Companies /Technology

Unity Software Inc

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

Q4 2025 Earnings

Reported Feb 11, 2026, 7:01am ET · SEC source
$0.24
Beat +214.61%
EPS · est. $-0.21
$503.1M
Beat +2.08%
Revenue · est. $492.8M
−4.4%
Trailing market
U vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−20%0+20%Feb 11Feb 12report 7:01am ETearnings−1.3%−17.3%
−20%0+20%Feb 11Feb 12earnings−1.3%−17.3%
U −17.3%S&P 500 −1.3%
−20%0+20%Feb 11Feb 12report 7:01am ETearnings−1.5%−17.3%
−20%0+20%Feb 11Feb 12earnings−1.5%−17.3%
U −17.3%NASDAQ −1.5%
−20%0+20%+40%Feb 10Feb 19report 7:01am ETearnings−1.3%−14.9%
−20%0+20%+40%Feb 10Feb 19earnings−1.3%−14.9%
U −14.9%S&P 500 −1.3%
−20%0+20%+40%Feb 10Feb 19report 7:01am ETearnings−1.5%−14.9%
−20%0+20%+40%Feb 10Feb 19earnings−1.5%−14.9%
U −14.9%NASDAQ −1.5%
−26.32%
Day of report
−8.22%
Next session
−13.64%
One week
−7.71%
30 days

S&P 500 over the same 30 days: −3.31%.

Did U Beat Earnings? Q4 2025 Results

Unity Software closed out fiscal 2025 on a strong note, posting Q4 revenue of $503.09 million, a 10.1% year-over-year gain that topped the $493.28 million consensus estimate by nearly 2%, while adjusted EPS of $0.24 beat the $0.21 Wall Street forecast by 17.02%. The standout driver was Unity Vector, the company's AI-powered ad mediation platform, which notched its third consecutive quarter of mid-teen sequential revenue growth and swelled to 56% of total Grow Solutions revenue, more than offsetting continued erosion in the legacy IronSource Ad Network. Create Solutions also contributed, delivering its best growth in over two years at $165.00 million as Unity 6 adoption accelerated at the fastest pace in company history. Adjusted EBITDA expanded to $124.89 million at a 25% margin, up from 23% a year earlier, reflecting tighter cost discipline. The strong close, however, was tempered by forward guidance; Unity projects Q1 2026 revenue of $480 million to $490 million, a sequential step-down that some analysts view as a meaningful reset, with adjusted EBITDA guided to $105 million to $110 million.

Key Takeaways
  • Unity Vector experienced third consecutive quarter of mid-teen sequential revenue growth, representing 56% of Grow Solutions revenue
  • Strong subscription revenue growth drove Create Solutions performance
  • Better cost control and higher revenue improved adjusted EBITDA margins
  • GAAP net loss margin improved from (27)% to (18)% year-over-year

“Fourth quarter results once again comfortably exceeded the high-end of our guidance, led by exceptional performance from Vector, which experienced its third consecutive quarter of mid-teen sequential revenue growth, and the best growth we've seen in Create in over two years.”

Unity CEO, on the earnings call

Forward Guidance & Outlook

For Q1 2026, Unity expects revenue of $480 million to $490 million. In Grow, revenue is expected to be flat on a sequential basis. In Create, double-digit year-over-year revenue growth is expected, excluding the impact of non-strategic revenue. Adjusted EBITDA is expected to be $105 million to $110 million. The company continues to invest in AI tools and expects multi-year growth from Vector leveraging behavioral data available through Unity Runtime.

U YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$200.0M$400.0M$457.1M$503.1MRevenue$341.6M$373.9MGross Profit$-93,544,704$-106,510,000Operating Income$-70,299,623$-89,393,000Net Income
$0$200.0M$400.0MRevenueGross ProfitOperating IncomeNet Income

U Revenue by Segment

Grow Solutions$338.0M+11.0%
Create Solutions$165.0M+8.0%

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