BTIG highlighted that Unity Software Inc. (U.US) is positioned to continue advancing with its AI advertising platform, Vector, launched last year, as the company prepares to discontinue its ironSource ad network. The software firm plans to cease operations of the ironSource ad network on April 30 and has engaged financial advisors to assist in divesting its Supersonic game publishing unit. BTIG views these strategic moves favorably and has reaffirmed its Buy rating on the stock with a $39 price target.

In an investor note released on Monday, BTIG analysts Clark Lampen and Joseph Spiezio stated, "Based on our analysis of the ironSource acquisition consideration and changes to the 21-22 amortization schedule, we estimate potential amortization savings of up to $221 million post-transaction, with minimal depreciation impact (only $7 million in fixed assets included in the purchase price). Applying these savings to our base and optimistic projections for Vector, we anticipate the Vector business could achieve potential earnings of approximately $0.20 to $0.60 per share by 2027 as non-cash headwinds diminish."

Unity is scheduled to report its first-quarter 2026 financial results on May 7. Consensus estimates project adjusted earnings per share of $0.24 on revenue of $504.25 million. In March, Unity raised its first-quarter performance outlook, now expecting revenue between $505 million and $508 million, up from the prior guidance of $480 million to $490 million. Within this, revenue from the Create segment is projected at around $115 million, while the Grow segment is expected to contribute approximately $353 million in revenue.