Unity Software Inc

Unity Software Inc

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Market Cap$17.95B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Unity Software IncUnity Software Inc-30--19%10.10.8

Earnings Call Q2 2026

August 6, 2026 - AI Summary

Strong Q2 performance + accelerating Vector growth (core driver) - Unity delivered record Q2 results: Strategic revenue +38% YoY and adjusted EBITDA +77% YoY with adjusted EBITDA margins ~29% (+800 bps YoY). - Unity Vector / Strategic Grow: $329M revenue, +63% YoY; +23% QoQ, which *outperformed* the company’s 12–13% expected QoQ range. - CEO cited 4 straight quarters of ~15% growth before stepping up to the near-23% level—implying a momentum step-up rather than a linear trend.
Guidance: another acceleration in Q3 with margins expanding - Q3 Strategic revenue guidance: $540M–$550M (+44% to +47% YoY). - Q3 Strategic Grow (Vector): +68% to +70% YoY, assuming Vector +19% to +21% sequential QoQ growth. - Q3 Strategic Create: +7% to +10% YoY, driven by ARPU growth and strength in China. - Q3 adjusted EBITDA: $185M–$190M with ~33% margins (+69% to +74% YoY), and management expects 6th consecutive quarter of margin expansion (+400 bps vs Q2).
AI “flywheel” + runtime data are positioned as a compounding moat—but impact is early - Management claims the strategy is a flywheel across segments: more games → more platform usage → harder discovery → higher ad demand → better ad outcomes → more value to creators/Unity ecosystem. - Vector AI updates (20+ major updates in Q2) and improved prediction/data quality are cited as the primary reason for performance. - Surprising / key milestone: Unity began for the first time to incorporate runtime player signals into Vector AI models late in Q2. - Management says it’s very early and avoids quantifying runtime’s isolated effect; they instead stress the results are from the sum of improvements and should self-perpetuate as the models learn.

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$47.89

Target Price by Analysts

18.7% upsideUnity Software Target Price DetailsTarget Price
$2.36

Current Fair Value

94.2% downside

Overvalued by 94.2% based on the discounted cash flow analysis.

Share Statistics

Market cap$17.95 Billion
Enterprise Value$18.07 Billion
Dividend Yield$- (-)
Earnings per Share$-0.96
Beta2.11
Outstanding Shares437,898,000

Return

Return on Equity-19.32%ROE
Return on Assets-8.80%
Return on Invested Capital-11.75%

Valuation & Multiples

P/E Ratio-29.99P/E Ratio
PEG38.3PEG
Price to Sales10.08Price to Sales
Price to Book Ratio5.76Price to Book Ratio
Enterprise Value to Revenue8.91
Enterprise Value to EBIT-30.22
Enterprise Value to Net Income-31
Total Debt to Enterprise0.14
Debt to Equity0.82Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
August 6, 2026
EPS Estimate
$-0.11
Average shareholder expectation
Revenue Estimate
$514.72 M
Average shareholder expectation

Next Earnings Call

Expected Date
November 4, 2026
EPS Estimate
$0.03
Average shareholder expectation
Revenue Estimate
$566.55 M
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.4572▲ 62.63%
Total Calls61,900▼ 99.73%
Total Puts90,200▼ 99.53%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %1.05%▼ 84.70%
Total Invested$189.40M▼ 98.24%
Investors Holding110▼ 508.00%

ESG Score

No data

About Unity Software Inc