Unity reports first GAAP profit since IPO

Unity has reported its first GAAP-profitable quarter since its initial public offering, posting a net income of $122 million for the third quarter of 2026. This marks a significant turnaround from a net loss of $127 million during the same period the previous year.

Total revenue for the quarter rose 32% year-on-year to $622 million. Growth was largely driven by the Grow Solutions segment, which reached $457 million, a 44% increase. CEO Matt Bromberg attributed this performance to the Vector advertising platform, which saw 126% year-on-year growth.

In contrast, the Create Solutions segment, which includes the company's game engine, grew 8% to $165 million. While subscription revenue increased, cloud and hosting income declined following a 2025 portfolio reset. Non-strategic revenue fell 73% to $25.5 million, reflecting the company's decision to shut down the ironSource Ads network and sell its Supersonic publishing business.

Adjusted EBITDA more than doubled to $257 million, representing a 41% margin. Despite the quarterly profit, Unity remains in a net loss position for the first nine months of the year due to a $270.5 million impairment of intangible assets.