Unity’s Q4 Beat Meets Soft Q1 Outlook as Analysts Trim Price Targets

Overview

• Unity reported fourth-quarter revenue of $503 million and adjusted EBITDA of $125 million, topping consensus estimates.
• Management guided first-quarter revenue to $480 million–$490 million, signaling a flat-to-down sequential trend and a near-term reset.
• Wells Fargo kept an Overweight rating but cut its target to $38, citing weak IronSource results and seasonality while highlighting runtime data that could lift Ad Network share.
• Goldman Sachs reiterated Neutral and reduced its target to $27, noting Q4 outperformance but a softer Q1 outlook and pointing to potential opportunities in China.
• Benchmark maintained Hold and questioned Unity’s claim to be leading in AI, warning the company’s legacy development and ad tech stack could be reshaped by frontier models, as high-profile investors such as Ark Invest also sold shares this week.