Unity Software Q2 Earnings Beat and Outlook
Unity Software Inc. (NYSE: U) saw its shares surge 17% after releasing a second‑quarter earnings report that exceeded Wall Street expectations. The company posted an adjusted loss of $0.05 per share, better than the consensus estimate of a $0.11 loss, while revenue reached $546 million, representing a 24% year‑over‑year increase and surpassing the consensus forecast of $514.62 million.
Revenue classified as “strategic” – which excludes the ironSource Ads network and Supersonic publishing business – grew 38% YoY to $486 million, reflecting strong performance from the Unity Ads Network and the newly launched Unity Vector AI.
Segment‑level results showed Grow Solutions revenue climbing 35% YoY to $389 million, driven primarily by growth in the Unity Ads Network and Vector AI. Create Solutions revenue rose modestly 2% YoY to $158 million, with subscription revenue gains partially offset by declines in cloud and hosting services.
Adjusted EBITDA for the quarter was $160 million, delivering a 29% margin, compared with $90 million and a 21% margin in the second quarter of 2025. Free cash flow improved to $202 million from $127 million in the comparable prior‑year period.
Looking ahead, Unity provided Q3 revenue guidance of $540 million to $550 million, with a midpoint of $545 million, which is above the analyst consensus of $539.3 million. The company also projected adjusted EBITDA of $185 million to $190 million, indicating 69% to 74% year‑over‑year growth.
Matt Bromberg, President and Chief Executive Officer, described the results as “arguably the best quarter in Unity’s history as a public company,” emphasizing the contribution of Unity Vector AI and the company’s product roadmap to creator, player, and shareholder value.