Interactive software platform Unity (NYSE: U) will be announcing earnings results this Wednesday morning. Here’s what investors should know.
Unity beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $470.6 million, up 5.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
Is Unity a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Unity’s revenue to grow 7.7% year on year to $492.1 million, a reversal from the 25% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Unity has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.2% on average.
Looking at Unity’s peers in the vertical software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dolby Laboratories’s revenues decreased 2.9% year on year, beating analysts’ expectations by 4.4%, and PTC reported revenues up 21.4%, topping estimates by 8.2%. Dolby Laboratories traded up 1.8% following the results while PTC was also up 1.7%.
Read our full analysis of Dolby Laboratories’s results here and PTC’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. Unfortunately, vertical software stocks have struggled in this environment as share prices are down 17.9% on average over the last month. Unity is down 41.4% during the same time and is heading into earnings with an average analyst price target of $46.69 (compared to the current share price of $27.72).
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