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Unity Software Inc.

NYSE:U Stock Report

Market Cap: US$14.1b

Unity Software (U) Stock Overview

Operates a platform to create and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. More details

U fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

Rewards

Trading at 8.8% below our estimate of its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Significant insider selling over the past 3 months


U Community Fair Values

Create Narrative

See what 107 others think this stock is worth. Follow their fair value or set your own to get alerts.

U logo
Unity Software
AN
AnalystConsensusTarget
AnalystConsensusTarget
Consensus Narrative from 22 Analysts

Partnership With Google In XR Will Strengthen Future Competitive Position

Key Takeaways Enhanced AI and expanded XR partnerships could boost revenue, margins, and competitive position in both gaming and non-gaming markets. Successful diversification and cost efficiency strategies support revenue growth and improved financial health for Unity Software.
View narrative
US$26.96
FV
35.5% overvalued intrinsic discount
6.32%
Revenue growth p.a.
1users have liked this narrative
0users have commented on this narrative
56users have followed this narrative
15 days ago author updated this narrative
U logo
Unity Software
RI
ric
Community Contributor

Difficult times that could lead to better opportunities

Key Takeaways Unity is one of the top 3 tools to develop games and real time 3D prototyping and interactive data visualisation for many industries It has become the default game engine for Indie developers It has the ability to create VR games and apps AI enabled that allows prompt based game creation. It can also access AI models at runtime 3.6B made by unity downloads (mobile + Steam) Games can be exported to 20+ Platforms Unity is the only game engine company (that I know of) that can be traded in the stock market.
View narrative
US$20.31
FV
79.8% overvalued intrinsic discount
5.00%
Revenue growth p.a.
2users have liked this narrative
0users have commented on this narrative
3users have followed this narrative
8 months ago author updated this narrative
U logo
Unity Software
AN
andreas_eliades
Community Contributor

What Really Matters For Long-Term Growth

Despite near all-time-low valuations, Unity remains a leader in 2D/3D content development, particularly in mobile and indie games and the XR market. With analysts predicting no real growth until 2028 Unity holds a significant upside if it executes its strategy successfully.
View narrative
US$38.48
FV
5.1% undervalued intrinsic discount
15.00%
Revenue growth p.a.
1users have liked this narrative
0users have commented on this narrative
7users have followed this narrative
9 months ago author updated this narrative
View Unity Software Community

Unity Software Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Unity Software
Historical stock prices
Current Share PriceUS$36.52
52 Week HighUS$38.96
52 Week LowUS$13.90
Beta2.3
1 Month Change55.07%
3 Month Change89.91%
1 Year Change123.09%
3 Year Change-9.58%
5 Year Changen/a
Change since IPO-46.57%

Recent News & Updates

Optimistic Investors Push Unity Software Inc. (NYSE:U) Shares Up 25% But Growth Is Lacking

Jul 16
Optimistic Investors Push Unity Software Inc. (NYSE:U) Shares Up 25% But Growth Is Lacking

Unity Software: An Inflection That Most Are Missing - Why I'm Long

Jul 09

Estimating The Fair Value Of Unity Software Inc. (NYSE:U)

Jun 29
Estimating The Fair Value Of Unity Software Inc. (NYSE:U)

Recent updates

Optimistic Investors Push Unity Software Inc. (NYSE:U) Shares Up 25% But Growth Is Lacking

Jul 16
Optimistic Investors Push Unity Software Inc. (NYSE:U) Shares Up 25% But Growth Is Lacking

Unity Software: An Inflection That Most Are Missing - Why I'm Long

Jul 09

Estimating The Fair Value Of Unity Software Inc. (NYSE:U)

Jun 29
Estimating The Fair Value Of Unity Software Inc. (NYSE:U)

Could Apple Buy Unity? How This Analyst's Spicy Prediction May Impact U's Narrative

Jun 02
Could Apple Buy Unity? How This Analyst's Spicy Prediction May Impact U's Narrative

Unity Software: Turnaround Looks Promising - Bright Advertising Prospects Ahead

Apr 23
author-image

Partnership With Google In XR Will Strengthen Future Competitive Position

Enhanced AI and expanded XR partnerships could boost revenue, margins, and competitive position in both gaming and non-gaming markets.

Unity Software: Credible Turnaround

Mar 19

Unity Software: Tough Transition Still In The Works

Feb 21

Unity Software: DeepSeek And A New Executive Team Could Change The Narrative

Jan 31

Unity Software: Bullish As It Returns To Growth In 2025

Dec 31

Unity's Potential Turnaround, Will It Pull It Off?

Nov 25

Unity Software: Possible Turnaround Opportunity If Sales Improve

Oct 26

Unity Software: What Really Matters For Long-Term Growth

Sep 20

I Was Wrong On Unity: The Runtime Fee Rally Is An Exit Opportunity (Ratings Downgrade)

Sep 13

Unity: Monetization Issues Will Take Time To Address

Aug 21

Unity Software Has More To Lose Before Growth Is Reignited

Aug 15

Is Unity Software A Good Buy Ahead Of Its Q2 Results?

Aug 05

Unity: Catching A Falling Knife Could Hurt Badly (Downgrade)

Jul 03

Unity: All Talk, No Progress

Jun 27

Unity Software: Don't Buy The Dip Here

May 28

Unity Software: After Another Smackdown On Earnings, Time To Speculate

May 10

Unity: Gaming Platform Leader's Painful Reset Could Spark A Revival

Apr 24

Unity: Turnaround Will Take Time

Apr 10

Unity's Bottom Looks Attractive For Opportunistic Investors

Apr 01

Unity Software: Watch From Sidelines During Reset

Mar 15

Unity Plunges On Guidance Reset (Ratings Upgrade)

Feb 27

Unity Software: Recent Plunge Provides Another Doubling Down Opportunity

Feb 12

Unity's Planned Cuts Won't Be Enough For Profitability

Jan 22

Unity Software: Severity Of Job Cuts Was A Negative Surprise

Jan 11

Unity Software: Do Not Chase This Rally Over The Cliff (Rating Downgrade)

Jan 02

Unity Software: Can The Stock Break Back Above $50 In 2024?

Dec 26

Unity Software: Double Down On The Fear

Nov 23

Unity Software: Regaining Trust After It Is Broken

Oct 31

Unity: A Business At The Inflection Point

Oct 09

Unity Software Steps In It

Sep 28

Unity: Buy The Backbone Of The Apple VisionPro And Meta Quest

Sep 15

Unity: Investments, Not Expenses

Aug 24

Apple's Vision Pro May Transform Unity Into An Industry Leader

Aug 14

Unity Software Earnings: A Cautionary Outlook On Near-Term Prospects (Upgrade)

Aug 03

Unity's Unique Competitive Advantage Explained

Jul 07

Unity: Never Too Late To Join The AI Hype

Jun 28

Unity Software: Apple's Approval Boosts Growth Tailwind (Rating Upgrade)

Jun 21

Unity: Successful Integration Of Acquisitions Remains Key

Jun 05

Unity Software's Q4: Benefitting from software solutions despite weak digital advertising market

Feb 21

Unity Software stock on track to end four-day losing streak, gains ~13% in high volume

Feb 09

Why did Unity Software stock stock fall today? Tech falls ahead of earnings

Jan 30

Unity cuts another 200-plus jobs as it streamlines in slowdown

Jan 17

Unity Software: Cash Hemorrhaging Cannot Go On Forever

Jan 09

Unity Software shares plunge 10% on heavy trading volume

Dec 06

Shareholder Returns

UUS SoftwareUS Market
7D25.2%2.3%0.5%
1Y123.1%26.1%14.1%

Return vs Industry: U exceeded the US Software industry which returned 26.1% over the past year.

Return vs Market: U exceeded the US Market which returned 14.1% over the past year.

Price Volatility

Is U's price volatile compared to industry and market?
U volatility
U Average Weekly Movement9.5%
Software Industry Average Movement7.6%
Market Average Movement6.4%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.1%

Stable Share Price: U has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: U's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20044,987Matt Brombergunity.com

Unity Software Inc. operates a platform to create and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization. It also provides Create Solutions, a set of tools and services used to build, ship, and run real-time 2D and 3D content; and Grow Solutions, which allows customers to grow and engage their user base and monetize their content.

Unity Software Inc. Fundamentals Summary

How do Unity Software's earnings and revenue compare to its market cap?
U fundamental statistics
Market capUS$14.11b
Earnings (TTM)-US$450.68m
Revenue (TTM)US$1.79b
8.5x
P/S Ratio
-33.7x
P/E Ratio

Is U overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
U income statement (TTM)
RevenueUS$1.79b
Cost of RevenueUS$449.95m
Gross ProfitUS$1.34b
Other ExpensesUS$1.79b
Earnings-US$450.68m

Last Reported Earnings

Mar 31, 2025

Next Earnings Date

Aug 06, 2025

Earnings per share (EPS)-1.08
Gross Margin74.83%
Net Profit Margin-25.21%
Debt/Equity Ratio65.1%

How did U perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/07/17 00:45
End of Day Share Price 2025/07/17 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Unity Software Inc. is covered by 49 analysts. 27 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David MakArete Research Services LLP
Ishan MajumdarBaptista Research
X. LuBarclays