Unity Software announces board resignations of Michelle K. Lee and David Kostman

Unity Software Inc. (NYSE: U) reported that Michelle K. Lee and David Kostman have each submitted their resignations from the company’s Board of Directors, effective June 9, 2025. According to the company, the resignations were not the result of any disagreement with Unity’s management, board members, or company policies.

Unity extended its appreciation to both directors for their contributions and years of service to the company and its shareholders.

Unity Software Inc. Grants Performance-Based Restricted Stock Units to Executives
San Francisco, CA – March 4, 2025 – Unity Software Inc. (NYSE: U) has announced the approval of performance-based restricted stock units (PSUs) for its executive officers as part of the company’s executive compensation program. The Human Capital and Compensation Committee of Unity’s Board of Directors approved the grants to encourage long-term performance and shareholder value.

Key Details of the PSU Awards:
Recipients and PSU Target Amounts:
Matthew Bromberg: 106,609 PSUs
Jarrod Yahes: 43,421 PSUs
Alex Blum: 75,000 PSUs
Anirma Gupta: 50,000 PSUs
Performance Period:
Three-year period from January 1, 2025, to December 31, 2027
Divided into three one-year performance periods (each covering 1/3rd of the total PSUs)
Performance Goals:
75% of target PSUs based on revenue goals
25% of target PSUs based on adjusted EBITDA less stock-based compensation expense margin
Performance Attainment Factor:
Performance for each goal is assessed between 0% and 150%
Final PSU vesting is based on the average attainment across the three-year period
Vesting Conditions:
PSUs vest upon the final certification of performance at the end of 2027, subject to continued employment
Accelerated vesting in the event of:
A Qualified Termination Event within three months before or one year after a change in control
The executive’s death
Adjusted EBITDA Definition for PSU Calculations:
For the PSU program, Adjusted EBITDA less Stock-Based Compensation Expense is calculated as:
Net income or loss excluding:

Amortization of acquired intangible assets
Depreciation
Acquisitions
Restructurings and reorganizations
Insurance reimbursements for legal expenses
Interest, income tax, and other non-operating activities (such as foreign exchange gains/losses)
Stock-based compensation expense
Additional Information:
The official Grant Notice and Award Agreement for the PSUs is filed as Exhibit 10.1 in the Form 8-K submitted to the SEC.
The program aims to align executive incentives with Unity’s financial growth and shareholder value creation.

Unity reported fourth-quarter and full-year 2024 financial results, with revenue and profit exceeding expectations. Fourth-quarter revenue was $457 million, down from $609 million in the same period of 2023, while full-year revenue declined to $1.813 billion from $2.187 billion in 2023. Despite the revenue drop, the company achieved an adjusted EBITDA of $106 million in Q4 and $390 million for the full year, with free cash flow of $106 million and $286 million, respectively.

The strategic portfolio revenue grew 4% year-over-year in Q4 to $442 million. Create Solutions revenue declined significantly, reaching $152 million in Q4 compared to $290 million in the prior year, while Grow Solutions revenue saw a smaller drop to $305 million from $319 million. The company reported a GAAP net loss of $123 million for the quarter and $664 million for the full year.

CEO Matt Bromberg highlighted the successful launch of Unity 6, the adoption of the new pricing model, and advancements in AI for advertising as key drivers for future optimism. The company remains focused on strengthening its strategic portfolio and improving operational efficiency.

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