Unity reported a 6% year-over-year decline in revenue for the first quarter of 2025, totaling $435 million

Unity has announced its financial outcomes for the first quarter of the 2025 fiscal year, indicating a revenue decline in its Create and Grow Solutions sections by 8% and 4%, respectively.

The firm cited the reduction in Create Solutions revenue as largely due to decreased income from professional services and consumption services, attributed to a restructuring of its portfolio. However, this downturn was somewhat balanced by a substantial increase in subscription revenue.

For the Grow Solutions segment, the revenue drop resulted from falls in certain Grow products, although this was mitigated by the premature rollout of Unity Vector.

Key financial figures include:

Financial Performance

• Total Revenue: $435 million (a 6% decrease from the previous year)
• Create Solutions Revenue: $150 million (an 8% decline from the previous year)
• Grow Solutions Revenue: $285 million (a 4% drop from the previous year)
• Net Loss: $78 million with a margin of 18%

Despite the overall decline, Unity reported that solid performance in both the Grow and Create segments resulted in revenues exceeding forecasts, surpassing the higher end of their guidance, with a 5% beat in revenue and a 29% beat in adjusted EBITDA expectations.

Unity 6, described as their "most stable and performant version," has achieved over 4.4 million downloads to date, with 43% of active users transitioning to it.

Unity highlighted its influence in game development through the Independent Gaming Festival Awards of 2025, where all categories featured games developed using its platform. Titles like "Neva" by Nomada Studio and "Thank Goodness You're Here" by Coal Supper secured 2025 BAFTA Awards, underscoring the creativity nurtured through Unity's tools.

The company also noted the completion of its ad network's shift to the new AI platform, Unity Vector, ahead of the timeline, now governing all iOS and Android network traffic. This was called a pivotal achievement as the self-learning models adjust dynamically, aiding customers in a highly competitive mobile market.

"Our first quarter results have substantially outperformed expectations in terms of both revenue and Adjusted EBITDA, illustrating our progress as we cultivate a culture of execution and discipline," stated Matt Bromberg, President and CEO of Unity.

"The positive reception of Unity Vector and sustained robust demand for Unity 6 highlights our prominent role as the leading integrated support platform for developers throughout the entire game development process."