Unity exits Supersonic and shuts down IronSource ad network as it beats Q1 guidance
Summary
Unity is selling its Supersonic casual publishing label and closing the IronSource Ad Network by April 30
Q1 2026 revenue of $505-508m and Adjusted EBITDA of $130-135m both came in above guidance
The moves mark a near-complete unwinding of the $4.4bn IronSource merger completed in 2022
"Simplify the business"
01
Supersonic sale and IronSource shutdown signal major strategic reset
Unity has appointed a financial advisor to begin divesting Supersonic, its casual game publishing label
Supersonic is the publisher behind Bridge Race, Going Balls, and Build A Queen
The IronSource Ad Network closes effective April 30, 2025
Both moves are framed as efforts to simplify Unity's business structure
Starting Q1 2026, Unity will report Grow revenue excluding both IronSource Ads and Supersonic
02
Q1 2026 preliminary results beat expectations across the board
Revenue expected at $505-508m, above prior guidance of $480-490m
Adjusted EBITDA of $130-135m, well above guidance of $105-110m
Adjusted EBITDA reflects 58% year-over-year growth
Growth was driven by adtech product Unity Vector and stronger-than-expected Create (engine) performance
Grow segment expected to generate $352m in revenue; Create segment expected at $155m
03
IronSource merger unravels after troubled integration
Unity and IronSource completed their merger in 2022 at a valuation of $4.4bn
Virtually the entire IronSource executive team departed in January 2024
In October 2024, sources reported alleged bullying and mismanagement within Unity's adtech arm
The toxic atmosphere reportedly led to dozens of resignations across the adtech division
With IronSource Ads closing and Vector taking center stage, little remains of the original IronSource within Unity
04
Unity doubles down on Vector as its core adtech identity
Unity Vector is now the primary adtech product driving Grow segment performance
The divestiture of Supersonic and shutdown of IronSource Ads removes legacy complexity from the portfolio
Unity's next reporting cycle will reflect a cleaner, more focused business structure
Future strategic momentum appears tied to Vector's continued growth and the Create engine business recovery
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