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Unity Tops Q1 Revenue and Guides Above as ironSource Exit Drives $279 Million Charge

The update signals a pivot toward higher‑growth tools following the ironSource shutdown alongside a planned Supersonic sale.

Overview

  • Unity, which reported first‑quarter results Thursday, posted revenue of about $508 million, up 17% year over year and ahead of Wall Street estimates.
  • Adjusted EBITDA, a measure of operating profit, rose to $138 million with a 27% margin, and free cash flow improved to $66 million from $7 million a year earlier.
  • GAAP results showed a $347 million net loss after $279 million in impairment charges tied to closing the ironSource ad network and preparing to sell the Supersonic publishing unit.
  • For Q2, the company guided revenue to $505 million to $515 million and adjusted EBITDA to $130 million to $135 million, with midpoints slightly above analyst forecasts.
  • Strategic Revenue, which tracks Unity’s key growth lines, climbed 35% to $432.4 million as Grow solutions jumped 49% and Create advanced 15%, with ads helped by the Unity Vector rollout.
  • Shares jumped about 6% to $29.01 after the release before turning lower later in the morning, according to market reports.