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Unity Software Inc.

Technology • CIK: 0001810806

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Market Cap
$18.59B
P/E (TTM)
-46.0x
Rev Growth (TTM)
+2.0%
Net Margin (TTM)
-21.8%
FCF Yield (TTM)
2.2%
FCF Margin (TTM)
21.8%

Filing Intelligence

6.0/10
10-K filed Feb 11, 2026 • FY 2025

Executive Summary

Revenue increased by 2.0% year-over-year. See detailed pass outputs for comprehensive analysis.

Key Concerns

  • ●Management acknowledges a mixed outlook, expressing confidence in liquidity but caution regarding future capital needs and potential...
  • ●Intangible asset useful life revised from 4-7 years down to 1-3 years in 2025, impacting amortization expense. This change could...
  • ●Regulatory Risk - AI Governance (high)

Key Strengths

  • ●Revenue saw a modest increase, driven by strategic platform migration in Grow Solutions and subscription growth in Create Solutions,...
  • ●Operating expenses were managed through workforce reductions, leading to decreased S&M and G&A, though R&D was impacted by increased...
  • ●The company generated strong operating and free cash flow, indicating good financial health and liquidity, with plans to meet future...
View Full Quarterly Insights →

LATEST EARNINGS

•
Q4 2025
•
about 2 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.
View Full Earnings →

Cash Flow Health

Free Cash Flow7/8 positive
TTM$404M
Q4 '25
$116M-24%
Q3 '25
$151M+19%
FCF Margin
TTM21.8%
Q4 '2523.0%-28%
Sector: 9.1%Top 25%
OCF Margin22.9%
OCF/NI-1.05x
CapEx Coverage22.2x
FCF Yield2.2%
FCF Growth (2Y)–
Cash Conversion Cycle
104 days
DSO: 116+DIO: 0−DPO: 12
View Insights from Latest Filing →View Full Cash Flow Statement →

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)$403.9M
Stock Repurchases ()$0
Capital Return / FCF0.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
-8.6%
Moderate
+0.0% YoY+9.8%
P25MedianP75
25th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
-26.3%
8Q: -29.0%
Asset Turnover
0.27x
8Q: 0.27x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: -7.2% ≈ -8.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
22.25x
8Q:18.05x
+1266.2%
Invested Cap Turn
0.33x
8Q:0.31x
+3.8%
CapEx Intensity
0.3%
8Q:0.4%
CapEx/Depreciation
0.04x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$1.8B
$503.1M↑6.9%
$470.6M↑6.7%
$440.9M↑1.4%
$435.0M↓4.8%
$457.1M↑2.4%
$446.5M↓0.6%
$449.3M↓2.4%
$460.4M
Operating Income
$-479.1M
$-106.5M↑15.4%
$-125.9M↓6.0%
$-118.8M↑7.2%
$-127.9M↓3.5%
$-123.7M↑2.7%
$-127.1M↑1.8%
$-129.4M↑65.5%
$-374.9M
Net Income
$-402.8M
$-90.0M↑28.8%
$-126.4M↓16.1%
$-108.8M↓40.1%
$-77.6M↑36.7%
$-122.7M↑1.6%
$-124.7M↑0.7%
$-125.6M↑56.9%
$-291.1M
Operating Cash Flow
$423.0M
$121.4M↓21.9%
$155.4M↑16.8%
$133.1M↑921.8%
$13.0M↓88.4%
$112.2M↓8.3%
$122.4M↑38.5%
$88.4M↑1298.6%
$-7.4M
Free Cash Flow
$403.9M
$115.7M↓23.5%
$151.3M↑19.5%
$126.7M↑1633.0%
$7.3M↓93.1%
$105.8M↑3.0%
$102.7M↑29.0%
$79.6M↑646.7%
$-14.6M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
-46.0x
Volatile
8Q: -84.0x-14374%
Valuation Lenses
Earnings
-46.0x
vs – sector
Cash Flow
41.7x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
–P/E per %ROIC
ROIC: -8.6%
Shareholder Returns
Dividend
–
Buyback
–
Total Yield
–
Market Cap$18.59B
EV$16.85B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
1/100
Below Average

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

Returns on Capital

Return on Equity (ROE)Below Avg
-12.6%
8Q:–
Return on Invested Capital (ROIC)Below Avg
-8.6%
8Q:–
+9.8%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: -26.3%
Asset Turnover: 0.27x

Earnings Quality

Cash Conversion

-1.05x

OCF / Net Income

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin74.2%

Capital Efficiency

Invested Capital Turnover0.33x

Working Capital

Cash Conversion Cycle104 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
52/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
2.0%
OpInc Growth YoY
13.9%
EPS Growth YoY
42.9%
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
74.2%
Operating
-25.9%
Top 25% in sector
Net
-21.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+43.6 pts
FCF: 21.8% | Net: -21.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $2.06B
Interest Coverage
–
+Net cash position: $2.06B
Balance sheet risk & solvency analysis

Research

All research