Unity Software reported third‑quarter 2025 results that exceeded expectations. Revenue reached $471 million, a 5.4 % increase from $447 million in Q3 2024. Adjusted earnings per share climbed to $0.20, turning a consensus loss of $0.23 into a profit. Adjusted EBITDA rose to $109 million, giving a 23 % margin compared with 21 % in the prior year.
Revenue growth was driven by a 6 % rise in Grow Solutions, largely from the Unity Ad Network powered by the Vector AI platform, and a 3 % increase in Create Solutions, supported by subscription growth. The portfolio reset in Create Solutions reduced consumption‑services revenue, but higher‑margin subscription revenue offset the decline.
Margin expansion reflects disciplined cost management and a shift toward higher‑margin AI‑enabled contracts. Adjusted EBITDA margin grew 2 percentage points to 23 % as operating expenses were held below 30 % of revenue, while revenue mix shifted toward the more profitable Vector AI and subscription businesses.
On GAAP terms, Unity posted a net loss of $127 million, a slight improvement from the $125 million loss in Q3 2024. GAAP diluted EPS was $0.30, compared with $0.31 in the prior year, indicating that the company’s core profitability is improving even as it remains unprofitable on a GAAP basis.
CEO Matthew Bromberg highlighted the role of the Vector AI platform in driving growth, noting that “Unity is poised to grow with the continued enthusiasm for interactive entertainment.” CFO Jarrod Yahes emphasized cost discipline, stating that “we added $30 million of high‑margin incremental Grow revenue on a sequential basis, generating $19 million of additional adjusted EBITDA.” The company also reported free cash flow of $151 million, up from $115 million year‑over‑year.
Investors responded positively to the results, with analysts noting that the earnings beat and margin expansion validate Unity’s strategic reset. The company’s guidance for Q4 2025—revenue of $480–$490 million and adjusted EBITDA of $110–$115 million—signals confidence in continued demand for its AI‑driven products and a path toward sustainable profitability.
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