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Unity

Unity (U) Q1 2025 Earnings

Reported May 7, 2025 at 7:54 AM ET · SEC Source

Q1 25 EPS

$0.24

BEAT +165.48%

Est. $-0.37

Q1 25 Revenue

$435.0M

BEAT +4.41%

Est. $416.6M

vs S&P Since Q1 25

+1.4%

BEATING MARKET

U +34.4% vs S&P +33.1%

Market Reaction

Did U Beat Earnings? Q1 2025 Results

Unity Software delivered a decisive earnings beat in Q1 2025, with aggressive cost discipline and the early rollout of its Unity Vector ad mediation product driving results well ahead of Wall Street expectations. The game engine and monetization plat… Read more Unity Software delivered a decisive earnings beat in Q1 2025, with aggressive cost discipline and the early rollout of its Unity Vector ad mediation product driving results well ahead of Wall Street expectations. The game engine and monetization platform posted adjusted EPS of $0.24, clearing the consensus estimate of negative $0.37 by 165.48%, while revenue of $435.00 million topped forecasts by 4.41%, though it still slipped 5.5% year-over-year as the company deliberately wound down non-strategic product lines. The narrowing of the GAAP net loss to $77.91 million from $291.48 million a year earlier underscored how sharply total operating expenses have been cut, falling more than 35% to $448.98 million. Adjusted EBITDA reached $83.94 million at a 19% margin, improving from 17% a year prior. Looking ahead, Unity guided Q2 2025 revenue of $415.00 million to $425.00 million and Adjusted EBITDA of $70.00 million to $75.00 million, with management pointing to Unity Vector's momentum and strong demand for Unity 6 as key growth levers.

Key Takeaways

  • • Better cost control driving improved Adjusted EBITDA margin to 19%
  • • Strong subscription revenue growth in Create Solutions
  • • Earlier than expected Unity Vector rollout partially offsetting Grow Solutions declines
  • • Significant reduction in operating expenses including restructuring costs
  • • Stock-based compensation expense reduced significantly year-over-year
24/7 Wall St

U YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

U Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“The Company's first quarter results once again meaningfully exceeded expectations on both revenue and Adjusted EBITDA, highlighting our progress as we continue to build a culture of execution and discipline.”

— Matt Bromberg, Q1 2025 Earnings Press Release

Back to U Stock Page