Unity Software Inc. reported its financial results for the third quarter of 2025, revealing a revenue of $470.6 million, a 5.4% increase from $446.5 million in the same quarter of 2024. For the nine months ending September 30, 2025, total revenue was $1.35 billion, slightly down from $1.36 billion year-over-year. The company experienced a net loss of $126.8 million for the quarter, compared to a loss of $124.5 million in the prior year, while the nine-month net loss was $312.1 million, down from $541.8 million in 2024. The increase in revenue was primarily driven by growth in the company's Grow Solutions segment, which benefited from a migration to a new AI platform, Unity Vector.
In terms of operational metrics, Unity reported a dollar-based net expansion rate of 103% as of September 30, 2025, up from 94% a year earlier. This improvement was attributed to increased subscription revenue and a reduction in declines in Grow Solutions revenue. The company also noted a rise in the number of customers contributing over $100,000 in revenue, reaching 1,338 compared to 1,242 in the previous year. Unity's cash and cash equivalents stood at $1.9 billion as of September 30, 2025, reflecting a significant increase from $1.5 billion at the end of 2024.
Unity's operating expenses for the third quarter totaled $476.1 million, up from $461.6 million in the same period last year. The increase was driven by higher research and development costs, which rose to $244.4 million from $215.2 million, largely due to increased amortization expenses related to intangible assets. The company also incurred approximately $23 million in employee separation costs during the nine months ended September 30, 2025, a significant decrease from $205 million in the same period of 2024, indicating a shift in its restructuring strategy.
The company continues to focus on its core offerings, having reset its product and service portfolio to emphasize the Unity Engine and related services. Unity's strategic initiatives include ongoing investments in research and development, which are expected to drive future growth despite the anticipated continued operating losses. The company has indicated that it may require additional capital to support its strategic initiatives, although it believes its current liquidity will suffice for at least the next 12 months.
Looking ahead, Unity Software Inc. remains cautious about market conditions and the competitive landscape, particularly in the advertising sector. The company plans to continue evaluating its operational needs and may pursue further strategic partnerships or acquisitions to enhance its offerings. Unity's management has expressed optimism about stabilizing its business and achieving long-term growth, despite the challenges posed by ongoing restructuring and market dynamics.
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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