Unity’s stock fell to $18.36 per share at the close of trading on February 17th, 2026, approaching levels last seen in the summer of 2024. The current price represents a 59% decline since the start of the year and a 16% drop year-over-year. Since its all-time high of $201.12 in November 2021, Unity has lost 91% of its market value, reflecting a sustained downward trend over nearly five years.
The decline has been influenced by several factors, including the controversial Runtime Fee announcement, a significant company-wide restructuring, and the 2022 acquisition of IronSource. Unity had anticipated that the merger would strengthen profitability, but the expected financial gains have not fully materialized.
Competition From Google’s Project Genie
Investor concern intensified following the U.S. release of Google’s Project Genie on January 29th, 2026. The new AI-powered platform allows Google AI Ultra subscribers to generate virtual worlds using text prompts, playable in first- or third-person for up to 60 seconds. While Unity CEO Matthew Bromberg described the project as a “powerful accelerator” rather than a direct threat, the announcement contributed to declines in Unity’s stock and other game creation platforms, including Roblox.
Shares initially fell for eight consecutive days but recovered briefly on February 6th, reaching $29.06 on February 10th. The rally was short-lived, as the release of Unity’s Q4 financial results led to renewed selling pressure.
Financial Results Show Incremental Improvement
Unity reported revenue of $503 million for Q4 2025, marking a 10% increase compared to the previous year. Adjusted EBITDA reached $125 million for the quarter, and the company posted a net loss of $89 million, an improvement over the $123 million loss in Q4 2024. For the full year, Unity generated $1.8 billion in revenue, up 2% year-over-year, with a net loss of $401.5 million, representing a 38% improvement from 2024.
During the company’s latest investor call, Bromberg discussed the upcoming beta of Unity’s upgraded AI platform. The new tool is designed to allow developers to create full casual games using natural language prompts, aiming to simplify game development and provide new capabilities for content creators.
Outlook for Unity
While Unity’s financial performance shows gradual improvement, the stock remains under pressure due to competitive innovations and lingering investor concerns. The combination of past losses, competition from Google Project Genie, and market volatility has contributed to shares nearing a multi-year low. Analysts and investors will likely continue monitoring the company’s execution on its AI initiatives and overall growth strategy.
Source: PocketGamer
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Frequently Asked Questions (FAQs)
Why did Unity shares drop to $18.36?
Unity shares fell due to a combination of financial losses, investor concerns, and competition from Google’s Project Genie platform, which allows users to generate virtual worlds using AI.
How much have Unity shares declined since their peak?
Since reaching an all-time high of $201.12 in November 2021, Unity shares have dropped approximately 91% over nearly five years.
What impact did Google Project Genie have on Unity stock?
The release of Google Project Genie in January 2026 increased investor concern about competition in game-world creation tools, contributing to a decline in Unity shares.
How did Unity perform financially in 2025?
Unity generated $1.8 billion in revenue in 2025, a 2% increase over 2024, but reported a net loss of $401.5 million, a 38% improvement from the previous year.
What is Unity’s plan for AI in game development?
Unity is preparing a beta of its upgraded AI platform, which aims to enable developers to create complete casual games using natural language prompts, simplifying the development process.
