Unity Software Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $440.9 million, a decrease of 1.4% from $449.3 million in the same quarter of 2024. For the first half of 2025, revenue totaled $875.9 million, down from $909.6 million year-over-year. The company experienced a net loss of $108.8 million for the quarter, compared to a loss of $125.6 million in the prior year, indicating a reduction in losses. The basic and diluted net loss per share was $0.26, an improvement from $0.32 in the previous year.
The decline in revenue was primarily attributed to a decrease in the Grow Solutions segment, which faced challenges from competition and changes in customer demand. This was somewhat offset by growth in subscription revenue within the Create Solutions segment. The company noted that it had 1,270 customers contributing over $100,000 in revenue over the past year, an increase from 1,254 in the previous year, reflecting a stable customer base despite the overall revenue decline. The dollar-based net expansion rate improved to 100% from 96%, indicating a recovery in customer spending patterns.
In terms of operational changes, Unity has been restructuring its workforce, incurring approximately $20 million in employee separation costs in the first half of 2025, significantly lower than the $201 million incurred in the same period of 2024. The company has also been focusing on its core offerings, particularly the Unity Engine and related services, as part of its strategic portfolio reset initiated in late 2023. This includes the migration of its ad network to a new AI platform, which has shown early signs of growth.
As of June 30, 2025, Unity's cash and cash equivalents stood at $1.7 billion, up from $1.5 billion at the end of 2024. The company issued $690 million in convertible notes in February 2025, which were used to repurchase some of its existing debt. Unity's total liabilities decreased slightly to $3.3 billion from $3.4 billion at the end of 2024. Looking ahead, Unity expects to continue investing in research and development and sales and marketing, which may lead to further operating losses in the near term. However, the company believes its current liquidity will be sufficient to meet its operational needs for at least the next 12 months.
About Unity Software Inc.
Unity Software Inc. provides a platform for creating and growing interactive real-time 2D and 3D content across industries such as gaming, automotive, architecture, and retail. Its core offerings include the Unity Engine, development tools, and monetization solutions. Serving a global customer base of developers, enterprises, and creators, Unity's value lies in cross-platform deployment, innovation, and a large active community, supporting diverse industries with scalable, integrated software solutions.
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