Unity Reports First Quarter 2025 Financial Results

Unity reported its financial results for the first quarter ending March 31, 2025, demonstrating a focus on operational discipline and a strategic portfolio reset. The company achieved revenue of $435 million, representing a 6% year-over-year decline, which management attributed to the ongoing portfolio transition. Despite the revenue contraction, the company exceeded expectations for Adjusted EBITDA, which reached $84 million with a 19% margin, compared to $79 million and a 17% margin in the same period of 2024.

Segment performance reflected the impact of the portfolio reset, with Create Solutions revenue falling 8% to $150 million due to lower professional and consumption services, though this was partially mitigated by subscription growth. Grow Solutions revenue declined 4% to $285 million, though this segment benefited from the early rollout of Unity Vector. The company significantly reduced its GAAP net loss to $78 million, down from $291 million in the first quarter of 2024, and reported positive free cash flow of $7 million, a notable improvement over the negative $15 million reported in the prior year.

The company maintains a strong liquidity position, ending the quarter with $1.55 billion in cash, cash equivalents, and restricted cash. Looking ahead to the second quarter of 2025, Unity projects revenue between $415 million and $425 million, with an expected Adjusted EBITDA of $70 million to $75 million. These results underscore a broader effort to streamline operations and prioritize core development tools, such as Unity 6 and Unity Vector, to support the full lifecycle of game development across mobile, PC, console, and extended reality platforms.