Unity has posted its first profitable quarter since its IPO, helped by its Vector ad platform.
Revenue rose 32% year-on-year to $622m in Q3 2026, according to its latest results, and it made a GAAP net income of $122m. That compares with a net loss of $127m in the same quarter last year.
CEO Matt Bromberg called it Unity’s strongest ever quarter, with Vector growing 126% year-on-year and 40% quarter-on-quarter.
Grow Solutions, which covers Unity’s ads business, made $457m, up 44%. Unity said that was down to growth in the Unity Ads network, driven by Vector, partly offset by declines in the IronSource Ads network. Strip out ironSource Ads and Supersonic, and strategic Grow revenue was up 90% to $431.5m.
Create Solutions, which includes the engine, grew 8% to $165m. Subscription revenue went up, but cloud and hosting revenue fell following what Unity called its 2025 “portfolio reset”.
Adjusted EBITDA more than doubled from $109m to $257m, a margin of 41%, which Unity put down to higher revenue and “continued cost control”. Free cash flow was $220m, and it ended the quarter with $2.65bn in cash.
Unity is still in the red for the year so far, though. It made a net loss of $248m in the first nine months on revenue of $1.68bn, up 25%, including a $270.5m impairment of intangible assets.
Unity shut down the ironSource Ads network in Q2, after announcing the closure in March, and sold Supersonic to Tripledot in August. Non-strategic revenue, which mostly comes from those two businesses, fell 73% to $25.5m.
For Q4, Unity expects strategic revenue of $683m to $691m, up 65% to 67%. That includes strategic Grow revenue of $515m to $520m, up 105% to 107%, and strategic Create revenue of $168m to $171m, up 4% to 6%. It’s forecasting adjusted EBITDA of $290m to $295m, up 132% to 136%, and non-strategic revenue of $5m.
Back in October, Unity announced it was teaming up with PvX to help mobile studios pay for user acquisition without giving up equity.
