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Unity Software Inc.

U

Unity Software Inc. • NYSE
$42.52 ▲ 0.12% (+0.05)
Market Cap $18.19 B
52w High $46.94
52w Low $15.33
Dividend Yield 0%
P/E -40.5
Volume 2.33M
Outstanding Shares 427.89M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $470.615M ▲ $476.139M ▲ $-126.362M ▼ -26.85% ▼ $-0.3 ▼ $24.485M ▲
Q2-2025 $440.944M ▲ $445.485M ▼ $-108.798M ▼ -24.674% ▼ $-0.26 ▼ $-1.987M ▼
Q1-2025 $435M ▼ $448.978M ▼ $-77.642M ▲ -17.849% ▲ $-0.19 ▲ $26.393M ▲
Q4-2024 $457.099M ▲ $465.216M ▲ $-122.727M ▲ -26.849% ▲ $-0.3 ▲ $-11.385M ▼
Q3-2024 $446.517M $461.609M $-124.739M -27.936% $-0.31 $-9.196M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.899B ▲ $6.783B ▲ $3.329B ▲ $3.203B ▲
Q2-2025 $1.691B ▲ $6.716B ▲ $3.282B ▲ $3.187B ▲
Q1-2025 $1.541B ▲ $6.646B ▼ $3.219B ▼ $3.186B ▼
Q4-2024 $1.518B ▲ $6.737B ▲ $3.31B ▲ $3.191B ▲
Q3-2024 $1.405B $6.726B $3.299B $3.184B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-126.828M ▼ $155.398M ▲ $-4.107M ▲ $54.082M ▲ $207.581M ▲ $151.291M ▲
Q2-2025 $-107.365M ▼ $133.096M ▲ $-8.446M ▼ $9.783M ▼ $149.873M ▲ $126.65M ▲
Q1-2025 $-77.907M ▲ $13.026M ▼ $-5.718M ▲ $12.248M ▼ $23.753M ▼ $7.308M ▼
Q4-2024 $-122.523M ▲ $112.192M ▼ $-6.442M ▲ $19.39M ▼ $111.913M ▼ $105.75M ▲
Q3-2024 $-124.548M $122.358M $-19.651M $20M $134.171M $102.707M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Create Solutions
Create Solutions
 $150.00M ▲$150.00M ▲$150.00M ▲$150.00M ▲
Grow Solutions
Grow Solutions
 $0 ▲$0 ▲$290.00M ▲$320.00M ▲
Operate Solutions
Operate Solutions
 $300.00M ▲$280.00M ▼$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Unity has grown meaningfully since going public, but growth has become choppy and profits remain well out of reach. Revenue ramped up strongly for several years and then pulled back recently, suggesting a period of reset or digestion after rapid expansion. The company consistently generates healthy gross profit, which means the core products create value, but heavy spending on research, sales, and overhead still drives sizable operating and net losses. Those losses have started to narrow, yet they are still large in relation to revenue and show that Unity is still in “build and invest” mode rather than a mature, profit-focused phase. Overall, the income statement tells a story of a strategically important platform that has not yet converted its position into sustainable, bottom-line profitability.

Balance Sheet

Balance Sheet The balance sheet looks like that of a high‑growth software platform that has raised substantial capital and then layered on debt to fund expansion. Total assets and shareholder equity are sizable, giving Unity a decent capital base and a real buffer against near‑term shocks. Cash holdings are solid but not enormous relative to the company’s scale, and debt has climbed significantly compared with its early years as a public company. That means Unity has some financial flexibility, but it also carries meaningful obligations that eventually require consistent cash generation. In simple terms, the balance sheet is still sound but less pristine than at IPO, and it puts a premium on Unity progressing toward profitability so that debt remains manageable.

Cash Flow

Cash Flow Unity’s cash flow trend is more encouraging than its accounting profits. The company has moved from burning cash in its operations to generating positive operating cash flow, and free cash flow has turned positive as well. Capital spending needs are modest, which helps: most investment goes through the income statement as people and product development, not big physical assets. This shift toward self‑funding operations is an important milestone, showing that the business can support much of its growth with internally generated cash instead of relying solely on new financing. That said, the cash cushion is not limitless, so maintaining and improving this positive cash flow will be key, especially while the company is still reporting accounting losses.

Competitive Edge

Competitive Edge Unity sits at the center of real‑time 3D content creation, with a particularly strong footprint in mobile games, indie development, and AR/VR projects. Its main strengths are the “build once, deploy anywhere” engine, deep integrations with monetization and advertising tools, and a very large developer community that contributes assets, plug‑ins, and know‑how. This creates real switching costs: once a team is embedded in Unity’s tools and monetization stack, moving to another engine can be painful and risky. Against that, competition from Unreal Engine and others is intense, especially for high‑end graphics and large studios. The recent backlash over Unity’s pricing changes also showed that trust with developers is a critical and fragile asset. Overall, Unity still has a meaningful moat built on ecosystem, tooling, and reach, but it must carefully manage its relationship with creators and continue to justify its role in their economics.

Innovation and R&D

Innovation and R&D Unity is clearly leaning into innovation, especially around AI, next‑generation rendering, and new use cases beyond gaming. The company continues to invest heavily in R&D, which is a major reason its profits are negative. Its roadmap includes AI‑assisted creation tools that promise faster content production, an embedded AI engine for smarter and more dynamic experiences, and a major new engine release aimed at better performance and visual quality. Unity is also pushing deeper into AR/VR, digital twins, automotive, architecture, and industrial simulations, trying to extend its engine into real‑world design and training workflows. The long‑term opportunity is significant if these initiatives gain broad adoption, but there is execution risk: Unity must translate these ambitious projects into products that customers actually use and pay for at scale, without overextending its resources.

Summary

Unity is a strategically important software platform with a strong position in real‑time 3D creation, particularly in mobile gaming and emerging immersive experiences. Financially, it shows a classic growth‑stage profile: substantial revenue, high gross margins, and a clear path to value creation, but persistent losses as it spends heavily on development and go‑to‑market. The balance sheet provides a reasonable cushion, though debt is now material enough that continued improvement in cash generation matters. On the positive side, operating and free cash flow have turned positive, and losses are gradually narrowing, indicating some movement toward a more sustainable model. The main questions going forward center on Unity’s ability to restore and maintain developer trust, navigate intense competition, and convert its ambitious innovation agenda—AI tools, Unity 6, XR, and industrial applications—into durable, profitable growth. The company’s long‑term potential is sizable, but the path still involves notable execution and profitability risk.

NEWS

November 19, 2025 · 4:10 AM UTC

Unity and Epic Games Together Advance the Open, Interoperable Future for Video Gaming

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November 5, 2025 · 7:00 AM UTC

Unity Reports Third Quarter 2025 Financial Results

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October 22, 2025 · 8:30 AM UTC

Unity Launches Native, Cross-Platform Commerce Management for Game Developers Worldwide

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October 21, 2025 · 10:00 PM UTC

Unity Powers Launch Titles for Samsung's Galaxy XR And Accelerates the Android XR Ecosystem

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October 16, 2025 · 8:40 AM UTC

Unity Announces Date of Third Quarter 2025 Financial Results Webcast

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