Investing.com -- Unity Software Inc. (NYSE: U) sent its shares soaring 17% after delivering a blowout second-quarter earnings report, smashing Wall Street’s revenue and profit expectations while issuing a surprisingly bullish forward outlook

The game engine developer reported an adjusted loss of $0.05 per share for the second quarter, beating the analyst estimate of a loss of $0.11 per share. Revenue reached $546 million, up 24% YoY from $441 million in the prior year period and surpassing the consensus estimate of $514.62 million. Strategic revenue, which excludes the company’s ironSource Ads network and Supersonic publishing business, grew 38% YoY to $486 million.

"This was arguably the best quarter in Unity’s history as a public company," said Matt Bromberg, President & CEO of Unity. "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."

For the third quarter, Unity issued revenue guidance of $540 million to $550 million, with a midpoint of $545 million above the analyst consensus of $539.3 million. The company also projected adjusted EBITDA of $185 million to $190 million, representing 69% to 74% growth YoY.

Grow Solutions revenue increased 35% YoY to $389 million, driven by growth in the Unity Ads Network and Unity Vector AI. Create Solutions revenue rose 2% YoY to $158 million, with the increase driven by subscription revenue gains partially offset by decreases in cloud and hosting services.

Adjusted EBITDA for the quarter reached $160 million with a margin of 29%, compared to $90 million and a 21% margin in the second quarter of 2025. Free cash flow was $202 million, up from $127 million in the prior year period.