Filing Flows › Unity Software (U) › Q1 2025
Unity Software (U) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Unity Software (U) reported revenue of $435M for the first quarter 2025 (Q1 2025), -6% from a year earlier and -5% from the quarter before. Operating margin was -29.4%, net loss $77.9M (17.9% of revenue).
Unity Software, Q1 2025: revenue $435M (-6% year over year), operating margin -29.4%, net loss $77.9M, operating cash flow $13.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $435M | -5% | -6% |
| Operating profit | −$128M | — | — |
| Net earnings | −$77.9M | — | — |
| Operating cash flow | $13.0M | -88% | — |
| Free cash flow | $7.3M | — | — |
What changed
Revenue was $435.0M in Q1 2025, down 6% year over year and down 5% from the previous quarter. Grow Solutions was the largest line at 65% of revenue. Create Solutions lost $13.3M year over year (down 8%), 52% of the total change.
Gross margin was 73.8%, up 5.2 points from a year earlier. Operating costs exceeded revenue by $127.9M, an operating margin of -29.4%. Operating expenses fell 35% while revenue fell 6%. The quarter ended with a net loss of $77.9M, narrower than the previous quarter's $122.5M loss. Non-operating items added $52.2M, -69% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $13.0M. Non-cash charges added back $96.2M of depreciation and amortization and $98.8M of share-based compensation. Working capital and other items used $104.1M. After purchases of property and equipment ($5.7M), free cash flow as the company reports it was $7.3M.
Questions
What was Unity Software's revenue in the first quarter 2025?
Unity Software (U) reported revenue of $435M for the first quarter 2025 (Q1 2025), -6% from a year earlier and -5% from the quarter before.
Was Unity Software profitable in the first quarter 2025?
Operating loss was $128M (-29.4% of revenue) and net loss $77.9M.
Source: Unity Software 10-Q on SEC EDGAR.