Unity pins hopes on Vector AI ads platform to spark revenue growth

Unity is pinning hopes for revenue growth on the new AI-powered ads platform Vector after it helped deliver 15% sequential growth in the company’s ads business in Q2.

The firm, which has engaged in sweeping cuts over the past two years, reported a revenue decline of 2% year-over-year to $441 million last quarter. Create Solutions sales grew by 2% Y/Y to $154m, driven by a single licence sale for $12m.

Despite touting 15% growth from Q1 for its Grow Solutions division, revenue fell 4% Y/Y to $287m, which the company put down to other ads products.

Unity announced its Vector platform earlier this year as part of its plans to gain lost ground on rival AppLovin, which has seen its ads revenue soar.

Overall, Unity reported $90m in adjusted EBITDA and a net loss of $107m, an improvement on $126m the year prior.

"Inflection point"

Moving forward, Unity is forecasting revenue between $440m to $450m in Q3, which would put it in the range of the $447m generated in the same quarter the year prior. Adjusted EBITDA is expected to come in at $90m to $95m, again in a similar to last year.

The firm anticipates mid-single digit growth from Q2 in its ads business, but expects a decline in its Create division.

"We believe the second quarter of 2025 will be remembered as an inflection point in the Unity story, where our commitment to accelerating product innovation and delivering for our customers translated to markedly better performance," said Unity president and CEO Matt Bromberg.

“Results once again exceeded expectations, substantially beating the high-end of our guidance for both revenue and adjusted EBITDA. Our new AI platform, Unity Vector, is transforming our growth prospects, delivering 15% sequential growth in the Unity Ad Network during the second quarter.”