Unity Software Inc. (U) Factsheet
Unity Software Inc. (U) Stock Analysis
Analysis from 10-Q filed 2025-11-05. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC -12.7%. FCF margin 24.1%. D/E 0.0x. Source: 10-Q filed 2025-11-05.
| Metric | Value | Context |
|---|---|---|
| ROIC | -12.7% | Below expectations |
| FCF Margin | 24.1% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
ROIC -12.7% — Bottom 50% of sector peers. FCF margin 24.1% — Top 25%.
Explore Unity Software Inc.: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for U: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: Unity Software Inc. earns -12.7% ROIC, Bottom 50% in Technology
ROIC TTM -12.7%, sector median 4.9%, Bottom 50%. DuPont: NOPAT margin -36.4% × asset turnover 0.3x. Gross margin 62.8%. Operating margin -36.5%. Source: 10-Q filed 2025-11-05.
| Metric | U | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -12.7% | Red flag | Below sector median of 4.9% |
| Return on Equity (ROE) | -21.2% | Red flag | Moderate equity returns |
| Gross Margin | 62.8% | Excellent | Strong pricing power |
| Operating Margin | -36.5% | Warning | Moderate operational efficiency |
Cash Flow: Unity Software Inc. generates $463.1M FCF at 24.1% margin, positive NaN/8 quarters
FCF TTM $463.1M. FCF margin 24.1%, Top 25%. OCF/Net income -0.7x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.
| Metric | U | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 24.1% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $463.1M | Good | Positive cash generation |
| OCF/Net Income | -0.7x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Unity Software Inc. at 0.0x leverage
Debt/Equity 0.0x. Source: 10-Q filed 2025-11-05.
| Metric | U | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: Unity Software Inc. trades at -13.9x earnings
P/E -13.9x. EV/Sales 3.9x. FCF yield 4.9%. Source: 10-Q filed 2025-11-05.
| Metric | U | Rating | Context |
|---|---|---|---|
| P/E Ratio | -13.9x | Red flag | Reasonable valuation |
| EV/Sales | 3.9x | Good | Growth premium priced in |
| FCF Yield | 4.9% | Good | Lower cash yield |
Capital Allocation: Unity Software Inc. returns 0.0% shareholder yield
Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2025-11-05.
| Metric | U | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -12.7% | Bottom 50% | -2.6x below |
| Free Cash Flow Margin | 24.1% | Top 25% | 2.8x above |
| Gross Margin | 62.8% | Top 50% | 1.2x above |
| Operating Margin | -36.5% | Top 5% | -7.6x below |
| Return on Equity (ROE) | -21.2% | Bottom 50% | -4.4x below |
Financial Scorecard
| Metric | U | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -12.7% | Red flag | Bottom 50% of sector (median: 4.9%) |
| Free Cash Flow Margin | 24.1% | Excellent | Top 25% of sector (median: 8.5%) |
| Gross Margin | 62.8% | Excellent | Top 50% of sector (median: 51.5%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| Free Cash Flow Yield | 4.9% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is Unity Software Inc.'s Return on Invested Capital (ROIC)?
Unity Software Inc. (U) has a trailing twelve-month Return on Invested Capital (ROIC) of -12.7%. Sector median 4.9%. Source: 10-Q filed 2025-11-05.
Q: What is Unity Software Inc.'s Free Cash Flow Margin?
Unity Software Inc. (U) has a free cash flow margin of 24.1%, generating $463.1 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-05.
Q: What is Unity Software Inc.'s P/E ratio and how does it compare to peers?
Unity Software Inc. (U) trades at a P/E ratio of -13.9x, which is above the sector median of N/A. EV/Sales 3.9x. FCF yield 4.9%. Source: 10-Q filed 2025-11-05.
Q: What is Unity Software Inc.'s revenue and earnings growth?
Unity Software Inc. (U) grew revenue by 7.6% year-over-year. EPS -40.7% YoY. Source: 10-Q filed 2025-11-05.
Q: How does Unity Software Inc. compare to competitors in Technology?
Compared to other companies in Technology, Unity Software Inc. (U) shows: ROIC -12.7%, sector median 4.9% (Bottom 50%). FCF margin 24.1%, sector median 8.5% (Top 25%). Gross margin 62.8%, 11.3pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Unity Software Inc.?
Quantitative warning flags for Unity Software Inc. (U): 1) ROIC declining -9.7% over 8 quarters. Source: 10-Q filed 2025-11-05.
Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.