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Unity Software Inc.

Technology • CIK: 0001810806

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Market Cap
$9.36B
P/E (TTM)
-13.9x
Rev Growth (TTM)
+7.6%
Net Margin (TTM)
-35.0%
FCF Yield (TTM)
4.9%
FCF Margin (TTM)
24.1%

LATEST EARNINGS

Q4 2025
3 months ago
View source
Revenue
$503.00M
+10.0%
Net Income
$-89.39M
-27.0%
EPS
$-0.21
+30.0%
Gross
74.3% -0.4%
Operating
-21.2% +5.9%
Net
-17.8% +9.0%
  • Revenue increased 10% year-over-year to $503 million, comfortably exceeding guidance.
  • Adjusted EBITDA was $125 million, with a margin of 25%, up from 23% in the prior year, driven by better cost control and higher revenue.
  • Free cash flow was $119 million, an increase from $106 million in the prior year.
  • Create Solutions revenue grew 8% year-over-year, driven by strong subscription revenue growth.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$463M
Q1 '26
$66M-43%
Q4 '25
$116M-24%
FCF Margin
TTM24.1%
Q1 '2613.1%-43%
Sector: 8.5%Top 25%
OCF Margin25.0%
OCF/NI-0.72x
CapEx Coverage26.5x
FCF Yield4.9%
FCF Growth (2Y)
Cash Conversion Cycle
108 days
DSO: 116+DIO: 0DPO: 8

Capital Allocation & Returns

Total Shareholder Yield
TTM0.0%
Div Yield0.0%

Insufficient data

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$463.1M
Stock Repurchases ()$0
Capital Return / FCF0.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
-12.7%
Moderate
-0.0% YoY-9.6%
P25MedianP75
25th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
-36.4%
8Q: -29.0%
Asset Turnover
0.29x
8Q: 0.27x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: -10.4%-12.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
25.68x
8Q:19.45x
+1689.9%
Invested Cap Turn
0.35x
8Q:0.32x
+7.5%
CapEx Intensity
0.3%
8Q:0.4%
CapEx/Depreciation
0.04x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$1.9B
$508.2M1.0%
$503.1M6.9%
$470.6M6.7%
$440.9M1.4%
$435.0M4.8%
$457.1M2.4%
$446.5M0.6%
$449.3M
Operating Income
$-702.5M
$-351.4M229.9%
$-106.5M15.4%
$-125.9M6.0%
$-118.8M7.2%
$-127.9M3.5%
$-123.7M2.7%
$-127.1M1.8%
$-129.4M
Net Income
$-672.7M
$-347.6M286.4%
$-90.0M28.8%
$-126.4M16.1%
$-108.8M40.1%
$-77.6M36.7%
$-122.7M1.6%
$-124.7M0.7%
$-125.6M
Operating Cash Flow
$481.2M
$71.3M41.3%
$121.4M21.9%
$155.4M16.8%
$133.1M921.8%
$13.0M88.4%
$112.2M8.3%
$122.4M38.5%
$88.4M
Free Cash Flow
$463.1M
$66.5M42.6%
$115.7M23.5%
$151.3M19.5%
$126.7M1633.0%
$7.3M93.1%
$105.8M3.0%
$102.7M29.0%
$79.6M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
-13.9x
Volatile
8Q: -83.6x-5787%
Valuation Lenses
Earnings
-13.9x
vs sector
Cash Flow
16.1x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
P/E per %ROIC
ROIC: -12.7%
Shareholder Returns
Dividend
Buyback
Total Yield
Market Cap$9.36B
EV$7.48B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
-14/100
Below Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Below Avg
-21.2%
8Q:
Return on Invested Capital (ROIC)Below Avg
-12.7%
8Q:
-9.6%
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: -36.4%
Asset Turnover: 0.29x

Earnings Quality

Cash Conversion

-0.72x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin62.8%

Capital Efficiency

Invested Capital Turnover0.35x

Working Capital

Cash Conversion Cycle108 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
58/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
7.6%
OpInc Growth YoY
-174.7%
EPS Growth YoY
-40.7%
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
62.8%
Operating
-36.5%
Top 25% in sector
Net
-35.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+59.1 pts
FCF: 24.1% | Net: -35.0%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $2.15B
Interest Coverage
+Net cash position: $2.15B
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis