Overview Dividends

(U) Unity Software - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US91332U1016

Engine, Ads, Cloud, Analytics, SDK

U EPS (Earnings per Share)

EPS Growth (3Y CAGR): -15.79%
EPS Trend (3Y Correlation): -27.8%

U Revenue

Revenue Growth (3Y CAGR): 1.56%
Revenue Trend (3Y Correlation): -47.3%

Risk via 10d forecast
Volatility	69.0%
Value at Risk 5%th	105%
Relative Tail Risk	-7.78%

Reward TTM
Sharpe Ratio	1.16
Alpha	67.22

Character TTM
Hurst Exponent	0.474
Beta	2.016
Beta Downside	2.389

Drawdowns 3y
Max DD	71.28%
Mean DD	38.78%
Median DD	39.58%

Description: U Unity Software October 31, 2025

Unity Software Inc. (NYSE: U) provides a comprehensive development platform that enables creators to build, operate, and monetize interactive 2D/3D experiences across mobile, PC, console, and extended-reality devices worldwide. Its offering is split into “Create Solutions” (tools for real-time content creation) and “Grow Solutions” (services for user acquisition, live-ops, and monetization), supplemented by enterprise support, professional services, and advertising/publishing capabilities delivered via an online store, field sales, and channel partners.

Key recent metrics reinforce Unity’s growth narrative: FY 2023 revenue reached approximately $1.9 billion, up roughly 20 % year-over-year, driven largely by the Unity Gaming Services (UGS) segment, which posted a 45 % YoY increase in subscription revenue. The platform now supports over 2.5 billion monthly active users (MAU) across its ecosystem, and average revenue per user (ARPU) has risen as developers shift spend toward in-game advertising and live-ops services. A broader sector driver is the accelerating adoption of AR/VR and the continued expansion of mobile gaming spend, which together are projected to grow at a CAGR of ~12 % through 2028.

If you want a data-rich, model-based perspective on Unity’s valuation and risk profile, a deeper dive on ValueRay can provide the quantitative context you need.

U Stock Overview

Market Cap in USD	15,901m
Sub-Industry	Application Software
IPO / Inception	2020-09-18
Return 12m vs S&P 500	76.5%
Analyst Rating	3.97 of 5

U Dividends

Currently no dividends paid

U Growth Ratios

CAGR 3y	1.94%
CAGR/Max DD Calmar Ratio	0.03
CAGR/Mean DD Pain Ratio	0.05
Current Volume	9009.7k
Average Volume	8493k

Piotroski VR‑10 (Strict, 0-10) 4.0

Net Income (-435.5m TTM) > 0 and > 6% of Revenue (6% = 108.2m TTM)

FCFTA 0.06 (>2.0%) and ΔFCFTA 2.37pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 93.16% (prev 63.06%; Δ 30.10pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.06 (>3.0%) and CFO 413.7m > Net Income -435.5m (YES >=105%, WARN >=100%)

Net Debt (335.7m) to EBITDA (37.5m) ratio: 8.95 <= 3.0 (WARN <= 3.5)

Current Ratio 2.78 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (424.3m) change vs 12m ago 6.39% (target <= -2.0% for YES)

Gross Margin 74.29% (prev 68.12%; Δ 6.17pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 26.70% (prev 29.22%; Δ -2.52pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio -16.58 (EBITDA TTM 37.5m / Interest Expense TTM 23.8m) >= 6 (WARN >= 3)

Altman Z'' -1.99

(A) 0.25 = (Total Current Assets 2.62b - Total Current Liabilities 942.2m) / Total Assets 6.78b

(B) -0.60 = Retained Earnings (Balance) -4.05b / Total Assets 6.78b

(D) -1.22 = Book Value of Equity -4.05b / Total Liabilities 3.33b

Total Rating: -1.99 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 35.68

1. Piotroski 4.0pt = -1.0

2. FCF Yield 2.41% = 1.20

3. FCF Margin 21.68% = 5.42

4. Debt/Equity 0.70 = 2.26

5. Debt/Ebitda 8.95 = -2.50

6. ROIC - WACC (= -19.65)% = -12.50

7. RoE -13.64% = -2.27

8. Rev. Trend -47.31% = -3.55

9. EPS Trend -27.77% = -1.39

What is the price of U shares?

As of November 18, 2025, the stock is trading at USD 36.72 with a total of 9,009,691 shares traded.
Over the past week, the price has changed by -14.86%, over one month by +5.76%, over three months by -4.23% and over the past year by +104.11%.

Is Unity Software a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Unity Software (NYSE:U) is currently (November 2025) a stock to sell. It has a ValueRay Fundamental Rating of 35.68 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of U is around 33.90 USD . This means that U is currently overvalued and has a potential downside of -7.68%.

Is U a buy, sell or hold?

Unity Software has received a consensus analysts rating of 3.97. Therefore, it is recommended to buy U.

Strong Buy: 12
Buy: 4
Hold: 13
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the U price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	42.3	15.2%
Analysts Target Price	42.3	15.2%
ValueRay Target Price	38.9	6%

U Fundamental Data Overview November 16, 2025

Market Cap USD = 15.90b (15.90b USD * 1.0 USD.USD)
P/E Forward = 79.3651
P/S = 8.8161
P/B = 4.9637
Beta = 2.059
Revenue TTM = 1.80b USD
EBIT TTM = -394.7m USD
EBITDA TTM = 37.5m USD
Long Term Debt = 2.23b USD (from longTermDebt, last quarter)
Short Term Debt = 33.7m USD (from shortTermDebt, last fiscal year)
Debt = 2.23b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 335.7m USD (from netDebt column, last quarter)
Enterprise Value = 16.24b USD (15.90b + Debt 2.23b - CCE 1.90b)
Interest Coverage Ratio = -16.58 (Ebit TTM -394.7m / Interest Expense TTM 23.8m)
FCF Yield = 2.41% (FCF TTM 391.0m / Enterprise Value 16.24b)
FCF Margin = 21.68% (FCF TTM 391.0m / Revenue TTM 1.80b)
Net Margin = -24.15% (Net Income TTM -435.5m / Revenue TTM 1.80b)
Gross Margin = 74.29% ((Revenue TTM 1.80b - Cost of Revenue TTM 463.8m) / Revenue TTM)
Gross Margin QoQ = 74.43% (prev 74.16%)
Tobins Q-Ratio = 2.39 (Enterprise Value 16.24b / Total Assets 6.78b)
Interest Expense / Debt = 0.27% (Interest Expense 6.04m / Debt 2.23b)
Taxrate = -7.59% (negative due to tax credits) (8.91m / -117.5m)
NOPAT = -424.6m (EBIT -394.7m * (1 - -7.59%)) [loss with tax shield] [negative tax rate / tax credits]
Current Ratio = 2.78 (Total Current Assets 2.62b / Total Current Liabilities 942.2m)
Debt / Equity = 0.70 (Debt 2.23b / totalStockholderEquity, last quarter 3.20b)
Debt / EBITDA = 8.95 (Net Debt 335.7m / EBITDA 37.5m)
Debt / FCF = 0.86 (Net Debt 335.7m / FCF TTM 391.0m)
Total Stockholder Equity = 3.19b (last 4 quarters mean from totalStockholderEquity)
RoA = -6.42% (Net Income -435.5m / Total Assets 6.78b)
RoE = -13.64% (Net Income TTM -435.5m / Total Stockholder Equity 3.19b)
RoCE = -7.27% (EBIT -394.7m / Capital Employed (Equity 3.19b + L.T.Debt 2.23b))
RoIC = -7.83% (negative operating profit) (NOPAT -424.6m / Invested Capital 5.43b)
WACC = 11.82% (E(15.90b)/V(18.14b) * Re(13.44%) + D(2.23b)/V(18.14b) * Rd(0.27%) * (1-Tc(-0.08)))
Discount Rate = 13.44% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 12.84%
[DCF Debug] Terminal Value 50.40% ; FCFE base≈325.9m ; Y1≈213.9m ; Y5≈97.8m
Fair Price DCF = 2.38 (DCF Value 1.02b / Shares Outstanding 427.9m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -27.77 | EPS CAGR: -15.79% | SUE: -2.69 | # QB: 0
Revenue Correlation: -47.31 | Revenue CAGR: 1.56% | SUE: 0.92 | # QB: 1

Additional Sources for U Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle