U
Technology · Software - Application
Performance
U (U) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
U (U) operates in the Software - Application space within the Technology sector. With a market cap of $12.2B, it qualifies as a mid-cap company. Revenue is expanding quickly, but the company has yet to translate that growth into consistent profits — a common risk in high-growth early-stage businesses.
- Revenue growth of 17% YoY shows solid business momentum
- Negative profit margin of -35.0% — company is currently unprofitable
- Negative ROE of -20.1% — shareholder equity is being eroded
- High debt-to-equity of 71.56× increases financial risk, especially with elevated interest rates
- No dividend history — total return depends entirely on price appreciation
- High beta of 2.05 — this stock is significantly more volatile than the broader market
Verdict
Avoid
Significant fundamental concerns outweigh positives. High risk at current levels.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
This stock does not pay dividends.
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Aug 5, 2026
50
days
EPS (TTM)
$-1.57
P/E (TTM)
—
Fwd P/E
21.0
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $27.99
Graham Number
√(22.5 × EPS × Book Value)
N/A
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
3/10
43% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
-20.1%Return on equity — measures how efficiently capital is used
Positive profit margin
-35.0%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+16.8%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
71.56×Low financial leverage reduces risk of distress
Current ratio above 1
1.95×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$348M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Related Assets
Technology
About U
Unity Software Inc. operates a platform to develop, deploy, and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization. It also provides Create Solutions, a set of tools and services used to build, ship, and run real-time 2D and 3D content; and Grow Solutions, which allows customers to grow and engage their user base and monetize their content. In addition, the company offers enterprise support and consumption services; professional services, including consulting, platform integration, training, and custom application and workflow development services; and advertising and game publishing services. It provides its solutions directly through its online store, field sales operations, independent distributors, and resellers. The company serves enterprises, mid-market companies, government, and non-profit institutions; mid-sized, small, and independent businesses; and individuals from various industries. Unity Software Inc. was founded in 2004 and is headquartered in San Francisco, California.
Sector
Technology
Industry
Software - Application
Location
San Francisco, United States
Employees
4,412