Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Unity Software Inc.

U · NYSE · Technology

Fundamental quality

REASONABLE

59

out of 100

Unity Software Inc. is in full growth mode but not yet profitable: revenue is growing strongly (19% a year), but it doesn't translate into earnings yet. On fundamental quality it scores 59 out of 100, profiling it as a company of reasonable quality. Its weakest area is its profitability (net margin -35%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Unity is the engine behind a large share of the world's mobile games, plus an ads business that helps studios monetize and acquire players. It's rebuilding after years of profitless growth.

What will shape its future

  • The recovery of its ads business, its biggest revenue source, against rivals like AppLovin.
  • Developer trust, damaged by past pricing changes and central to its ecosystem.
  • Cost discipline: proving it can grow profitably, not just grow.

Breakdown by area

I.Growth
82

Revenue growth: 19%

II.Profitability
42

Net margin: -35% · ROE: -22.6%

III.Financial health
54

Net debt/EBITDA: 10.17x · FCF: 24.1%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Strengths

  • Excellent free-cash-flow generation (FCF margin of 24.1%): profit turns into real cash.
  • High gross margin (62.8%), pointing to pricing power.
  • Revenue growing (19% annualized).

Risks and weaknesses

  • Very high leverage (net debt of 10.17× EBITDA): more exposed to rates and to a rough patch.
  • No profits over the last twelve months (negative EPS).
  • Losses over the last twelve months (net margin of -35%).
  • Erratic free cash flow, with several years in the red.

Historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020772-282-20-1,273
20211,111-533-153-1,056
20221,391-921-117-1,485
20232,187-822179-1,590
20241,813-664286-1,518
20251,850-403404-2,056

Between 2020 and 2025, revenue went from $772M to $1,850M (+139%) and net income went from -$282M to -$403M (-43%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

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Is Unity Software Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Unity Software Inc. a good company to invest in?

In terms of business quality, Unity Software Inc. scores 59 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Unity Software Inc. a profitable company?

Over the last twelve months, no: Unity Software Inc. posts a negative net margin (-35%).

Does Unity Software Inc. have a lot of debt?

Yes, its leverage is high: net debt is 10.17 times its EBITDA.

Is Unity Software Inc. growing?

Its revenue has grown 19% annualized in recent years.

Does Unity Software Inc. generate cash?

Yes. It converts about 24.1% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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