Unity Software Inc.U
NYSE•Technology•Software - Application
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.
Unity Software Inc. (U) reported trailing twelve months revenue of $1.92B as of March 2026, a 7.6% increase year-over-year. Quarterly revenue reached $508.24M, reflecting continued top-line momentum.
Unity Software Inc. reported a TTM net loss of $672.73M, with quarterly EBITDA of $-224.16M. The operating margin contracted from -29.4% to -69.1%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (-69.1%) and net margin (-68.4%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from -17.8% a year ago, reflecting increased costs or interest expense.
U trades at a P/S of 4.6x. The price-to-book ratio of 3.0x reflects a moderate premium to book value.
The company generated $66.46M in free cash flow over the trailing twelve months, a 809.4% increase year-over-year, indicating strong cash generation ability. The balance sheet shows $6.52B in total assets with $1.68B in long-term debt against $2.98B in stockholders equity for a debt-to-equity ratio of 0.6. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging -32.2%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF consistently trails net income (avg -0.8x) — earnings may be inflated by non-cash items or aggressive accounting.
D/E ratio is 0.6 — conservative capital structure with low financial risk.
Revenue has softened, declining in 4 quarters. Monitor for further erosion.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding increased 10.6% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation