Unity Software (U) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Unity Software

NYSE•Technology•Software - Application

$43.45-0.51(-0.01%)Pre-market

Market Cap

$18.32B

P/S

9.0x

P/B

6.0x

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. 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.

How this company scores

WeakMetricSide Score: 56/100

Grade capped at D — Interest coverage below 1× (-25.5x) — earnings cannot cover interest. Strongest: Cash & Earnings Quality (17/25); weakest: Profitability (11/25).

Profitability11/25

Growth13/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality17/25

Strengths

Rising free cash flowLong cash runwayConsistent free cash flowImproving leverage

Grade capped at D

Interest coverage below 1× (-25.5x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 9.0x5y range 3.1x – 37.1x

Currently above its 20-quarter median.

P/B · 6.0x5y range 2.0x – 18.1x

Currently above its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg -1.8x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $18.32B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $2.03B
Q. Revenue: $546.47M
TTM EBITDA: $-135.47M
TTM Op. Income: $-616.00M
Q. Op. Income: $-32.22M
TTM Net Income: $-587.54M
Q. Net Income: $-23.61M
EPS: $-0.05
Shares Out.: $437.90M

$2.03B in TTM revenue grew 14.0% YoY, reaching $546.47M last quarter. TTM EBITDA of $-135.47M and TTM operating income of $-616.00M show growth is flowing through to the bottom line. However, net income is negative at $587.54M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 79.6%
EBITDA Margin: 9.7%
Op. Margin: -5.9%
Net Margin: -4.3%

Op. margin of -5.9% is up 21.0% YoY — cost efficiency is improving. Net margin at -4.3% and gross margin of 79.6% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 78% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 9.0x
P/B Ratio: 6.0x

P/S of 9.0x and P/B of 6.0x.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $6.66B
Cash: $2.35B
Long-Term Debt: $1.68B
Book Value: $3.03B
D/E Ratio: 0.6
Debt/EBITDA: 31.6

With $6.66B in assets and $1.68B in long-term debt, D/E is 0.6and book value is $3.03B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 21% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $205.62M
TTM Free Cash Flow: $538.39M
FCF Margin: 26.5%
FCF / Net Income: -0.9

TTM FCF of $538.39M on $205.62M in operating cash flow. The FCF / Net Income ratio of -0.9x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has risen for 7 consecutive quarters — an improving trend.