Unity Software Inc.
- Open
- 29.18
- Day high
- 30.90
- Day low
- 28.94
- Prev close
- 28.58
- Volume
- 2.7M
- Mkt cap
- $12.5B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 4.2
- P/S
- 6.5
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$5.4M over the last 3 months (0 open-market buys, 6 sales)
- 🏛Institutions mixed (13F)
Unity Software Inc. (U) is a Technology company listed on NYSE. The stock is up 17% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 6 sales (SEC Form 4).
Unity Software Inc. (U) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
U earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.24 | $-0.80 | -433.3% | $508M | +1.3% |
| Feb 11, 2026 | $0.20 | $0.24 | +20.0% | $503M | +1.9% |
| Nov 5, 2025 | $0.18 | $0.20 | +8.4% | $471M | +3.9% |
| Aug 6, 2025 | $0.14 | $-0.26 | -287.9% | $441M | +3.1% |
| May 7, 2025 | $0.12 | $-0.19 | -262.3% | $435M | +4.5% |
| Feb 20, 2025 | $-0.35 | $-0.30 | +14.3% | $457M | +5.5% |
| Nov 7, 2024 | $-0.36 | $-0.31 | +13.9% | $447M | +4.3% |
| Aug 8, 2024 | $-0.42 | $-0.32 | +23.8% | $449M | +2.2% |
| May 9, 2024 | $0.07 | $0.15 | +102.9% | $460M | +6.4% |
| Feb 26, 2024 | $0.19 | $0.23 | +21.1% | $609M | +8.3% |
| Nov 9, 2023 | $0.15 | $0.18 | +20.0% | $544M | -1.7% |
| Aug 2, 2023 | $0.06 | $0.07 | +16.7% | $533M | +0.0% |
U insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 28, 2026 | Boyden Rebecca Bereniceofficer: SVP, Chief Legal Officer | Sell | 952 | $27.20 |
| May 28, 2026 | Blum Alexanderofficer: SVP, Chief Operating Officer | Sell | 2,099 | $27.37 |
| May 28, 2026 | Yahes Jarrodofficer: SVP, Chief Financial Officer | Sell | 24,021 | $27.18 |
| May 28, 2026 | Bromberg Matthew Sdirector, officer: CEO and President | Sell | 138,993 | $27.18 |
| May 28, 2026 | Blum Alexanderofficer: SVP, Chief Operating Officer | Sell | 19,009 | $27.18 |
| May 28, 2026 | Barrysmith Markofficer: Chief Accounting Officer | Sell | 13,247 | $27.18 |
| May 15, 2026 | Dovrat Shlomodirector | Grant | 12,086 | — |
| May 15, 2026 | Sisco Daly Robynnedirector | Grant | 7,995 | — |
| May 15, 2026 | Kim Bernard Jindirector | Grant | 7,995 | — |
| May 15, 2026 | Whitehurst James Mdirector | Grant | 8,181 | — |
| May 15, 2026 | BOTHA ROELOFdirector | Grant | 13,201 | — |
| May 15, 2026 | Schuler Barrydirector | Grant | 13,015 | — |
| May 15, 2026 | SLTA IV (GP), L.L.C.director | Grant | 16,176 | — |
| May 15, 2026 | Smith Keishadirector | Grant | 10,226 | — |
| May 5, 2026 | Kim Bernard Jindirector | Grant | 14,743 | — |
Source: U SEC Form 4 filings, latest May 28, 2026. For informational purposes only — not investment advice.
See the full U insider & 13F page →Unity Software Inc. company profile
Overview
Unity Software Inc. (NYSE:U) is a leading provider of real-time 3D content creation and monetization platforms, founded in 2004 and headquartered in San Francisco, California. The company went public in September 2020 and has established itself as a dominant force in game development tools, powering approximately 70% of the top 1,000 mobile games and 30% of the top 1,000 PC games on Steam. Unity has evolved from a game engine company into a comprehensive platform that serves both content creators developing interactive experiences and publishers seeking to monetize their applications through advertising and user acquisition tools.
Business
Unity operates in the interactive real-time 3D content creation industry, providing software solutions that enable developers to build, deploy, and monetize 2D and 3D applications across multiple platforms including mobile devices, PCs, gaming consoles, and augmented/virtual reality devices. The company's core offering centers around the Unity Engine, a comprehensive game development platform that allows creators to build interactive experiences without requiring extensive programming knowledge. The business is organized into two primary segments that together form Unity's strategic portfolio: 1. Create Solutions (approximately 32% of strategic revenue): This segment provides the foundational development tools including the Unity Editor, Unity Engine, and various subscription-based services. The Create business includes both gaming and non-gaming applications, with the Industries segment representing the fastest-growing area, serving sectors like automotive, architecture, and enterprise training simulations. Recent launches include Unity 6, the latest version of their engine, and Unity Cloud platform for collaborative development. 2. Grow Solutions (approximately 68% of strategic revenue): This segment focuses on monetization and user acquisition tools for mobile app publishers. Key products include Unity Ads (an advertising network), LevelPlay (a mediation platform), and the newly launched Unity Vector (an AI-powered advertising platform). These tools help game developers and app publishers acquire users, optimize ad revenue, and analyze player behavior through data analytics. Unity's platform approach means developers can use Create tools to build their applications and then seamlessly transition to Grow tools for monetization, creating an integrated ecosystem that spans the entire application lifecycle from development to revenue generation.
Revenue model
Unity generates revenue through multiple complementary business models across its two main segments. In the Create Solutions segment, the company primarily operates on a subscription-based model, where developers pay recurring fees for access to Unity's development tools, engine licenses, and cloud services. Subscription revenue has shown consistent growth of 13-15% year-over-year, driven by price increases and customer upgrades to higher-tier plans. The company also generates revenue from its Industries segment through both subscription and project-based engagements. The Grow Solutions segment operates on a revenue-sharing and commission-based model, where Unity takes a percentage of advertising revenue generated through its platform. When developers use Unity Ads to monetize their games, Unity retains a portion of the advertising revenue. Similarly, LevelPlay mediation services earn commission fees when facilitating ad transactions between publishers and advertisers. Unity's paying customers include game developers ranging from independent studios to major publishers like King and Electronic Arts, as well as enterprise clients in non-gaming sectors such as Toyota and Raytheon. The company serves over 230,000 monthly active creators and reaches billions of end users through applications built on its platform. Several factors influence Unity's profit margins. Positive margin drivers include the scalable nature of software subscriptions, successful price optimization initiatives, and the high-margin advertising business when performing well. The company's integrated ecosystem creates switching costs and cross-selling opportunities. Negative margin pressures come from significant R&D investments in AI and machine learning capabilities, competitive dynamics in the advertising technology space, stock-based compensation expenses, and the cyclical nature of the mobile gaming market. The recent migration to the new Vector AI advertising platform represents both an investment cost and potential margin improvement opportunity.
Competitive moat
Unity's competitive moat stems primarily from its ecosystem network effects and switching costs rather than traditional barriers to entry. The company has achieved a dominant market position with 70% of top mobile games using Unity, creating a self-reinforcing cycle where more developers attract more third-party asset creators, plugins, and community resources, which in turn attracts more developers. This ecosystem depth makes Unity increasingly valuable as the platform matures. The company benefits from significant switching costs as games built in Unity would require substantial redevelopment to migrate to competing engines. Additionally, Unity's integrated approach spanning both creation and monetization tools creates operational dependencies that increase customer stickiness. The platform's extensive cross-platform deployment capabilities and comprehensive asset store further strengthen its position. However, Unity's moat faces meaningful challenges. Competitive threats include Epic Games' Unreal Engine, which offers superior graphics capabilities for high-end games and has gained market share, particularly in PC and console gaming. Microsoft's recent AI-powered game development initiatives and other tech giants' investments in development tools represent emerging competition. In the advertising business, Unity competes against established players like Google and Facebook, where scale and data advantages are critical. The company's moat strength is moderate but improving. While Unity has achieved market leadership, the competitive landscape remains dynamic, particularly as AI democratizes game development and new platforms emerge. The success of Unity's Vector AI platform and its ability to leverage data across its ecosystem will be crucial factors in maintaining and strengthening its competitive position.
Risks & safety
Unity presents a moderate margin of safety profile with mixed financial health indicators. • Liquidity position: Strong with $1.54 billion in cash and short-term investments against $817 million in current liabilities, providing a healthy 2.74 current ratio and substantial operational runway. • Debt concerns: Elevated debt levels at $2.2 billion create solvency considerations, though the company generates positive free cash flow ($7.3 million in Q1 2025) and has been reducing debt gradually. • Profitability metrics: Company remains unprofitable with -$77.9 million net income in Q1 2025, though adjusted EBITDA is positive at $26.4 million, indicating operational progress toward profitability. • Valuation concerns: High EV/EBITDA ratio of 82.97x reflects expensive valuation relative to current earnings, though this is improving from negative ratios in prior periods as EBITDA turns positive. • Cash burn: Minimal with positive operating cash flow of $13 million in Q1 2025, representing significant improvement from historical cash consumption patterns. • Other considerations: Stock-based compensation remains elevated, ongoing platform migration risks in advertising business, and exposure to cyclical gaming market conditions.
Recent development
Unity has undergone significant strategic transformation over the past few years, marked by several key pivots and product launches. The most notable change was the cancellation of the controversial runtime fee in late 2024, reverting to a subscription-based pricing model after substantial customer backlash. This decision prioritized customer relationships over short-term revenue optimization. The company has made substantial investments in artificial intelligence and machine learning capabilities, culminating in the launch of Unity Vector, a new AI-powered advertising platform that began migration in early 2025. Early results show 15-20% improvements in installs and in-app purchases, representing a major technological advancement for the advertising business. Product innovation has accelerated with the launch of Unity 6, which achieved 4.4 million downloads and 43% adoption among active users within months of release. The company has also expanded beyond gaming through its Industries segment, securing major enterprise clients like Toyota for human-machine interfaces and Raytheon for 3D simulations, with this segment growing 50% year-over-year. Leadership changes have strengthened the organization, including hiring Steve Collins as CTO from King, Jared Gas as CFO, and Jim Payne as Chief Product Officer for Advertising. These appointments reflect Unity's focus on operational excellence and product innovation. The company has also pursued portfolio rationalization, divesting non-strategic assets and focusing resources on its core Create and Grow segments. This includes reducing reliance on professional services and emphasizing scalable software solutions. The integration of data and capabilities across Unity's ecosystem represents a key strategic initiative for 2025, aimed at providing more comprehensive solutions for game developers.
U company profile · for informational purposes only — not investment advice.
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