Unity has reported its first GAAP-profitable quarter since going public, with revenue of $622 million for the three months ended September 30th 2026, according to a financial results release published on November 5th.
The San Francisco game-engine company said GAAP net income was $122 million, a 20% margin, compared with a $127 million net loss in the same period a year earlier. Diluted GAAP earnings per share were $0.25, against a $0.30 loss per share in the third quarter of 2025. Total revenue rose 32% year-on-year from $471 million.
President and Chief Executive Officer Matt Bromberg called the quarter Unity's strongest yet. "Third-quarter performance was our strongest ever, with Vector growing 126% year-over-year and 40% quarter-over-quarter, and the first GAAP profitable quarter since our IPO," he said in the release. He credited a "flywheel" in which more creators make more games on the platform, which in turn drives demand for advertising discovery.
Where the growth came from
Strategic revenue — Unity's preferred operating measure after it wound down non-core ad and publishing lines — was $597 million, up 59% year-on-year. Grow Solutions revenue reached $457 million, up 44%, which the company tied to growth in the Unity Ads Network driven by Unity Vector, partly offset by declines in the ironSource Ads Network. Create Solutions revenue was $165 million, up 8%, on higher subscription revenue partly offset by lower cloud and hosting income after a 2025 portfolio reset.
Non-strategic revenue fell 73% to about $26 million. That bucket mainly covers the ironSource Ads network, which Unity sunset in the second quarter of 2026, and the Supersonic publishing business sold on August 4th 2026.
Adjusted EBITDA was $257 million, a 41% margin, up from $109 million and a 23% margin a year earlier. Free cash flow was $220 million, against $151 million in the third quarter of 2025. Cash, cash equivalents and restricted cash stood at $2.65 billion as of September 30th.
Outlook and next steps
For the fourth quarter of 2026, Unity guided to strategic revenue of $683 million to $691 million, up 65% to 67% year-on-year, and adjusted EBITDA of $290 million to $295 million. Non-strategic revenue is expected to be about $5 million.
Unity held a public webcast at 8:30 a.m. ET on November 5th to discuss the results. The company describes itself as a leading game engine used across mobile, console and PC development, alongside tools for live-ops advertising and player discovery.
