U Stock Gains After Q2 Beat — CEO Says It Was 'Arguably The Best Quarter In Unity's History As A Public Company'

• Unity CEO Matt Bromberg credited the second-quarter performance to the continued success of the company's AI-powered Unity Vector platform.
• Bromberg highlighted Unity Vector as a key growth engine, noting that the AI-powered advertising platform has surpassed a $1 billion annual revenue run rate two quarters ahead of schedule.
• He added that Unity recently began incorporating data from the roughly three billion people who play games built on the Unity runtime each month into Vector's AI models, calling it a long-term competitive advantage.

Shares of Unity Software Inc. (U) soared in Thursday’s opening trade after the company’s second-quarter (Q2) results surpassed Wall Street expectations.

Unity reported earnings per share (EPS) of $0.28 in Q2 on revenue of $546.5 million, while Wall Street analysts expected an EPS of $0.25 on revenue of $514.2 million, according to Fiscal.ai data.

Unity shares were up nearly 11% in the opening session. U was among the top trending tickers on Stocktwits at the time of writing.

CEO Matt Bromberg Credits Q2 Performance To Success Of Unity’s AI Platform

Unity CEO Matt Bromberg called the quarter "arguably the best" in the company’s history as a public company, crediting the continued success of the company's AI-powered Unity Vector platform and what he described as its strongest-ever product roadmap.

“We're done looking backward. The flywheel we've constructed is spinning up, and we expect it to power us into the ranks of the most consequential companies of the AI era,” he said.

Bromberg highlighted Unity Vector as a key growth engine, noting that the AI-powered advertising platform has surpassed a $1 billion annual revenue run rate two quarters ahead of schedule.

He added that Unity recently began incorporating data from the roughly three billion people who play games built on the Unity runtime each month into Vector's AI models, calling it a long-term competitive advantage.

Unity Pulls Profitability Timeline Forward

Looking ahead, Unity forecast third-quarter strategic revenue of $540 million to $550 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $185 million to $190 million, both above Q2 levels.

Management said it expects a sixth consecutive quarter of adjusted EBITDA margin expansion, with margins projected to improve another 400 basis points sequentially.

Chief Financial Officer Jarrod Yahes said Unity now expects to achieve GAAP net income profitability in the third quarter of 2026, one quarter earlier than previously anticipated.

He added that the sale of the Supersonic business and the shutdown of the ironSource Ads network will improve margins in the second half of the year, leaving Unity “a more focused company positioned for faster revenue growth and dramatically higher levels of profitability.”

What Retail Traders Think Of U Stock

Retail sentiment on Stocktwits around Unity trended in the ‘bullish’ territory with message volumes at ‘high’ levels.

U stock is down 11% year-to-date, but up 23% over the past 12 months. The Vanguard Morningstar Total Stock Market ETF (VTI) is up 23% over the past 12 months, while the Vanguard Morningstar Small-Cap Growth ETF (VBK) is up 26%.

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