Unity's Vector Ad Platform Fuels First GAAP Profit Since IPO

Unity reported adjusted earnings per share of $0.44 for the third quarter of 2026, beating the $0.345 consensus estimate. Revenue came in at $622.1 million, beating expectations and growing 32% year over year. The quarter marked Unity's first GAAP profitable period since the company went public, with net income of $121.2 million compared to a loss of $126.4 million in the same quarter a year earlier.

The engine behind the results was the AI-powered Vector advertising platform, which CEO Matt Bromberg said grew 126% year over year and 40% sequentially within the Unity Ads Network. That momentum pushed Strategic Grow revenue to $431.5 million, up 90%. Grow Solutions as a reporting segment reached $457 million, up 44%, while Create Solutions contributed $165 million, up 8% on higher subscription revenue.

GAAP gross margin expanded to 82% from 74% a year ago, and adjusted EBITDA reached $256.6 million, representing a 41% margin versus 23% in the prior-year period. Free cash flow came in at $219.7 million, up 45% year over year, giving Unity a cash and equivalents position of roughly $2.6 billion.

Looking ahead, Unity guided Q4 2026 Strategic revenue of $683 million to $691 million, up 65% to 67% year over year, with adjusted EBITDA of $290 million to $295 million. Strategic Grow revenue alone is expected to reach $515 million to $520 million, up 105% to 107%. The company also plans to repay its convertible notes due November 15, 2026, a near-term cash commitment investors will be watching alongside the continued Vector ramp and the Google partnership through Unity Spark.