Unity reported a strong fourth quarter, exceeding guidance with double-digit revenue growth driven by its Vector offering and increased Unity 6 adoption. The company demonstrated improved profitability and positive free cash flow, signaling a positive trajectory for its interactive entertainment infrastructure goals.
Revenue increased 10% year-over-year to $503 million, comfortably exceeding guidance.
positiveAdjusted EBITDA was $125 million, with a margin of 25%, up from 23% in the prior year, driven by better cost control and higher revenue.
positiveFree cash flow was $119 million, an increase from $106 million in the prior year.
positiveCreate Solutions revenue grew 8% year-over-year, driven by strong subscription revenue growth.
positiveGrow Solutions revenue growth was partially offset by declines in the IronSource Ad Network, which represented 11% of total Grow Solutions revenue.
attentionGAAP net loss was $89 million, with a margin of (18)%.
negativeQ1 2026 guidance for Grow Solutions revenue is expected to be flat sequentially.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Create Solutions | N/A | — | — | — |
Grow Solutions | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Fourth quarter results once again comfortably exceeded the high-end of our guidance, led by exceptional performance from Vector, which experienced its third consecutive quarter of mid-teen sequential revenue growth, and the best growth we’ve seen in Create in over two years.
With Vector demonstrating rapid growth and Unity 6 adoption at the fastest rate we’ve ever experienced, our goal of becoming the essential infrastructure for the next generation of interactive entertainment is coming into clear focus.
Revenue was $503 million, up 10% year-over-year.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.