(U) Unity Software - Overview
Stock: Engine, Platform, SDK, Ads, Cloud
| Risk 5d forecast | |
|---|---|
| Volatility | 108% |
| Relative Tail Risk | -7.47% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.19 |
| Alpha | -38.60 |
| Character TTM | |
|---|---|
| Beta | 2.010 |
| Beta Downside | 1.815 |
| Drawdowns 3y | |
|---|---|
| Max DD | 71.28% |
| CAGR/Max DD | -0.21 |
EPS (Earnings per Share)
Revenue
Description: U Unity Software January 03, 2026
Unity Software Inc. (NYSE: U) runs a cloud-based development platform that enables creators to build, operate, and monetize real-time 2D/3D experiences across mobile, PC, console, and extended-reality (XR) devices worldwide.
The platform is divided into three core suites: Create Solutions (authoring tools, runtime engine, and cloud services), Grow Solutions (user-acquisition, analytics, and in-app monetization), and Enterprise Services (consulting, integration, and advertising/publishing support). Unity distributes these offerings via its online store, direct field sales, and a network of independent distributors and resellers, serving everyone from indie developers to Fortune-500 enterprises and government agencies.
Key performance indicators as of FY 2023 show $1.9 billion in total revenue, a 23 % YoY increase driven largely by a 31 % rise in subscription-based “Create” revenue and a 19 % jump in “Grow” services. The company’s monthly active developers (MAD) reached roughly 2.1 million, indicating strong network effects, while average revenue per user (ARPU) has been trending upward as more developers adopt premium analytics and advertising tools.
Sector-wide, Unity benefits from two macro trends: the continued expansion of mobile gaming, which now accounts for over 50 % of global game revenue, and the accelerating adoption of XR experiences, projected to grow at a CAGR of ~30 % through 2030. Additionally, the integration of generative AI into content creation is expected to boost developer productivity, a capability Unity is actively embedding across its toolchain.
For a deeper quantitative comparison, you might explore ValueRay’s platform for granular analyst-grade metrics.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income: -402.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.85 > 1.0 |
| NWC/Revenue: 69.56% < 20% (prev 73.67%; Δ -4.11% < -1%) |
| CFO/TA 0.06 > 3% & CFO 423.0m > Net Income -402.8m |
| Net Debt (179.5m) to EBITDA (82.9m): 2.16 < 3 |
| Current Ratio: 1.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (429.8m) vs 12m ago 6.09% < -2% |
| Gross Margin: 70.62% > 18% (prev 0.73%; Δ 6989 % > 0.5%) |
| Asset Turnover: 27.25% > 50% (prev 26.91%; Δ 0.34% > 0%) |
| Interest Coverage Ratio: -15.75 > 6 (EBITDA TTM 82.9m / Interest Expense TTM 24.0m) |
Altman Z'' -2.41
| A: 0.19 (Total Current Assets 2.81b - Total Current Liabilities 1.53b) / Total Assets 6.84b |
| B: -0.61 (Retained Earnings -4.14b / Total Assets 6.84b) |
| C: -0.06 (EBIT TTM -378.0m / Avg Total Assets 6.79b) |
| D: -1.24 (Book Value of Equity -4.14b / Total Liabilities 3.34b) |
| Altman-Z'' Score: -2.41 = D |
Beneish M -3.09
| DSRI: 1.10 (Receivables 643.6m/573.9m, Revenue 1.85b/1.81b) |
| GMI: 1.04 (GM 70.62% / 73.50%) |
| AQI: 0.88 (AQ_t 0.58 / AQ_t-1 0.66) |
| SGI: 1.02 (Revenue 1.85b / 1.81b) |
| TATA: -0.12 (NI -402.8m - CFO 423.0m) / TA 6.84b) |
| Beneish M-Score: -3.09 (Cap -4..+1) = AA |
What is the price of U shares?
Over the past week, the price has changed by -0.60%, over one month by -56.68%, over three months by -56.12% and over the past year by -33.10%.
Is U a buy, sell or hold?
- StrongBuy: 12
- Buy: 4
- Hold: 13
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the U price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 34.1 | 87% |
| Analysts Target Price | 34.1 | 87% |
U Fundamental Data Overview February 21, 2026
P/S = 4.3271
P/B = 2.4976
Revenue TTM = 1.85b USD
EBIT TTM = -378.0m USD
EBITDA TTM = 82.9m USD
Long Term Debt = 1.68b USD (from longTermDebt, last quarter)
Short Term Debt = 556.5m USD (from shortTermDebt, last quarter)
Debt = 2.24b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 179.5m USD (from netDebt column, last quarter)
Enterprise Value = 8.89b USD (8.00b + Debt 2.24b - CCE 1.35b)
Interest Coverage Ratio = -15.75 (Ebit TTM -378.0m / Interest Expense TTM 24.0m)
EV/FCF = 22.01x (Enterprise Value 8.89b / FCF TTM 403.9m)
FCF Yield = 4.54% (FCF TTM 403.9m / Enterprise Value 8.89b)
FCF Margin = 21.84% (FCF TTM 403.9m / Revenue TTM 1.85b)
Net Margin = -21.78% (Net Income TTM -402.8m / Revenue TTM 1.85b)
Gross Margin = 70.62% ((Revenue TTM 1.85b - Cost of Revenue TTM 543.4m) / Revenue TTM)
Gross Margin QoQ = 61.20% (prev 74.43%)
Tobins Q-Ratio = 1.30 (Enterprise Value 8.89b / Total Assets 6.84b)
Interest Expense / Debt = 0.27% (Interest Expense 6.04m / Debt 2.24b)
Taxrate = 21.0% (US default 21%)
NOPAT = -298.6m (EBIT -378.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.84 (Total Current Assets 2.81b / Total Current Liabilities 1.53b)
Debt / Equity = 0.69 (Debt 2.24b / totalStockholderEquity, last quarter 3.24b)
Debt / EBITDA = 2.16 (Net Debt 179.5m / EBITDA 82.9m)
Debt / FCF = 0.44 (Net Debt 179.5m / FCF TTM 403.9m)
Total Stockholder Equity = 3.20b (last 4 quarters mean from totalStockholderEquity)
RoA = -5.93% (Net Income -402.8m / Total Assets 6.84b)
RoE = -12.57% (Net Income TTM -402.8m / Total Stockholder Equity 3.20b)
RoCE = -7.74% (EBIT -378.0m / Capital Employed (Equity 3.20b + L.T.Debt 1.68b))
RoIC = -5.50% (negative operating profit) (NOPAT -298.6m / Invested Capital 5.43b)
WACC = 10.46% (E(8.00b)/V(10.24b) * Re(13.32%) + D(2.24b)/V(10.24b) * Rd(0.27%) * (1-Tc(0.21)))
Discount Rate = 13.32% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 5.68%
[DCF Debug] Terminal Value 66.80% ; FCFF base≈351.6m ; Y1≈305.3m ; Y5≈243.8m
Fair Price DCF = 6.57 (EV 3.02b - Net Debt 179.5m = Equity 2.84b / Shares 432.9m; r=10.46% [WACC]; 5y FCF grow -16.06% → 2.90% )
EPS Correlation: -18.32 | EPS CAGR: -5.39% | SUE: -1.54 | # QB: 0
Revenue Correlation: 48.85 | Revenue CAGR: 12.81% | SUE: 0.58 | # QB: 0
EPS next Quarter (2026-03-31): EPS=-0.24 | Chg30d=-0.017 | Revisions Net=+0 | Analysts=12
EPS current Year (2026-12-31): EPS=-0.70 | Chg30d=-0.038 | Revisions Net=+1 | Growth EPS=+27.4% | Growth Revenue=+12.8%
EPS next Year (2027-12-31): EPS=-0.38 | Chg30d=+0.001 | Revisions Net=+1 | Growth EPS=+46.0% | Growth Revenue=+13.2%