Investing.com -- Unity Software (NYSE: U) shares surged 22% after the game engine developer reported third-quarter results that significantly exceeded analyst expectations and issued fourth-quarter guidance well above Wall Street forecasts.
Unity reported adjusted earnings per share of $0.44, beating analyst estimates of $0.03. Revenue rose 32% year-over-year to $622 million from $471 million, exceeding the consensus estimate of $565.82 million. Adjusted EBITDA reached $257 million, compared with expectations of $188.9 million.
"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," said Matt Bromberg, Unity's president and CEO.
Unity forecast fourth-quarter revenue of $683 million to $691 million, well above the $601.3 million analyst consensus. The midpoint of $687 million represents approximately 14% upside to expectations.
The company also projected fourth-quarter adjusted EBITDA of $290 million to $295 million, compared with analyst estimates of $201.3 million.
Strategic revenue, which excludes the discontinued ironSource Ads network and the divested Supersonic publishing business, increased 59% year-over-year to $597 million. Strategic Grow revenue surged 90% to $432 million, while Strategic Create revenue rose 11% to $165 million.
Unity reported GAAP net income of $122 million, or $0.25 per diluted share, compared with a net loss of $127 million, or $0.30 per share, in the third quarter of 2025.
The company generated $224 million in operating cash flow and $220 million in free cash flow during the quarter.
Original Article
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