Loading...
•
Sep 30
Unity Q3 2025 Earnings Report
Unity posted solid Q3 2025 results with revenue growth and improved adjusted EBITDA, though it continued to report a GAAP net loss.
Key Takeaways
Unity exceeded expectations in Q3 2025 with stronger-than-expected revenue and EBITDA driven by its Vector AI and Create Solutions, though GAAP net loss persisted due to ongoing restructuring and high operating expenses.
Revenue grew to $471 million, up from $447 million in Q3 2024.
GAAP net loss was $127 million, with a net loss margin of 27%.
Adjusted EBITDA reached $109 million with a margin of 23%.
Free cash flow improved to $151 million, reflecting operational strength.
Unity
Unity
Unity Revenue by Segment
Revenue by Segment
Create Solutions Revenue
CapyFin.comGrow Solutions Revenue
CapyFin.com Forward Guidance
Unity expects continued growth in both Create and Grow segments in Q4, led by product enhancements and AI-driven solutions.
Positive Outlook
- Q4 revenue guidance of $480M–$490M.
- Q4 adjusted EBITDA guidance of $110M–$115M.
- Continued investment in AI and Unity Vector to drive future growth.
- Strong performance of Unity Ad Network anticipated to continue.
- Momentum in Create Solutions expected to accelerate with Unity 6.3.
Challenges Ahead
- Persistent GAAP net losses due to high operating expenses.
- Potential macroeconomic risks like inflation and high interest rates.
- Geopolitical risks in Israel affecting Grow operations.
- Uncertain customer reengagement after pricing changes.
- Ongoing restructuring costs continue to weigh on results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income