Unity Beats Q4 Sales Estimates by 2.2% but Guides Q1 Below, Shares Plunge 20%
Unity delivered Q4 sales of $503.1 million, up 10.1% year-over-year and 2.2% above estimates, with non-GAAP EPS of $0.24, a 15.5% consensus beat. However, Q1 guidance of $485 million in revenue and $107.5 million in EBITDA fell below analyst forecasts, sending shares down over 20%.
1. Q4 CY2025 Earnings Beat Expectations
Unity reported Q4 revenue of $503.1 million, representing 10.1% year-over-year growth and beating analyst estimates by 2.2%. Non-GAAP EPS of $0.24 surpassed consensus by 15.5%, while operating margin improved to -21.2% from -27.1% a year earlier.
2. Q1 CY2026 Guidance Misses Estimates
Management set Q1 revenue guidance at $485 million, 0.8% below the $489.1 million analyst forecast, and pegged adjusted EBITDA at $107.5 million versus $116.7 million expected. The lower outlook on both top-line and EBITDA metrics raised concerns about near-term growth momentum.
3. Shares Plunge on Outlook Miss
Shares plunged over 20% in after-hours trading to around $22 as investors reacted to the guidance shortfall, reversing gains from the earnings beat. The drop cut Unity’s market capitalization to approximately $12 billion by session close.