# Unity Software Inc. (U)

> Source: Nexqual · https://nexqual.com/U · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Unity Software Inc. (U), nexqual.com/U" · informational, not investment advice.

**Price:** USD 40.27 (-2.28% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 41.21 · day 39.56–41.79 · 52w 16.78–52.15 · market cap $17.7B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $2.03B, net income -$588M (-29.0% margin), free cash flow $538M (SEC filings).
- Insider open-market sales, last ~7 months: 10 Form 4 filings, $10.3M; 7 not under a Rule 10b5-1 plan ($6.8M); 0 by opportunistic insiders, 1 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 1.92 on a 1–5 scale) (26 analysts), mean target USD 50.41 (range 35–55).
- Total return with dividends: 1Y +11.0% vs S&P 500 +14.9%; 5Y -72.0% vs S&P 500 +80.3%.
- Next earnings: 2026-11-05, EPS estimate USD 0.34, revenue estimate $567M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.11B | $1.39B | $2.19B | $1.81B | $1.85B | $2.03B |
| Gross profit | $857M | $949M | $1.45B | $1.33B | $1.37B | — |
| Operating income | -$532M | -$882M | -$833M | -$755M | -$479M | -$616M |
| Net income | -$533M | -$921M | -$822M | -$664M | -$403M | -$588M |
| EPS (diluted) | -$1.89 | -$2.96 | -$2.16 | -$1.68 | -$0.96 | — |
| Free cash flow | -$153M | -$117M | $179M | $286M | $404M | $538M |
| Gross margin | 77.2% | 68.2% | 66.5% | 73.5% | 74.2% | — |
| Operating margin | -47.9% | -63.4% | -38.1% | -41.6% | -25.9% | -30.4% |
| Net margin | -48.0% | -66.2% | -37.6% | -36.6% | -21.8% | -29.0% |
| Revenue growth | +43.8% | +25.3% | +57.2% | -17.1% | +2.0% | — |
| Cash + short-term investments | $1.74B | $1.59B | — | — | $2.06B | — |
| Total debt | $1.70B | $2.71B | $2.71B | $2.24B | $1.68B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/S 8.7x · EV/Sales 8.4x · P/FCF 32.9x · P/B 5.8x · FCF yield 3.04% · Earnings yield -3.32% · Net cash $672M · EV $17.1B

## Insider sales (SEC Form 4, open-market, last ~7 months)
3 of 10 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-28 | Blum Alexander | SVP, Chief Operating Officer | 43,556 | $1.9M | 6.2% | Yes (adopted May 15, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-08-25…2026-08-27 | Blum Alexander | SVP, Chief Operating Officer | 22,559 | $1.0M | 3.1% | Yes (adopted May 9, 2025) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-08-25 | Boyden Rebecca Berenice | SVP, Chief Legal Officer | 1,032 | $47K | 0.3% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-08-25 | Bromberg Matthew S | President and CEO | 16,383 | $742K | 1.1% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-08-25 | Yahes Jarrod | SVP, Chief Financial Officer | 26,017 | $1.2M | 3.7% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-05-26…2026-05-28 | Blum Alexander | SVP, Chief Operating Officer | 21,108 | $574K | 2.8% | Yes (adopted May 9, 2025) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-05-26 | Yahes Jarrod | SVP, Chief Financial Officer | 24,021 | $653K | 3.3% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-05-26 | Bromberg Matthew S | CEO and President | 138,993 | $3.8M | 8.2% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-05-26 | Boyden Rebecca Berenice | SVP, Chief Legal Officer | 952 | $26K | 0.3% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-26 | Barrysmith Mark | Chief Accounting Officer | 13,247 | $360K | 3.5% | No | Routine (sold in May & Aug & Nov each year 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 1.92 on a 1–5 scale), 26 analysts; mean target USD 50.41 (low 35, high 55).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-14 | Wedbush | Target raised | Outperform | $50 → $55 |
| 2026-10-13 | Morgan Stanley | Target raised | Overweight | $50 → $55 |
| 2026-10-12 | Wells Fargo | Target raised | Overweight | $48 → $53 |
| 2026-10-09 | BTIG | Target raised | Buy | $51 → $53 |
| 2026-10-08 | Jefferies | Target raised | Buy | $50 → $54 |
| 2026-10-08 | Freedom Capital Markets | Maintained | Buy | $48 |
| 2026-10-08 | Raymond James | Upgrade | Market Perform → Outperform | $54 |
| 2026-09-25 | Freedom Capital Markets | Maintained | Buy | $48 |
| 2026-08-10 | Citigroup | Target raised | Buy | $40 → $48 |
| 2026-08-07 | UBS | Target raised | Neutral | $32 → $48 |
| 2026-08-07 | Piper Sandler | Target raised | Overweight | $45 → $55 |
| 2026-08-07 | Benchmark | Upgrade | Hold → Buy |  |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +11.0% | -72.0% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +11.0% | -22.4% |
| Volatility (annualized) | 74.9% | 77.3% |
| Max drawdown | -65.4% (Dec 2025→Feb 2026) | -92.2% (Nov 2021→Jul 2024) |

## Peers (Software - Application)
DT (Dynatrace, Inc.) USD 63.37 -2.18% · FICO (Fair Isaac Corporation) USD 823.27 +3.53% · SSNC (SS&C Technologies Holdings, Inc) USD 89.54 +2.81% · PTC (PTC Inc.) USD 194 -0.20% · TYL (Tyler Technologies, Inc.) USD 392.45 +4.44% · DOCU (DocuSign, Inc.) USD 84.41 +3.60%

## More
Full page: https://nexqual.com/U · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in U's own 10-K filed 2026-02-11 (https://www.sec.gov/Archives/edgar/data/1810806/000181080626000011/unity-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | Alphabet (Google) (GOOGL) | "We and our customers are subject to the standard policies and terms of service of the operating system platforms on which we create, run and monetize applications and content, as well as policies and terms of service of …" |
| Customer | Apple (AAPL) | "We and our customers are subject to the standard policies and terms of service of the operating system platforms on which we create, run and monetize applications and content, as well as policies and terms of service of …" |
| Competitor | Amazon (AMZN) | "Examples of these large companies are Amazon, Meta, Google, Microsoft, and Tencent." |
| Competitor | Meta Platforms (META) | "Examples of these large companies are Amazon, Meta, Google, Microsoft, and Tencent." |
| Competitor | Microsoft (MSFT) | "Examples of these large companies are Amazon, Meta, Google, Microsoft, and Tencent." |
| Competitor | Tencent | "Examples of these large companies are Amazon, Meta, Google, Microsoft, and Tencent." |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Grow Solutions | $388.9M | 71.2% | +35.4% |
| Create Solutions | $157.6M | 28.8% | +2.5% |
| Total revenue | $546.5M | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| EMEA | $161.7M | 29.6% | +14.9% |
| United States | $149.4M | 27.3% | +22.1% |
| Greater China | $114.5M | 21.0% | +37.0% |
| APAC | $110.1M | 20.1% | +32.2% |
| Other Americas | $10.7M | 2.0% | -2.0% |
| Total revenue | $546.5M | 100% | — |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.34 | $0.28 | +24.4% | $566.9M | 11 |
| Next quarter (ends 2026-12-31) | $0.37 | $0.31 | +21.0% | $601.3M | 11 |
| Current fiscal year (ends 2026-12-31) | $1.21 | $1.03 | +17.2% | $2.22B | 15 |
| Next fiscal year (ends 2027-12-31) | $1.74 | $1.31 | +32.9% | $2.69B | 15 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-06 (includes earnings 2026-11-05): ±14.9%; earnings reaction alone ±11.2%; last 8 reports averaged ±13.7%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-10-30 | 7 | 60.7% | ±7.2% |
| 2026-11-06 | 14 | 91.7% | ±14.9% |
| 2026-11-13 | 21 | 81.7% | ±16.0% |
| 2026-11-20 | 28 | 75.7% | ±17.0% |
| 2026-11-27 | 35 | 75.1% | ±18.8% |
| 2026-12-04 | 42 | 63.7% | ±17.6% |
| 2026-12-18 | 56 | 66.4% | ±20.9% |
| 2027-01-15 | 84 | 62.0% | ±23.8% |