, we revised our estimate of the remaining useful life for certain intangible assets from four to seven years, down to one to three years. These assets are included in “Intangible assets, net” on our consolidated balance sheets, are primarily “developed technology” within intangible assets, and primarily relate to assets arising from our acquisition of Wētā FX Limited in 2021. The shortened useful lives are due to certain assets no longer being actively developed and the absence of currently established plans for incorporation into future Unity offerings. The effect of this change in estimate for the year ended December 31, 2025, was an increase in amortization expense and decrease in operating income of approximately $77 million, an increase in net loss of approximately $61 million, and an increase in our basic and diluted net loss per share of approximately $0.15 per share.
Employee Separation and Restructuring Costs
In the year ended December 31, 2025, we incurred incremental employee separation costs of approximately $33 million, primarily within sales and marketing and research and development. In the year ended December 31, 2024, we incurred incremental employee separation costs of approximately $214 million, which included $127 million of incremental stock-based compensation. Of the incremental employee separation costs we incurred in the year ended December 31, 2024, $15 million are within cost of revenue, $48 million are within research and development, $58 million are within sales and marketing, and $93 million are within general and administrative. Additionally, for the year ended December 31, 2025
and 2024, we incurred $14 million and $53 million, respectively, of other restructuring costs, primarily related to office closures.
Revenue Recognition
Revenue is measured based on the amount of consideration that we expect to receive from our customers. Revenue excludes sales and indirect taxes. In arrangements where we have multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price ("SSP"). We generally determine SSP based on observable pricing. When observable pricing is not available, we use cost plus margin analysis to determine SSP.
Our business focuses on two complementary sets of solutions: (1) Create Solutions and (2) Grow Solutions.
Create Solutions
Create Solutions are a combination of software and services that enable customers to edit, run, and iterate interactive, real-time 2D and 3D experiences. Revenue is primarily derived from Create Solution Subscriptions, Enterprise Support, Professional services, and Consumption services.
Create Solutions subscriptions provide customers with software, embedded cloud functionality, and software updates. As the software and software updates are highly interdependent and interrelated and these services have the same pattern of performance as the embedded cloud functionality, we combine these promises and account for them as a single performance obligation that is recognized over time. Enterprise customers may purchase an enhanced support offering ("Enterprise Support") that is generally sold separately and is considered its own performance obligation. Create Solutions subscriptions and Enterprise Support typically have a term of one to five years and are billed in monthly, quarterly and annual installments, and recognized ratably over the service period.
Professional services revenue is primarily composed of consulting, platform integration, training, and custom application and workflow development. Revenue is recognized as services are rendered. We typically invoice our customers on a milestone basis or when promised services are delivered.
Our Consumption service arrangements are based on a fixed fee or usage-based model. For fixed fee arrangements revenue is recognized ratably over the contractual service term as our obligations are generally fulfilled evenly throughout the contractual period. For usage-based arrangements, we recognize revenue as services are provided.
Grow Solutions
Grow Solutions revenue primarily consists of advertising services provided through our monetization solutions that allow publishers, which include mobile application developers, original equipment manufacturers ("OEM") and mobile carriers to sell available advertising inventory on their mobile applications or hardware devices to advertisers for in-app or on-device placements. We present revenue on a net basis for sales where we are facilitating the transaction between advertisers and publishers and do not have control over in-app or on-device placement. In these cases the publisher is our customer. We present revenue on a gross basis for advertising sales where we are the publisher and have control of the in-app or on-device placement. Advertising revenue is recognized at a point in time when the agreed upon action is completed or when the advertisement is displayed to users.
Cost of Revenue
Cost of revenue for the delivery of software services, professional services, and advertising consists primarily of hosting expenses, personnel costs (including salaries, stock-based compensation, and benefits) for employees associated with our product support and professional services organizations, fees paid to mediation platforms, credit card fees, third-party license fees, payments to developers where we are the publisher, and allocated shared costs, including facilities, IT, and security costs, as well as amortization of related capitalized software costs and depreciation of related property and equipment and amortization of acquired intangible assets.
Stock-Based Compensation
Stock-based compensation expense related to our employees and non-employee directors is calculated based on the fair value on the grant date. For restricted stock units ("RSUs"), fair value is based on the closing price of our common stock on the grant date. For performance-based restricted stock units ("PSUs"), fair value is based on the closing price of our common stock on the day the performance goals are set for each tranche of the award.
The fair value of stock options and purchases made under the 2020 Employee Stock Purchase Plan ("2020 ESPP") is estimated using the Black-Scholes pricing model. This model requires certain assumptions be used as inputs, such as the fair value of the underlying common stock, expected term of the option before exercise, expected volatility of our common stock, expected dividend yield, and a risk-free interest rate. Options granted during the year have a maximum contractual term of ten years. We have limited historical stock option activity and therefore estimate the expected term of stock options granted using the simplified method, which represents the average of the contractual term of the stock option and its weighted-average vesting period. The expected volatility of stock options and employee stock purchase plan ("ESPP") purchases are based upon our historical volatility and the historical volatility of a number of publicly traded companies in similar industries over similar durations. We have historically not declared or paid any dividends and do not currently expect to do so in the foreseeable future. The risk-free interest rates used are based on the U.S. Department of Treasury ("U.S. Treasury") yield in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term of the stock options and ESPP purchases.
The fair value of price-vested options ("PVOs") and price-vested units ("PVUs"), which are options and RSUs respectively, that contain both service-based and market-based vesting conditions are estimated using the Monte Carlo simulation model and use inputs such as the fair value of the underlying common stock, expected term before exercise, expected volatility of our common stock, expected dividend yield, and a risk-free interest rate, modified to reflect the impact of market-based vesting conditions, including the estimated payout level based on that condition. We do not adjust compensation cost for subsequent changes in the expected outcome of the market-based vesting conditions.
We recognize stock-based compensation expense for RSUs, stock options, PVOs, PVUs, and PSUs on a straight-line basis, typically over the requisite service period of the entire award, generally, a vesting period of one to four years. We recognize stock-based compensation expense related to the 2020 ESPP on a straight-line basis over the offering period. We do not estimate forfeitures but instead account for them as they occur.
Cash, Cash Equivalents, and Restricted Cash
We consider all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Our cash equivalents include money market funds and time deposits.
As of December 31, 2025 and 2024, restricted cash was $8.5 million and $10.2 million, respectively. Restricted cash consists of secured letters of credit issued in connection with our operating leases and other amounts held in escrow. Restrictions typically lapse at the end of the lease term, and restricted cash is classified as current or non-current based on the remaining term of the restriction.
ccounts Receivable
Accounts receivable are recorded at the original invoiced amount, net of allowances for uncollectible amounts. We estimate losses on uncollectible amounts based on expected losses, including our historical experience of actual losses. The estimated losses on uncollectible amounts are recorded in general and administrative expense on our consolidated statements of operations. As of December 31, 2025 and 2024, the allowance for uncollectible amounts was $10.9 million and $17.3 million, respectively. For the years ended December 31, 2025 and 2024, the provision for uncollectible amounts was $2.7 million and $7.7 million, respectively.
Credit Risk and Concentrations
Financial instruments that potentially subject us to a concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. We place our domestic and foreign cash and cash equivalents, with large, creditworthy financial institutions. Balances in these accounts may exceed federally insured limits at times.
In general, we do not require our customers to provide collateral or other security to support accounts receivable. To reduce credit risk, management performs credit evaluations of our customers’ financial condition, as warranted, and continually analyzes the allowance for doubtful accounts, which we maintain based upon the expected collectability of accounts receivable.
As of December 31, 2025 and 2024, no individual customer represented 10% or more of the aggregate receivables. For the years ended December 31, 2025, 2024, and 2023, no individual customer represented 10% or more of total revenue.
Fair Value of Financial Instruments
We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which to transact and the market-based risk. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature.
Comprehensive Loss
Comprehensive loss is comprised of net loss and other comprehensive loss. Our other comprehensive loss includes unrealized gains and losses on derivative instruments, and foreign currency translation adjustment.
Property and Equipment, Net
Property and equipment are stated at cost less accumulated depreciation and amortization, computed using the straight-line method based on the estimated useful lives of the assets, which is generally three years for computer and other hardware and five years for furniture. Leasehold improvements are amortized over the shorter of their estimated useful life or the remaining term of the lease. Software licenses are amortized over the shorter of their estimated useful life or license term, which is generally three to five years.
The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized.
Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to the consolidated statement of operations.
Leases
Primarily all of our leases have been categorized as operating leases at inception. On certain of our lease agreements, we may receive rent holidays and other incentives provided by the landlord. We recognize lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives we receive are treated as a reduction of our costs over the term of the agreement.
We establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated retirement costs.
Convertible Senior Notes and Capped Call Transactions
We account for each issuance of the Notes as single liabilities measured at their amortized cost. Debt issuance costs are amortized to interest expense using the straight-line method (which approximates the effective interest method) and are recorded in other income and expense.
We record the cost of capped call transactions as a reduction of our additional paid-in capital on our consolidated balance sheets. Capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.
Segments
We operate as a single operating segment. The chief operating decision maker is our Chief Executive Officer, who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated information of our revenue. Accordingly, we have determined that we have a single reportable segment and operating segment structure. See Note 15, "Segment Information" for additional information about our reportable segment.
Capitalized Software Costs and Software Implementation Costs
We capitalize implementation costs incurred in our cloud computing service arrangements related to enterprise software solutions ("capitalized implementation costs") and costs associated with customized internal‑use software systems that have reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll‑related expenses for employees, who are directly associated with the development of the applications. We capitalize such costs during the application development stage, which begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Capitalized software costs are amortized on a straight-line basis over their estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Capitalized implementation costs are expensed over the term of the hosting arrangement, which is the fixed, non-cancellable term of the arrangement, plus any reasonably certain renewal periods.
Capitalized software costs are included in property and equipment, net, on the consolidated balance sheets. The amount of capitalized software costs was $13.3 million and $33.2 million, respectively, during the years ended December 31, 2025 and 2024. The closing amount of capitalized software costs on the balance sheet was $40.1 million and $56.2 million, respectively, as of December 31, 2025 and 2024.
The current portion of capitalized implementation costs are included in prepaid expenses on the consolidated balance sheets, and the non-current portion of capitalized implementation costs are included in other assets on the consolidated balance sheets. The amount of capitalized implementation costs was not material for the years ended December 31, 2025 and 2024.
The costs to develop software that is marketed externally consist of payroll and payroll related costs for employees, who are directly associated with the development of the software. We capitalize such costs when technological feasibility is established and a working model is complete through the point of general release. All costs outside of this window are charged to research and development expense. The amount of costs capitalized for software developed for external use was not material for the years ended December 31, 2025 and 2024.
Impairment Analysis
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. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset’s carrying amount may not be recoverable. Recoverability of these
assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
We evaluate and test the recoverability of our goodwill for impairment at least annually during our fourth quarter of each calendar year or more often if and when circumstances indicate that goodwill may not be recoverable.
During the years ended December 31, 2025 and 2024, we recorded $3.8 million and $16.2 million of impairment charges on operating lease assets, respectively, and during the years ended December 31, 2025 and 2024 we recorded $5.9 million and $22.8 million of impairment charges on property and equipment, respectively. These charges were primarily within general and administrative, and related to closures of corporate offices. The fair values of these assets were determined using active market prices. Apart from those operating lease asset, and property and equipment impairments, there were no material impairments of capitalized software costs, capitalized implementation costs, intangible assets, goodwill, or other long-lived assets during the years ended December 31, 2025, 2024, and 2023.
Income Taxes
We are subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.
We record an income tax expense (or benefit) for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for NOL and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the deferred income tax effects of a change in tax rates in the period of the enactment.
We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, and ongoing tax planning strategies in assessing the need for a valuation allowance.
We recognize tax benefits from uncertain tax positions only if we believe that the position is more likely than not to be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions (including net interest and penalties), we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect our income tax expense (or benefit) in the period in which such determination is made and could have a material impact on our financial condition and operating results.
We recognize interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying consolidated statement of operations. Accrued interest and penalties are included in income and other taxes payable on the consolidated balance sheets.
Translation of Foreign Currencies
The functional currency of the majority of our foreign subsidiaries is the U.S. dollar. Foreign currency transaction gains and losses are included in interest and other income (expense), net, on the consolidated statements of operations for the period. For U.S. dollar functional currency subsidiaries, all assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange
rate on the balance sheet date. Revenue and expenses denominated in a foreign currency are translated at the relevant daily exchange rates. Equity transactions denominated in a foreign currency are translated using historical exchange rates. For a foreign subsidiary where the local currency is the functional currency, adjustments to translate those statements into U.S. dollars are recorded in accumulated other comprehensive loss in stockholders’ equity.
Goodwill and Intangible Assets
We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values as of the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Intangible assets, with the exception of certain contractual relationships, which have a finite life are amortized on a straight-line basis over their estimated useful lives, which typically range from two to six years. Certain contractual relationships are amortized using an accelerated method of amortization, which reflects the pattern in which the economic benefits from the intangible assets are expected to be recognized.
On an annual basis, we evaluate the estimated remaining useful life of acquired intangible assets and whether events or changes in circumstances warrant a revision to the remaining amortization period. During the year ended December 31, 2025, we revised our estimate of the remaining useful life for certain intangible assets from four to seven years, down to one to three years. See "Use of Estimates" section earlier in this note for more details. No material changes to the useful lives of our intangible assets were deemed necessary during the years ended December 31, 2024, and 2023 based on management's evaluation.
Warranties and Indemnifications
In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third-party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement, and the maximum potential amount of future indemnification payments may not be subject to a cap. As of December 31, 2025 and 2024, there were no known events or circumstances that have resulted in a material indemnification liability to us, and we did not incur material costs to defend lawsuits or settle claims related to these indemnifications.
We generally do not offer warranties for our software products. With certain customers, we will warrant that our software products will operate without material error and/or substantially in conformity with product documentation. We have not experienced any warranty claims to date, and no liabilities have been recorded as of December 31, 2025 and 2024.
Advertising Costs
Advertising costs are expensed as incurred as a component of sales and marketing expense in the consolidated statements of operations. Advertising expense was approximately $8.2 million, $10.1 million, and $12.6 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Accounting Pronouncements Recently Adopted
In December 2023, the FASB issued a new Accounting Standards Update ("ASU 2023-09") amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. ASU 2023-09 is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. We adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis. See Note 13 "Income Taxes" for additional information.
Recent Accounting Pronouncements Not Yet Adopted
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, 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 July 2025, the FASB issued a new Accounting Standards Update ("ASU 2025-05") amending the guidance around estimation of credit losses on current accounts receivable and current contract assets to allow entities to elect a practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, with early adoption permitted and should be applied on a prospective basis. We are currently evaluating ASU 2025-05 to determine its impact on our financial statements.
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 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.
v3.25.4
Revenue
12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The following table presents our revenue disaggregated by source, which also have similar economic characteristics (in thousands):
Year Ended December 31,
202520242023
Create Solutions$621,409 $613,966 $859,174 
Grow Solutions1,228,239 1,199,289 1,328,143 
Total revenue$1,849,648 $1,813,255 $2,187,317 
The following table presents our revenue disaggregated by geography, based on the invoice address of our customers (in thousands):
Year Ended December 31,
202520242023
United States$518,319 $530,387 $564,358 
Greater China (1)
333,571 258,872 254,551 
EMEA (2)
601,430 643,872 756,214 
APAC (3)
349,018 329,907 558,810 
Other Americas (4)
47,310 50,217 53,384 
Total revenue$1,849,648 $1,813,255 $2,187,317 
(1)    Greater China includes China, Hong Kong, and Taiwan.
(2)    Europe, the Middle East, and Africa ("EMEA").
(3)    Asia-Pacific, excluding Greater China ("APAC").
(4)    Canada and Latin America ("Other Americas").
Sales Commissions
Sales commissions that have a benefit beyond one year are capitalized and amortized on a straight-line method over the expected period of benefit, which is generally three years. As of December 31, 2025, capitalized commissions, net of amortization, included in prepaid expenses and other and other assets were $5.4 million and $2.8 million, respectively. As of December 31, 2024, capitalized commissions, net of amortization, included in prepaid expenses and other and other assets were $6.5 million and $5.4 million, respectively.
During the years ended December 31, 2025 and 2024, we recorded amortization costs of $7.2 million and $8.9 million, respectively, in sales and marketing expenses. We did not incur any impairment losses for the years ended December 31, 2025 and 2024.
Contract Balances and Remaining Performance Obligations
Contract assets (unbilled receivables), primarily included in accounts receivable, net, are recorded when revenue is earned in advance of customer billing schedules. Unbilled receivables totaled $15.8 million and $20.5 million as of December 31, 2025 and 2024, respectively. The long term portion of those unbilled receivables was included in other long-term assets on our consolidated balance sheets, and was not material as of December 31, 2025 and 2024.
Contract liabilities (deferred revenue) relate to payments received in advance of performance under the contract. Revenue recognized during the year ended December 31, 2025 that was included in the deferred revenue balances at January 1, 2025 was $176 million.
Additionally, we have performance obligations associated with commitments in customer contracts to perform in the future that had not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized as of December 31, 2025 were $494 million and relate primarily to Create Solutions subscriptions, Enterprise Support, and Strategic Partnerships. These commitments generally extend over the next one to five years and we expect to recognize approximately $225 million or 46% of this revenue during the next 12 months.
v3.25.4
Financial Instruments
12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments Financial Instruments
Cash, Cash Equivalents, and Restricted Cash
Cash, cash equivalents, and restricted cash are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities.
Level 2—Valuations based on quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration.
Level 3—Valuations based on unobservable inputs reflecting our own assumptions used to measure assets and liabilities at fair value. These valuations require significant judgment.
The following table summarizes, by major security type, our cash, cash equivalents, and restricted cash that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):
December 31, 2025December 31, 2024
Fair Value (1)
Cash$708,788 $995,802 
Level 1:
Restricted cash and cash equivalents:
Restricted cash$8,461 $10,209 
Money market funds469,017 327,333 
Time deposits878,035 194,537 
Total restricted cash and cash equivalents$1,355,513 $532,079 
Total cash, cash equivalents, and restricted cash$2,064,301 $1,527,881 
(1)    Due to the highly liquid nature of our investments, amortized cost approximates fair value.
There were no material realized or unrealized gains or losses, either individually or in the aggregate, during the years ended December 31, 2025 and 2024. During the year ended December 31, 2023, we sold the remainder of our short-term investments.
Nonrecurring Fair Value Measurements
We hold equity investments in certain unconsolidated entities without a readily determinable fair value. These strategic investments represent less than a 20% ownership interest in each of the entities, and we do not have significant influence over or control of the entities. We use the measurement alternative to account for adjustments to these investments for observable transactions for the same or similar investments of the same issuer in any given quarter. If we determine an impairment has occurred, the investment is written down to the estimated fair value. As of December 31, 2025 and December 31, 2024, such equity investments totaled $35.0 million and $33.0 million, respectively. No material adjustments to the carrying value of these equity investments were recorded for the years ended December 31, 2025 and 2024.
v3.25.4
Investment in Unity China
12 Months Ended
Dec. 31, 2025
Noncontrolling Interest [Abstract]  
Investment in Unity China Investment in Unity China
In August 2022, we formed a company in China ("Unity China") to perform research and development activities and to facilitate commercialization in the Greater China region. Upon formation, we agreed to sell to third-party investors an ownership interest of approximately 20.5% in Unity China for cash consideration of $197 million. Under the agreement and pursuant to certain conditions that include successfully completing an initial public offering of Unity China at a valuation greater than ¥25.0 billion CNY, the investors have the option to require us to repurchase their interest at a redemption value based on the greater of Unity China's then current equity fair value or a guaranteed floor value in the aggregate amount of ¥1.9 billion CNY. The redeemable noncontrolling interests are initially measured at its issuance date fair value and then adjusted for its proportionate net income or loss and accreted to its estimated redemption value through the applicable redemption date, which is August 2027. We valued the combination of the investors' equity interest in Unity China and their redemption right at approximately $217.9 million, on the issuance date. The investors' equity interest was valued using a discounted cash flow analysis and market approach. The redemption right was valued using the Black-Scholes option-pricing model adjusted for probabilities of successfully completing an initial public offering. The difference between the fair value of the redeemable noncontrolling interests and cash consideration received was recognized as a customer incentive, as the equity interest holders are also customers. The customer incentive will be amortized against revenue over the five-year term of the redemption right.
Subsequent and contingent to the initial investment from third-party investors, a management investor contributed $14.4 million for an ownership interest of 1.5% with no redemption rights.
The results of Unity China are included in our consolidated financial statements. The redeemable noncontrolling interests in Unity China are recorded as temporary equity on our consolidated balance sheet.
The following table presents the changes in redeemable noncontrolling interests (in thousands):
Year Ended December 31,
202520242023
Balance at beginning of period$230,627 $225,797 $219,563 
Net gain/(loss) attributable to redeemable noncontrolling interests1,186 (161)(4,017)
Accretion for redeemable noncontrolling interests10,535 11,250 15,543 
Foreign currency translation and foreign exchange adjustments for redeemable noncontrolling interests10,289 (6,259)(5,292)
Balance at end of period$252,637 $230,627 $225,797 
v3.25.4
Acquisitions
12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
The revenue and earnings of the acquired businesses have been included in our results from the respective dates of the acquisitions.
The total purchase price allocated to the net assets acquired is assigned based on the fair values as of the date of acquisition. The fair value assigned to identifiable intangible assets acquired was determined using the income approach and the cost approach. The identifiable intangible assets are subject to amortization on a straight-line basis over their estimated useful lives, as this best approximates the benefit period related to these assets.
The excess of the purchase price over the identified tangible and intangible assets, less liabilities assumed, is recorded as goodwill. Goodwill is not subject to amortization and it typically is not deductible for U.S. income tax purposes.
During the years ended December 31, 2025, 2024, and 2023, we completed no acquisitions.
v3.25.4
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
Goodwill represents the excess of purchase price and related costs over the value assigned to net tangible and identifiable intangible assets acquired in business combinations.
The carrying amount of goodwill as of December 31, 2025, 2024, and 2023 was $3.2 billion
Intangible Assets, Net
The following tables present details of our intangible assets, excluding goodwill (in thousands, except for weighted-average useful life):
As of December 31, 2025
Weighted-Average
Useful Life
(1)
(In Years)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Developed technology2.2$1,170,736 $(655,282)$515,454 
Customer relationships0.9570,000 (449,055)120,945 
Trademark0.954,400 (40,255)14,145 
Total intangible assets1.9$1,795,136 $(1,144,592)$650,544 
As of December 31, 2024
Weighted-Average
Useful Life
(1)
(In Years)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Developed technology5.1$1,233,046 $(473,303)$759,743 
Customer relationships1.9593,240 (327,320)265,920 
Trademark2.3106,100 (65,528)40,572 
Total intangible assets4.2$1,932,386 $(866,151)$1,066,235 
(1)    Based on weighted-average useful life remaining.
The following table presents the amortization of finite-lived intangible assets included on our consolidated statements of operations (in thousands):
Year Ended December 31,
202520242023
Amortization expense$418,691 $353,371 $515,489 
As of December 31, 2025, the estimated future amortization of finite-lived intangible assets was as follows (in thousands):
2026$435,109 
2027122,543 
202892,892 
2029— 
2030— 
Thereafter— 
Total$650,544 
v3.25.4
Balance Sheet Components
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Balance Sheet Components Balance Sheet Components
The following tables provide details of selected balance sheet items (in thousands):
As of
December 31,
2025
December 31,
2024
Property and equipment, net:
Gross property and equipment
Leasehold improvements$49,657 $76,862 
Software, computers, and other hardware166,209 149,182 
Furniture22,396 28,652 
Capital projects in progress2,886 14,073 
Total gross property and equipment241,148 268,769 
Accumulated depreciation and amortization(172,859)(169,950)
Property and equipment, net$68,289 $98,819 
The following table presents the depreciation and amortization of property and equipment included on our consolidated statements of operations (in thousands):
Year Ended December 31,
202520242023
Depreciation and amortization expense$42,253 $55,609 $48,427 
Long-lived Assets, Net, by Geographic Area
The following table presents our long-lived assets, net, disaggregated by geography, which consists of our property and equipment, net, but excludes internally developed software and purchased software (in thousands):
As of
December 31,
2025
December 31,
2024
United States$4,353 $7,522 
Canada8,836 13,505 
United Kingdom4,671 5,413 
EMEA, excluding United Kingdom (1)
6,065 9,513 
Other (1)
4,142 7,748 
Total long-lived assets, net$28,067 $43,701 
(1)    No individual country, other than those disclosed above, exceeded 10% of our total long-lived assets, net, for any period presented.
As of
December 31,
2025
December 31,
2024
Accrued expenses and other:
Accrued expenses$123,120 $124,414 
Accrued compensation75,788 74,040 
Income and other taxes payable100,633 96,497 
Accrued expenses and other$299,541 $294,951 
v3.25.4
Leases
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
We have operating leases for offices which have remaining lease terms of up to seven years, some of which include options to extend the lease with renewal terms from one to five years. Some leases include an option to terminate the lease for up to five years from the lease commencement date.
Components of lease expense were as follows (in thousands):
Year Ended
December 31, 2025December 31,
2024
Operating lease expense$31,375 $41,691 
Variable lease expense4,700 6,011 
Sublease income(4,219)(2,162)
Total lease expense$31,856 $45,540 
Supplemental balance sheet information related to leases was as follows (in thousands, except weighted-average figures):
As of
ClassificationDecember 31, 2025December 31, 2024
Operating lease assetsOther assets$62,207 $78,562 
Current operating lease liabilitiesAccrued expenses and other$28,421 $33,703 
Long-term operating lease liabilitiesOther long-term liabilities60,961 81,093 
Total operating lease liabilities$89,382 $114,796 
As of December 31, 2025 and December 31, 2024, our operating leases had a weighted-average remaining lease term of 3.8 years and 4.3 years, respectively, and a weighted-average discount rate of 5.0% and 5.4%, respectively.
As of December 31, 2025, our lease liabilities were as follows (in thousands):
Operating Leases
Gross lease liabilities$97,951 
Less: imputed interest8,569 
Present value of lease liabilities$89,382 
v3.25.4
Borrowings
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Borrowings Borrowings
Convertible Notes
In February 2025, we issued an aggregate of $690 million principal amount of 0% convertible senior notes due 2030 (the "2030 Notes"). Proceeds from the issuance of the 2030 Notes were $677 millions, net of debt issuance costs and the cash was used to purchase capped call transactions, and repurchase convertible notes as discussed below. The debt issuance costs are amortized to interest expense using the straight-line method, which approximates the effective interest method.
As of December 31, 2025, we had $2.2 billion of unsecured convertible notes outstanding including $690 million of the 2030 Notes, $1.0 billion issued in November 2022 (the "2027 Notes"), $558 million issued in November 2021 (the "2026 Notes", together with the 2027 Notes and 2030 Notes, the "Notes"). The table below summarizes the principal and unamortized debt issuance costs and other material features of the Notes (in thousands):
Carrying Amount as of,
Conversion Rate per
$1,000 Principal
Initial Conversion PriceMaturitiesStated Interest RatesDecember 31, 2025December 31, 2024
Convertible notes:
Principal - 2026 Notes3.2392 $308.72 20260.0%$557,724 $1,245,232 
Principal - 2027 Notes20.4526 $48.89 20272.0%1,000,000 1,000,000 
Principal – 2030 Notes
27.6656 $36.15 20300.0%690,000 — 
Unamortized debt issuance costs, net(12,374)(6,310)
Net carrying amount$2,235,350 $2,238,922 
1)    We entered into capped call transactions in connection with the 2026 and 2030 Notes. The cap price of the capped call transactions relating to the Notes was initially $343.02 and $47.74, respectively, subject to certain adjustments under the terms of the capped call transactions. See below "--Capped Call Transactions."
Interest on the Notes is payable semi-annually in arrears. The combined interest expense on the Notes related to regular interest and the amortization of debt issuance cost was $24.0 million and $23.5 million for the years ended December 31, 2025 and December 31, 2024, respectively.
As of December 31, 2025, the estimated fair value of the 2030 Notes was approximately $1.0 billion. As of December 31, 2025 and December 31, 2024, the estimated fair value of the 2027 Notes was approximately $1.2 billion and $1.0 billion, respectively, and the estimated fair value of the 2026 Notes was approximately $540 million and $1.1 billion, respectively. The fair value of the 2027 Notes was based on a combination of a discounted cash flow and Black-Scholes option-pricing model. The fair value of the 2030 Notes and 2026 Notes was based on quoted prices as of that date.
The 2027 Notes may be converted at the election of the holders thereof at any time prior to maturity. The 2026 Notes and 2030 Notes are convertible at the option of the respective holders thereof if a conversion condition applicable to such series of Notes is triggered. During the year ended December 31, 2025, none of the conversion conditions of the 2026 Notes or the 2030 Notes were triggered, and neither the 2026 Notes nor the 2030 Notes were convertible as of December 31, 2025.
Any such conversion of the Notes described above, may be satisfied at our election with either cash, shares of our common stock, or a combination of cash and shares of our common stock. The conversion rates for the Notes are subject to customary adjustments for certain events as described in the relevant indenture governing the Notes.
The Notes are subject to additional terms. In connection with certain corporate events, as described in the indentures governing the Notes, we will increase the conversion rate for a holder of the applicable series of Notes who elects to convert those Notes in connection with the event. Additionally, upon the occurrence of certain corporate events and subject to certain exceptions, as described in the indenture governing the applicable series of Notes, holders of those Notes may require us to repurchase all or a
portion of those Notes at a price equal to 100% of the principal amount to be repurchased, plus any accrued and unpaid interest to date. The 2026 Notes and 2030 Notes are also redeemable at our option if certain conditions are met, as described in the indentures governing the 2026 Notes and 2030 Notes respectively.
As of December 31, 2025, no holders of the Notes have exercised the conversion rights, and the if-converted value of the Notes did not exceed the principal amount.
Convertible Note Repurchase
During the first quarter of 2025, and the first quarter of 2024, the Company repurchased in privately negotiated transactions and extinguished a portion of the 2026 Notes, with a total principal balance of $688 million and $480 million, respectively. The aggregate repurchase price for these notes was $642 million and $415 million, respectively, resulting in pre-tax gains of $42.7 million and $61.4 million, respectively, net of the write-off of unamortized issuance costs. These gains were included in Interest income and other income (expense), net, in the consolidated statement of operations.
Capped Call Transactions
We entered into capped call transactions to reduce the potential dilutive effect of the 2026 Notes (the "2026 Capped Call Transactions"), and 2030 Notes (the "2030 Capped Call Transactions," together with the 2026 Capped Call Transactions, the "Capped Call Transactions"), in connection with their pricing. The 2026 Capped Call Transactions, and the 2030 Capped Call Transactions, had net costs of $48.1 million and $44.4 million, respectively, with call options totaling approximately $5.6 million and $19.1 million of our common stock, and with expiration dates ranging from September 18, 2026 to November 12, 2026, and January 15, 2030 to March 13, 2030, respectively. The strike price of the 2026 Capped Call Transactions, and the 2030 Capped Call Transactions are $308.72 and $36.15, respectively, and the cap prices are initially $343.02 and $47.74 per share, respectively, subject to adjustments in certain circumstances. The Capped Call Transactions are freestanding, are considered separately exercisable from the 2026 Notes and 2030 Notes, and meet the conditions for equity classification.
v3.25.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
The following table summarizes our non-cancelable contractual commitments as of December 31, 2025 (in thousands):
Total20262027-20282029-2030Thereafter
Operating leases (1)
$105,313 $32,542 $47,953 $17,190 $7,628 
Purchase commitments (2)
753,459 251,886 378,285 123,288 — 
Convertible note principal and interest (3)
2,287,724 577,724 1,020,000 690,000 — 
Total$3,146,496 $862,152 $1,446,238 $830,478 $7,628 
(1)    Operating leases consist of obligations for real estate, including leases that are not yet commenced or reflected on our consolidated balance sheet with future minimum lease payments of $7.4 million. These leases will commence in 2026 with lease terms of approximately seven years.
(2)    The substantial majority of our purchase commitments are related to agreements with our data center hosting providers.
(3)    Convertible notes due 2026, 2027, and 2030. See Note 9, "Borrowings," above for further discussion.
We expect to meet our remaining commitments.
Legal Matters
In the normal course of business, we are subject to various legal matters. We accrue a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Legal costs related to such potential losses are expensed as incurred. In addition, recoveries are shown as a reduction in legal costs in the period in which they are realized.
With respect to our outstanding matters, based on current knowledge, we believe that the resolution of such matters will not, either individually or in the aggregate, have a material adverse effect on our business or our consolidated financial statements. However, litigation is inherently uncertain, and the outcome of these matters cannot be predicted with certainty. Accordingly, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these matters.
Letters of Credit
We had $8.5 million and $10.2 million of secured letters of credit outstanding as of December 31, 2025 and 2024, respectively. These primarily relate to our office space leases and are fully collateralized by certificates of deposit which we record in restricted cash as other assets and prepaid expenses and other on our consolidated balance sheets.
v3.25.4
Stockholders’ Equity and Employee Compensation Plans
12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders’ Equity and Employee Compensation Plans Stockholders' Equity and Employee Compensation Plans
Stockholders' Equity
Employee Compensation Plans
Stock Award Plans
Our stock compensation plans allow us to grant or assume through acquisition stock options and RSUs, including PVOs, PVUs, and PSUs, to employees and non-employee directors.
As of December 31, 2025, we had reserved a total of 91.4 million shares of common stock under our collective compensation plans, of which 53.8 million were available for future grant.
Employee Stock Purchase Plan
We offer an Employee Stock Purchase Plan ("ESPP") that permits employees to purchase shares of our common stock through payroll deductions of up to 15% of their earnings. Unless otherwise determined by the administrator, the purchase price of the shares will be 85% of the lower of the fair market value of our common stock on (i) the first day of an offering or (ii) on the date of purchase. No participant may purchase more than 1,000 shares of common stock in any one offering period. Participants may end their participation at any time during an offering and will be paid their accrued contributions that have not yet been used to purchase shares. Participation ends automatically upon termination of employment with us.
The maximum number of shares of our common stock that may be issued under our 2020 ESPP is 22.6 million shares, of which 18.7 million were available for issuance as of December 31, 2025.
During 2025, we suspended the ESPP program, effective in the first quarter of 2026. As a result of the suspension, no new offering periods will commence after March 2, 2026.
Employee 401(k) Plan
We have a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code. U.S. full-time employees qualify for participation in the plan. Contribution to the plan is under our discretion. For the years ended December 31, 2025, 2024, and 2023, we contributed and expensed $10.1 million, $11.5 million, and $15.0 million, respectively, to the plan.
Defined Contribution Pension Plan
For other operations outside the United States, we have a defined contribution pension plan in some countries. We contribute up to 18% of total salary into the plan annually when employees contribute to the plan. For the years ended December 31, 2025, 2024, and 2023, we contributed and expensed $15.9 million, $19.5 million, and $25.8 million, respectively, to the plan.
v3.25.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock‑Based Compensation
Stock-based compensation expense is as follows (in thousands):
Year Ended December 31,
202520242023
Cost of revenue$39,103 $44,736 $80,213 
Research and development189,676 261,458 290,160 
Sales and marketing71,639 129,037 143,461 
General and administrative84,796 161,018 134,862 
Total stock-based compensation expense$385,214 $596,249 $648,696 
Included in the above expenses for the year ended December 31, 2025 and 2024, are $13.0 million and $93.8 million respectively, of incremental stock-based compensation expense from modifications, primarily within general and administrative. These amounts predominately relate to modifications of awards held by departing executives in the fourth quarter of 2025, and the founders of ironSource Ltd. that departed in the first quarter of 2024, respectively.
Unrecognized compensation expense is as follows (in thousands, except for weighted-average remaining vesting period):
December 31, 2025
Unrecognized Compensation ExpenseWeighted-Average Remaining Vesting Period (In Years)
Outstanding stock options and PVOs
$22,469 2.14
Unvested RSUs and PVUs$572,033 2.63
ESPP$1,327 0.17
In future periods, stock-based compensation expense may increase as we issue additional equity-based awards to continue to attract and retain employees.
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, 202331,541,466 $19.35 4.79
Granted
3,187,067 $21.65 
Exercised(8,790,694)$6.20 
Forfeited, cancelled, or expired(2,779,627)$48.96 
Balance as of December 31, 202423,158,212 $21.10 4.24
Granted206,244 $24.72 
Exercised(9,245,255)$10.90 
Forfeited, cancelled, or expired(1,644,854)$46.34 
Balance as of December 31, 202512,474,347 $25.39 4.40
Exercisable as of December 31, 20259,915,246 $26.17 3.35
(1)    The intrinsic value is the difference between the estimated fair value of our common stock on December 31, 2025 and the exercise price for in-the-money options.
A summary of intrinsic and fair values of our stock options is as follows (in thousands, except fair value amounts):
Year Ended
December 31, 2025December 31, 2024December 31, 2023
Aggregate pretax intrinsic value of stock options exercised (1)
$210,329 $155,558 $127,722 
Weighted-average grant-date fair value of stock options granted$16.38 $13.34 $18.64 
Fair value of stock options vested$19,696 $46,933 $68,008 
(1)    The intrinsic value is the difference between the estimated fair value of our common stock on the date of exercise and the exercise price for in-the-money options.
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, 202337,332,551 $38.31 
Granted20,546,590 $19.32 
Vested(14,666,692)$38.88 
Forfeited(13,199,174)$36.05 
Unvested as of December 31, 202430,013,275 $26.03 
Granted15,922,107 $25.81 
Vested(13,002,226)$28.73 
Forfeited(8,005,434)$23.85 
Unvested as of December 31, 202524,927,722 $25.18 
The total fair value of RSUs vested as of the vesting dates during the years ended December 31, 2025, 2024, and 2023 was $414 million, $330 million, and $448 million, respectively.
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. During the year ended December 31, 2025, the price hurdle on 420,000 outstanding PVOs was met, resulting in those units vesting. No other outstanding options or units, which had not already met their price hurdle in a prior period, attained their price hurdle in this period.
Performance-Based Restricted Stock Units
Starting in the first quarter of 2025, we have 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 150%, 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 day the performance goals are set for that
tranche. 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 day the performance goal is set, 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 stimulation for the PVUs and PVOs, with the following assumptions:
Year Ended
December 31, 2025December 31, 2024December 31, 2023
Expected dividend yield
Risk-free interest rate4.1%
3.5% - 4.4%
3.8% - 4.9%
Expected volatility69.5%
60.0% - 68.0%
54.7% - 65.8%
Expected term (in years)6.25
6.25 - 10.00
6.25
Fair value of underlying common stock$24.72
$15.60 - $26.89
$28.13 - $39.29
Employee Stock Purchase Plan
The fair value of shares offered under our 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:
Year Ended December 31,
202520242023
Expected dividend yield
Risk-free interest rate
4.0% - 4.3%
4.9% - 5.3%
5.2% - 5.5%
Expected volatility
72.4% - 73.4%
49.3% - 56.0%
65.9% - 94.5%
Expected term (in years)0.500.500.50
Grant-date fair value per share
$9.26 - $14.03
$4.82 - $9.11
$12.44 - $12.65
Additional information related to the ESPP is provided below (in thousands, except per share amounts):
Year Ended December 31,
202520242023
Shares issued under the ESPP1,133,0711,161,6041,064,463
Weighted-average price per share issued$16.50$19.13$25.56
v3.25.4
Income Taxes
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Loss before provision for (benefit from) income taxes consisted of the following for the years ended December 31, 2025, 2024, and 2023 (in thousands):
Year Ended December 31,
202520242023
United States$(420,193)$(517,547)$(900,325)
Foreign24,995 (149,586)102,480 
Total$(395,198)$(667,133)$(797,845)
The components of the provision for income taxes consists of the following for the years ended December 31, 2025, 2024, and 2023 (in thousands):
Year Ended December 31,
202520242023
Current:
Federal$1,504 $4,063 $3,393 
State(308)1,022 584 
Foreign27,249 17,748 29,502 
Total current tax expense28,445 22,833 33,479 
Deferred:
Federal3,406 (421)5,184 
State— 861 (3,749)
Foreign(25,556)(26,119)(6,437)
Total deferred tax benefit(22,150)(25,679)(5,002)
Total tax provision (benefit)$6,295 $(2,846)$28,477 
Reconciliations of the income tax provision at the U.S. federal statutory tax rate to the provision for (benefit from) income taxes for the year ended December 31, 2025, is as follows (in thousands, except percentages):
Year Ended December 31, 2025
$
%
U.S. federal statutory tax rate$(82,992)21.00 %
Changes in income taxes resulting from:
State and local income taxes, net of federal benefit (1)
(308)0.08 %
Foreign tax effects
Israel
Incentive tax rate15,089 (3.82)%
Other(4,905)1.24 %
Denmark
Changes in valuation allowance(16,142)4.08 %
Other(2,357)0.60 %
United Kingdom
Foreign currency exchange5,695 (1.44)%
Other(11,093)2.81 %
Other foreign jurisdictions13,430 (3.41)%
Effect of changes in tax laws or rates enacted in the current period— — %
Effect of cross-border tax laws1,323 (0.33)%
Tax Credits
Research & Development Credits(7,146)1.81 %
Changes in valuation allowances104,386 (26.41)%
Nontaxable or nondeductible items
Stock-based compensation(17,819)4.51 %
Non-deductible compensation14,365 (3.64)%
Other(3,462)0.88 %
Changes in unrecognized tax benefits(1,769)0.45 %
Total tax provision (benefit)$6,295 (1.59)%
(1)    State taxes in New York and New York City made up the majority (greater than 50%) of the tax effect in this category.
Reconciliations of the income tax provision at the U.S. federal statutory tax rate to the provision for (benefit from) income taxes for the years ended December 31, 2024 and 2023 are as follows (in thousands):
Year Ended December 31,
20242023
U.S. federal statutory tax rate$(167,584)$(138,742)
Changes in income taxes resulting from:
State tax expense, net of federal benefit1,529 (1,980)
Foreign income taxed at different rates10,606 1,543 
Federal research and development credits(3,358)(10,172)
Stock-based compensation50,954 50,640 
Tax effects of restructuring3,253 (293,435)
Base-erosion and anti-abuse tax— — 
Change in valuation allowance90,598 420,846 
Other11,156 (223)
Total tax provision (benefit)$(2,846)$28,477 
Our income tax provision for the year ended December 31, 2025 was primarily driven by losses that cannot be benefited due to the U.S. valuation allowance and taxable income in certain foreign jurisdictions.
Our income tax provision for the year ended December 31, 2024 was primarily driven by losses that cannot be benefited due to the valuation allowance on U.S., Denmark, U.K., China, and Canada entities, and to a lesser extent, foreign earnings taxed at different tax rates. In addition, we undertook certain tax restructuring efforts during the first quarter of 2024 that enhanced our ability to offset deferred tax liabilities in the U.S. in future periods, thereby partially reducing the need for a valuation allowance.
The types of temporary differences that give rise to significant portions of our deferred tax assets and liabilities as of December 31, 2025 and 2024 are set forth below (in thousands):
As of December 31,
20252024
Deferred tax assets:
Net operating losses$440,347 $401,330 
Tax credits129,428 119,681 
Stock-based compensation51,376 68,178 
Capitalized R&D expenditures651,267 672,828 
Operating lease liabilities29,601 39,615 
Other68,026 62,340 
Gross deferred tax assets1,370,045 1,363,972 
Valuation allowance(1,264,670)(1,167,316)
Total deferred tax assets105,375 196,656 
Deferred tax liabilities:
Intangible Asset(123,225)(221,869)
Depreciation and Amortization(11,972)(21,694)
Operating lease ROU assets(20,978)(25,762)
Total deferred tax liabilities(156,175)(269,325)
Net deferred tax assets (liabilities), net of valuation allowances$(50,800)$(72,669)
1)    Certain prior year amounts have been reclassified to conform to current year presentation.
In the tax years ended December 31, 2025 and 2024, we capitalized certain research and development costs incurred by our U.S. and foreign subsidiaries, which resulted in deferred tax assets of $651 million and $673 million respectively. These deferred tax assets associated with capitalized research and development costs are offset by valuation allowances and future taxable temporary differences.
The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. We regularly assess the ability to realize our deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. We weigh all available positive and negative evidence, including our earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. Due to the weight of objectively verifiable negative evidence, including our history of losses, we believe that it is more likely than not that our U.S. federal, state, and certain foreign deferred tax assets will not be realized as of December 31, 2025 and 2024, and as such, we have maintained a valuation allowance against such deferred tax assets.
In the event we determine that we will be able to realize all or part of our net deferred tax assets in the future, the valuation allowance against deferred tax assets will be reversed in the period in which we make such determination. The release of a valuation allowance against deferred tax assets may cause greater volatility in the effective tax rate in the periods in which the valuation allowance is released. The valuation allowance against our U.S. federal, state and foreign deferred tax assets increased by $97 million and $79 million in the years ended December 31, 2025 and 2024, respectively. The increase in the valuation allowance in the years ended December 31, 2025 and 2024 was primarily related to deferred tax assets for which insufficient positive evidence exists to support their realizability, including NOL carryforwards, capitalized research and development expenses, and credits for research and development.
Our NOL carryforwards for U.S. federal, state, and foreign purposes were $685 million, $477 million, and $1.1 billion, respectively, with most of our foreign NOL carryforward balances arising from Denmark and the U.K. jurisdictions. Portions of the U.S. federal and state NOL carryforwards, if not utilized, will begin to expire in 2032 and 2026, respectively. The foreign NOL carryforwards, if not utilized,
will not expire. Our U.S. federal and state research and development credit carryforwards were $115 million and $43.9 million, respectively. The U.S. federal credit carryforwards, if not utilized, will begin to expire in 2033, while the California credit carryforwards have no expiration. The foreign credit carryforwards, if not utilized, will begin to expire in 2045.
Federal and state tax laws impose restrictions on the utilization of NOL and research and development credit carryforwards in the event of a change in ownership of our business as defined by the Internal Revenue Code, Sections 382 and 383. Under Section 382 and 383 of the Code, substantial changes in our ownership may limit the amount of NOL and research and development credit carryforwards that are available to offset taxable income. The annual limitation would not automatically result in the loss of NOL or research and development credit carryforwards but may limit the amount available in any given future period.
We maintain our reinvestment assertion with respect to foreign earnings for the period ended December 31, 2025, which is that all earnings are permanently reinvested for all jurisdictions. Based on our reinvestment assertion and losses from our foreign entities, we have not recorded a liability for the period ended December 31, 2025.
A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits, excluding accrued net interest and penalties, is as follows (in thousands):
As of December 31,
202520242023
Unrecognized tax benefits, beginning balance$179,780 $182,515 $176,584 
Gross increases for tax positions taken in prior years379 454 4,215 
Gross decreases for tax positions taken in prior years(3,049)(11,338)(8,361)
Gross increases for tax positions taken in current year5,254 9,001 10,573 
Reductions resulting from lapses of statues of limitations— (668)(660)
Foreign exchange gains and losses377 (184)164 
Unrecognized tax benefits, ending balance$182,741 $179,780 $182,515 
As of December 31, 2025 and 2024, we had $183 million and $180 million, respectively, of gross unrecognized tax benefits, of which $32.4 million and $31.8 million, respectively, would impact the effective tax rate, if recognized. We recognize interest and penalties related to our unrecognized tax benefits within our provision for income taxes. The amount of interest and penalties accrued as of December 31, 2025 and 2024 were $10.9 million and $7.7 million, respectively.
We are subject to taxation in the United States and various other state and foreign jurisdictions. The material jurisdictions in which we are subject to potential examination include the United States, Denmark, and Israel. Our 2012 and subsequent tax years remain open to examination by the Internal Revenue Service. Our 2019 and subsequent tax years remain open to examination in Denmark, Finland, France, and Israel.
The components of the cash paid for (refunded from) income taxes, net, consists of the following for the year ended December 31, 2025 (in thousands):
Year Ended December 31,
2025
Federal$580 
State(543)
Foreign10,552 
Total cash paid for income taxes, net of refunds:$10,589 
Individual jurisdictions equaling 5% or more of the total cash paid for (refunded from) income taxes, net, for the year ended December 31, 2025 include: Israel $(9.5) million, Denmark $4.1 million, Canada $3.0 million, China $2.6 million, Finland $1.5 million, France $1.4 million, UK $1.3 million, Spain $1.0 million, Japan $1.0 million, India $0.8 million, Korea $0.7 million, U.S. Federal $0.6 million.
v3.25.4
Net Loss per Share of Common Stock
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Loss per Share of Common Stock Net Loss per Share of Common Stock
Basic and diluted net loss per share is the same for all periods presented because the effects of potentially dilutive items were antidilutive given our net loss in each period.
The following table presents potentially dilutive common stock excluded from the computation of diluted net loss per share (in thousands) because the impact of including them would have been antidilutive:
As of December 31,
202520242023
Convertible notes41,348 24,488 26,042 
Stock options and PVOs12,474 23,158 31,541 
Unvested RSUs, PVUs, and PSUs24,928 30,013 37,333 
v3.25.4
Segment Information
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We have one reportable segment, software solutions. See "Revenue Recognition" in Note 1 for detailed information regarding our products and services.
Our chief operating decision maker is the chief executive officer, who on a consolidated basis, assess the performance of, drives improvements in, and decides how to allocate resources in the reportable segment, based on multiple measures of performance including consolidated net income, adjusted EBITDA, adjusted gross margin, and adjusted EPS. As such, consolidated net income, which is reported and reconciled with all significant segment expenses on our consolidated statement of operations, is the measure that is most consistent with GAAP, while adjusted EBITDA, adjusted gross margin, and adjusted EPS are additional measures of our segment profitability.
The measure of segment assets is reported on the balance sheet as total consolidated assets. We do not have material intra-entity sales or transfers.
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
Rule 10b5-1 Trading Plans
The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) during the three months ended December 31, 2025, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, were as follows:
NameTitleAction
 Adoption/Termination Date
Expiration Date (1)
Aggregate # of Securities to be Purchased/Sold
Shlomo Dovrat
Director
Adoption
November 13, 2025
August 10, 2026
50,000
Matthew Bromberg
President, Chief Executive Officer and Director
Adoption
November 25, 2025May 26, 2027
100,000
(1)     Each of the plans expire on the respective dates shown, or upon the earlier completion of all authorized transactions under the plans.
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Shlomo Dovrat [Member]  
Trading Arrangements, by Individual  
Name Shlomo Dovrat
Title Director
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 13, 2025
Expiration Date August 10, 2026
Arrangement Duration 270 days
Aggregate Available 50,000
Matthew Bromberg [Member]  
Trading Arrangements, by Individual  
Name Matthew Bromberg
Title President, Chief Executive Officer and Director
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 25, 2025
Expiration Date May 26, 2027
Arrangement Duration 547 days
Aggregate Available 100,000
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We are committed to our privacy and security programs, and our security team strives to protect our customer and employee data from cybersecurity risks. We have procedures in place to address suspected security breaches and notify users determined to be affected and applicable regulators of a breach where we are legally required to do so.
Because our business involves the collection, use, storage, and transmission of personal information, we are subject to numerous federal, state, local, and foreign laws, regulations, and other obligations relating to privacy and data security. Countries around the world have adopted or are proposing similar laws and regulations relating to privacy and data security, and we may become subject to them as we expand our operations into new geographic markets. From time to time, and at least annually, we review and update if necessary our privacy standards and policies in response to evolving regulatory requirements and internal Unity requirements. Unity personnel are provided annual privacy training, with additional targeted training for key participants in our privacy program.
We have a security policy which outlines mandatory security requirements for all of our employees, contractors or other agents. This policy is supported by internal standards, directives and procedures and our security infrastructure and tools. The security program includes implementation of software security throughout the development life cycle, vulnerability and configuration management software across certain of our data infrastructure, and our products and services offerings. Our risk management process includes annual employee education and annual analysis of security-related risks from across the company, which are then prioritized for mitigation or remediation. Our approach to cybersecurity is integrated into our overall company-wide approach to risk management, including regular consultations between our Data Privacy Officer and Interim Chief Information Security Officer and our internal audit team. Our management team, including our Interim Chief Information Security Officer and our Data Privacy Officer, also regularly reports to the Audit Committee of our board of directors regarding their evaluation of risks from cybersecurity threats against our overall business objectives and other relevant cybersecurity matters.
We engage third party services in connection with our processes for vendor security reviews and security incidents. Assessments of our program are performed by our internal audit team or through independent third-party engagements. We are continuing to refine our processes to oversee and identify the risks from cybersecurity threats associated with our use of any third-party service provider.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We are committed to our privacy and security programs, and our security team strives to protect our customer and employee data from cybersecurity risks. We have procedures in place to address suspected security breaches and notify users determined to be affected and applicable regulators of a breach where we are legally required to do so.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
The Audit Committee of our board of directors is responsible for overseeing our cybersecurity risk management processes, including oversight of mitigation of risks from cybersecurity threats. The Audit Committee of our board of directors meets on a quarterly basis with our Interim Chief Information Security Officer about our cybersecurity risk management and strategy, including any significant investigations, and periodically with our Data Privacy Officer about our privacy program.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee of our board of directors is responsible for overseeing our cybersecurity risk management processes, including oversight of mitigation of risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee of our board of directors meets on a quarterly basis with our Interim Chief Information Security Officer about our cybersecurity risk management and strategy, including any significant investigations, and periodically with our Data Privacy Officer about our privacy program.
Cybersecurity Risk Role of Management [Text Block]
Our Interim Chief Information Security Officer and Data Privacy Officer oversee our assessment, prevention, detection and management of cybersecurity risks, and report to our executive team, including our Chief Financial Officer and Chief Legal Officer. Collectively, they have expertise in cybersecurity, privacy law and regulation, and governance, and their teams comprise personnel with a broad range of experience across the private and public sectors, the technology industry, and in different geographic regions. Our Interim Chief Information Security Officer has over 30 years of experience in multiple business verticals and has led security organizations and managed global practices for Fortune 500 technology companies.
Our security team follows a documented incident response process, which we are continuing to evaluate and enhance. Pursuant to this process, incidents which may result in economic loss to the company, reputational harm or require notifications to individuals or government authorities are reported
to relevant members of our executive team. Our Interim Chief Information Security Officer also provides a regular summary of significant investigations to our Chief Financial Officer and Chief Legal Officer, as well as our Audit Committee, and our Data Privacy Officer reports on our compliance posture with respect to new and pending laws and regulations periodically as well.
The Audit Committee of our board of directors is responsible for overseeing our cybersecurity risk management processes, including oversight of mitigation of risks from cybersecurity threats. The Audit Committee of our board of directors meets on a quarterly basis with our Interim Chief Information Security Officer about our cybersecurity risk management and strategy, including any significant investigations, and periodically with our Data Privacy Officer about our privacy program.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our Interim Chief Information Security Officer and Data Privacy Officer oversee our assessment, prevention, detection and management of cybersecurity risks, and report to our executive team, including our Chief Financial Officer and Chief Legal Officer.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
Our Interim Chief Information Security Officer and Data Privacy Officer oversee our assessment, prevention, detection and management of cybersecurity risks, and report to our executive team, including our Chief Financial Officer and Chief Legal Officer. Collectively, they have expertise in cybersecurity, privacy law and regulation, and governance, and their teams comprise personnel with a broad range of experience across the private and public sectors, the technology industry, and in different geographic regions. Our Interim Chief Information Security Officer has over 30 years of experience in multiple business verticals and has led security organizations and managed global practices for Fortune 500 technology companies.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Audit Committee of our board of directors meets on a quarterly basis with our Interim Chief Information Security Officer about our cybersecurity risk management and strategy, including any significant investigations, and periodically with our Data Privacy Officer about our privacy program.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation and Consolidation
We prepared the accompanying consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC").
Consolidation The 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. In our opinion, all adjustments, which include normal recurring adjustments necessary for a fair presentation, have been included.
Use of Estimates
Use of Estimates
The preparation of 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, the measurement of liabilities for uncertain tax positions and deferred tax assets and liabilities, the fair value of stock-based compensation, the fair value of redeemable noncontrolling interests, and the useful lives of long lived assets. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations.
We review the useful lives of assets with a finite life on a recurring basis. Effective July 1, 2025, we revised our estimate of the remaining useful life for certain intangible assets from four to seven years, down to one to three years. These assets are included in “Intangible assets, net” on our consolidated balance sheets, are primarily “developed technology” within intangible assets, and primarily relate to assets arising from our acquisition of Wētā FX Limited in 2021. The shortened useful lives are due to certain assets no longer being actively developed and the absence of currently established plans for incorporation into future Unity offerings. The effect of this change in estimate for the year ended December 31, 2025, was an increase in amortization expense and decrease in operating income of approximately $77 million, an increase in net loss of approximately $61 million, and an increase in our basic and diluted net loss per share of approximately $0.15 per share.
Revenue Recognition, Cost of Revenue, Sales Commissions and Contract Balances and Remaining Performance Obligations
Revenue Recognition
Revenue is measured based on the amount of consideration that we expect to receive from our customers. Revenue excludes sales and indirect taxes. In arrangements where we have multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price ("SSP"). We generally determine SSP based on observable pricing. When observable pricing is not available, we use cost plus margin analysis to determine SSP.
Our business focuses on two complementary sets of solutions: (1) Create Solutions and (2) Grow Solutions.
Create Solutions
Create Solutions are a combination of software and services that enable customers to edit, run, and iterate interactive, real-time 2D and 3D experiences. Revenue is primarily derived from Create Solution Subscriptions, Enterprise Support, Professional services, and Consumption services.
Create Solutions subscriptions provide customers with software, embedded cloud functionality, and software updates. As the software and software updates are highly interdependent and interrelated and these services have the same pattern of performance as the embedded cloud functionality, we combine these promises and account for them as a single performance obligation that is recognized over time. Enterprise customers may purchase an enhanced support offering ("Enterprise Support") that is generally sold separately and is considered its own performance obligation. Create Solutions subscriptions and Enterprise Support typically have a term of one to five years and are billed in monthly, quarterly and annual installments, and recognized ratably over the service period.
Professional services revenue is primarily composed of consulting, platform integration, training, and custom application and workflow development. Revenue is recognized as services are rendered. We typically invoice our customers on a milestone basis or when promised services are delivered.
Our Consumption service arrangements are based on a fixed fee or usage-based model. For fixed fee arrangements revenue is recognized ratably over the contractual service term as our obligations are generally fulfilled evenly throughout the contractual period. For usage-based arrangements, we recognize revenue as services are provided.
Grow Solutions
Grow Solutions revenue primarily consists of advertising services provided through our monetization solutions that allow publishers, which include mobile application developers, original equipment manufacturers ("OEM") and mobile carriers to sell available advertising inventory on their mobile applications or hardware devices to advertisers for in-app or on-device placements. We present revenue on a net basis for sales where we are facilitating the transaction between advertisers and publishers and do not have control over in-app or on-device placement. In these cases the publisher is our customer. We present revenue on a gross basis for advertising sales where we are the publisher and have control of the in-app or on-device placement. Advertising revenue is recognized at a point in time when the agreed upon action is completed or when the advertisement is displayed to users.
Cost of Revenue
Cost of revenue for the delivery of software services, professional services, and advertising consists primarily of hosting expenses, personnel costs (including salaries, stock-based compensation, and benefits) for employees associated with our product support and professional services organizations, fees paid to mediation platforms, credit card fees, third-party license fees, payments to developers where we are the publisher, and allocated shared costs, including facilities, IT, and security costs, as well as amortization of related capitalized software costs and depreciation of related property and equipment and amortization of acquired intangible assets.
Sales Commissions
Sales commissions that have a benefit beyond one year are capitalized and amortized on a straight-line method over the expected period of benefit, which is generally three years. Contract assets (unbilled receivables), primarily included in accounts receivable, net, are recorded when revenue is earned in advance of customer billing schedules.Contract liabilities (deferred revenue) relate to payments received in advance of performance under the contract.Additionally, we have performance obligations associated with commitments in customer contracts to perform in the future that had not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized as of December 31, 2025 were $494 million and relate primarily to Create Solutions subscriptions, Enterprise Support, and Strategic Partnerships.
Stock-Based Compensation
Stock-Based Compensation
Stock-based compensation expense related to our employees and non-employee directors is calculated based on the fair value on the grant date. For restricted stock units ("RSUs"), fair value is based on the closing price of our common stock on the grant date. For performance-based restricted stock units ("PSUs"), fair value is based on the closing price of our common stock on the day the performance goals are set for each tranche of the award.
The fair value of stock options and purchases made under the 2020 Employee Stock Purchase Plan ("2020 ESPP") is estimated using the Black-Scholes pricing model. This model requires certain assumptions be used as inputs, such as the fair value of the underlying common stock, expected term of the option before exercise, expected volatility of our common stock, expected dividend yield, and a risk-free interest rate. Options granted during the year have a maximum contractual term of ten years. We have limited historical stock option activity and therefore estimate the expected term of stock options granted using the simplified method, which represents the average of the contractual term of the stock option and its weighted-average vesting period. The expected volatility of stock options and employee stock purchase plan ("ESPP") purchases are based upon our historical volatility and the historical volatility of a number of publicly traded companies in similar industries over similar durations. We have historically not declared or paid any dividends and do not currently expect to do so in the foreseeable future. The risk-free interest rates used are based on the U.S. Department of Treasury ("U.S. Treasury") yield in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term of the stock options and ESPP purchases.
The fair value of price-vested options ("PVOs") and price-vested units ("PVUs"), which are options and RSUs respectively, that contain both service-based and market-based vesting conditions are estimated using the Monte Carlo simulation model and use inputs such as the fair value of the underlying common stock, expected term before exercise, expected volatility of our common stock, expected dividend yield, and a risk-free interest rate, modified to reflect the impact of market-based vesting conditions, including the estimated payout level based on that condition. We do not adjust compensation cost for subsequent changes in the expected outcome of the market-based vesting conditions.
We recognize stock-based compensation expense for RSUs, stock options, PVOs, PVUs, and PSUs on a straight-line basis, typically over the requisite service period of the entire award, generally, a vesting period of one to four years. We recognize stock-based compensation expense related to the 2020 ESPP on a straight-line basis over the offering period. We do not estimate forfeitures but instead account for them as they occur.
Cash, Cash Equivalents, and Restricted Cash
Cash, Cash Equivalents, and Restricted Cash
We consider all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Our cash equivalents include money market funds and time deposits.
Restricted cash consists of secured letters of credit issued in connection with our operating leases and other amounts held in escrow. Restrictions typically lapse at the end of the lease term, and restricted cash is classified as current or non-current based on the remaining term of the restriction.
Cash, Cash Equivalents, and Restricted Cash
Cash, cash equivalents, and restricted cash are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities.
Level 2—Valuations based on quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration.
Level 3—Valuations based on unobservable inputs reflecting our own assumptions used to measure assets and liabilities at fair value. These valuations require significant judgment.
Accounts Receivable
Accounts Receivable
Accounts receivable are recorded at the original invoiced amount, net of allowances for uncollectible amounts. We estimate losses on uncollectible amounts based on expected losses, including our historical experience of actual losses. The estimated losses on uncollectible amounts are recorded in general and administrative expense on our consolidated statements of operations.
Credit Risk and Concentrations
Credit Risk and Concentrations
Financial instruments that potentially subject us to a concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. We place our domestic and foreign cash and cash equivalents, with large, creditworthy financial institutions. Balances in these accounts may exceed federally insured limits at times.
In general, we do not require our customers to provide collateral or other security to support accounts receivable. To reduce credit risk, management performs credit evaluations of our customers’ financial condition, as warranted, and continually analyzes the allowance for doubtful accounts, which we maintain based upon the expected collectability of accounts receivable.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which to transact and the market-based risk. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature.
Comprehensive Loss
Comprehensive Loss
Comprehensive loss is comprised of net loss and other comprehensive loss. Our other comprehensive loss includes unrealized gains and losses on derivative instruments, and foreign currency translation adjustment.
Property and Equipment, Net
Property and Equipment, Net
Property and equipment are stated at cost less accumulated depreciation and amortization, computed using the straight-line method based on the estimated useful lives of the assets, which is generally three years for computer and other hardware and five years for furniture. Leasehold improvements are amortized over the shorter of their estimated useful life or the remaining term of the lease. Software licenses are amortized over the shorter of their estimated useful life or license term, which is generally three to five years.
The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized.
Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to the consolidated statement of operations.
Leases
Leases
Primarily all of our leases have been categorized as operating leases at inception. On certain of our lease agreements, we may receive rent holidays and other incentives provided by the landlord. We recognize lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives we receive are treated as a reduction of our costs over the term of the agreement.
We establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated retirement costs.
Convertible Senior Notes and Capped Call Transactions
Convertible Senior Notes and Capped Call Transactions
We account for each issuance of the Notes as single liabilities measured at their amortized cost. Debt issuance costs are amortized to interest expense using the straight-line method (which approximates the effective interest method) and are recorded in other income and expense.
We record the cost of capped call transactions as a reduction of our additional paid-in capital on our consolidated balance sheets. Capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.
Segments
Segments
We operate as a single operating segment. The chief operating decision maker is our Chief Executive Officer, who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated information of our revenue. Accordingly, we have determined that we have a single reportable segment and operating segment structure.
Capitalized Software Costs and Software Implementation Costs
Capitalized Software Costs and Software Implementation Costs
We capitalize implementation costs incurred in our cloud computing service arrangements related to enterprise software solutions ("capitalized implementation costs") and costs associated with customized internal‑use software systems that have reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll‑related expenses for employees, who are directly associated with the development of the applications. We capitalize such costs during the application development stage, which begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Capitalized software costs are amortized on a straight-line basis over their estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Capitalized implementation costs are expensed over the term of the hosting arrangement, which is the fixed, non-cancellable term of the arrangement, plus any reasonably certain renewal periods.
The current portion of capitalized implementation costs are included in prepaid expenses on the consolidated balance sheets, and the non-current portion of capitalized implementation costs are included in other assets on the consolidated balance sheets. The amount of capitalized implementation costs was not material for the years ended December 31, 2025 and 2024.
The costs to develop software that is marketed externally consist of payroll and payroll related costs for employees, who are directly associated with the development of the software. We capitalize such costs when technological feasibility is established and a working model is complete through the point of general release. All costs outside of this window are charged to research and development expense. The amount of costs capitalized for software developed for external use was not material for the years ended December 31, 2025 and 2024.
Impairment Analysis
Impairment Analysis
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. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset’s carrying amount may not be recoverable. Recoverability of these
assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
We evaluate and test the recoverability of our goodwill for impairment at least annually during our fourth quarter of each calendar year or more often if and when circumstances indicate that goodwill may not be recoverable.
Income Taxes
Income Taxes
We are subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.
We record an income tax expense (or benefit) for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for NOL and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the deferred income tax effects of a change in tax rates in the period of the enactment.
We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, and ongoing tax planning strategies in assessing the need for a valuation allowance.
We recognize tax benefits from uncertain tax positions only if we believe that the position is more likely than not to be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions (including net interest and penalties), we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect our income tax expense (or benefit) in the period in which such determination is made and could have a material impact on our financial condition and operating results.
We recognize interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying consolidated statement of operations. Accrued interest and penalties are included in income and other taxes payable on the consolidated balance sheets.
Translation of Foreign Currencies
Translation of Foreign Currencies
The functional currency of the majority of our foreign subsidiaries is the U.S. dollar. Foreign currency transaction gains and losses are included in interest and other income (expense), net, on the consolidated statements of operations for the period. For U.S. dollar functional currency subsidiaries, all assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange
rate on the balance sheet date. Revenue and expenses denominated in a foreign currency are translated at the relevant daily exchange rates. Equity transactions denominated in a foreign currency are translated using historical exchange rates. For a foreign subsidiary where the local currency is the functional currency, adjustments to translate those statements into U.S. dollars are recorded in accumulated other comprehensive loss in stockholders’ equity.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values as of the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Intangible assets, with the exception of certain contractual relationships, which have a finite life are amortized on a straight-line basis over their estimated useful lives, which typically range from two to six years. Certain contractual relationships are amortized using an accelerated method of amortization, which reflects the pattern in which the economic benefits from the intangible assets are expected to be recognized.
On an annual basis, we evaluate the estimated remaining useful life of acquired intangible assets and whether events or changes in circumstances warrant a revision to the remaining amortization period. During the year ended December 31, 2025, we revised our estimate of the remaining useful life for certain intangible assets from four to seven years, down to one to three years. See "Use of Estimates" section earlier in this note for more details. No material changes to the useful lives of our intangible assets were deemed necessary during the years ended December 31, 2024, and 2023 based on management's evaluation.
Warranties and Indemnifications
Warranties and Indemnifications
In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third-party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement, and the maximum potential amount of future indemnification payments may not be subject to a cap. As of December 31, 2025 and 2024, there were no known events or circumstances that have resulted in a material indemnification liability to us, and we did not incur material costs to defend lawsuits or settle claims related to these indemnifications.
We generally do not offer warranties for our software products. With certain customers, we will warrant that our software products will operate without material error and/or substantially in conformity with product documentation. We have not experienced any warranty claims to date, and no liabilities have been recorded as of December 31, 2025 and 2024.
Advertising Costs
Advertising Costs
Advertising costs are expensed as incurred as a component of sales and marketing expense in the consolidated statements of operations.
Accounting Pronouncements Recently Adopted/Recent Accounting Pronouncements Not Yet Adopted
Accounting Pronouncements Recently Adopted
In December 2023, the FASB issued a new Accounting Standards Update ("ASU 2023-09") amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. ASU 2023-09 is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. We adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis.
Recent Accounting Pronouncements Not Yet Adopted
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, 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 July 2025, the FASB issued a new Accounting Standards Update ("ASU 2025-05") amending the guidance around estimation of credit losses on current accounts receivable and current contract assets to allow entities to elect a practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, with early adoption permitted and should be applied on a prospective basis. We are currently evaluating ASU 2025-05 to determine its impact on our financial statements.
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 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.
v3.25.4
Revenue (Tables)
12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue by Source
The following table presents our revenue disaggregated by source, which also have similar economic characteristics (in thousands):
Year Ended December 31,
202520242023
Create Solutions$621,409 $613,966 $859,174 
Grow Solutions1,228,239 1,199,289 1,328,143 
Total revenue$1,849,648 $1,813,255 $2,187,317 
Schedule of Revenue Disaggregated by Geography
The following table presents our revenue disaggregated by geography, based on the invoice address of our customers (in thousands):
Year Ended December 31,
202520242023
United States$518,319 $530,387 $564,358 
Greater China (1)
333,571 258,872 254,551 
EMEA (2)
601,430 643,872 756,214 
APAC (3)
349,018 329,907 558,810 
Other Americas (4)
47,310 50,217 53,384 
Total revenue$1,849,648 $1,813,255 $2,187,317 
(1)    Greater China includes China, Hong Kong, and Taiwan.
(2)    Europe, the Middle East, and Africa ("EMEA").
(3)    Asia-Pacific, excluding Greater China ("APAC").
(4)    Canada and Latin America ("Other Americas").
v3.25.4
Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Cash, Cash Equivalents, and Restricted Cash Measured at Fair Value on a Recurring Basis
The following table summarizes, by major security type, our cash, cash equivalents, and restricted cash that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):
December 31, 2025December 31, 2024
Fair Value (1)
Cash$708,788 $995,802 
Level 1:
Restricted cash and cash equivalents:
Restricted cash$8,461 $10,209 
Money market funds469,017 327,333 
Time deposits878,035 194,537 
Total restricted cash and cash equivalents$1,355,513 $532,079 
Total cash, cash equivalents, and restricted cash$2,064,301 $1,527,881 
(1)    Due to the highly liquid nature of our investments, amortized cost approximates fair value.
v3.25.4
Investment in Unity China (Tables)
12 Months Ended
Dec. 31, 2025
Noncontrolling Interest [Abstract]  
Schedule of Changes in Redeemable Noncontrolling Interests The following table presents the changes in redeemable noncontrolling interests (in thousands):
Year Ended December 31,
202520242023
Balance at beginning of period$230,627 $225,797 $219,563 
Net gain/(loss) attributable to redeemable noncontrolling interests1,186 (161)(4,017)
Accretion for redeemable noncontrolling interests10,535 11,250 15,543 
Foreign currency translation and foreign exchange adjustments for redeemable noncontrolling interests10,289 (6,259)(5,292)
Balance at end of period$252,637 $230,627 $225,797 
v3.25.4
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets, Excluding Goodwill
The following tables present details of our intangible assets, excluding goodwill (in thousands, except for weighted-average useful life):
As of December 31, 2025
Weighted-Average
Useful Life
(1)
(In Years)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Developed technology2.2$1,170,736 $(655,282)$515,454 
Customer relationships0.9570,000 (449,055)120,945 
Trademark0.954,400 (40,255)14,145 
Total intangible assets1.9$1,795,136 $(1,144,592)$650,544 
As of December 31, 2024
Weighted-Average
Useful Life
(1)
(In Years)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Developed technology5.1$1,233,046 $(473,303)$759,743 
Customer relationships1.9593,240 (327,320)265,920 
Trademark2.3106,100 (65,528)40,572 
Total intangible assets4.2$1,932,386 $(866,151)$1,066,235 
(1)    Based on weighted-average useful life remaining.
Schedule of Amortization of Finite-Lived Intangible Assets
The following table presents the amortization of finite-lived intangible assets included on our consolidated statements of operations (in thousands):
Year Ended December 31,
202520242023
Amortization expense$418,691 $353,371 $515,489 
Schedule of Estimated Future Amortization of Finite-Lived Intangible Assets
As of December 31, 2025, the estimated future amortization of finite-lived intangible assets was as follows (in thousands):
2026$435,109 
2027122,543 
202892,892 
2029— 
2030— 
Thereafter— 
Total$650,544 
v3.25.4
Balance Sheet Components (Tables)
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net
The following tables provide details of selected balance sheet items (in thousands):
As of
December 31,
2025
December 31,
2024
Property and equipment, net:
Gross property and equipment
Leasehold improvements$49,657 $76,862 
Software, computers, and other hardware166,209 149,182 
Furniture22,396 28,652 
Capital projects in progress2,886 14,073 
Total gross property and equipment241,148 268,769 
Accumulated depreciation and amortization(172,859)(169,950)
Property and equipment, net$68,289 $98,819 
The following table presents the depreciation and amortization of property and equipment included on our consolidated statements of operations (in thousands):
Year Ended December 31,
202520242023
Depreciation and amortization expense$42,253 $55,609 $48,427 
Schedule of Long-Lived Assets by Geographic Areas
The following table presents our long-lived assets, net, disaggregated by geography, which consists of our property and equipment, net, but excludes internally developed software and purchased software (in thousands):
As of
December 31,
2025
December 31,
2024
United States$4,353 $7,522 
Canada8,836 13,505 
United Kingdom4,671 5,413 
EMEA, excluding United Kingdom (1)
6,065 9,513 
Other (1)
4,142 7,748 
Total long-lived assets, net$28,067 $43,701 
(1)    No individual country, other than those disclosed above, exceeded 10% of our total long-lived assets, net, for any period presented.
Schedule of Accrued Expenses and Other
As of
December 31,
2025
December 31,
2024
Accrued expenses and other:
Accrued expenses$123,120 $124,414 
Accrued compensation75,788 74,040 
Income and other taxes payable100,633 96,497 
Accrued expenses and other$299,541 $294,951 
v3.25.4
Leases (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Components of Lease Expense
Components of lease expense were as follows (in thousands):
Year Ended
December 31, 2025December 31,
2024
Operating lease expense$31,375 $41,691 
Variable lease expense4,700 6,011 
Sublease income(4,219)(2,162)
Total lease expense$31,856 $45,540 
Schedule of Supplemental Balance Sheet Information Related to Leases
Supplemental balance sheet information related to leases was as follows (in thousands, except weighted-average figures):
As of
ClassificationDecember 31, 2025December 31, 2024
Operating lease assetsOther assets$62,207 $78,562 
Current operating lease liabilitiesAccrued expenses and other$28,421 $33,703 
Long-term operating lease liabilitiesOther long-term liabilities60,961 81,093 
Total operating lease liabilities$89,382 $114,796 
Schedule of Lease Liabilities
As of December 31, 2025, our lease liabilities were as follows (in thousands):
Operating Leases
Gross lease liabilities$97,951 
Less: imputed interest8,569 
Present value of lease liabilities$89,382 
v3.25.4
Borrowings (Tables)
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Principal and Unamortized Debt Issuance Costs and Other Material Features of Notes The table below summarizes the principal and unamortized debt issuance costs and other material features of the Notes (in thousands):
Carrying Amount as of,
Conversion Rate per
$1,000 Principal
Initial Conversion PriceMaturitiesStated Interest RatesDecember 31, 2025December 31, 2024
Convertible notes:
Principal - 2026 Notes3.2392 $308.72 20260.0%$557,724 $1,245,232 
Principal - 2027 Notes20.4526 $48.89 20272.0%1,000,000 1,000,000 
Principal – 2030 Notes
27.6656 $36.15 20300.0%690,000 — 
Unamortized debt issuance costs, net(12,374)(6,310)
Net carrying amount$2,235,350 $2,238,922 
1)    We entered into capped call transactions in connection with the 2026 and 2030 Notes. The cap price of the capped call transactions relating to the Notes was initially $343.02 and $47.74, respectively, subject to certain adjustments under the terms of the capped call transactions. See below "--Capped Call Transactions."
v3.25.4
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Non-Cancelable Contractual Commitments
The following table summarizes our non-cancelable contractual commitments as of December 31, 2025 (in thousands):
Total20262027-20282029-2030Thereafter
Operating leases (1)
$105,313 $32,542 $47,953 $17,190 $7,628 
Purchase commitments (2)
753,459 251,886 378,285 123,288 — 
Convertible note principal and interest (3)
2,287,724 577,724 1,020,000 690,000 — 
Total$3,146,496 $862,152 $1,446,238 $830,478 $7,628 
(1)    Operating leases consist of obligations for real estate, including leases that are not yet commenced or reflected on our consolidated balance sheet with future minimum lease payments of $7.4 million. These leases will commence in 2026 with lease terms of approximately seven years.
(2)    The substantial majority of our purchase commitments are related to agreements with our data center hosting providers.
(3)    Convertible notes due 2026, 2027, and 2030. See Note 9, "Borrowings," above for further discussion.
v3.25.4
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense
Stock-based compensation expense is as follows (in thousands):
Year Ended December 31,
202520242023
Cost of revenue$39,103 $44,736 $80,213 
Research and development189,676 261,458 290,160 
Sales and marketing71,639 129,037 143,461 
General and administrative84,796 161,018 134,862 
Total stock-based compensation expense$385,214 $596,249 $648,696 
Unrecognized compensation expense is as follows (in thousands, except for weighted-average remaining vesting period):
December 31, 2025
Unrecognized Compensation ExpenseWeighted-Average Remaining Vesting Period (In Years)
Outstanding stock options and PVOs
$22,469 2.14
Unvested RSUs and PVUs$572,033 2.63
ESPP$1,327 0.17
Schedule of Stock Option Activity
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, 202331,541,466 $19.35 4.79
Granted
3,187,067 $21.65 
Exercised(8,790,694)$6.20 
Forfeited, cancelled, or expired(2,779,627)$48.96 
Balance as of December 31, 202423,158,212 $21.10 4.24
Granted206,244 $24.72 
Exercised(9,245,255)$10.90 
Forfeited, cancelled, or expired(1,644,854)$46.34 
Balance as of December 31, 202512,474,347 $25.39 4.40
Exercisable as of December 31, 20259,915,246 $26.17 3.35
(1)    The intrinsic value is the difference between the estimated fair value of our common stock on December 31, 2025 and the exercise price for in-the-money options.
Schedule of Intrinsic and Fair Values of Stock Options
A summary of intrinsic and fair values of our stock options is as follows (in thousands, except fair value amounts):
Year Ended
December 31, 2025December 31, 2024December 31, 2023
Aggregate pretax intrinsic value of stock options exercised (1)
$210,329 $155,558 $127,722 
Weighted-average grant-date fair value of stock options granted$16.38 $13.34 $18.64 
Fair value of stock options vested$19,696 $46,933 $68,008 
(1)    The intrinsic value is the difference between the estimated fair value of our common stock on the date of exercise and the exercise price for in-the-money options.
Schedule of Restricted Stock Unit Activity
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, 202337,332,551 $38.31 
Granted20,546,590 $19.32 
Vested(14,666,692)$38.88 
Forfeited(13,199,174)$36.05 
Unvested as of December 31, 202430,013,275 $26.03 
Granted15,922,107 $25.81 
Vested(13,002,226)$28.73 
Forfeited(8,005,434)$23.85 
Unvested as of December 31, 202524,927,722 $25.18 
Schedule of Grant-Date Fair Value of Stock Options Granted
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 stimulation for the PVUs and PVOs, with the following assumptions:
Year Ended
December 31, 2025December 31, 2024December 31, 2023
Expected dividend yield
Risk-free interest rate4.1%
3.5% - 4.4%
3.8% - 4.9%
Expected volatility69.5%
60.0% - 68.0%
54.7% - 65.8%
Expected term (in years)6.25
6.25 - 10.00
6.25
Fair value of underlying common stock$24.72
$15.60 - $26.89
$28.13 - $39.29
Schedule of Grant-Date Fair Values of ESPP
The fair value of shares offered under our 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:
Year Ended December 31,
202520242023
Expected dividend yield
Risk-free interest rate
4.0% - 4.3%
4.9% - 5.3%
5.2% - 5.5%
Expected volatility
72.4% - 73.4%
49.3% - 56.0%
65.9% - 94.5%
Expected term (in years)0.500.500.50
Grant-date fair value per share
$9.26 - $14.03
$4.82 - $9.11
$12.44 - $12.65
Schedule of Additional Information Related to ESPP
Additional information related to the ESPP is provided below (in thousands, except per share amounts):
Year Ended December 31,
202520242023
Shares issued under the ESPP1,133,0711,161,6041,064,463
Weighted-average price per share issued$16.50$19.13$25.56
v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Loss Before Provision for (Benefit from) Income Taxes
Loss before provision for (benefit from) income taxes consisted of the following for the years ended December 31, 2025, 2024, and 2023 (in thousands):
Year Ended December 31,
202520242023
United States$(420,193)$(517,547)$(900,325)
Foreign24,995 (149,586)102,480 
Total$(395,198)$(667,133)$(797,845)
Schedule of Components of Provision for Income Taxes
The components of the provision for income taxes consists of the following for the years ended December 31, 2025, 2024, and 2023 (in thousands):
Year Ended December 31,
202520242023
Current:
Federal$1,504 $4,063 $3,393 
State(308)1,022 584 
Foreign27,249 17,748 29,502 
Total current tax expense28,445 22,833 33,479 
Deferred:
Federal3,406 (421)5,184 
State— 861 (3,749)
Foreign(25,556)(26,119)(6,437)
Total deferred tax benefit(22,150)(25,679)(5,002)
Total tax provision (benefit)$6,295 $(2,846)$28,477 
Schedule of Income Tax Provision for (Benefit from) Reconciliation
Reconciliations of the income tax provision at the U.S. federal statutory tax rate to the provision for (benefit from) income taxes for the year ended December 31, 2025, is as follows (in thousands, except percentages):
Year Ended December 31, 2025
$
%
U.S. federal statutory tax rate$(82,992)21.00 %
Changes in income taxes resulting from:
State and local income taxes, net of federal benefit (1)
(308)0.08 %
Foreign tax effects
Israel
Incentive tax rate15,089 (3.82)%
Other(4,905)1.24 %
Denmark
Changes in valuation allowance(16,142)4.08 %
Other(2,357)0.60 %
United Kingdom
Foreign currency exchange5,695 (1.44)%
Other(11,093)2.81 %
Other foreign jurisdictions13,430 (3.41)%
Effect of changes in tax laws or rates enacted in the current period— — %
Effect of cross-border tax laws1,323 (0.33)%
Tax Credits
Research & Development Credits(7,146)1.81 %
Changes in valuation allowances104,386 (26.41)%
Nontaxable or nondeductible items
Stock-based compensation(17,819)4.51 %
Non-deductible compensation14,365 (3.64)%
Other(3,462)0.88 %
Changes in unrecognized tax benefits(1,769)0.45 %
Total tax provision (benefit)$6,295 (1.59)%
(1)    State taxes in New York and New York City made up the majority (greater than 50%) of the tax effect in this category.
Reconciliations of the income tax provision at the U.S. federal statutory tax rate to the provision for (benefit from) income taxes for the years ended December 31, 2024 and 2023 are as follows (in thousands):
Year Ended December 31,
20242023
U.S. federal statutory tax rate$(167,584)$(138,742)
Changes in income taxes resulting from:
State tax expense, net of federal benefit1,529 (1,980)
Foreign income taxed at different rates10,606 1,543 
Federal research and development credits(3,358)(10,172)
Stock-based compensation50,954 50,640 
Tax effects of restructuring3,253 (293,435)
Base-erosion and anti-abuse tax— — 
Change in valuation allowance90,598 420,846 
Other11,156 (223)
Total tax provision (benefit)$(2,846)$28,477 
Schedule of Deferred Tax Assets and Liabilities
The types of temporary differences that give rise to significant portions of our deferred tax assets and liabilities as of December 31, 2025 and 2024 are set forth below (in thousands):
As of December 31,
20252024
Deferred tax assets:
Net operating losses$440,347 $401,330 
Tax credits129,428 119,681 
Stock-based compensation51,376 68,178 
Capitalized R&D expenditures651,267 672,828 
Operating lease liabilities29,601 39,615 
Other68,026 62,340 
Gross deferred tax assets1,370,045 1,363,972 
Valuation allowance(1,264,670)(1,167,316)
Total deferred tax assets105,375 196,656 
Deferred tax liabilities:
Intangible Asset(123,225)(221,869)
Depreciation and Amortization(11,972)(21,694)
Operating lease ROU assets(20,978)(25,762)
Total deferred tax liabilities(156,175)(269,325)
Net deferred tax assets (liabilities), net of valuation allowances$(50,800)$(72,669)
1)    Certain prior year amounts have been reclassified to conform to current year presentation.
Schedule of Unrecognized Tax Benefits Excluding Accrued Net Interest and Penalties
A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits, excluding accrued net interest and penalties, is as follows (in thousands):
As of December 31,
202520242023
Unrecognized tax benefits, beginning balance$179,780 $182,515 $176,584 
Gross increases for tax positions taken in prior years379 454 4,215 
Gross decreases for tax positions taken in prior years(3,049)(11,338)(8,361)
Gross increases for tax positions taken in current year5,254 9,001 10,573 
Reductions resulting from lapses of statues of limitations— (668)(660)
Foreign exchange gains and losses377 (184)164 
Unrecognized tax benefits, ending balance$182,741 $179,780 $182,515 
Schedule of Components of the Cash Paid for (Refunded from) Income Taxes, Net
The components of the cash paid for (refunded from) income taxes, net, consists of the following for the year ended December 31, 2025 (in thousands):
Year Ended December 31,
2025
Federal$580 
State(543)
Foreign10,552 
Total cash paid for income taxes, net of refunds:$10,589 
v3.25.4
Net Loss per Share of Common Stock (Tables)
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share
The following table presents potentially dilutive common stock excluded from the computation of diluted net loss per share (in thousands) because the impact of including them would have been antidilutive:
As of December 31,
202520242023
Convertible notes41,348 24,488 26,042 
Stock options and PVOs12,474 23,158 31,541 
Unvested RSUs, PVUs, and PSUs24,928 30,013 37,333 
v3.25.4
Accounting Policies - Use of Estimates (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jul. 01, 2025
Jun. 30, 2025
Finite-Lived Intangible Assets [Line Items]          
Amortization expense $ 418,691 $ 353,371 $ 515,489    
Decrease in operating income 479,053 755,149 832,794    
Increase in net loss $ 402,765 $ 664,114 $ 822,011    
Increase in basic net loss per share (USD per Share) $ 0.96 $ 1.68 $ 2.16    
Increase in diluted net loss per share (USD per Share) $ 0.96 $ 1.68 $ 2.16    
Intangible Assets, Amortization Period          
Finite-Lived Intangible Assets [Line Items]          
Amortization expense $ 77,000        
Decrease in operating income 77,000        
Increase in net loss $ 61,000        
Increase in basic net loss per share (USD per Share) $ 0.15        
Increase in diluted net loss per share (USD per Share) $ 0.15        
Minimum          
Finite-Lived Intangible Assets [Line Items]          
Intangible assets useful life 2 years     1 year 4 years
Maximum          
Finite-Lived Intangible Assets [Line Items]          
Intangible assets useful life 6 years     3 years 7 years
v3.25.4
Accounting Policies - Employee Separation and Restructuring Costs (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cost of revenue    
Restructuring Cost and Reserve [Line Items]    
Employee separation costs   $ 15
Research and development    
Restructuring Cost and Reserve [Line Items]    
Employee separation costs   48
Sales and marketing    
Restructuring Cost and Reserve [Line Items]    
Employee separation costs   58
General and administrative    
Restructuring Cost and Reserve [Line Items]    
Employee separation costs   93
Employee Severance    
Restructuring Cost and Reserve [Line Items]    
Employee separation costs $ 33 214
Stock-Based Compensation    
Restructuring Cost and Reserve [Line Items]    
Employee separation costs   127
Facility Closing    
Restructuring Cost and Reserve [Line Items]    
Restructuring costs $ 14 $ 53
v3.25.4
Accounting Policies - Revenue Recognition (Narrative) (Details)
12 Months Ended
Dec. 31, 2025
source
Revenue, Major Customer [Line Items]  
Number of revenue sources 2
Minimum  
Revenue, Major Customer [Line Items]  
Revenue term 1 year
Maximum  
Revenue, Major Customer [Line Items]  
Revenue term 5 years
v3.25.4
Accounting Policies - Stock-Based Compensation (Narrative) (Details)
12 Months Ended
Dec. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Maximum contractual term 10 years
Restricted Stock Units | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 1 year
Restricted Stock Units | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 4 years
Stock Option | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 1 year
Stock Option | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 4 years
Price-Vested Options | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 1 year
Price-Vested Options | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 4 years
Price-Vested Units | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 1 year
Price-Vested Units | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 4 years
Performance Based Restricted Stock Units | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 1 year
Performance Based Restricted Stock Units | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 4 years
v3.25.4
Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Narrative) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Accounting Policies [Abstract]    
Restricted cash $ 8.5 $ 10.2
v3.25.4
Accounting Policies - Accounts Receivable (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Accounting Policies [Abstract]    
Accounts receivable, allowances $ 10.9 $ 17.3
Provision for uncollectible amounts $ 2.7 $ 7.7
v3.25.4
Accounting Policies - Property and Equipment, Net (Narrative) (Details)
Dec. 31, 2025
Software, computers, and other hardware  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Furniture  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Software and Software Development | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Software and Software Development | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
v3.25.4
Accounting Policies - Segments (Narrative) (Details)
12 Months Ended
Dec. 31, 2025
segment
Accounting Policies [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.25.4
Accounting Policies - Capitalized Software Costs and Software Implementation Costs (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Capitalized software costs recognized during period $ 13.3 $ 33.2
Capitalized software costs $ 40.1 $ 56.2
Internally developed and purchased software    
Property, Plant and Equipment [Line Items]    
Useful life 3 years  
v3.25.4
Accounting Policies - Impairment Analysis (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Operating lease, impairment loss $ 3,800 $ 16,200  
Impairment of property and equipment $ 5,882 $ 22,791 $ 0
v3.25.4
Accounting Policies - Goodwill and Intangible Assets (Narrative) (Details)
Dec. 31, 2025
Jul. 01, 2025
Jun. 30, 2025
Minimum      
Finite-Lived Intangible Assets [Line Items]      
Intangible assets useful life 2 years 1 year 4 years
Maximum      
Finite-Lived Intangible Assets [Line Items]      
Intangible assets useful life 6 years 3 years 7 years
v3.25.4
Accounting Policies - Advertising Costs (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Advertising expense $ 8.2 $ 10.1 $ 12.6
v3.25.4
Revenue - Schedule of Disaggregation of Revenue by Source (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total revenue $ 1,849,648 $ 1,813,255 $ 2,187,317
Create Solutions      
Disaggregation of Revenue [Line Items]      
Total revenue 621,409 613,966 859,174
Grow Solutions      
Disaggregation of Revenue [Line Items]      
Total revenue $ 1,228,239 $ 1,199,289 $ 1,328,143
v3.25.4
Revenue - Schedule of Disaggregation of Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total revenue $ 1,849,648 $ 1,813,255 $ 2,187,317
United States      
Disaggregation of Revenue [Line Items]      
Total revenue 518,319 530,387 564,358
Greater China      
Disaggregation of Revenue [Line Items]      
Total revenue 333,571 258,872 254,551
EMEA      
Disaggregation of Revenue [Line Items]      
Total revenue 601,430 643,872 756,214
APAC      
Disaggregation of Revenue [Line Items]      
Total revenue 349,018 329,907 558,810
Other Americas      
Disaggregation of Revenue [Line Items]      
Total revenue $ 47,310 $ 50,217 $ 53,384
v3.25.4
Revenue - Sales Commissions (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Disaggregation of Revenue [Line Items]    
Capitalized contract cost, amortization period 3 years  
Capitalized contract cost, amortization $ 7,200,000 $ 8,900,000
Capitalized contract cost, impairment loss 0 0
Prepaid Expenses and Other Current Assets    
Disaggregation of Revenue [Line Items]    
Capitalized contract costs 5,400,000 6,500,000
Other Assets    
Disaggregation of Revenue [Line Items]    
Capitalized contract costs $ 2,800,000 $ 5,400,000
v3.25.4
Revenue - Contract Balances (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Unbilled receivables $ 15.8 $ 20.5
Revenue recognized $ 176.0  
v3.25.4
Revenue - Remaining Performance Obligations (Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Disaggregation of Revenue [Line Items]  
Revenue, remaining performance obligation, amount $ 494
Minimum  
Disaggregation of Revenue [Line Items]  
Commitment term 1 year
Maximum  
Disaggregation of Revenue [Line Items]  
Commitment term 5 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Disaggregation of Revenue [Line Items]  
Revenue, remaining performance obligation, amount $ 225
Revenue, remaining performance obligation, percentage 46.00%
Recognition period 12 months
v3.25.4
Financial Instruments - Schedule of Cash, Cash Equivalents, and Restricted Cash Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]        
Cash $ 708,788 $ 995,802    
Restricted cash and cash equivalents:        
Total cash, cash equivalents, and restricted cash 2,064,301 1,527,881 $ 1,604,267 $ 1,505,688
Level 1        
Restricted cash and cash equivalents:        
Restricted cash 8,461 10,209    
Total restricted cash and cash equivalents 1,355,513 532,079    
Level 1 | Money market funds        
Restricted cash and cash equivalents:        
Cash equivalents 469,017 327,333    
Level 1 | Time deposits        
Restricted cash and cash equivalents:        
Cash equivalents $ 878,035 $ 194,537    
v3.25.4
Financial Instruments - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Equity investment $ 35.0 $ 33.0
Maximum    
Debt Securities, Available-for-sale [Line Items]    
Ownership interest less than 20.00%  
v3.25.4
Investment in Unity China - Narrative (Details)
$ in Millions, ¥ in Billions
1 Months Ended
Aug. 31, 2022
USD ($)
Aug. 31, 2022
CNY (¥)
Aug. 31, 2022
CNY (¥)
Third Party Investors      
Noncontrolling Interest [Line Items]      
Redemption value $ 217.9    
Unity China | Third Party Investors      
Noncontrolling Interest [Line Items]      
Noncontrolling interest, percentage sold 20.50%   20.50%
Proceeds from sale of ownership $ 197.0    
Initial public offering threshold value | ¥   ¥ 25.0  
Guaranteed floor amount | ¥     ¥ 1.9
Redemption right term 5 years 5 years  
Unity China | Management Investor      
Noncontrolling Interest [Line Items]      
Noncontrolling interest, percentage sold 1.50%   1.50%
Proceeds from sale of ownership $ 14.4    
v3.25.4
Investment in Unity China - Schedule of Changes in Redeemable Noncontrolling Interests (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Increase (Decrease) in Temporary Equity [Roll Forward]      
Balance at beginning of period $ 230,627 $ 225,797 $ 219,563
Net gain/(loss) attributable to redeemable noncontrolling interests 1,186 (161) (4,017)
Accretion for redeemable noncontrolling interests 10,535 11,250 15,543
Foreign currency translation and foreign exchange adjustments for redeemable noncontrolling interests 10,289 (6,259) (5,292)
Balance at end of period $ 252,637 $ 230,627 $ 225,797
v3.25.4
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill $ 3,166,304 $ 3,166,304 $ 3,200,000
v3.25.4
Goodwill and Intangible Assets - Schedule of Intangible Assets, Excluding Goodwill (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Useful Life (in years) 1 year 10 months 24 days 4 years 2 months 12 days
Gross Carrying Amount $ 1,795,136 $ 1,932,386
Accumulated Amortization (1,144,592) (866,151)
Intangible assets, net $ 650,544 $ 1,066,235
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Useful Life (in years) 2 years 2 months 12 days 5 years 1 month 6 days
Gross Carrying Amount $ 1,170,736 $ 1,233,046
Accumulated Amortization (655,282) (473,303)
Intangible assets, net $ 515,454 $ 759,743
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Useful Life (in years) 10 months 24 days 1 year 10 months 24 days
Gross Carrying Amount $ 570,000 $ 593,240
Accumulated Amortization (449,055) (327,320)
Intangible assets, net $ 120,945 $ 265,920
Trademark    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Useful Life (in years) 10 months 24 days 2 years 3 months 18 days
Gross Carrying Amount $ 54,400 $ 106,100
Accumulated Amortization (40,255) (65,528)
Intangible assets, net $ 14,145 $ 40,572
v3.25.4
Goodwill and Intangible Assets - Schedule of Amortization of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 418,691 $ 353,371 $ 515,489
v3.25.4
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
2026 $ 435,109  
2027 122,543  
2028 92,892  
2029 0  
2030 0  
Thereafter 0  
Intangible assets, net $ 650,544 $ 1,066,235
v3.25.4
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Total gross property and equipment $ 241,148 $ 268,769  
Accumulated depreciation and amortization (172,859) (169,950)  
Property and equipment, net 68,289 98,819  
Depreciation and amortization expense 42,253 55,609 $ 48,427
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment 49,657 76,862  
Software, computers, and other hardware      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment 166,209 149,182  
Furniture      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment 22,396 28,652  
Capital projects in progress      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment $ 2,886 $ 14,073  
v3.25.4
Balance Sheet Components - Schedule of Long-Lived Assets by Geographic Areas (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net $ 28,067 $ 43,701
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net 4,353 7,522
Canada    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net 8,836 13,505
United Kingdom    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net 4,671 5,413
EMEA, excluding United Kingdom    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net 6,065 9,513
Other    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net $ 4,142 $ 7,748
v3.25.4
Balance Sheet Components - Schedule of Accrued Expenses and Other (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Abstract]    
Accrued expenses $ 123,120 $ 124,414
Accrued compensation 75,788 74,040
Income and other taxes payable 100,633 96,497
Accrued expenses and other $ 299,541 $ 294,951
v3.25.4
Leases - Narrative (Details)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Lessee, Lease, Description [Line Items]    
Operating lease termination period 5 years  
Operating lease, weighted average remaining lease term 3 years 9 months 18 days 4 years 3 months 18 days
Operating lease, weighted average discount rate, percent 5.00% 5.40%
Maximum    
Lessee, Lease, Description [Line Items]    
Operating lease term (up to) 7 years  
Operating lease renewal term 5 years  
Minimum    
Lessee, Lease, Description [Line Items]    
Operating lease renewal term 1 year  
v3.25.4
Leases - Schedule of Components of Lease Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating lease expense $ 31,375 $ 41,691
Variable lease expense 4,700 6,011
Sublease income (4,219) (2,162)
Total lease expense $ 31,856 $ 45,540
v3.25.4
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
Operating lease assets $ 62,207 $ 78,562
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other Accrued expenses and other
Current operating lease liabilities $ 28,421 $ 33,703
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other long-term liabilities Other long-term liabilities
Long-term operating lease liabilities $ 60,961 $ 81,093
Total operating lease liabilities $ 89,382 $ 114,796
v3.25.4
Leases - Schedule of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Operating Leases    
Gross lease liabilities $ 97,951  
Less: imputed interest 8,569  
Present value of lease liabilities $ 89,382 $ 114,796
v3.25.4
Borrowings - Convertible Notes (Narrative) (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Feb. 28, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]        
Proceeds from issuance of convertible notes   $ 690,000 $ 0 $ 0
Convertible Debt        
Debt Instrument [Line Items]        
Debt outstanding   2,200,000    
Convertible Debt | 2026, 2027 and 2030 Notes        
Debt Instrument [Line Items]        
Interest expense related to amortization of debt   $ 24,000 23,500  
Convertible Debt | Principal – 2030 Notes        
Debt Instrument [Line Items]        
Debt face amount $ 690,000      
Stated Interest Rates 0.00% 0.00%    
Proceeds from issuance of convertible notes $ 677,000      
Debt outstanding   $ 690,000 0  
Debt instrument, fair value   $ 1,000,000    
Convertible Debt | Principal - 2027 Notes        
Debt Instrument [Line Items]        
Stated Interest Rates   2.00%    
Debt outstanding   $ 1,000,000 1,000,000  
Debt instrument, fair value   $ 1,200,000 1,000,000  
Redemption price percentage   100.00%    
Convertible Debt | Principal - 2026 Notes        
Debt Instrument [Line Items]        
Stated Interest Rates   0.00%    
Debt outstanding   $ 557,724 1,245,232  
Debt instrument, fair value   $ 540,000 $ 1,100,000  
v3.25.4
Borrowings - Schedule of Principal and Unamortized Debt Issuance Costs and Other Material Features of Notes (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
Feb. 28, 2025
Dec. 31, 2024
USD ($)
Debt Instrument [Line Items]      
Net carrying amount $ 1,678,899   $ 2,238,922
Convertible Debt      
Debt Instrument [Line Items]      
Principal 2,200,000    
2026, 2027 and 2030 Notes | Convertible Debt      
Debt Instrument [Line Items]      
Unamortized debt issuance costs, net (12,374)   (6,310)
Net carrying amount $ 2,235,350   2,238,922
Principal - 2026 Notes      
Debt Instrument [Line Items]      
Cap price (USD per share) | $ / shares $ 343.02    
Principal - 2026 Notes | Convertible Debt      
Debt Instrument [Line Items]      
Conversion ratio 0.0032392    
Conversion price (USD per share) | $ / shares $ 308.72    
Stated Interest Rates 0.00%    
Principal $ 557,724   1,245,232
Principal - 2027 Notes | Convertible Debt      
Debt Instrument [Line Items]      
Conversion ratio 0.0204526    
Conversion price (USD per share) | $ / shares $ 48.89    
Stated Interest Rates 2.00%    
Principal $ 1,000,000   1,000,000
Principal – 2030 Notes      
Debt Instrument [Line Items]      
Cap price (USD per share) | $ / shares $ 47.74    
Principal – 2030 Notes | Convertible Debt      
Debt Instrument [Line Items]      
Conversion ratio 0.0276656    
Conversion price (USD per share) | $ / shares $ 36.15    
Stated Interest Rates 0.00% 0.00%  
Principal $ 690,000   $ 0
v3.25.4
Borrowings - Convertible Note Repurchase (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]          
Pre-tax gains     $ 42,744 $ 61,371 $ 0
Principal - 2026 Notes | Convertible Debt          
Debt Instrument [Line Items]          
Repurchased principal amount $ 688,000 $ 480,000      
Aggregate repurchase price 642,000 415,000      
Pre-tax gains $ 42,700 $ 61,400      
v3.25.4
Borrowings - Capped Call Transactions (Narrative) (Details)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Principal - 2026 Notes  
Debt Instrument [Line Items]  
Net cost incurred | $ $ 48.1
Number of common shares (in shares) | shares 5.6
Strike price (USD per share) $ 308.72
Cap price (USD per share) $ 343.02
Principal – 2030 Notes  
Debt Instrument [Line Items]  
Net cost incurred | $ $ 44.4
Number of common shares (in shares) | shares 19.1
Strike price (USD per share) $ 36.15
Cap price (USD per share) $ 47.74
v3.25.4
Commitments and Contingencies - Schedule of Non-Cancelable Contractual Commitments (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Operating leases  
Total $ 105,313
2026 32,542
2027-2028 47,953
2029-2030 17,190
Thereafter 7,628
Purchase commitments  
Total 753,459
2026 251,886
2027-2028 378,285
2029-2030 123,288
Thereafter 0
Convertible note principal and interest  
Total 2,287,724
2026 577,724
2027-2028 1,020,000
2029-2030 690,000
Thereafter 0
Total  
Total 3,146,496
2026 862,152
2027-2028 1,446,238
2029-2030 830,478
Thereafter 7,628
Lease not yet commenced amount $ 7,400
Lessee, operating lease, lease not yet commenced, term 7 years
v3.25.4
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Letter of Credit    
Long-term Purchase Commitment [Line Items]    
Letter of credit outstanding $ 8.5 $ 10.2
v3.25.4
Stockholders’ Equity and Employee Compensation Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Postretirement Benefits Plan      
Class of Stock [Line Items]      
Defined contribution cost $ 10.1 $ 11.5 $ 15.0
Defined Contribution Pension Plan      
Class of Stock [Line Items]      
Defined contribution cost $ 15.9 $ 19.5 $ 25.8
Employer match of total salary (as a percent) 18.00%    
ESPP      
Class of Stock [Line Items]      
Options issued (in shares) 22,600,000    
Number of shares available for grant (in shares) 18,700,000    
Permitted amount of earnings used to purchase ESPP 15.00%    
Purchase price percent 85.00%    
2020 Plan      
Class of Stock [Line Items]      
Options issued (in shares) 91,400,000    
Number of shares available for grant (in shares) 53,800,000    
ESPP | ESPP      
Class of Stock [Line Items]      
Maximum number of shares purchased by an employee in an offering period (in shares) 1,000    
v3.25.4
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 385,214 $ 596,249 $ 648,696
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 39,103 44,736 80,213
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 189,676 261,458 290,160
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 71,639 129,037 143,461
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 84,796 $ 161,018 $ 134,862
v3.25.4
Stock-Based Compensation - Narrative (Details)
shares in Thousands, $ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2025
annual_performance_period
Dec. 31, 2025
USD ($)
shares
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Incremental stock expense   $ 13.0 $ 93.8  
Restricted Stock Units        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Fair value of vested instruments in period   $ 414.0 $ 330.0 $ 448.0
Price-Vested Options        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Award requisite service period   4 years    
Award performance period   6 years    
Number of options vested (in shares) | shares   420    
Price-Vested Units        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Award requisite service period   4 years    
Award performance period   7 years    
Performance Based Restricted Stock Units        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Award requisite service period 3 years      
Number of annual performance periods | annual_performance_period 3      
Performance Based Restricted Stock Units | Minimum        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Award vesting rights (in percent) 0      
Performance Based Restricted Stock Units | Maximum        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Award vesting rights (in percent) 1.50      
v3.25.4
Stock-Based Compensation - Schedule of Unrecognized Compensation Expense (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, options $ 22,469
Stock options and PVOs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Weighted-Average Remaining Vesting Period (In Years) 2 years 1 month 20 days
Unvested RSUs and PVUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense $ 572,033
Weighted-Average Remaining Vesting Period (In Years) 2 years 7 months 17 days
ESPP  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense $ 1,327
Weighted-Average Remaining Vesting Period (In Years) 2 months 1 day
v3.25.4
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock Options Outstanding      
Beginning balance (in shares) 23,158,212 31,541,466  
Granted (in shares) 206,244 3,187,067  
Exercised (in shares) (9,245,255) (8,790,694)  
Forfeited, cancelled, or expired (in shares) (1,644,854) (2,779,627)  
Ending balance (in shares) 12,474,347 23,158,212 31,541,466
Options exercisable, stock options outstanding (in shares) 9,915,246    
Weighted-Average Exercise Price      
Beginning balance (USD per share) $ 21.10 $ 19.35  
Granted (USD per share) 24.72 21.65  
Exercised (USD per share) 10.90 6.20  
Forfeited, cancelled, or expired (USD per share) 46.34 48.96  
Ending balance (USD per share) 25.39 $ 21.10 $ 19.35
Options exercisable, weighted-average exercise price (USD per share) $ 26.17    
Weighted-Average Remaining Contractual Term (In Years)      
Options outstanding, weighted-average remaining contractual term 4 years 4 months 24 days 4 years 2 months 26 days 4 years 9 months 14 days
Options exercisable, weighted-average remaining contractual term 3 years 4 months 6 days    
v3.25.4
Stock-Based Compensation - Schedule of Intrinsic and Fair Values of Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]      
Aggregate pretax intrinsic value of stock options exercised $ 210,329 $ 155,558 $ 127,722
Weighted-average grant-date fair value of stock options granted (USD per share) $ 16.38 $ 13.34 $ 18.64
Fair value of stock options vested $ 19,696 $ 46,933 $ 68,008
v3.25.4
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Unvested RSUs - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Number of Shares    
Unvested at beginning of period (in shares) 30,013,275 37,332,551
Granted (in shares) 15,922,107 20,546,590
Vested (in shares) (13,002,226) (14,666,692)
Forfeited (in shares) (8,005,434) (13,199,174)
Unvested at end of period (in shares) 24,927,722 30,013,275
Weighted-Average Grant-Date Fair Value    
Unvested at beginning of period (USD per share) $ 26.03 $ 38.31
Granted (USD per share) 25.81 19.32
Vested (USD per share) 28.73 38.88
Forfeited (USD per share) 23.85 36.05
Unvested at end of period (USD per share) $ 25.18 $ 26.03
v3.25.4
Stock-Based Compensation - Schedule of Fair Value of Stock Options Granted (Details) - Stock options and PVUs, and PVOs - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Expected dividend yield 0.00% 0.00% 0.00%
Risk-free interest rate 4.10%    
Risk-free interest rate minimum   3.50% 3.80%
Risk-free interest rate maximum   4.40% 4.90%
Expected volatility 69.50%    
Expected volatility minimum   60.00% 54.70%
Expected volatility maximum   68.00% 65.80%
Expected term (in years) 6 years 3 months   6 years 3 months
Minimum      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Expected term (in years)   6 years 3 months  
Fair value of underlying common stock (USD per share)   $ 15.60 $ 28.13
Maximum      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Expected term (in years)   10 years  
Fair value of underlying common stock (USD per share) $ 24.72 $ 26.89 $ 39.29
v3.25.4
Stock-Based Compensation - Schedule of Fair Value of Shares Offered under our ESPP (Details) - ESPP - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Expected dividend yield 0.00% 0.00% 0.00%
Risk-free interest rate minimum 4.00% 4.90% 5.20%
Risk-free interest rate maximum 4.30% 5.30% 5.50%
Expected volatility minimum 72.40% 49.30% 65.90%
Expected volatility maximum 73.40% 56.00% 94.50%
Expected term (in years) 6 months 6 months 6 months
Minimum      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Grant-date fair value per share (USD per share) $ 9.26 $ 4.82 $ 12.44
Maximum      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Grant-date fair value per share (USD per share) $ 14.03 $ 9.11 $ 12.65
v3.25.4
Stock-Based Compensation - Schedule of Additional Information Related to ESPP (Details) - ESPP - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares issued under the ESPP (in shares) 1,133,071 1,161,604 1,064,463
Weighted-average price per share issued (USD per share) $ 16.50 $ 19.13 $ 25.56
v3.25.4
Income Taxes - Schedule of Loss Before Provision for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States $ (420,193) $ (517,547) $ (900,325)
Foreign 24,995 (149,586) 102,480
Loss before income taxes $ (395,198) $ (667,133) $ (797,845)
v3.25.4
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ 1,504 $ 4,063 $ 3,393
State (308) 1,022 584
Foreign 27,249 17,748 29,502
Total current tax expense 28,445 22,833 33,479
Deferred:      
Federal 3,406 (421) 5,184
State 0 861 (3,749)
Foreign (25,556) (26,119) (6,437)
Total deferred tax benefit (22,150) (25,679) (5,002)
Total tax provision (benefit) $ 6,295 $ (2,846) $ 28,477
v3.25.4
Income Taxes - Schedule of Effective Tax Reconciliation Current Period (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Changes in income taxes resulting from, Amount      
U.S. federal statutory tax rate $ (82,992) $ (167,584) $ (138,742)
State and local income taxes, net of federal benefit (308) 1,529 (1,980)
Changes in valuation allowance   90,598 420,846
Other foreign jurisdictions   10,606 1,543
Effect of changes in tax laws or rates enacted in the current period 0    
Effect of cross-border tax laws 1,323    
Research & Development Credits (7,146) (3,358) (10,172)
Stock-based compensation (17,819) 50,954 50,640
Non-deductible compensation 14,365    
Other, nontaxable or nondeductible items (3,462)    
Changes in unrecognized tax benefits (1,769)    
Total tax provision (benefit) $ 6,295 $ (2,846) $ 28,477
Changes in income taxes resulting from, Percent      
U.S. federal statutory tax rate 21.00%    
State and local income taxes, net of federal benefit 0.08%    
Effect of changes in tax laws or rates enacted in the current period 0.00%    
Effect of cross-border tax laws (0.33%)    
Research & Development Credits 1.81%    
Stock-based compensation 4.51%    
Non-deductible compensation (3.64%)    
Other, nontaxable or nondeductible items 0.88%    
Changes in unrecognized tax benefits 0.45%    
Total tax provision (benefit) (1.59%)    
Israel      
Changes in income taxes resulting from, Amount      
Incentive tax rate $ 15,089    
Other adjustments $ (4,905)    
Changes in income taxes resulting from, Percent      
Incentive tax rate (3.82%)    
Other adjustments 1.24%    
Denmark      
Changes in income taxes resulting from, Amount      
Other adjustments $ (2,357)    
Changes in valuation allowance $ (16,142)    
Changes in income taxes resulting from, Percent      
Other adjustments 0.60%    
Changes in valuation allowance 4.08%    
United Kingdom      
Changes in income taxes resulting from, Amount      
Other adjustments $ (11,093)    
Foreign currency exchange $ 5,695    
Changes in income taxes resulting from, Percent      
Other adjustments 2.81%    
Foreign currency exchange (1.44%)    
Other foreign jurisdictions      
Changes in income taxes resulting from, Amount      
Other foreign jurisdictions $ 13,430    
Changes in income taxes resulting from, Percent      
Other foreign jurisdictions (3.41%)    
United States      
Changes in income taxes resulting from, Amount      
Changes in valuation allowance $ 104,386    
Changes in income taxes resulting from, Percent      
Changes in valuation allowance (26.41%)    
v3.25.4
Income Taxes - Schedule of Effective Tax Reconciliation Prior Periods (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
U.S. federal statutory tax rate $ (82,992) $ (167,584) $ (138,742)
State tax expense, net of federal benefit (308) 1,529 (1,980)
Other foreign jurisdictions   10,606 1,543
Research & Development Credits (7,146) (3,358) (10,172)
Stock-based compensation (17,819) 50,954 50,640
Tax effects of restructuring   3,253 (293,435)
Base-erosion and anti-abuse tax   0 0
Changes in valuation allowance   90,598 420,846
Other   11,156 (223)
Total tax provision (benefit) $ 6,295 $ (2,846) $ 28,477
v3.25.4
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Net operating losses $ 440,347 $ 401,330
Tax credits 129,428 119,681
Stock-based compensation 51,376 68,178
Capitalized R&D expenditures 651,267 672,828
Operating lease liabilities 29,601 39,615
Other 68,026 62,340
Gross deferred tax assets 1,370,045 1,363,972
Valuation allowance (1,264,670) (1,167,316)
Total deferred tax assets 105,375 196,656
Deferred tax liabilities:    
Intangible Asset (123,225) (221,869)
Depreciation and Amortization (11,972) (21,694)
Operating lease ROU assets (20,978) (25,762)
Total deferred tax liabilities (156,175) (269,325)
Net deferred tax assets (liabilities), net of valuation allowances $ (50,800) $ (72,669)
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Examination [Line Items]        
Gross deferred tax assets $ 1,370,045 $ 1,363,972    
Valuation allowance increase (decrease) 97,000 79,000    
Unrecognized tax benefits 182,741 179,780 $ 182,515 $ 176,584
Unrecognized tax benefits that would impact effective tax rate 32,400 31,800    
Interest and penalties balance 10,900 7,700    
Cash paid for (refund from), foreign 10,552      
Cash paid for (refund from), federal 580      
Domestic and Foreign Tax Authority        
Income Tax Examination [Line Items]        
Gross deferred tax assets 651,000 $ 673,000    
Domestic        
Income Tax Examination [Line Items]        
Operating loss carryforwards 685,000      
Domestic | Research Tax Credit Carryforward        
Income Tax Examination [Line Items]        
Tax credit carryforward 115,000      
State        
Income Tax Examination [Line Items]        
Operating loss carryforwards 477,000      
State | Research Tax Credit Carryforward        
Income Tax Examination [Line Items]        
Tax credit carryforward 43,900      
Foreign        
Income Tax Examination [Line Items]        
Operating loss carryforwards 1,100,000      
Israel        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign (9,500)      
Denmark        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign 4,100      
Canada        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign 3,000      
China        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign 2,600      
Finland        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign 1,500      
France        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign 1,400      
United Kingdom        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign 1,300      
Spain        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign 1,000      
Japan        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign 1,000      
India        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign 800      
Korea        
Income Tax Examination [Line Items]        
Cash paid for (refund from), foreign $ 700      
v3.25.4
Income Taxes - Schedule of Unrecognized Tax Benefits Excluding Accrued Net Interest and Penalties (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Unrecognized tax benefits, beginning balance $ 179,780 $ 182,515 $ 176,584
Gross increases for tax positions taken in prior years 379 454 4,215
Gross decreases for tax positions taken in prior years (3,049) (11,338) (8,361)
Gross increases for tax positions taken in current year 5,254 9,001 10,573
Reductions resulting from lapses of statues of limitations 0 (668) (660)
Foreign exchange gains and losses 377   164
Foreign exchange gains and losses   (184)  
Unrecognized tax benefits, ending balance $ 182,741 $ 179,780 $ 182,515
v3.25.4
Income Taxes - Schedule of Components 0f the Cash Paid for (Refunded From) Income Taxes, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Federal $ 580    
State (543)    
Foreign 10,552    
Total cash paid for income taxes, net of refunds: $ 10,589 $ 26,363 $ 22,471
v3.25.4
Net Loss per Share of Common Stock (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Convertible notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 41,348 24,488 26,042
Stock options and PVOs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 12,474 23,158 31,541
Unvested RSUs and PVUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 24,928 30,013 37,333
v3.25.4
Segment Information (Details)
12 Months Ended
Dec. 31, 2025
segment
Segment Reporting [Abstract]  
Number of reportable segments 1