Unity Q2 2025: Revenue Exceeds Expectations, Adjusted EBITDA Surges 15%

• Unity Q2 revenue beats high-end of guidance • Unity Ad Network grows 15% sequentially • AI platform Unity Vector transforms growth prospects • CEO Matt Bromberg sees Q2 as inflection point • Unity reports better-than-expected financial results • Unity exceeds guidance for revenue and Adjusted EBITDA • Unity Vector delivers 15% sequential growth in Q2

San Francisco, CA - Unity (NYSE: U), the leading platform for creating and growing games and interactive experiences, announced its second-quarter 2025 financial results, which exceeded expectations. The company reported revenue of $441 million, down 2% year-over-year, and an Adjusted EBITDA of $90 million, with a margin of 21%. [1]

Matt Bromberg, President and CEO of Unity, highlighted the quarter as an inflection point, attributing the strong performance to the acceleration of product innovation and customer focus. The company's new AI platform, Unity Vector, played a significant role in transforming growth prospects, delivering 15% sequential growth in the Unity Ad Network during the second quarter. [1]

Revenue was primarily driven by the Create Solutions segment, which saw an increase of 2% year-over-year to $154 million, driven by a term license sale and subscription revenue growth. The Grow Solutions segment, however, saw a 4% year-over-year decline to $287 million, largely due to the strong performance of the Unity Ad Network, which now represents 49% of total Grow Solutions revenue. [1]

The company reported a GAAP net loss of $107 million for the quarter, with a margin of (24)%, compared to $126 million in the second quarter of 2024. Basic and diluted net loss per share was $0.26, compared to $0.32 for the same period in 2024. Net cash provided by operating activities was $133 million, up from $88 million in the second quarter of 2024. [1]

Looking ahead, Unity expects third-quarter revenue of $440 million to $450 million, with mid-single digit sequential revenue growth in Grow and a slight sequential decline in Create due to the impact of a large customer win in the second quarter. The company also expects third-quarter Adjusted EBITDA of $90 million to $95 million. [1]

Unity's strong Q2 performance underscores the company's commitment to innovation and customer focus, positioning it well for future growth. The integration of the Unity Vector AI platform is expected to continue driving growth and transforming the company's prospects. [1]

References:
[1] https://www.businesswire.com/news/home/20250806584004/en/Unity-Reports-Second-Quarter-2025-Financial-Results