Unity Plunges 28% on Q1 Revenue Guidance of $480M–$490M
Unity posted Q4 EPS of $0.24 beating $0.21 forecasts with revenue up 10% to $503.1M and adjusted EBITDA of $125M (25% margin). For Q1, the company guided revenue of $480M–$490M and adjusted EBITDA of $105M–$110M, below analyst estimates of $491.8M.
1. Q4 Financial Results
Unity reported fourth-quarter EPS of $0.24 versus $0.21 consensus and delivered $503.1M in revenue, up from $457M a year earlier. Create Solutions revenue rose to $165M from $152M and Grow Solutions reached $338M from $305M, while adjusted EBITDA totaled $125M, representing a 25% margin.
2. First-Quarter Guidance Falls Short
For fiscal Q1 2026, Unity forecast revenue of $480M–$490M, missing the $491.8M consensus, and projected adjusted EBITDA of $105M–$110M. The company expects Grow Solutions revenue to remain flat sequentially and Create Solutions to achieve double-digit year-over-year growth excluding non-strategic revenue.