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Unity Software Inc.

Rank #328StartupWatchlistCompare with other stocks

U · NYSE · Technology

Unity Software Inc. (U) — Rank #328 by gross profitability (GP/assets 0.21) · ROE -13.3% · Piotroski F-Score 5 / 9.

As-of 2026-10-30 · 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.

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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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

4,412

Industry

Software - Application

Exchange

NYSE

10/12

Flags passed

U passes 10/12 quality flags

2 cautions to review

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • CAUTION
    Disclosure regression

    A previously-disclosed line item is no longer reported — worth checking the filing for why

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing · RPO outpacing revenue

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 14th percentile of 36 SIC 7372 peers

Gross profitability (GP / assets)

0.21

Primary signal (Novy-Marx).

14th pctl of 36 SIC 7372 peers

Return on equity

-13.3%

Gross margin

74.2%

66th pctl of 36 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)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 200% above net income

Free cash flow

$403.93M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

200.3%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

20.8%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net cash $2.35B, F-Score 5/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.10

19th pctl of 32 SIC 7372 peers (best = lowest)

Current ratio

2.03×

51st pctl of 36 SIC 7372 peers

Quick ratio

1.94×

Net cash

$2.35B

Cash & equivalents minus total debt.

Piotroski F-Score

5 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend
6.3%0/5 Weak
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
7.9%5/5 Strong

Lifecycle Phase History

20202025
Hypergrowth
Decline
Startup

Price History

U-68.4% · -20.6% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports