Quality Investor
About 

Unity Software Inc.

Rank #344Startup

U · NYSE · Technology

Unity Software Inc. (U) — Rank #344 by gross profitability (GP/assets 0.21) · ROE -13.3% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · CIK 0001810806 · all metrics point-in-time as of the filing date.

About

Unity Software Inc. operates a platform to develop, deploy, and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America.

Show more

The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization. It also provides Create Solutions, a set of tools and services used to build, ship, and run real-time 2D and 3D content; and Grow Solutions, which allows customers to grow and engage their user base and monetize their content. In addition, the company offers enterprise support and consumption services; professional services, including consulting, platform integration, training, and custom application and workflow development services; and advertising and game publishing services. It provides its solutions directly through its online store, field sales operations, independent distributors, and resellers. The company serves enterprises, mid-market companies, government, and non-profit institutions; mid-sized, small, and independent businesses; and individuals from various industries. Unity Software Inc.

was founded in 2004 and is headquartered in San Francisco, California.

Industry
Software - Application
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
unity.com

Price History

U-67.1% · -19.9% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens for pre-profit companies.

Market Cap

$18.77B

P/E (annual)

—

P/S (annual)

10.1

P/B

6.2

P/OCF (annual)

44.4

Shareholder Yield

-6.3%

Employees

4,412

Industry

Software - Application

Exchange

NYSE

Signal Flags

3 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.21
Return on equity
-13.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.10
Current ratio
2.03×
Net cash
$2.35B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
20.8%

Growth

1/2 pass
Revenue growth
2.0%
Piotroski F-Score
5 / 9
Share dilution
6.3%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

18.6%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 6.3% — per-share value needs a total required return of 24.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 33.9%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

13.7%

r = 10% (base)

18.6%

r = 12%

22.9%

Net debt / market cap: -13.1%

Note: current FCF margin is 1.6σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $403.9M3Y mean FCF: $289.6M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

4.9xCheap
4.9xmed 6.6x33.2x

P / B

Price / book value per share

2.8xCheap
2.6xmed 3.5x29.4x

P / GP

Price / gross profit per share

6.6xCheap
6.6xmed 9.7x42.8x

P / FCF

Price / free cash flow per share

22.3xCheap
22.3xmed 39.2x62.4x

Burn rate (cash flow) is the primary read at this stage — TAM and product-market fit aren't metrics this dashboard tracks.

Profitability

Gross profitability (GP / assets)

0.21

Primary signal (Novy-Marx).

14th pctl of 38 SIC 7372 peers

Return on equity

-13.3%

Gross margin

74.2%

62nd pctl of 38 SIC 7372 peers

Revenue growth (YoY)

2.0%

RPO growth (YoY)

47.9%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

10.0%

Revenue CAGR (5Y)

19.1%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.10

25th pctl of 33 SIC 7372 peers (best = lowest)

Current ratio

2.03×

54th pctl of 38 SIC 7372 peers

Quick ratio

1.94×

Net cash

$2.35B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$403.93M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.00

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

20.8%

Stock-based comp intensity.

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Decline
Startup
View full financial statements →