Unity Software Inc

Latest Results (15.11.2025):

Unity Software Inc reported its financial results for the second quarter of 2025, demonstrating key improvements and strategic advancements amid a challenging revenue environment. The company delivered $441 million in revenue—down 2% year-over-year—while decreasing its GAAP net loss to $107 million, compared to $126 million in Q2 2024. Notably, the launch of its AI platform, Unity Vector, accelerated growth in the Unity Ad Network by 15% sequentially, and strong operating cash flows of $133 million and free cash flow of $127 million underscore a disciplined performance heading into Q3 2025.

Revenue Trends

Unity Software Inc's total revenue for Q2 2025 was $441 million, with Create Solutions revenue growing by 2% year-over-year to $154 million, and Grow Solutions revenue declining by 4% to $287 million, partly offset by strong growth in the Unity Ad Network.

Profitability and Earnings

The quarter recorded a GAAP net loss of $107 million with a loss margin of 24% and a basic and diluted net loss per share of $0.26. Adjusted EBITDA reached $90 million at a 21% margin, while adjusted EPS stood at $0.18, demonstrating improved cost discipline and operational efficiency relative to guidance.

Operational Efficiency and Cash Flow

Unity Software Inc generated robust operating cash flows of $133 million and free cash flow of $127 million in Q2 2025, indicative of strong execution in managing operational expenses and supporting ongoing innovation.

Growth Initiatives & Q3 Outlook

The launch of Unity Vector was a pivotal move, delivering a 15% sequential growth in the Unity Ad Network. Looking ahead to Q3 2025, Unity Software Inc expects revenue between $440 million and $450 million, with anticipated mid-single digit sequential growth in Grow Solutions and an Adjusted EBITDA range of $90 million to $95 million, underscoring a positive outlook bolstered by ongoing product innovation.