Forensic Analysis · Technology / Software · as of Sep 24, 2026
Unity Software Inc. (U)
A forensic read on Unity Software Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
4.9
Distress distance
Clean
Earnings quality
4
Forensic signals
-30.4
P / E (ttm)
-12.4%
ROE
$19.4B
Market cap
0.00%
Dividend yield
2.0%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Unity Software Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 4.9, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-11.6%
FY2025
Return on invested capital.Return on invested capital is -11.6% in the latest fiscal year and rising across FY2023–FY2025 from -14%. The capital base behind it came down -32% across FY2023–FY2025, from $4.8B to $3.3B, so this is a return struck on a smaller base rather than a record of money put to work.
+5.2%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +11% over the last 2 years to FY2025 (+5.2%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~5.2% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~10%.
21% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 21% of revenue and 95% of free cash flow in FY2025 — about $0.92 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 5.2% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
stopped
FY2023→FY2025
Shareholder returns — halted.Capital returns have STOPPED — $250M of buybacks + dividends in FY2023, but ~$0 in FY2025. A halt usually means the company is conserving cash.
Key fundamentals
Latest Revenue$1.85B
Revenue Growth YoY+2.0%
Revenue CAGR (2yr)-8.0%
Net Margin-21.8%
Free Cash Flow$403.9M
Return on Equity-12.4%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Unity Software Inc.'s actual 10-K/10-Q/8-K filings?