Unity Q2 Revenue Misses but EBITDA Beats, Guides 47% Growth
U has more than doubled off its 52-week low of $16.78 on elevated volume (1.9× avg).
Summary
Unity reported Q2 revenue of $329M, missing the $515M consensus, but adjusted EBITDA of $160M beat estimates by $24M. The miss reflects the sunset of non-strategic businesses like ironSource Ads, while core strategic revenue grew 24% driven by subscriptions and Unity Vector AI. Q3 guidance calls for strategic revenue of $540M-$550M, up 47% at the midpoint, and adjusted EBITDA of $185M-$190M, a 74% jump. This follows the May announcement targeting GAAP profitability by Q4 2026, and the strong EBITDA and free cash flow of $202M show progress on that path. The market will focus on the accelerating growth in the core business and margin expansion.
At the time of this announcement, U was trading at $41.07 on NYSE in the Technology sector, with a market capitalization of approximately $15.5B. The 52-week trading range was $16.78 to $52.15. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.