Unity Posts First GAAP Quarterly Profit Since Going Public as Revenue Grows 32%
Key Facts
Unity posted net income of $121.590 million in the third quarter of 2026, compared with a net loss of $126.828 million a year earlier, marking its first GAAP-profitable quarter since going public. Diluted earnings per share were $0.25, compared with a loss of $0.30 in the year-earlier period. Total revenue rose 32% year over year to $622.092 million from $470.615 million. Chief Executive Matt Bromberg described the quarter’s performance as the company’s “strongest ever” up to that point. Bromberg linked the performance to Vector’s growth, which rose 126% year over year and 40% from the previous quarter, while company details show Grow’s growth came from advertising activity.
Grow Solutions revenue was about $457 million, up 44% from $318 million in the third quarter of 2025. Unity attributed the increase to growth in the Unity Ads network, supported by Vector technology. That was partly offset by a decline in the ironSource Ads network. The figures put Vector at the center of advertising revenue growth as a product or technology within the business, rather than a standalone business segment. Bromberg said Vector grew 126% year over year and 40% quarter over quarter during the quarter.
Create Solutions generated revenue of $165 million, up 8% from $152 million in the year-earlier period of 2025. The company said subscriptions drove the increase. That was partly offset by a decline in cloud and hosting services, linked to a product portfolio reset in 2025. The comparison shows that Create grew more slowly than Grow, whose revenue rose 44% in the same quarter. Growth across the two main businesses was thus split between advertising in Grow and subscriptions in Create.
Under Unity’s classification, strategic revenue was $596.572 million, up 59% year over year, while non-strategic revenue fell 73% to $25.520 million. Non-strategic revenue consists mainly of the ironSource network, which was discontinued in the second quarter, and the Supersonic business, which was sold on August 4, 2026. The shift puts growth in strategic revenue alongside the contraction of activities the company discontinued or sold. In the second quarter of 2026, Unity recorded a GAAP net loss of $23 million, despite a 24% year-over-year increase in revenue to $546 million. The third-quarter results followed that quarterly loss, with the company moving to positive net income.
Adjusted EBITDA rose to $257 million, with a 41% margin, compared with $109 million and a 23% margin in the third quarter of 2025. Unity attributed the improvement to higher revenue and continued cost controls. Cash generated from operations was $224 million, compared with $155 million a year earlier. Free cash flow also reached $220 million, compared with $151 million in the same period of the previous year. These metrics offer a parallel view of the net income turnaround, with adjusted earnings and operating and free cash flow higher than in the year-earlier quarter.
Shares reacted to the results in trading on November 5, with the stock jumping 22% before the market opened, according to Investing.com, which said results exceeded analysts’ expectations and quarterly guidance came in above expectations. The stock closed at $48.80 that day, compared with $42.46 on November 4. Unity forecast strategic revenue of between $683 million and $691 million in the fourth quarter of 2026. The range includes Grow revenue of between $515 million and $520 million, and Create revenue of between $168 million and $171 million. The company also forecast adjusted EBITDA of between $290 million and $295 million for the fourth quarter.