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Unity Technologies U

Unity Technologies scores weak on business quality (3.5 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$46.88Oct 10, 2026
Business qualityWeak
Next earningsNov 3, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Unity Technologies does

    Unity provides real-time 3D development software, charging game creators and application developers subscription and runtime fees to build and operate interactive content.

  2. What it does best

    Unity powers a dominant share of mobile games, driving a gross margin of 76.3% that sits in the top quartile of its sector at the 85th percentile. This engine lock-in makes it difficult for developers to switch platforms mid-project.

  3. The main risk

    Negative interest coverage of -14.0x means operating earnings fail to cover debt servicing, leaving the business vulnerable if cash generation falters.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margins sit at -16.6% alongside a negative ROE of -18.9%, showing that high gross margins are eroded by steep operating expenses as scale fails to drop to the bottom line.

MoatWeak

Switching costs lock developers into its creation engine, backed by a gross margin sitting at the 85th sector percentile, though weak profitability limits durability.

GrowthSlow

Revenue growth limps along at 2.0%, ranking in the bottom quartile at the 24th sector percentile as historical annual sales remain below 2023 levels.

Financial healthWeak

Total debt of $2.2B outweighs cash of $2.1B, yielding net debt of $179M despite $536M in free cash flow, keeping the balance sheet under pressure.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $2.0M outside pre-planned sales.

Our sealed record on U

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is U a good business?

Unity Technologies scores weak on the Cluenex quality check (3.5 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health weak.

Are insiders buying U?

In the last 90 days of SEC Form 4 filings: 3 sold $2.0M outside pre-planned sales.

When does U report earnings?

Nov 3, 2026, after the close.

For members

See U today

  • Today's verdict on U, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Unity Technologies (U)”, https://cluenex.com/stocks/u/, data as of Oct 10, 2026.