Unity experiences a slight uptick in revenue for the third quarter of 2025 as downloads of Unity 6 near the 10 million mark
Unity recently shared its third-quarter financial performance, posting modest yet surpassing expectations in various areas such as Create Solutions and Grow Solutions. Total revenue saw a 5% increase from the previous year, reaching $471 million.
Key takeaways include:
Financial Overview
- Total Revenue: $471 million, a 5% annual increase
- Create Solutions Revenue: $152 million, growing 3% from the previous year
- Grow Solutions Revenue: $318 million, marking a 6% year-over-year growth
- Net Loss: $127 million, with a margin of 27%
Notable Developments
The rise in Create Solutions revenue was largely due to significant enhancements in subscription revenue, although this was partially offset by reductions in consumption services brought about by a portfolio realignment. Similarly, the growth in Grow Solutions was primarily driven by the success of the Unity Ad Network, though moderated by declines in other Grow-related businesses.
Matthew Bromberg, Unity's CEO, president, and director, expressed enthusiasm over the progress in the Create division, noting that after removing nonstrategic revenue impacts, the Create subscription software sector saw a 13% year-on-year increase, highlighting improvements in product quality and customer engagement. "Democratizing technology access is central to Unity's mission," he emphasized, "and advances in AI will further this mission."
Bromberg also reported that since the launch of Unity 6, downloads have surged by 42% from the last quarter, reaching over 9.4 million. User-reported issues have decreased by 22%, and the platform's upgraded features have led to significant adoption and continuity growth.
Unity's third-quarter accomplishments not only surpassed revenue and Adjusted EBITDA forecasts but also underscored the power of Unity Vector AI and the sustained strength in the Create sector. With consumer interest in interactive entertainment on the rise, the company is positioned for continued expansion.
Predictions for future quarters include anticipated revenues of $480-$490 million, with a sequential mid-single-digit growth in Grow and an annual high-single-digit increase in Create. Bromberg indicated a strategic shift towards augmented and virtual reality, emphasizing Unity's preparation to accommodate the anticipated 38% rise in AR and VR headset shipments by 2025 as noted by Seeking Alpha.
In recent developments, Unity identified a significant security vulnerability in its development tool dating back to 2017. Larry Hryb, Unity's director of community and advocacy, assured that there is no evidence of the vulnerability being exploited or any adverse impact on users or customers.
