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Jun 30
Unity Q2 2025 Earnings Report
Unity reported its second quarter 2025 financial results, exceeding revenue and Adjusted EBITDA guidance, driven by strong performance in its Unity Ad Network and the new AI platform, Unity Vector.
Key Takeaways
Unity delivered a strong second quarter in 2025, with revenue reaching $441 million and Adjusted EBITDA at $90 million, both surpassing guidance. The company's new AI platform, Unity Vector, significantly contributed to the 15% sequential growth in the Unity Ad Network, highlighting an inflection point in its performance despite a slight year-over-year revenue decline.
Revenue for Q2 2025 was $441 million, exceeding the high-end of guidance.
Adjusted EBITDA reached $90 million, also substantially beating the high-end of guidance.
The new AI platform, Unity Vector, drove a 15% sequential growth in the Unity Ad Network.
Free cash flow for the quarter was $127 million, a significant increase from $80 million in the prior year.
Unity
Unity
Unity Revenue by Segment
Revenue by Segment
Create Solutions Revenue
CapyFin.comGrow Solutions Revenue
CapyFin.com Forward Guidance
For Q3 2025, Unity expects revenue between $440 million and $450 million and Adjusted EBITDA between $90 million and $95 million. Grow Solutions are anticipated to see mid-single digit sequential revenue growth, while Create Solutions are expected to experience a slight sequential decline.
Positive Outlook
- Expected mid-single digit sequential revenue growth for Grow Solutions in Q3.
- Anticipated Adjusted EBITDA of $90 million to $95 million for Q3, indicating continued profitability.
- Continued strong performance expected from the Unity Ad Network.
- Focus on accelerating product innovation and delivering for customers.
- Leveraging competitive advantages and anticipated positive impacts.
Challenges Ahead
- Expected slight sequential decline in Create Solutions revenue from Q2 to Q3 due to a large customer win in Q2.
- Potential impact of macroeconomic conditions such as inflation and high interest rates.
- Competition in the advertising market could affect performance.
- Ongoing geopolitical instability, particularly in Israel, where a significant portion of Grow operations is located.
- Risks related to changes in terms of service, policies, or technical requirements from platform providers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income