Unity Software Inc. (U) Stock

Unity Software Inc. (U) is a Technology stock trading at $41.39 (as of 2026-09-18), with a market capitalization of $18.07B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Unity Software Inc. creates and operates a platform for building, running, and monetizing interactive real-time 2D and 3D content. Its software supports mobile, tablet, PC, console, and AR/VR experiences and is used by content creators and developers, artists, designers, engineers, and architects.

Understand Unity Software Inc.: how it makes money

Unity sells a platform for building and running interactive 3D content (games, apps, experiences) across phones, PCs, consoles, and AR/VR, monetized through subscriptions and usage fees. Strategic (large) customers drive 92% of quarterly revenue, and the Grow segment (ad tech, cloud) now accounts for 60% of total.

The profit engine is shifting from per-seat software subscriptions to performance-based ad-tech and cloud fees, meaning Unity increasingly earns revenue from the success of third-party apps built on its platform rather than from direct developer budgets alone.

Business quality (Weak): An 80% gross margin and 24% revenue growth show a real software business, but a 6% negative operating margin and negative returns on equity mean the company is still burning cash while it scales. Quality grade: Weak until the path to GAAP profit is proven.

Bull case

  • Vector AI hits $1B fast: Management reported Vector surpassed a $1 billion annual run rate just six quarters after launch (Q2 FY26 call), giving Unity a second, rapidly scaling revenue stream beyond its core engine subscriptions.
  • Ad-spend momentum is accelerating: Day 28 ROAS campaign spend nearly tripled quarter over quarter with over 25% adoption (Q2 FY26 call), signaling that Unity's ad-tech monetization is gaining real commercial traction inside developer workflows.
  • Profitability pulled a quarter forward: Unity now expects GAAP net-income profitability one quarter earlier than previously planned (Q2 FY26 call), compressing the timeline from a loss-making platform to a profitable one.

Bear case

  • Unity 7 unavailable until Q4: Unity 7's commercial contribution is still prospective because beta does not begin until Q4 2026 (Q2 FY26 call), leaving a visible gap in the product pipeline before the next generation can drive upgrade cycles.
  • Still operating at a loss: Operating margin stands at -6% on $500M of quarterly revenue (10-Q), so even with 24% top-line growth the company is not yet covering its operating costs and must execute a full cost program to reach breakeven.
  • Runtime-data moat is unproven: Management acknowledged that runtime-data benefits remain early and cannot yet be isolated analytically (Q2 FY26 call), meaning the competitive advantage they are building around proprietary in-app data has no measured payoff yet.
Valuation — source: SEC EDGAR (first-party)
Price$41.39
Market Cap$18.07B
Price / Book5.94
Price / Sales8.91
FCF Yield3.0%
DCF Value (model)$9.03
DCF Upside vs Price-78.2%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$1.85B
Net Margin-21.8%
Return on Equity-19.3%
Current Ratio2.03
Revenue Growth (YoY)23.9%
EPS Growth (YoY)-80.8%
FCF Growth (YoY)59.5%
Financial Health — source: SEC EDGAR
Altman Z-Score2.33 (grey)
Valuation vs Sector & Industry
Sector P/E (Technology)30.2
Industry P/E (Business Services)24.8
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($1.57B)
Institutional Holders Tracked10
Congressional Trades (recent)1
Company
SectorTechnology
IndustryBusiness Services
CEOMatthew Samuel Bromberg
Employees4,987
CountryUS
IPO Date2020-09-18

Unity Software Inc. earnings call transcripts

  • U Q2 FY26 earnings call transcript (reported 2026-08-06) · analysis
  • U Q1 FY26 earnings call transcript (reported 2026-05-07) · analysis
  • U Q4 FY25 earnings call transcript (reported 2026-02-11) · analysis
  • U Q3 FY25 earnings call transcript (reported 2025-11-05) · analysis
  • U Q2 FY25 earnings call transcript (reported 2025-08-06) · analysis

All U earnings calls

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U earnings history · U institutional & insider holders · U KPIs & operating metrics · U financials · U filings, presentations & press releases · U investor presentations & press releases · U SEC filings · U peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-18.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.