Unity is forecasting another sharp acceleration in its strategic advertising business during the third quarter of 2026, with Strategic Grow revenue expected to reach between $380 million and $385 million as Unity Vector AI continues driving growth across the company’s advertising platform.
The Q3 outlook represents year-over-year Strategic Grow revenue growth of approximately 68% to 70%. Unity also expects total Strategic Revenue of $540 million to $550 million, representing growth of 44% to 47%.
The guidance follows a second quarter in which Strategic Grow revenue surged 63% to $329 million from $201.3 million a year earlier. Strategic Create revenue increased 5% to $157.5 million, bringing total Strategic Revenue to $486.4 million, up 38%.
Unity said growth in its Grow Solutions business was driven by the Unity Ads Network and specifically by Unity Vector, its AI-powered advertising technology. Overall Grow Solutions revenue increased 35% to $389 million, despite declines in the ironSource Ads Network.
Unity is simultaneously removing businesses it no longer considers strategic. Its ironSource Ads Network was sunset effective April 30, while the Supersonic publishing business was sold on August 4. Non-strategic revenue declined 33% to $60.1 million during Q2 and is expected to fall to approximately $20 million in Q3.
Total company revenue increased 24% year-over-year to $546 million. Unity’s GAAP net loss narrowed to $23 million from $107 million, while the net loss margin improved to negative 4% from negative 24%.
Adjusted EBITDA increased to $160.2 million from $90.5 million, while the adjusted EBITDA margin expanded to 29% from 21%. Free cash flow increased to $202 million from $127 million.
For Q3, Unity expects Adjusted EBITDA of $185 million to $190 million, representing year-over-year growth of 69% to 74%.
Unity also said it expects to become GAAP profitable by the third quarter of 2026. The company plans to repay convertible notes issued in 2021 in November as it continues deleveraging its balance sheet.
Unity ended June with approximately $2.36 billion of cash, cash equivalents and restricted cash, up $293 million from the end of 2025, primarily due to cash generated by operations.
KEY QUOTES:
“This was arguably the best quarter in Unity’s history as a public company.”
“The ongoing success of Unity Vector AI, combined with the most exciting product roadmap in Unity’s history, is helping drive substantial value for creators, players, and shareholders.”
Matt Bromberg, President and CEO of Unity
