- Unity's Q1 2025 revenue hit $435 million, a 6% decrease from the previous year.
- Net loss reduced to $78 million, a significant improvement from $291 million in Q1 2024.
- Adjusted EBITDA rose to $84 million, with a margin of 19%.
Unity (U, Financial) has announced its financial results for the first quarter ending March 31, 2025. The company's revenue totaled $435 million, reflecting a 6% year-over-year decline, primarily due to a strategic portfolio reset. Despite this reduction, Unity's adjusted EBITDA improved to $84 million with a 19% margin, up from $79 million and a 17% margin in the same quarter last year.
Create Solutions revenue fell by 8% from the previous year, reaching $150 million, while Grow Solutions revenue recorded a 4% decline, amounting to $285 million. Unity attributes these decreases to reduced professional services and consumption services, partially offset by subscription revenue growth and the anticipated early rollout of Unity Vector.
The company reported a net loss of $78 million, a considerable improvement from the $291 million net loss reported in the first quarter of 2024. This improvement is underscored by a decrease in net loss margin from (63)% to (18)%, and a net cash provision from operating activities of $13 million, a turnaround from a $7 million cash usage in Q1 2024.
Unity's liquidity position strengthened, with cash and cash equivalents increasing to $1,552 million as of March 31, 2025. Looking ahead, Unity has provided guidance for the second quarter of 2025, forecasting revenue between $415 million and $425 million and adjusted EBITDA ranging from $70 million to $75 million.
