Unity swings to a $122 million quarterly profit as revenue rises 32%

Unity said third-quarter revenue rose 32% to $622 million and net income was $122 million, driven by growth in its Vector-powered ads network, and guided fourth-quarter strategic revenue to $683 million to $691 million.

By Funded Tech staff · Nov 8, 2026, 8:10 AM ET · News · 1 min read · 3 sources linked

A red wireless video game controller resting on a white desk next to a keyboard — Photo: Reza Almanda via Wikimedia Commons, CC BY 2.0. Cropped and resized.

Why it matters: Unity's Nov 5 results show the game engine maker turning a $127 million loss a year earlier into a $122 million profit as its advertising business grows.

Unity (U) reported third-quarter revenue of $622 million, up 32% from $471 million a year earlier. The quarter ended Sept 30. Results were released Nov 5.

Profit: Net income was $122 million, compared with a net loss of $127 million in the third quarter of 2025. The company described it as its first GAAP-profitable quarter since its initial public offering. Diluted net income per share was $0.25. Adjusted EBITDA, a non-GAAP measure, was $257 million, a 41% margin, and adjusted earnings per share, also non-GAAP, were $0.44.

Where the growth came from: Grow Solutions, the advertising side of the business, brought in $457 million, up 44%. Unity attributed the gain to its Unity Ads Network, driven by its Vector ad system, partly offset by declines at the ironSource Ads Network, which it said was sunset in the second quarter. Create Solutions, which includes the game engine subscriptions, brought in $165 million, up 8%. Unity said Vector grew 126% from a year earlier; that is the company's own figure.

Cash: Operating cash flow was $224 million and free cash flow, a non-GAAP measure, was $220 million. Cash, cash equivalents and restricted cash were $2,651 million at Sept 30, according to the company.

The company's outlook: For the fourth quarter, Unity guided strategic revenue to $683 million to $691 million and adjusted EBITDA to $290 million to $295 million. These are the company's own projections.

This story is for information only and is not investment advice.

Sources

How we checked this: We read Unity's third-quarter 2026 earnings release and the related Form 8-K (Item 2.02) as filed with the SEC on Nov 5, 2026, in copies saved on Nov 8, 2026 at about 8:11 AM ET, and checked every figure against them.

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