Unity Software Inc.U
NYSE • Technology
$26.36
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+16.8% YoY
Gross Margin
30.8%
Health Score
4/10
D/E Ratio
0.74
Confidence
—
Business Snapshot
Unity Software provides a real-time 3D development platform primarily used by game developers but increasingly adopted in industries such as automotive, architecture, and film. The company generates revenue through subscription licenses, create solutions, and advertising/operate solutions, with its core competitive advantage being a large, entrenched developer ecosystem that creates switching costs. With TTM revenue of $1.92B, Unity is a mid-to-large-cap player in the software application space, though market capitalisation is not reported in this dataset. A defining characteristic is the company's transition from a pure gaming engine to a cross-industry real-time 3D platform, but this shift has come at the cost of dramatically compressed margins.
Financial Health
Gross margin collapsed from 61.2% in the prior year to 30.8% in the current period, a severe decline that, combined with a net margin of -35.0%, indicates ongoing operational inefficiency. The balance sheet appears manageable with a debt/equity ratio of 0.74x and a current ratio of 1.84x, suggesting no imminent liquidity stress...
Risk Assessment
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