Unity's Net Loss Improves 15.1% in Q2 2025

Unity reported its financial results for the second quarter ended June 30, 2025. The company's revenue reached $441 million, reflecting a 2% year-over-year decrease from $449 million in the second quarter of 2024. Despite the slight revenue decline, the GAAP net loss significantly improved, coming in at $107 million for Q2 2025, compared to a net loss of $126 million in the same period last year, marking a 15.1% improvement. GAAP basic and diluted net loss per share was $0.26. Analyst estimates for revenue were $426.69 million, and for EPS were -$0.25. Unity exceeded analyst expectations for both revenue and EPS in Q2 2025.

Segment Performance Highlights

The company's performance was mixed across its segments. Create Solutions revenue increased to $154 million, a 2% year-over-year rise from $151 million in Q2 2024. This growth was primarily driven by a $12 million term license sale and increases in subscription revenue, partially offset by decreases in non-strategic professional services and consumption services. Grow Solutions revenue, however, decreased by 4% year-over-year to $287 million. This decline was despite a strong performance from the Unity Ad Network, which grew 15% quarter-over-quarter in Q2 2025 and now accounts for 49% of total Grow Solutions revenue, counteracted by declines in other Ads products.

Management Outlook

Matt Bromberg, President and CEO of Unity, stated that the second quarter of 2025 represents an inflection point for the company, attributing the improved performance to accelerated product innovation and customer focus. He highlighted the significant impact of the new AI platform, Unity Vector, which is seen as transforming the company's growth prospects. For the third quarter of 2025, Unity anticipates revenue to be between $440 million and $450 million. The company expects mid-single-digit sequential revenue growth in Grow Solutions from Q2 to Q3, while Create Solutions is projected to experience a slight sequential decline due to the impact of a large customer win in Q2. Adjusted EBITDA for Q3 2025 is forecast to be between $90 million and $95 million.