Companies /Technology

Unity Software Inc

NYSE: U Software - Application
$42.10
▼ $1.21 (−2.79%) today
Markets closed · 6:35am ET

Q3 2025 Earnings

Reported Nov 5, 2025, 7:00am ET · SEC source
$0.20
Beat +188.57%
EPS · est. $-0.23
$470.6M
Beat +3.87%
Revenue · est. $453.1M
+14.9%
Beating market
U vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%Nov 5Nov 6report 7:00am ETearnings−0.6%+4.0%
−6%0+6%Nov 5Nov 6earnings−0.6%+4.0%
U +4.0%S&P 500 −0.6%
−6%0+6%Nov 5Nov 6report 7:00am ETearnings−0.9%+4.0%
−6%0+6%Nov 5Nov 6earnings−0.9%+4.0%
U +4.0%NASDAQ −0.9%
−12%−6%0+6%Nov 4Nov 13report 7:00am ETearnings+0.9%−1.8%
−12%−6%0+6%Nov 4Nov 13earnings+0.9%−1.8%
U −1.8%S&P 500 +0.9%
−12%−6%0+6%Nov 4Nov 13report 7:00am ETearnings−0.0%−1.8%
−12%−6%0+6%Nov 4Nov 13earnings−0.0%−1.8%
U −1.8%NASDAQ −0.0%
+18.09%
Day of report
−5.74%
Next session
−5.45%
One week
+15.77%
30 days

S&P 500 over the same 30 days: +0.89%.

Did U Beat Earnings? Q3 2025 Results

Unity Software delivered a decisive earnings beat in Q3 2025, posting adjusted EPS of $0.20 against a consensus estimate of negative $0.23, a swing of 188.57% that underscored the company's accelerating profitability recovery. Revenue came in at $470.62 million, ahead of the $453.06 million consensus by 3.87% and up 5.4% year-over-year, with Grow Solutions leading the way at $318.00 million, a 6% annual gain powered by the Unity Ad Network and its Unity Vector AI engine. That AI-driven advertising platform proved to be the single most material driver of the quarter, enabling stronger monetization across the network while Create Solutions contributed $152.00 million, up 3% year-over-year. Adjusted EBITDA expanded to $109.50 million at a 23% margin, up from 21% a year ago, and shares climbed more than 8% on the news. Looking ahead, Unity guided Q4 revenue of $480 million to $490 million with Adjusted EBITDA of $110 million to $115 million, projecting mid-single digit sequential growth in Grow and high-single digit year-over-year gains in Create.

Key Takeaways
  • Strong performance of Unity Ad Network powered by Unity Vector AI
  • Growth in Create Solutions subscription revenue
  • Better cost control driving improved Adjusted EBITDA margins
  • Consumer enthusiasm for interactive entertainment

“Third-quarter results once again meaningfully exceeded expectations on both revenue and Adjusted EBITDA, powered by Unity Vector AI, as well as continued strength in Create. As consumer enthusiasm for interactive entertainment continues to grow, Unity is poised to grow with it.”

Unity CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, Unity expects revenue of $480 million to $490 million and Adjusted EBITDA of $110 million to $115 million. In Grow, the company expects mid-single digit sequential revenue growth from Q3 to Q4. In Create, high-single digit year-over-year revenue growth is expected, excluding the impact of non-strategic revenue. The company emphasized its position at an inflection point with continued investment in AI tools, expansion of Vector across Grow solutions, and expectations of multi-year growth from its product portfolio leveraging behavioral data through Unity Runtime.

U YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$200.0M$400.0M$446.5M$470.6MRevenue$334.5M$350.3MGross Profit$-124,597,565$-125,856,000Operating Income$-128,981,999$-126,828,000Net Income
$0$200.0M$400.0MRevenueGross ProfitOperating IncomeNet Income

U Revenue by Segment

Grow Solutions$318.0M+6.0%
Create Solutions$152.0M+3.0%

Figures from SEC filings and company reports. Not investment advice.