UNEUTRAL

U Gross Margin Analysis

30.8%

Higher than 6% of Technology sector peers

Updated 214h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company retains after subtracting the direct costs of producing its goods or services.

Sector Performance

6th percentile

30.8%

Sector Median

65.2%

Sector Avg

60.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after subtracting the direct costs of producing its goods or services.

Unity's current gross margin of 30.8% is well below the Technology sector median of 63.0%, placing it in the 8th percentile among sector peers. The year-over-year and quarter-over-quarter changes are both listed as N/A, meaning there is no recent trend data to analyze. This combination of a very low margin relative to peers and no visible trend makes it difficult to assess whether the metric is improving or deteriorating, adding uncertainty rather than clear risk or opportunity. The low gross margin alone suggests competitive or cost-structure challenges, but without trend direction, it neither confirms nor contradicts the overall NEUTRAL verdict — it simply keeps the stock in a hold pattern.

Frequently Asked Questions

What does the Gross Margin tell investors about U?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does U's Gross Margin compare to its sector?

U's Gross Margin of 30.8% compares to a Technology sector median of 65.2%, placing it in the 6th percentile.

Who are U's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ORCL (65.2%), MDB (72.2%), NVDA (74.9%), LIF (77.3%), SMTC (52.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.