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Unity Swings to Profit on Vector Ad Engine Boost

Unity Software's adjusted EBITDA more than doubled in the third quarter as its Vector ad engine lifted revenue, and the company posted a GAAP profit. The shares jumped at the open, then gave back part of the gain.

Unity Software (NYSE: U), the game-engine and advertising technology group, beat third-quarter forecasts today, with adjusted EBITDA rising to $256.6m from $109.5m a year earlier. Adjusted EBITDA is profit before interest, tax, depreciation, amortisation, share-based pay and one-offs. Unity reported before the US open.

The shares opened at $48.06 but were at $46.04 in a delayed quote at 4.04pm UK time (11.04am in New York). That is 8.43% above yesterday’s close of $42.46 and below an early high of $48.57. They rose 15.1% after the second-quarter results on 6 August.

U.US

Revenue rose 32% to $622.1m from $470.6m, and adjusted earnings per share were $0.44, against $0.20 a year ago. Consensus was roughly $0.34 a share and revenue of about $567.4m. Unity’s own guidance was $560m to $570m of revenue and $185m to $190m of adjusted EBITDA.

Margin is the story. Adjusted EBITDA was 41% of revenue, against 23% a year earlier. Strategic Grow revenue, which comes from Unity’s advertising tools including Vector, its AI ad-targeting engine, rose 90% to $431.5m, while adjusted sales and marketing costs fell to 12% of revenue from 21%. The company said the improvement came from higher revenue and continued cost control.

Line chart of Unity Software share price from August to 5 November 2026 showing a jump on Q3 results.
Unity Software (U.US) daily close, 3 August–5 November 2026; 5 November figure is an intraday quote, not a close.

The bottom line swung too. GAAP net income, the figure under standard US accounting rules, was $121.6m, or $0.25 a share, against a loss of $0.30 a year ago. Matt Bromberg, President and CEO, said:

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

Matt Bromberg, President and CEO, Unity

Free cash flow was $220m, up from $151m, and cash stood at $2,651m at the end of September.

For the fourth quarter, Unity guided to adjusted EBITDA of $290m to $295m, up 132% to 136% on a year earlier. It expects strategic revenue of $683m to $691m. The non-strategic ad business, mainly wound-down ironSource Ads and Supersonic, which was sold on 4 August, should shrink to about $5m.

That guide sets a higher bar for the next report, and the shares have already pared part of today’s opening gain.

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