Unity Software (U) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue reached $503 million, up 10% year-over-year, exceeding guidance, driven by exceptional Vector and Create segment growth.

• Net loss narrowed to $89 million from $123 million year-over-year, with net loss margin improving to (18)% from (27)%.

• Adjusted EBITDA rose to $125 million (25% margin), up from $106 million (23% margin) year-over-year.

• Vector achieved its third consecutive quarter of mid-teen sequential revenue growth and is projected to surpass a $1 billion annual run rate by end of 2026.

• Unity 6 adoption is the fastest in company history, with 90% of active creators using it for free.

Financial highlights

• Q4 Grow Solutions revenue: $338 million, up 6% sequentially and 11% year-over-year, led by Vector.

• Vector represented 56% of Grow revenue in Q4, up from 49% two quarters prior.

• Q4 Create Solutions revenue: $165 million, up 8% year-over-year; excluding non-strategic revenue, Create grew 16%.

• IronSource ad network's revenue share declined, now 11% of Grow Solutions revenue and less than 6% of total revenue.

• Adjusted EPS was $0.24, up from $0.20 year-over-year.

• Stock-based compensation expense reduced by 19%, now 21% of revenue.

Outlook and guidance

• Q1 2026 revenue guidance: $480–$490 million; Adjusted EBITDA: $105–$110 million.

• Vector expected to grow 10% sequentially in Q1 2026; Grow segment to return to sequential growth in Q2.

• Create segment forecasted for double-digit year-over-year growth in Q1 2026, excluding non-strategic revenue.

• Adjusted EBITDA margins expected to expand 300 basis points year-over-year in Q1 2026 and improve throughout the year.