Unity Software Inc. (NYSE: U), renowned for its innovative platform that empowers the creation and growth of games and interactive experiences, announced its financial results for the third quarter ending September 30, 2025. The company reported revenues that exceeded expectations, driven by robust performance in its Create and Grow Solutions, particularly through the integration of Unity Vector AI.

CEO John Riccitiello expressed optimism regarding the results, stating, “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.”

2. Financial Highlights

Revenue and Profitability

Total Revenue: Unity reported total revenue of $471 million, marking a 5% increase from $447 million in the same quarter of 2024.

Create Solutions Revenue: Revenue from Create Solutions was $152 million, a slight increase of 3% year-over-year, attributed to strong subscription growth despite a decline in consumption services revenue due to a portfolio reset.

Grow Solutions Revenue: Grow Solutions saw revenue of $318 million, up 6% from the previous year, primarily driven by strong performance of the Unity Ad Network, enhanced by Unity Vector.

Net Loss and EBITDA

GAAP Net Loss: The company reported a net loss of $127 million, with a margin of (27%), which is a marginal increase from the $125 million loss recorded in Q3 2024.

Net Loss Per Share: Basic and diluted net loss per share was $0.30, slightly improving from $0.31 in the third quarter of 2024.

Adjusted EBITDA: Adjusted EBITDA was reported at $109 million, reflecting a 23% margin and showing improvement from $92 million and a 21% margin in the same quarter last year.

Cash Flow and Liquidity

Net Cash from Operating Activities: The company generated $155 million in net cash from operating activities, an increase from $122 million in Q3 2024.

Free Cash Flow: Free cash flow stood at $151 million, up from $115 million in the prior year.

Cash Position: As of September 30, 2025, Unity had cash and cash equivalents of $1,909 million, an increase of $381 million from $1,528 million at the end of 2024, primarily driven by operations and proceeds from employee equity plans.

3. Forward Guidance for Q4 2025

Looking ahead, Unity expects to achieve a revenue range of $480 million to $490 million for the fourth quarter of 2025. The company anticipates:

Grow Solutions: Mid-single-digit sequential revenue growth.

Create Solutions: High-single-digit year-over-year revenue growth, excluding non-strategic revenue impacts.

Adjusted EBITDA: Projected between $110 million and $115 million.

4. Conclusion

Unity Software Inc.’s third quarter performance reflects a promising trajectory fueled by innovative technology and increasing demand for interactive entertainment. With strong revenue growth and a healthy cash position, Unity is well-positioned for continued expansion. As the company moves into Q4, it aims to capitalize on its successes while navigating the challenges of a rapidly evolving industry landscape.

For investors and analysts, Unity's strategic focus on its Create and Grow Solutions, combined with the integration of AI technologies, offers a glimpse into its potential for future growth and profitability. Unity will hold a public webcast today at 8:30 a.m. ET to further discuss these results and answer questions from the investment community.

Original press release