📊 AI Stock Rating — Summary

For the quarter ended September 30, 2025, Unity Technologies reported revenue of $470.6 million, with a net loss of $126.4 million and an EPS of -$0.30. The net margin stands at a negative 26.9%. Free cash flow was strong at $151.3 million. Revenue grew by a modest pace year-over-year, although the company remains unprofitable. Profitability is challenged currently, although operating cash flow suggests potential improvement. Despite the net loss, positive operating cash flow of $155.4 million supports liquidity. The balance sheet remains robust with total assets of $6.78 billion against liabilities of $3.33 billion, resulting in a debt/equity ratio that appears manageable. Net debt is minimal at $335.7 million, offset by significant cash reserves of $1.91 billion. No dividends or buybacks were done, reflecting a focus on growth and investment. Analyst price targets as high as $54 suggest potential upside. Despite no dividends, substantial free cash flow and potential price appreciation drive shareholder value. The one-year price change was not specified, but analyst optimism suggests potential appreciation. Valuation on the context date wasn't provided but investor sentiment seemed optimistic given the high target prices.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue growth was steady, driven by sustained business momentum. However, no significant acceleration is noted.

Profitability — Score: 4/10

Unity is currently unprofitable, with negative net income and EPS. However, operating cash flow turned positive, signaling potential improvements.

Cash Flow Quality — Score: 7/10

Solid free cash flow of $151.3 million indicates strong liquidity and operational efficiency despite net losses.

Leverage & Balance Sheet — Score: 8/10

A strong balance sheet with significant cash reserves and manageable debt levels enhances financial resilience.

Shareholder Returns — Score: 6/10

No dividends or buybacks, but investor returns are likely driven by price appreciation, as analyst targets imply upside.

Analyst Sentiment & Valuation — Score: 6/10

Analyst targets suggest the stock was favorably viewed at up to $54, indicating potential growth relative to the current price at the time.

⚠ AI-generated — informational only, not financial advice.