Is the business good?
How good a business is U?
Unity Software Inc. earns −66% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−66%
Return on invested capital · cost of capital 9.0% · 75 points below what the capital costs: growth destroys value
- Operating margin
- −37%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2026
- Share count, year on year
- +5.4%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 50%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −36% |
| FY2021 | −48% |
| FY2022 | −63% |
| FY2023 | −38% |
| FY2024 | −42% |
| FY2025 | −26% |
Details›
- Gross margin12 months to Q1 2026
- 63%
- Operating margin12 months to Q1 2026
- −37%
- Net margin12 months to Q1 2026
- −35%
- Free cash flow margin
- 24%
- R&D as % of revenue
- 50%
- Revenue, trailing twelve months
- $1.92B
- Free cash flow, trailing twelve months
- $463M
- Net income, trailing twelve months
- −$673M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −66%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #59 of 90 by Smart Score