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.