U Unity Software Inc.

Overview and Growth

Fiscal 2025 results for Unity Software Inc. combined $1.85B of revenue with net loss of $402.76M and an operating cash inflow of $422.95M. At $1.85B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $1.81B in fiscal 2024, revenue recorded a 2.0% year-over-year increase. Diluted earnings per share were -$0.96, translating the period’s attributable earnings into the amount reported for each diluted share. The company employed $6.84B of total assets, the balance-sheet base supporting its current operating and cash-flow results. Asset turnover was 0.27x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $1.37B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 74.2%, so that share of each revenue unit remained after the cost of revenue reported for the period. The company recorded an operating loss of $479.05M after the reported operating expense base. Relative to revenue, the operating deficit measured 25.9%, showing the shortfall after operating costs. The bottom-line result was a net loss of $402.76M after operating, financing, tax, and other recognized items. Measured against revenue, the bottom-line deficit represented 21.8% after all recognized items. The pretax result was a loss of $395.20M, establishing the deficit before tax effects. Pretax margin was -21.4%, reflecting a pre-tax loss equal to 21.4% of revenue. The reported income-tax provision was $6.29M, the amount recognized between pretax income and the final net-income result. The net loss equaled 12.4% of period-end equity, showing the deficit relative to book capital. Relative to total assets, the net loss represented 5.9%. Compared with a $664.11M net loss in fiscal 2024, the current loss improved to $402.76M.

Liquidity and Capital Structure

Total assets were $6.84B, supported by $3.34B of liabilities and $3.24B of shareholder equity. At period end, current assets of $2.81B compared with current liabilities of $1.53B, defining the company’s short-term resource position. The current ratio was 1.84x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $2.06B in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 134.7%, excluding receivables and other current assets. Book equity represented 47.4% of total assets, quantifying the balance-sheet share supported by shareholder capital. Relative to total assets, liabilities measured 48.9%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 30.1% of total assets, showing the liquid cash component within the company’s broader resource base. Compared with $6.74B in fiscal 2024, the current asset base moved 1.5% and finished higher. Against $3.20B of equity in fiscal 2024, the current book-equity balance moved 1.5% and ended higher. The reported cash balance changed 35.5% from $1.52B in fiscal 2024, ending higher year over year.

Cash Flow and Earnings Quality

The company reported $422.95M of operating cash flow, a cash inflow that shows the cash generated by operations. The cash-flow statement records $19.02M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 4.5% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $403.93M, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 21.8%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 5.9%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.