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Mar 31
Unity Q1 2025 Earnings Report
Unity reported Q1 2025 results with revenue and adjusted EBITDA exceeding expectations.
Key Takeaways
Unity delivered $435M in revenue with a smaller net loss compared to Q1 2024, driven by cost discipline and strong early performance of Unity Vector.
Revenue reached $435M, down 6% year-over-year due to portfolio reset.
Net loss narrowed significantly to $78M from $291M a year earlier.
Positive free cash flow of $7.3M, reversing last year's negative outflow.
Strong adjusted EBITDA margin at 19%, aided by cost control and early Unity Vector traction.
Unity
Unity
Unity Revenue by Segment
Revenue by Segment
Create Solutions Revenue
CapyFin.comGrow Solutions Revenue
CapyFin.com Forward Guidance
Unity expects Q2 2025 revenue between $415M and $425M and adjusted EBITDA between $70M and $75M.
Positive Outlook
- Revenue guidance remains strong despite portfolio changes.
- Unity Vector is rolling out ahead of schedule.
- Cost discipline is driving better-than-expected EBITDA margins.
- Improved cash flow performance provides financial flexibility.
- Positive momentum in Unity 6 adoption supports future growth.
Challenges Ahead
- Revenue continues to decline year-over-year due to portfolio reset.
- Some Grow products showed declining performance.
- Adjusted EPS declined slightly compared to prior year.
- Operating loss remains substantial despite improvements.
- Q2 guidance implies sequential revenue deceleration.
Revenue & Expenses
Visualization of income flow from segment revenue to net income