Unity tops Q4 guidance, posts $503M quarter, but Stock Crashes 25%+ Due to AI Fears

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Unity says its latest quarterly results came in above its own expectations. The company reported Q4 revenue of $503 million, up 10% year-over-year, with Create Solutions revenue at $165 million (up 8%) and Grow Solutions at $338 million (up 11%). Unity also posted a net loss of $89 million for the quarter. Despite beating their own guidance for the quarter, the stock is down a whopping 25% today due to continued fears of AI generation software replacing their core engine. While the fears seem farfetched, Unity’s stock began selling off hard after Google showed of Genie 3.

The quarter also came with board shakeups. Unity co-founder and former CEO David Helgason has stepped down from the board effective immediately, and IronSource founder Tomer Bar-Zeev also exited the board right away. Unity says Bernard Kim (formerly Zynga’s president of publishing) is joining its board on May 1.

On the business side, Unity attributed Create’s growth to higher subscription revenue. For Grow, Unity pointed to “mid-teen” sequential growth from Unity Vector, which it says made up 56% of total Grow Solutions revenue in the quarter. Unity added that this helped offset declines in its IronSource Ad Network.

Looking ahead, Unity is forecasting around $485 million in revenue for Q1 2026. The company expects flat growth for Grow and “double-digit” year-over-year growth for Create. The company’s Q1 forecast was $480-$490 million in revenue, just a bit short of analyst estimates of $494 million.

Pricing is still the other big thing developers are watching. A report from December claimed Unity was planning a new annual fee for its largest Enterprise customers, with a minimum commitment ranging from $250,000 to $2 million depending on a game’s revenue. Unity’s own pricing page now says a minimum subscription requirement “may apply” to 2026 Enterprise pricing, and notes that Pro and Enterprise subscription prices went up 5% last month, per the company’s pricing updates page.