Unity Software Earnings Call Transcripts
Fiscal Year 2026
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The meeting covered director elections, auditor ratification, and executive compensation approval, with all proposals passing. Stockholders participated virtually, and final voting results will be filed on Form 8-K.
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Q1 2026 saw 35% year-over-year strategic revenue growth and a 27% adjusted EBITDA margin, driven by strong AI adoption, Vector's rapid expansion, and robust performance in both Create and Grow segments. GAAP profitability is expected by Q4 2026, with continued margin expansion and new product launches ahead.
Fiscal Year 2025
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Q4 2025 results exceeded guidance, led by Vector's rapid growth and Create's global momentum. Vector is on track for a $1B+ run rate by end of 2026, while ironSource's impact wanes. Strong cash flow, margin expansion, and AI-driven product innovation set up continued growth.
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Unity announced a major partnership with Epic Games, enabling cross-platform commerce and direct publishing into Fortnite for Unity developers. Unity 6.3 introduces faster iteration, new 2D/3D workflows, and a Platform Toolkit for seamless multi-platform deployment. Enhanced IAP, diagnostics, and AI-driven discovery tools empower developers to grow and monetize globally.
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Q3 2025 saw strong revenue and margin growth, led by Vector AI and robust performance in both Grow and Create segments. Guidance for Q4 remains positive, with continued investment in AI, new commerce solutions, and strong momentum in China.
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Q2 2025 saw Unity exceed revenue and EBITDA guidance, driven by strong Unity Vector AI performance and double-digit growth in Create subscriptions. Major partnerships and robust free cash flow support continued investment in AI and global expansion.
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The meeting covered director elections, auditor ratification, and an advisory vote on executive compensation. All director and auditor proposals passed, while the executive compensation proposal did not, prompting the board to consider future changes.
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Q1 2025 results exceeded guidance, driven by early Vector AI rollout and strong Create subscription growth. Vector delivered 15%-20% performance lifts, with customers increasing spend, while non-strategic revenues declined. Guidance calls for continued growth and margin stability.
Fiscal Year 2024
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Q4 revenue and adjusted EBITDA exceeded guidance, driven by strong growth in both Create and Grow segments, with industry revenue up 50% year-over-year. The rollout of Unity Vector and Unity 6, along with new industry partnerships, position the company for future growth amid ongoing transformation.
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Q3 revenue and adjusted EBITDA exceeded guidance, driven by strong Create Solutions growth and early Unity 6 adoption. Full-year guidance was raised, with price increases and leadership changes supporting long-term growth. Cash position remains robust.
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Q2 results exceeded guidance for revenue and Adjusted EBITDA, with improved margins and strong cash flow. Full-year guidance was revised down due to a slower recovery in the ad business, but double-digit growth is expected in Create subscriptions.
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The meeting covered director elections, auditor ratification, and executive compensation approval, all of which passed. Voting was conducted virtually with a strong quorum, and no questions were raised by stockholders. Final results will be filed on Form 8-K.