Unity Stock Crashes: Here’s Why Investors Are Fleeing Today (August 2025)

Unity's share price just got vaporized—here's the brutal breakdown.

Engine Failure: The gaming tech giant's stock nosedived after another disastrous earnings call. Missed targets, shrinking margins, and that same old 'metaverse pivot' excuse.

Developer Exodus: Last quarter's controversial runtime fee debacle keeps haunting them. Top studios are jumping ship to Unreal Engine, taking their revenue with them.

Wall Street's Verdict: Analysts slashed price targets by 30% overnight. 'But the long-term play is solid!' cries the CFO—right before dumping another 10,000 shares.

Another day, another tech stock proving that 'disruptive growth' sometimes just means disrupting your own shareholders.

Image source: Getty Images.

Unity stock has seen wild swings today

In the second quarter, Unity posted non-GAAP (adjusted) earnings per share of $0.18 on revenue of $441 million. For comparison, the average analyst estimate had called for per-share earnings of $0.15 on revenue of $426.69 million. Sales for the period were still down 1.8% year over year in the period, but the performance came in significantly better than Wall Street had anticipated.

Unity stock initially soared on the stronger-than-expected Q2 results, but investors have now soured on the report. The market seems to be focusing on some aspects of the company's forward guidance and moving out of the stock due to concerns that the company's turnaround could take longer than previously expected.

What's next for Unity?

For the third quarter, Unity is guiding for revenue to come in between $440 million and $450 million. At the midpoint of the guidance range, that WOULD mean a year-over-year decline of roughly 0.5%.

It expects sales for the company's Unity Grow segment to increase at a mid-single-digit-percentage rate quarter over quarter while sales for the company's create segment see a slight sequential decline. On the heels of some significant customer momentum in the second quarter, investors were likely hoping that the create segment would continue to secure additional wins in the current quarter -- but management's guidance suggests that won't be the case.