U

Unity Software Inc.

$40.58

+0.45% 2026-10-19

Technology

1M 3M 6M 1Y 2Y

USPY

-13.1%

-2.0%

+36.1%

+53.0%

YTD

-8.1%

+15.2%

Grades vs sector

Momentum

no data

–

Percentile within its GICS sector across the S&P 1500.

Growth

no data

–

Percentile within its GICS sector across the S&P 1500.

Value

no data

–

Percentile within its GICS sector across the S&P 1500.

Profitability

no data

–

Percentile within its GICS sector across the S&P 1500.

Revisions

no data

–

30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Not held by any of our 3 live models right now.

Momentum Top 15

not ranked (outside this model's universe or screens)

Quality Growth

not ranked (outside this model's universe or screens)

Momentum Blend

not in the current book

Key stats

Market cap$17.9B

P/E (trailing)–

P/E (forward)23.3

52-week range16.78 – 52.15

Revenue growth (YoY, latest qtr)+23.9%

Dividend yield0.00%

Analyst consensusStrong Buy (25)

Mean price target$50.41 (+24%)

Valuation & fundamentals

Bottom line

Leans expensive

Model read-out from the numbers below, not advice. Score -1 (DCF counts double).

▼DCF (base case)below the price by 25%

•Piotroski F-score6/9

•Altman Z2.5 (grey)

▲Analyst target+24% (25 analysts)

Discounted cash flow

Bear

$21

-48%

growth 10% · disc. 14.0% · term. 2.0%

Base

$31

-25%

growth 17% · disc. 13.0% · term. 2.5%

Bull

$42

+3%

growth 21% · disc. 12.0% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal

Today's price assumes free cash flow grows about 18% a year for 10 years.

Implied

+18%/yr

FCF, last 3 yrs

n/a

FCF, last 5 yrs

n/a

Revenue, last 3 yrs

+10%/yr

Revenue, last 5 yrs

+19%/yr

Same inputs as the DCF above: trailing free cash flow 0.5B, 13.0% discount rate, 2.5% growth after year 10, net cash and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.

Edit assumptions · recalculates instantly

Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 2.11 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs sector

Forward EPS $1.74 vs trailing $-1.36. Forward P/E uses analysts' next-12-month estimate.

Backlog (remaining performance obligations)

RPO

$505.0M

as of 2026-06-30

vs a year ago

+26%

YoY

× TTM revenue

0.25×

coverage

24-09

24-12

25-03

25-06

25-09

25-12

26-03

26-06

Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).

Quality & financial health

Gross margin

64.9%

Operating margin

-30.4%

FCF margin

26.5%

Net margin

-29.0%

Return on equity

-19.4%

Return on invested capital

-83.9%

Net debt / EBITDA

–

Current ratio

2.0×

Interest cover

-25.5×

Cash conversion (OCF/NI)

–

Piotroski F-score 6/9 · last two fiscal years

✗ Positive net income✓ Positive operating cash flow✓ Return on assets improved✓ Cash flow above net income✓ Long-term debt / assets fell✗ Current ratio improved✗ No share dilution✓ Gross margin improved✓ Asset turnover improved

Altman Z-score 2.5 (grey zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target

$50

+24%

Analysts

Strong Buy

Range

$35–$55

low – high

● price · ◆ mean target

Annual history

FY	Revenue	Net income	Free cash flow
2025	$1.8B	$-402.8M	$403.9M
2024	$1.8B	$-664.1M	$286.0M
2023	$2.2B	$-822.0M	$178.8M
2022	$1.4B	$-921.1M	$-116.6M
2021	$1.1B	$-532.6M	$-153.4M
2020	$772.4M	$-282.3M	$-20.2M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +10.0%.

Earnings

Next report: 2026-11-05 · before open · EPS est 0.34

EstimateActual (beat)Actual (miss)

Report	EPS est	Actual	Surprise
2026-08-06	0.25	0.28	+12.4%
2026-05-07	0.24	0.23	-4.2%
2026-02-11	0.21	0.24	+14.8%
2025-11-05	0.17	0.20	+19.6%
2025-08-06	0.15	0.18	+22.0%
2025-05-07	0.11	0.24	+121.9%
2025-02-20	0.16	0.23	+46.9%
2024-11-07	0.14	0.20	+41.0%

Quarterly revenue

Quarter	Revenue	YoY
2026-06-30	$546.5M	+23.9%
2026-03-31	$508.2M	–
2025-12-31	$503.1M	–
2025-09-30	$470.6M	–
2025-06-30	$440.9M	–

Analyst actions

Wedbush

2026-10-14 · main

Outperform → Outperform
PT $55

Morgan Stanley

2026-10-13 · main

Overweight → Overweight
PT $55

Wells Fargo

2026-10-12 · main

Overweight → Overweight
PT $53

BTIG

2026-10-09 · main

Buy → Buy
PT $53

Jefferies

2026-10-08 · main

Buy → Buy
PT $54

Freedom Capital Markets

2026-10-08 · main

Buy → Buy
PT $48

Insider trades

Blum Alexander

SVP, Chief Operating Officer · 2026-08-28

SELL
$1.4M

Blum Alexander

SVP, Chief Operating Officer · 2026-08-28

SELL
$524.0K

Blum Alexander

SVP, Chief Operating Officer · 2026-08-27

SELL
$88.0K

Blum Alexander

SVP, Chief Operating Officer · 2026-08-25

SELL
$880.7K

Blum Alexander

SVP, Chief Operating Officer · 2026-08-25

SELL
$52.4K

Boyden Rebecca Berenice

SVP, Chief Legal Officer · 2026-08-25

SELL
$42.5K

Boyden Rebecca Berenice

SVP, Chief Legal Officer · 2026-08-25

SELL
$4.2K

Bromberg Matthew S

Director, President and CEO · 2026-08-25

SELL
$711.5K

Bromberg Matthew S

Director, President and CEO · 2026-08-25

SELL
$30.8K

Yahes Jarrod

SVP, Chief Financial Officer · 2026-08-25

SELL
$1.1M

Yahes Jarrod

SVP, Chief Financial Officer · 2026-08-25

SELL
$55.1K

None

None · None

SELL
–

News

Unity Stock In Focus After Google AI Game Creation Partnership

Simply Wall St. · Oct 17

Are You Overpaying For AppLovin Stock Versus Its Rivals?

Trefis · Oct 16

AppLovin Stock Has One Thing Left To Prove

Trefis · Oct 15

What Does AppLovin Offer That Omnicom Does Not?

Trefis · Oct 14

Here's Why Unity Software Inc. (U) Fell More Than Broader Market

Zacks · Oct 14

Unity price target lifted as Vector attracts bigger advertising budgets

Proactive · Oct 14

PubMatic, Bandwidth, Palo Alto Networks, Unity, and Five9 Shares Are Falling, What You Need To Know

StockStory · Oct 14

Unity Software Sinks 10% Despite Wedbush Target Hike on Vector Ad Platform; AppLovin Falls 3%, Trade Desk Slips

24/7 Wall St. · Oct 14

Stats refreshed 2026-10-19 19:02:40 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

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Coteau Systematic StrategiesSystematic equity research and model portfolios.
Coteau Systematic Strategies publishes research, model portfolios and tools. It does not manage money or offer investment advice. Model results are hypothetical. Data: Yahoo Finance (delayed), SEC EDGAR.

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