U

Unity Software Inc.

Fundamental data last updated:May 22, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/05/2026

Business Summary

Unity Software Inc. creates and operates an interactive real-time 3D content platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company serves content creators and developers, artists, designers, engineers, and architects to create interactive and real-time 2D and 3D content. It offers its solutions directly through its online store, field sales operations, independent distributors, and resellers in the United States, Denmark, Belgium, Canada, China, Colombia, Finland, France, Germany, Ireland, Israel, Japan, Lithuania, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, and the United Kingdom. The company was founded in 2004 and is headquartered in San Francisco, California.

 


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VALUATION

P/E

-16.64

Market Cap ($M USD)

$11.24B

Forward P/E

53.65

PEG

0.41

PRICE TO SALES

5.85

PRICE TO BOOK

3.76

EV / EBITDA

-38.44

5-Year Average P/E

Free Cash Flow Yield

4.12%

DCF Value

$-24.16

Graham Number

N/A

Price to FCF

24.27

EV to FCF

24.48

Earnings Yield

-6.01%

FCF Yield

4.12%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$1.55

Next Year EPS Growth Estimate

$0.48

Next Year Revenue Growth Estimate

$352.88B

Return on Equity (ROE)

-21.33%

FREE CASH FLOW

Operating Margin

-36.09%

Debt-to-Equity

0.74

Piotroski F-Score

4

Altman Z-Score

1.43

Return on Invested Capital (ROIC)

-13.82%

Current Ratio

1.95

Quick Ratio

1.95

Net Debt to EBITDA

-0.32

Interest Coverage

-57.37

Gross Profit margin

59.38%

FCF PER SHARE

$1.07

REVENUE PER SHARE

$4.43

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Gainseekers Quantitative Analysis

Summary

Unity Software Inc. presents a perplexing valuation scenario. Despite a forward P/E of 58.67, the market seems to overlook its negative DCF value, suggesting a disconnect between expectations and intrinsic worth. The Altman Z-score of 1.51 raises red flags about financial stability, while a negative earnings yield further questions its profitability. Yet, the PEG ratio of 0.45 hints at potential undervaluation if growth materializes. The stock’s current pricing, significantly below its 52-week high, indicates market skepticism about its growth narrative.

AI Exposure / Tech Reliance

Operating within the dynamic software application industry, Unity is well-positioned to capitalize on AI and tech advancements. Its platform, crucial for game development and real-time 3D content, aligns with the increasing demand for immersive digital experiences. This strategic positioning could drive future growth as AI integration becomes more prevalent.

The Bull Case

For the GARP investor, Unity's appeal lies in its forward-looking growth potential. The company boasts a respectable FCF yield of 3.77%, indicating efficient cash generation relative to its market cap. Despite a modest Piotroski F-Score of 4, its gross profit margin of 59.38% suggests strong pricing power. These factors, combined with a manageable debt/equity ratio of 0.74, paint a picture of a company with the potential to leverage its capital efficiently.

The Bear Case

However, Unity's structural weaknesses cannot be ignored. The negative operating margin of 36.09% and return on equity of -21.33% highlight significant operational inefficiencies. Its price-to-sales ratio of 6.39 and price-to-book ratio of 4.11 suggest a premium valuation that may not be justified by current performance. Additionally, the stock's proximity to its 52-week low reflects market concerns over its ability to deliver on growth promises.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$35.71

Institutional Ownership %

1-Year Beta

2.04

Insider Buying % (6 Mo)

Distance to 52-Week High

102.52%

Distance to 52-Week Low

34.83%

EARNINGS SURPRISE %

-433.33%

50-DAY SMA

$23.38

200-DAY SMA

$34.12

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.