Unity (U) Q2 2025 Earnings
How Did U Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +2.54%.
Did U Beat Earnings? Q2 2025 Results
Yes. Unity reported Q2 2025 earnings of $0.18 a share on Aug 6, 2025, beating the $-0.28 consensus estimate by 163.9%. Revenue was $440.9M against a $426.7M estimate.
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.
- 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
“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.”
Unity CEO, on the earnings call
What Was Unity's Outlook in Q2 2025?
For Q3 2025, Unity expects revenue of $440 million to $450 million and Adjusted EBITDA of $90 million to $95 million. In Grow, the company expects mid-single digit sequential revenue growth from Q2 to Q3. In Create, a slight sequential decline from Q2 to Q3 is expected due to the impact of a large customer win in Q2. The company believes it is at an inflection point, with Unity Vector transforming growth prospects and continued cost discipline supporting margin improvement over time.
U YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $440.9M | $449.3M | −1.9% |
| Gross Profit | $326.7M | $340.6M | −4.1% |
| Operating Income | −$118.8M | −$109.7M | +8.2% |
| Net Income | −$107.4M | −$93.8M | +14.5% |
U Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.