U
Unity Software Inc.
Next earnings Aug 4, 2026 (after close) · consensus $-0.10 EPS, $525M rev
Last earnings -2.0% on 2026-05-07
$29.32
▲ +3.57%$29.32▲ +20.56%
over 1Y
L $17.13H $49.47
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+3.6%
1W+9.8%
1M-4.7%
3M+28.9%
YTD-33.7%
1Y+20.6%
Hold
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 34 analysts
Buy
Unity's turnaround is working — losses nearly halved, $423M cash flow, 74% gross margins — but it's still unprofitable at 6.4x sales.
Net income -$403M · FY2025
Unity is the dominant real-time 3D game engine plus a monetization (Grow) advertising business, mid-turnaround after the 2023 product reset to its Strategic Portfolio. The direction is encouraging: FY2025 net loss narrowed to -$403M from -$664M (a 39.4% improvement) and operating loss shrank to -$479M from -$755M, as management cut sales-and-marketing and G&A hard while revenue stabilized at $1.85B (+2.0%) after the FY2024 decline. Gross margin is a software-grade 74.2%, and operating cash flow grew 34.0% to $423M — Unity is solidly cash-generative even while GAAP-unprofitable.
The balance sheet supports the rebuild: $2.06B cash (+35.5%), total liabilities of $3.34B roughly matched by $3.24B equity (1.03x), and minimal capex ($19M). Cost discipline is real — operating expenses fell from 115% of revenue in FY2024 to 100% in FY2025, with sales-and-marketing down to 35% of revenue and G&A to 15%. The accumulated deficit of -$4.14B and consistent net losses every year since FY2021 are the legacy of overspending the company is now unwinding.
Is U a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~60d expiry
- Long 100 shares @ ~29.32
- Short call 31 @ ~2.08 est
debit $2,724max +$376max −$2,723BE 27.24
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $1.11B | $1.39B | $2.19B | $1.81B | $1.85B |
| Gross profit | $857M | $949M | $1.45B | $1.33B | $1.37B |
| Operating income | -$532M | -$882M | -$833M | -$755M | -$479M |
| Net income | -$533M | -$921M | -$822M | -$664M | -$403M |
| Diluted EPS | -$1.89 | -$2.96 | -$2.16 | -$1.68 | -$0.96 |
| Net margin | -48.0% | -66.2% | -37.6% | -36.6% | -21.8% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$10.7B
EV / EBITDA—
EV / Sales5.8
EV / FCF26.6
P / FCF31.7
PEG (trailing)—
Earnings yield-3.1%
FCF yield3.2%
Quality & risk
ROIC (est.)-11.7%
Free cash flow$404M
Total debt—
Net cash$2.06B
Altman Z-Score1.72 distress
Piotroski F-Score5/8
Capital returns
Buyback yield0.0%
Dividend yield (est.)—
Shareholder yield0.0%
Shares Δ YoY+5.7%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsSome governance/structural items recently, but no outright red flags.
Recent filings
all on EDGAR ↗4Period ending 2026-05-262026-05-28open ↗4Period ending 2026-05-262026-05-28open ↗4Period ending 2026-05-262026-05-28open ↗4Period ending 2026-05-262026-05-28open ↗4Period ending 2026-05-262026-05-28open ↗144Filing2026-05-28open ↗144Filing2026-05-26open ↗144Filing2026-05-26open ↗144Filing2026-05-26open ↗144Filing2026-05-26open ↗144Filing2026-05-26open ↗4Period ending 2026-05-132026-05-15open ↗
Frequently asked
- Is Unity Software Inc. (U) a buy?
- U currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Unity's turnaround is working — losses nearly halved, $423M cash flow, 74% gross margins — but it's still unprofitable at 6.4x sales.
- What is Unity Software Inc.'s quality score?
- U scores 51.07627213243603/100 (grade C-) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001810806, latest 10-Q filed 2026-05-07) · EODHD · Proprietary analysis · as of 6/21/2026, 8:48:13 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:48 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.