Unity Software (U) Company Report

Unity announced a strategic partnership with Epic Games, which will enable Unreal Engine developers to integrate Unity's in-app purchase SDK and allow Unity developers to publish games directly into Fortnite's ecosystem starting in 2026. This collaboration aims to leverage Fortnite's 100 million monthly active users and its significant third-party content engagement.
Unity is enhancing its In-App Purchase (IAP) solution to provide developers with greater flexibility, including support for web shops and third-party payment processors such as Stripe and Coda, designed to reduce platform fees and increase developer revenue.
The new Platform Toolkit was introduced to streamline multi-platform game deployment by offering a single code path for integrating essential platform SDKs across various systems, including Nintendo Switch 2 and Android XR.
Unity reported a 30% decline in regressions and a 22% reduction in user-reported issues over the past two years, with 2025 projected to have the lowest open bug backlog in three years, indicating improved stability and performance of the Unity engine.

Nov 19, 2025, 9:00 AM

Transcript

Unity Unveils Unity 6, Strategic Partnerships, and New Developer Tools at Unite 2025 Keynote

Product Launch

New Projects/Investments

Unity announced Unity 6, featuring significant enhancements in performance, stability, and security, including Unity Core Standards and production verification through partnerships with companies like Konami and 2K Games.
New offerings include Unity Studio, a web authoring tool for non-gaming customers in beta for 2026, and the Unity AI Gateway, an early access beta for integrating AI into workflows.
The company is expanding its deployment and growth solutions with a new Platform Toolkit for simplified cross-platform development and native commerce solutions to manage digital catalogs, payments, and web stores across various platforms.
A major partnership with Epic Games was revealed, which will enable Unity's In-App Purchase SDK for Unreal Engine developers and allow Unity games to be published directly into the Fortnite ecosystem starting next year.

Nov 19, 2025, 9:00 AM

Transcript

Unity Exceeds Q3 2025 Guidance with Strong Grow and Create Segment Performance

Earnings

Revenue Acceleration/Inflection

Product Launch

Unity's Q3 2025 financial results significantly surpassed both guidance and consensus for revenue and adjusted EBITDA.
The Grow segment achieved an 11% quarter-over-quarter increase, primarily driven by the strong performance of Vector AI.
The Create subscription software business, after backing out non-strategic revenue, increased 13% year-over-year.
Key strategic product advancements include the continued development of Vector AI, the launch of the Developer Data framework, Day One support for Android XR, and a new Unity In-App Payments initiative.
Management maintains a bullish outlook on the overall games market, anticipating continued growth and Unity's central role in supporting developers across the ecosystem.

Nov 5, 2025, 1:30 PM

Transcript

Unity Reports Strong Q3 2025 Results and Provides Q4 2025 Guidance

Earnings

Guidance Update

Product Launch

Unity reported strong Q3 2025 financial results, with total revenue and adjusted EBITDA meaningfully exceeding guidance and consensus. The Grow segment saw significant sequential and year-over-year growth, driven by the performance of Vector AI.
The Create segment also demonstrated year-over-year growth, particularly in its subscription business when excluding non-strategic revenue. The company achieved record free cash flow in the quarter.
For Q4 2025, Unity provided guidance for continued revenue growth and stable adjusted EBITDA margins.
Unity expanded its offerings with the launch of Unity IAP for cross-platform commerce and rolled out the Developer Data Framework, which has seen high adoption rates and is expected to impact financials in 2026.

Metric	Q3 2025	Q4 2025 (Guidance)
Total Revenue ($USD Millions)	$470	$480 - $490
Grow Segment Revenue ($USD Millions)	$318	N/A
Create Segment Revenue ($USD Millions)	$152	N/A
Adjusted EBITDA ($USD Millions)	$109	$110 - $115
Free Cash Flow ($USD Millions)	$151	N/A

Nov 5, 2025, 1:30 PM

Transcript

Unity Reports Strong Q3 2025 Results and Provides Q4 2025 Guidance

Earnings

Guidance Update

Revenue Acceleration/Inflection

Unity exceeded Q3 2025 guidance for both revenue and adjusted EBITDA, with Grow segment revenue reaching $318 million (up 11% sequentially and 6% year over year) and Create segment revenue at $152 million (up 13% year-over-year excluding non-strategic revenue).
The company reported record free cash flow of $151 million in Q3 2025, an improvement of $36 million year over year, marking its second consecutive quarter of record free cash flow.
For Q4 2025, Unity forecasts total revenues between $480 million and $490 million and adjusted EBITDA between $110 million and $115 million, with adjusted EBITDA margins expected to remain stable.
Growth was primarily driven by the exceptional performance of Unity Vector AI in the Grow segment, and in the Create segment, by ARPU improvements from ongoing price increases, continued momentum in China, and growth in the industry business.

Nov 5, 2025, 1:30 PM

Transcript

Unity Reports Q3 2025 Financial Results

Earnings

Guidance Update

Unity reported Q3 2025 revenue of $471 million, a 5% year-over-year increase, and Adjusted EBITDA of $109 million with a 23% margin, both of which "meaningfully exceeded expectations".
The company generated $155 million in net cash provided by operating activities and $151 million in free cash flow during Q3 2025.
For Q4 2025, Unity anticipates revenue between $480 million and $490 million and Adjusted EBITDA between $110 million and $115 million.

Nov 5, 2025, 12:00 PM

8-K

Unity Reports Third Quarter 2025 Financial Results

Earnings

Guidance Update

Revenue Acceleration/Inflection

Unity reported $471 million in revenue for the third quarter ended September 30, 2025, an increase of 5% year-over-year from $447 million in Q3 2024.
Adjusted EBITDA for Q3 2025 was $109 million, with a 23% margin, compared to $92 million and a 21% margin in Q3 2024.
Adjusted earnings per share for Q3 2025 was $0.20, up from $0.19 in the third quarter of 2024.
As of September 30, 2025, Unity's cash and cash equivalents, and restricted cash totaled $1,909 million.
For the fourth quarter of 2025, Unity expects revenue to be between $480 million and $490 million, and Adjusted EBITDA between $110 million and $115 million.

Nov 5, 2025, 12:00 PM

Press Release

Unity Launches Cross-Platform Commerce Management for Game Developers

Product Launch

New Projects/Investments

Unity has launched a new enhancement to its engine, enabling game developers to manage their global commerce and catalog from a single dashboard across mobile, web, and PC, providing unified digital stores free from platform-specific restrictions.
The company has partnered with Stripe as the first provider for this new service, which will offer merchant-of-record solutions, app-to-web payments, and manage fraud, disputes, and tax.
This new product is currently in limited early access.
Unity highlights that over $120 billion in global in-app purchases are projected in mobile games, with more than 70% of the top 1,000 mobile games built using its engine.

Oct 22, 2025, 12:30 PM

Press Release

Unity Announces Android XR Support in Unity 6

Product Launch

New Projects/Investments

Unity has made Android XR support generally available in Unity 6, enabling developers to create and port immersive experiences for Samsung's Galaxy XR and other Android XR devices.
This initiative, developed in collaboration with Google and Samsung, aims to foster an open, scalable Android XR ecosystem, allowing developers to reach new markets more efficiently.
Several launch-day experiences for Galaxy XR, including Google Maps XR, NFL Pro Era, and Inside [JOB], were built using Unity's platform.

Oct 22, 2025, 2:00 AM

Press Release

Unity Appoints Chris Feo as SVP Sales & Partnerships, Programmatic

Management Change

Hiring

New Projects/Investments

Unity has appointed Chris Feo as Senior Vice President of Sales and Partnerships, Programmatic, effective October 14, 2025.
Feo will lead growth for Unity's Audience Hub offering, aiming to accelerate privacy-first advertising across gaming and connected TV by connecting brand marketers with gaming audiences.
He brings over two decades of experience in the digital ecosystem, having previously pioneered cross-device identity at Tapad and led global sales at Experian.
The Audience Hub, launched in June, has shown strong performance, delivering a 103.6% lift in engagement rates in beta campaigns.
This appointment reflects Unity's continued investment in building its programmatic advertising footprint.

Oct 14, 2025, 1:00 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for Unity Software.

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