Unity has delivered its “strongest ever” third quarter results, driven by a 126% year-on-year growth in its AI-powered ad network Vector.
As a result, Unity achieved its first GAAP-profitable quarter since its IPO in 2020.
Meanwhile, reports indicate the company has held acquisition talks with private equity firm Silver Lake and Saudi Arabia’s Public Investment Fund, both involved in the $55 billion acquisition of Electronic Arts.
“We are seeing the compounding impact of our flywheel strategy,” said Unity CEO and president Matt Bromberg. “More creators make more games on our platform, more games fuel the need for more discovery through advertising.”
The numbers
- Revenue: $622 million, up 32% year-on-year
- Create Solutions revenue: $165 million, up 8% year-on-year
- Grow Solutions revenue: $457 million, up 44% year-on-year
- GAAP net income: $122 million (with a margin of 20%)
The highlights
Unity’s Vector falls under Grow Solutions revenue, which rose 44% year-on-year to $457 million. These results were also partially offset by decreases in its IronSource Ads network, which sunset during the company’s second quarter.
Create Solutions revenue grew 8% to $165 million, driven by higher subscription revenue, but was offset by declines in cloud and hosting services following Unity’s portfolio reset last year.
“Create Solutions revenue was $165 million, up 8% year-over-year. The increase was driven by increases in subscription revenue, partially offset by decreases in cloud and hosting services revenue, driven by our portfolio reset in 2025”
Strategic revenue was $597 million, up 59% year-on-year. In contrast, non-strategic revenue fell 73% from $95.7 million to $25.5 million.
This primarily consists of revenue from IronSource and mobile publisher Supersonic, which was acquired by Tripledot Studios in August for $40 million.
As for acquisition talks, sources told Reuters that a consortium of investors discussed Unity’s $25 billion valuation before the release of the company’s latest financial results.
Reuters also reported that the results increased Unity’s market capitalisation to an estimated $21.5 billion, with shares rising 4% in extended trading.
“Unity has been working with an investment bank to evaluate its options following the approach,” sources told Reuters. “No deal is certain, and the plan and terms may still change.”