(U) Unity Software - Overview
Stock: Engine, Platform, SDK, Ads, Cloud
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 60.3% |
| Relative Tail Risk | -6.35% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.00 |
| Alpha | 38.11 |
| Character TTM | |
|---|---|
| Beta | 1.904 |
| Beta Downside | 2.041 |
| Drawdowns 3y | |
|---|---|
| Max DD | 71.28% |
| CAGR/Max DD | -0.02 |
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) 4.0
| Net Income: -435.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 2.37 > 1.0 |
| NWC/Revenue: 93.16% < 20% (prev 63.06%; Δ 30.10% < -1%) |
| CFO/TA 0.06 > 3% & CFO 413.7m > Net Income -435.5m |
| Net Debt (335.7m) to EBITDA (37.5m): 8.95 < 3 |
| Current Ratio: 2.78 > 1.5 & < 3 |
| Outstanding Shares: last quarter (424.3m) vs 12m ago 6.39% < -2% |
| Gross Margin: 74.29% > 18% (prev 0.68%; Δ 7361 % > 0.5%) |
| Asset Turnover: 26.70% > 50% (prev 29.22%; Δ -2.52% > 0%) |
| Interest Coverage Ratio: -16.58 > 6 (EBITDA TTM 37.5m / Interest Expense TTM 23.8m) |
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 -4.05b / Total Assets 6.78b) |
| C: -0.06 (EBIT TTM -394.7m / Avg Total Assets 6.75b) |
| D: -1.22 (Book Value of Equity -4.05b / Total Liabilities 3.33b) |
| Altman-Z'' Score: -1.99 = D |
Beneish M -3.24
| DSRI: 1.13 (Receivables 600.1m/576.4m, Revenue 1.80b/1.97b) |
| GMI: 0.92 (GM 74.29% / 68.12%) |
| AQI: 0.90 (AQ_t 0.60 / AQ_t-1 0.67) |
| SGI: 0.92 (Revenue 1.80b / 1.97b) |
| TATA: -0.13 (NI -435.5m - CFO 413.7m) / TA 6.78b) |
| Beneish M-Score: -3.24 (Cap -4..+1) = AA |
What is the price of U shares?
Over the past week, the price has changed by -8.85%, over one month by -14.76%, over three months by +3.39% and over the past year by +67.39%.
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 | 47.6 | 24% |
| Analysts Target Price | 47.6 | 24% |
| ValueRay Target Price | 44 | 14.5% |
U Fundamental Data Overview January 27, 2026
P/S = 10.045
P/B = 5.6556
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 = 19.25b USD (18.12b + Debt 2.23b - CCE 1.10b)
Interest Coverage Ratio = -16.58 (Ebit TTM -394.7m / Interest Expense TTM 23.8m)
EV/FCF = 49.23x (Enterprise Value 19.25b / FCF TTM 391.0m)
FCF Yield = 2.03% (FCF TTM 391.0m / Enterprise Value 19.25b)
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 = 2.84 (Enterprise Value 19.25b / Total Assets 6.78b)
Interest Expense / Debt = 0.27% (Interest Expense 6.04m / Debt 2.23b)
Taxrate = 21.0% (US default 21%)
NOPAT = -311.8m (EBIT -394.7m * (1 - 21.00%)) [loss with tax shield]
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 = -6.45% (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 = -5.75% (negative operating profit) (NOPAT -311.8m / Invested Capital 5.43b)
WACC = 11.53% (E(18.12b)/V(20.35b) * Re(12.93%) + D(2.23b)/V(20.35b) * Rd(0.27%) * (1-Tc(0.21)))
Discount Rate = 12.93% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 5.00%
[DCF Debug] Terminal Value 56.17% ; FCFF base≈325.9m ; Y1≈213.9m ; Y5≈97.6m
Fair Price DCF = 2.02 (EV 1.20b - Net Debt 335.7m = Equity 864.1m / Shares 427.9m; r=11.53% [WACC]; 5y FCF grow -40.0% → 2.90% )
[DCF Warning] FCF declining rapidly (-40.0%), DCF may be unreliable
EPS Correlation: -10.54 | EPS CAGR: 2.96% | SUE: -0.76 | # QB: 0
Revenue Correlation: 55.64 | Revenue CAGR: 11.22% | SUE: 0.92 | # QB: 1
EPS next Quarter (2026-03-31): EPS=-0.23 | Chg30d=+0.001 | Revisions Net=+0 | Analysts=11
EPS next Year (2026-12-31): EPS=-0.66 | Chg30d=+0.011 | Revisions Net=+0 | Growth EPS=+30.0% | Growth Revenue=+14.0%