Unity Reports Third Quarter 2025 Financial Results

Unity, a leading platform for creating and growing games and interactive experiences, has released its financial results for the third quarter of 2025. The company reported a notable performance, driven by its Unity Vector AI and continued strength in its Create Solutions segment.

Financial Highlights

For the third quarter ended September 30, 2025, Unity reported:

• Revenue of $471 million, a 5% increase from $447 million in the same period last year.
• GAAP net loss of $127 million, with a margin of (27)%, compared to a net loss of $125 million in Q3 2024.
• Adjusted EBITDA of $109 million, with a margin of 23%, up from $92 million and a margin of 21% in Q3 2024.
• Free cash flow of $151 million, compared to $115 million in the third quarter of 2024.
• GAAP basic and diluted net loss per share of $0.30, compared to $0.31 in the same period last year.

Business and Operational Highlights

Unity's business segments showed mixed performance:

• Create Solutions revenue was $152 million, up 3% year-over-year, driven by strong growth in subscription revenue.
• Grow Solutions revenue was $318 million, up 6% year-over-year, primarily due to the strong performance of the Unity Ad Network powered by Unity Vector.

Strategic Initiatives and Corporate Developments

Unity's strategic initiatives include a focus on artificial intelligence tools and the expansion of Unity Vector across its Grow solutions. The company also highlighted its efforts in cost control and operational efficiency, which contributed to the improved Adjusted EBITDA margin.

Management's Perspective

Unity's management expressed optimism about the company's future, citing the growing consumer enthusiasm for interactive entertainment. They emphasized the company's strong performance in both revenue and Adjusted EBITDA, attributing it to the success of Unity Vector AI and the Create Solutions segment.

Future Outlook

For the fourth quarter of 2025, Unity provided the following guidance:

• Revenue is expected to be between $480 million and $490 million.
• Adjusted EBITDA is projected to be between $110 million and $115 million.
• In the Grow segment, mid-single digit sequential revenue growth is anticipated from Q3 to Q4.
• In the Create segment, high-single digit year-over-year revenue growth is expected, excluding the impact of non-strategic revenue.

Original SEC Filing: Unity Software Inc. [ U ] - 8-K - Nov. 05, 2025