U Stock Analysis: Unity Software | NYSE
Software - Application | NYSE, USA | Market Cap: 11.852m USD | 12M Return: 18.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 217M
Qual. Beats: 0
Rev. Trend: -49.9%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 5.8 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Unity Software Inc. (NYSE: U) is a leading application software company that operates a platform enabling developers to create, deploy, and grow interactive 2D and 3D experiences across mobile, PC, console, and extended reality devices. The business is organized around two core offerings: Create Solutions, providing tools to build and run real-time content, and Grow Solutions, which supports user acquisition, engagement, and monetization. Unity also delivers AI-enabled services, professional consulting, advertising, and publishing support, reaching customers through direct sales, distributors, and resellers across global markets.
Operating within the Information Technology sector, Unitys real-time engine technology has expanded beyond gaming into industries such as automotive, architecture, film, and manufacturing, where it competes alongside Epic Games Unreal Engine. Headquartered in San Francisco and founded in 2004, the company has served developers and enterprises since its public market debut in September 2020.
- Grow Solutions ad revenue declines as mobile gaming demand weakens
- AI tools adoption expands Create Solutions seat growth across studios
- Restructuring costs and layoffs pressure operating margins and free cash flow
| 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 74.82%; Δ -15.44% > 0.5%) |
| Asset Turnover: 29.21% > 50% (prev 26.90%; Δ 2.30% > 0%) |
| Interest Coverage Ratio: -26.90 > 6 (EBIT TTM -649.3m / Interest Expense TTM 24.1m) |
| 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: -0.10 (EBIT TTM -649.3m / Avg Total Assets 6.58b) |
| D: 0.91 (Book Value of Equity 2.98b / Total Liabilities 3.28b) |
| Altman-Z'' = -0.52 = B |
| DSRI: 1.10 (Receivables 654.0m/553.0m, Revenue 1.92b/1.79b) |
| GMI: 1.26 (GM 74.82% / 59.38%) |
| 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 = -2.77 (Cap -4..+1) = A |
As of July 01, 2026, the stock is trading at USD 28.58 with a total of 5,566,999 shares traded. Over the past week, the price has changed by +3.51%, over one month by -11.16%, over three months by +30.26% and over the past year by +18.10%.
Current recommended Stop Loss: 26.60 (which is 6.9% or 1.3 ATR below the current price).
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
| Analysts Target Price | 35.3 | 23.4% |
P/E Forward = 28.9017
P/S = 6.1636
P/B = 3.9828
Revenue TTM = 1.92b USD
EBIT TTM = -649.3m USD
EBITDA TTM = -157.3m USD
Long Term Debt = 1.68b USD (from longTermDebt, last quarter)
Short Term Debt = 556.8m USD (from shortTermDebt, last quarter)
Debt = 2.50b USD (from shortLongTermDebtTotal, last quarter) + Leases 263.3m
Net Debt = 358.8m USD (calculated: Debt 2.50b - CCE 2.14b)
Enterprise Value = 12.2b USD (11.9b + Debt 2.50b - CCE 2.14b)
Interest Coverage Ratio = -26.90 (Ebit TTM -649.3m / Interest Expense TTM 24.1m)
EV/FCF = 26.37x (Enterprise Value 12.2b / FCF TTM 463.1m)
FCF Yield = 3.79% (FCF TTM 463.1m / Enterprise Value 12.2b)
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 = 1.87 (Enterprise Value 12.2b / Total Assets 6.52b)
Interest Expense / Debt = 0.97% (Interest Expense 24.1m / Debt 2.50b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -513.0m (EBIT -649.3m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.95 (Total Current Assets 2.92b / Total Current Liabilities 1.50b)
Debt / Equity = 0.84 (Debt 2.50b / totalStockholderEquity, last quarter 2.98b)
Debt / EBITDA = -2.28 (negative EBITDA) (Net Debt 358.8m / EBITDA -157.3m)
Debt / FCF = 0.77 (Net Debt 358.8m / 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 = -13.44% (EBIT -649.3m / Capital Employed (Equity 3.15b + L.T.Debt 1.68b))
RoIC = -9.36% (negative operating profit) (NOPAT -513.0m / Invested Capital 5.48b)
WACC = 10.70% (E(11.9b)/V(14.4b) * Re(12.79%) + D(2.50b)/V(14.4b) * Rd(0.97%) * (1-Tc(0.21)))
Discount Rate = 12.79% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 5.51%
[DCF] Terminal Value 70.77% ; FCFF base≈395.9m ; Y1≈453.8m ; Y5≈667.8m
[DCF] Fair Price = 15.45 (EV 7.10b - Net Debt 358.8m = Equity 6.74b / Shares 436.5m; r=10.70% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.04 | # QB: 0
Revenue Correlation: -49.88 | Revenue CAGR: -4.05% | SUE: 0.32 | # QB: 0
EPS next Quarter (2026-09-30): EPS=0.28 | Chg30d=+0.07% | Revisions=+27% | Analysts=10
EPS current Year (2026-12-31): EPS=1.03 | Chg30d=-0.35% | Revisions=+20% | GrowthEPS=+19.9% | GrowthRev=+15.2%
EPS next Year (2027-12-31): EPS=1.34 | Chg30d=+0.35% | Revisions=+43% | GrowthEPS=+29.5% | GrowthRev=+14.1%
[Analyst] Revisions Ratio: +43%