Unity Reports Second Quarter 2025 Financial Results

Unity, a leading platform for creating and growing games and interactive experiences, has released its financial results for the second quarter ending June 30, 2025. The company has highlighted several key financial metrics and strategic initiatives that mark significant developments in its business operations.

Financial Highlights

Unity reported a revenue of $441 million for the second quarter of 2025, a slight decrease from $449 million in the same period of 2024. The company's GAAP net loss was $107 million, with a margin of (24)%, compared to a net loss of $126 million in the second quarter of 2024. The GAAP basic and diluted net loss per share was $0.26, an improvement from $0.32 in the same period last year. Adjusted EBITDA stood at $90 million, with a margin of 21%, down from $113 million and a margin of 25% in the second quarter of 2024. Free cash flow for the quarter was $127 million, compared to $80 million in the same period last year.

Business and Operational Highlights

Unity's Create Solutions revenue increased to $154 million, up 2% year-over-year, driven primarily by the sale of a term license for approximately $12 million and increases in subscription revenue. However, the Grow Solutions revenue saw a decline to $287 million, down 4% year-over-year, despite a 15% sequential growth in the Unity Ad Network during the second quarter.

Strategic Initiatives and Corporate Developments

The company has introduced a new AI platform, Unity Vector, which is expected to transform its growth prospects. Unity Vector contributed to the 15% sequential growth in the Unity Ad Network. Additionally, Unity's liquidity position improved, with cash and cash equivalents, and restricted cash increasing to $1,702 million as of June 30, 2025, up from $1,528 million as of December 31, 2024.

Management's Perspective

Matt Bromberg, President and CEO of Unity, stated, "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. Results once again exceeded expectations, substantially beating the high-end of our guidance for both revenue and Adjusted EBITDA."

Future Outlook

For the third quarter of 2025, Unity expects revenue to be in the range of $440 million to $450 million. The company anticipates mid-single digit sequential revenue growth in its Grow segment and a slight sequential decline in its Create segment due to the impact of a large customer win in Q2. Unity also projects an Adjusted EBITDA of $90 million to $95 million for the third quarter.

SEC Filing: Unity Software Inc. [ U ] - 8-K - Aug. 06, 2025