(U) Unity Software - Overview

Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 11.909m USD | Total Return: 17.8% in 12m

Game Engine, Advertising Network, Development Tools, Cloud Services
Total Rating 37
Safety 35
Buy Signal -0.49
Software - Application
Industry Rotation: +9.1
Market Cap: 11.9B
Avg Turnover: 244M
Risk 3d forecast
Volatility60.5%
VaR 5th Pctl9.93%
VaR vs Median-0.31%
Reward TTM
Sharpe Ratio0.55
Rel. Str. IBD50.5
Rel. Str. Peer Group74.6
Character TTM
Beta1.870
Beta Downside1.894
Hurst Exponent0.534
Drawdowns 3y
Max DD71.28%
CAGR/Max DD-0.04
CAGR/Mean DD-0.06
EPS (Earnings per Share) EPS (Earnings per Share) of U over the last years for every Quarter: "2021-03": -0.1, "2021-06": -0.02, "2021-09": -0.06, "2021-12": -0.05, "2022-03": -0.08, "2022-06": -0.18, "2022-09": -0.14, "2022-12": -0.01, "2023-03": 0.09, "2023-06": 0.25, "2023-09": 0.35, "2023-12": -0.66, "2024-03": -0.75, "2024-06": -0.32, "2024-09": -0.31, "2024-12": -0.3, "2025-03": -0.19, "2025-06": -0.26, "2025-09": 0.2, "2025-12": -0.21, "2026-03": 0.23,
EPS CAGR: 15.02%
EPS Trend: -1.3%
Last SUE: 0.07
Qual. Beats: 0
Revenue Revenue of U over the last years for every Quarter: 2021-03: 234.772, 2021-06: 273.562, 2021-09: 286.328, 2021-12: 315.864, 2022-03: 320.126, 2022-06: 297.043, 2022-09: 322.881, 2022-12: 450.974, 2023-03: 500.361, 2023-06: 533.478, 2023-09: 544.21, 2023-12: 609.268, 2024-03: 460.38, 2024-06: 449.259, 2024-09: 446.517, 2024-12: 457.099, 2025-03: 435, 2025-06: 440.944, 2025-09: 470.615, 2025-12: 503.089, 2026-03: 508.238,
Rev. CAGR: 15.40%
Rev. Trend: 39.7%
Last SUE: 0.32
Qual. Beats: 0

Warnings

Interest Coverage Ratio -12.8 is critical

Altman Z'' -2.56 < 1.0 - financial distress zone

Below Avwap Earnings

Tailwinds

No distinct edge detected

Description: U Unity Software

Unity Software Inc. (U) operates a comprehensive platform for creating and monetizing real-time 2D and 3D content across mobile, PC, console, and extended reality (XR) devices. The business model is divided into Create Solutions, which provides the engine and development tools, and Grow Solutions, which focuses on user acquisition and advertising revenue. The company integrates artificial intelligence to streamline the development lifecycle and offers professional services to enterprise and government clients.

The application software sector is increasingly characterized by a transition toward consumption-based pricing and integrated AI workflows to reduce development costs. Unity operates within a duopoly in the high-end mobile game engine market, benefiting from high switching costs associated with its proprietary development environment. Investors may find it useful to evaluate platform performance metrics on ValueRay to better understand long-term growth trends. Headquartered in San Francisco, the company maintains a global presence with significant operations across Asia, Europe, and the Americas.

Headlines to Watch Out For
  • Ad monetization revenue recovers as Grow Solutions segment stabilizes after restructuring
  • Subscription growth from updated runtime fees impacts Create Solutions segment margins
  • Enterprise adoption of real-time 3D tools expands beyond core gaming market
  • Operating expense reductions through workforce optimization drive path toward GAAP profitability
  • AI-driven developer tools accelerate content creation cycle and platform stickiness
Piotroski VR‑10 (Strict) 4.0
Net Income: -672.0m TTM > 0 and > 6% of Revenue
FCF/TA: 0.07 > 0.02 and ΔFCF/TA 2.66 > 1.0
NWC/Revenue: 73.96% < 20% (prev 79.48%; Δ -5.52% < -1%)
CFO/TA 0.07 > 3% & CFO 481.2m > Net Income -672.0m
Net Debt/EBITDA: error (EBITDA <= 0)
Current Ratio: 1.95 > 1.5 & < 3
Outstanding Shares: last quarter (434.3m) vs 12m ago 5.44% < -2%
Gross Margin: 59.38% > 18% (prev 0.75%; Δ 5.86k% > 0.5%)
Asset Turnover: 29.21% > 50% (prev 26.90%; Δ 2.30% > 0%)
Interest Coverage Ratio: -12.77 > 6 (EBITDA TTM -294.9m / Interest Expense TTM 24.1m)
Altman Z'' -2.56
A: 0.22 (Total Current Assets 2.92b - Total Current Liabilities 1.50b) / Total Assets 6.52b
B: -0.69 (Retained Earnings -4.49b / Total Assets 6.52b)
C: -0.05 (EBIT TTM -308.2m / Avg Total Assets 6.58b)
D: -1.37 (Book Value of Equity -4.49b / Total Liabilities 3.28b)
Altman-Z'' Score: -2.56 = D
Beneish M -2.93
DSRI: 1.10 (Receivables 654.0m/553.0m, Revenue 1.92b/1.79b)
GMI: 1.26 (GM 59.38% / 74.82%)
AQI: 0.84 (AQ_t 0.54 / AQ_t-1 0.65)
SGI: 1.08 (Revenue 1.92b / 1.79b)
TATA: -0.18 (NI -672.0m - CFO 481.2m) / TA 6.52b)
Beneish M-Score: -2.93 (Cap -4..+1) = A
What is the price of U shares? As of May 20, 2026, the stock is trading at USD 26.20 with a total of 9,343,876 shares traded.
Over the past week, the price has changed by -2.38%, over one month by -1.24%, over three months by +41.70% and over the past year by +17.81%.
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.
  • StrongBuy: 12
  • Buy: 4
  • Hold: 13
  • Sell: 0
  • StrongSell: 0
What are the forecasts/targets for the U price?
Analysts Target Price 34.8 32.9%
Unity Software (U) - Fundamental Data Overview as of 16 May 2026
P/E Forward = 31.6456
P/S = 6.1931
P/B = 4.1309
Revenue TTM = 1.92b USD
EBIT TTM = -308.2m USD
EBITDA TTM = -294.9m USD
Long Term Debt = 1.68b USD (from longTermDebt, last quarter)
Short Term Debt = 556.8m USD (from shortTermDebt, last quarter)
Debt = 2.24b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 95.5m USD (from netDebt column, last quarter)
Enterprise Value = 12.00b USD (11.91b + Debt 2.24b - CCE 2.14b)
Interest Coverage Ratio = -12.77 (Ebit TTM -308.2m / Interest Expense TTM 24.1m)
EV/FCF = 25.92x (Enterprise Value 12.00b / FCF TTM 463.1m)
FCF Yield = 3.86% (FCF TTM 463.1m / Enterprise Value 12.00b)
FCF Margin = 24.08% (FCF TTM 463.1m / Revenue TTM 1.92b)
Net Margin = -34.95% (Net Income TTM -672.0m / Revenue TTM 1.92b)
Gross Margin = 59.38% ((Revenue TTM 1.92b - Cost of Revenue TTM 781.1m) / Revenue TTM)
Gross Margin QoQ = 30.81% (prev 61.20%)
Tobins Q-Ratio = 1.84 (Enterprise Value 12.00b / Total Assets 6.52b)
Interest Expense / Debt = 0.27% (Interest Expense 6.02m / Debt 2.24b)
Taxrate = 21.0% (US default 21%)
NOPAT = -243.5m (EBIT -308.2m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.95 (Total Current Assets 2.92b / Total Current Liabilities 1.50b)
Debt / Equity = 0.75 (Debt 2.24b / totalStockholderEquity, last quarter 2.98b)
 Debt / EBITDA = -0.32 (negative EBITDA) (Net Debt 95.5m / EBITDA -294.9m)
 Debt / FCF = 0.21 (Net Debt 95.5m / FCF TTM 463.1m)
Total Stockholder Equity = 3.15b (last 4 quarters mean from totalStockholderEquity)
RoA = -10.21% (Net Income -672.0m / Total Assets 6.52b)
RoE = -21.33% (Net Income TTM -672.0m / Total Stockholder Equity 3.15b)
RoCE = -6.38% (EBIT -308.2m / Capital Employed (Equity 3.15b + L.T.Debt 1.68b))
 RoIC = -4.52% (negative operating profit) (NOPAT -243.5m / Invested Capital 5.39b)
 WACC = 10.61% (E(11.91b)/V(14.15b) * Re(12.56%) + D(2.24b)/V(14.15b) * Rd(0.27%) * (1-Tc(0.21)))
Discount Rate = 12.56% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 5.51%
[DCF] Terminal Value 73.56% ; FCFF base≈395.9m ; Y1≈488.3m ; Y5≈833.2m
[DCF] Fair Price = 21.00 (EV 9.26b - Net Debt 95.5m = Equity 9.17b / Shares 436.5m; r=10.61% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -1.28 | EPS CAGR: 15.02% | SUE: 0.07 | # QB: 0
Revenue Correlation: 39.73 | Revenue CAGR: 15.40% | SUE: 0.32 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.24 | Chg30d=+2.97% | Revisions=+0% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.27 | Chg30d=+5.94% | Revisions=+27% | Analysts=10
EPS current Year (2026-12-31): EPS=1.06 | Chg30d=+4.77% | Revisions=+8% | GrowthEPS=+23.0% | GrowthRev=+15.2%
EPS next Year (2027-12-31): EPS=1.31 | Chg30d=+4.97% | Revisions=+33% | GrowthEPS=+24.2% | GrowthRev=+14.0%
[Analyst] Revisions Ratio: +33%