Unity Software Inc. Common Stock (U)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a stickler for proven earning power, so Unity gives me pause. It runs a platform that helps developers build, deploy, and grow games and interactive experiences across mobile, PC, console, and extended reality. That is a real software business, but the numbers still show a company seeking durable profitability. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $546.5M and net loss was $23.6M, a big improvement from fiscal Q2 2025, when revenue was $440.9M and net loss was $108.8M. Yet annual results remain red: fiscal 2023 net loss was $822.0M, fiscal 2024 was $664.1M, and fiscal 2025 was $402.8M. The Lynch category is none precisely because it lost money in each of the last four years. Financial health is mixed. Trailing free cash flow is $535.4M, but the FCF yield is only 2.6% against a $20.5B market cap. At the 2026-10-13 close of $46.63, the P/B is 6.77, P/E is negative at -34.29, ROE is -17.38%, and ROCE is -3.12%. Debt/equity of 0.70 is not alarming, and a Piotroski F-Score of 7/9 plus Altman Z-Score of 3.08 suggest improving credit quality. Still, I see no margin of safety in a Graham sense. The business may be repairing itself, but it has not yet proven it can earn consistent profits. Until it does, I would call the stock speculative, not a bargain.

In plain English: Unity makes software tools that help people create, launch, and grow video games and other interactive apps on phones, computers, consoles, and headsets. Sales are growing and losses are getting smaller, but the company still has not made a yearly profit. At $46.63, the shares look full or fair rather than a clear bargain, since profits are negative and cash generation is small next to the company's $20.5 billion size.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer