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Dec 31, 2025
Unity Q4 2025 Earnings Report
Unity reported its financial results for the fourth quarter and fiscal year ended December 31, 2025.
Key Takeaways
Unity exceeded its fourth-quarter guidance, driven by strong performance from Vector with mid-teen sequential revenue growth and the best growth in Create in over two years. The company's revenue increased by 10% year-over-year to $503 million, with adjusted EBITDA reaching $125 million.
Fourth quarter revenue was $503 million, a 10% increase year-over-year.
Adjusted EBITDA for the quarter was $125 million, with a margin of 25%.
GAAP net loss was $89 million, resulting in a net loss margin of (18)%.
Net cash provided by operating activities was $121 million, and free cash flow was $119 million.
Revenue by Segment
Forward Guidance
For Q1 2026, Unity expects revenue between $480 million and $490 million, with adjusted EBITDA between $105 million and $110 million.
Positive Outlook
- Expected double-digit year-over-year revenue growth in Create Solutions (excluding non-strategic revenue).
- Continued strong adoption of Unity 6.
- Vector demonstrating rapid growth.
- Goal of becoming essential infrastructure for interactive entertainment is coming into focus.
- Improved cost control contributing to better EBITDA margins.
Challenges Ahead
- Grow Solutions revenue is expected to be flat on a sequential basis.
- Declines in the IronSource Ad Network partially offset growth in Grow Solutions in the previous quarter.
- Potential variability of expenses for non-GAAP financial measures.
- Macroeconomic conditions, such as inflation and high interest rates, could impact future results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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