Unity Moves to Profitability as Vector AI Fuels Record Quarter

Overview

• Unity reported second-quarter results on Wednesday showing $546 million in revenue, a 24% year-over-year rise that beat Wall Street estimates and sent the stock up about 17% in early trading.
• The Unity Vector AI platform reached an annualized revenue run rate above $1 billion two quarters ahead of plan after the company began training models with runtime data from roughly 3 billion monthly players.
• Management moved GAAP profitability forward to Q3 2026 and issued Q3 revenue guidance of $540 million to $550 million, which sits above analyst consensus for the period.
• Profitability and cash metrics improved sharply with adjusted EBITDA of $160 million (29% margin) and free cash flow of $202 million, and management expects further margin expansion in the second half of the year.
• Unity plans to simplify the business by exiting the ironSource Ads network and selling Supersonic while rolling out in-engine AI tools such as the Agentic Assistant and the Unity 7 roadmap, a shift that could change how developers build games and how advertisers buy audiences.