Unity

Unity (U) Q2 2025 Earnings

Reported Aug 6, 2025 at 7:05 AM ET · SEC Source

Q2 25 EPS

$0.18

BEAT +163.85%

Est. $-0.28

Q2 25 Revenue

$440.9M

BEAT +3.34%

Est. $426.7M

vs S&P Since Q2 25

-28.4%

TRAILING MARKET

U -10.4% vs S&P +18.0%

Market Reaction

Did U Beat Earnings? Q2 2025 Results

Unity Software delivered a standout second quarter, posting adjusted EPS of $0.18 against a consensus estimate of negative $0.28, a beat of 163.85%, while revenue of $440.94 million cleared expectations by 3.34% despite slipping 1.9% year-over-year. … Read more Unity Software delivered a standout second quarter, posting adjusted EPS of $0.18 against a consensus estimate of negative $0.28, a beat of 163.85%, while revenue of $440.94 million cleared expectations by 3.34% despite slipping 1.9% year-over-year. The key driver behind the outperformance was Unity Vector, the company's new AI platform, which fueled 15% sequential growth in the Unity Ad Network and pushed that product to represent 49% of total Grow Solutions revenue, helping offset broader softness in select advertising products. CEO Matt Bromberg characterized the quarter as an inflection point, a view reinforced by free cash flow surging to $126.65 million from $79.61 million a year ago and cash on hand reaching $1.70 billion. Shares rose notably following the report, reflecting investor enthusiasm for the platform's growth trajectory. Looking ahead, Unity guided Q3 revenue of $440 million to $450 million and Adjusted EBITDA of $90 million to $95 million, projecting mid-single digit sequential Grow revenue growth as Vector continues gaining traction.

Key Takeaways

  • Unity Ad Network grew 15% sequentially in Q2 and now represents 49% of total Grow Solutions revenue
  • Create Solutions benefited from approximately $12 million term license sale and subscription revenue increases
  • Continued cost discipline contributed to better-than-expected Adjusted EBITDA margin
  • Free cash flow surged to $127 million from $80 million in Q2 2024
24/7 Wall St

U YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

U Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We believe the second quarter of 2025 will be remembered as an inflection point in the Unity story, where our commitment to accelerating product innovation and delivering for our customers translated to markedly better performance.”

— Matt Bromberg, Q2 2025 Earnings Press Release