U News
R40 coverage and dated third-party headlines for Unity Software Inc. (U).
R40 Coverage
Unity's Rule of 40 Doubled to 61. A Third of the Revenue It Didn't Grow, It Sold.
Unity's Q2: revenue $546M up 24% and free cash flow of $202M at a 36.96% margin. The score doubled to 60.9, and the headline growth understates the business.
Our Own Explainer Says the Rule of 40 Captures Stock Compensation 'Not Perfectly'. Here Is How Imperfectly.
The four companies our Rule of 40 explainer praises pay 14.5-21.5% of revenue in stock compensation. Subtract it and two fall below 40. How big the gap is.
Unity's Best Rule of 40 in Years Came Out of the Quarter Its Gross Margin Fell to 31%
Unity enters Q2 2026 earnings with its best Rule of 40 in years — built in a quarter of 31% gross margin and a $0.80 loss per share. What the score leaves out.
Unity Beat Earnings and Crashed 34%. Here's Why.
Unity posted its best quarter in years — record Vector growth, Create stabilizing, stock comp slashed. Then the stock dropped 34% on soft Q1 guidance. Value trap or gift?
February 2026
Unity Q4 2025: Revenue $503M, losses narrow
Revenue up 10% YoY, EPS -$0.21 (improving). Strong FCF of $119M. Turnaround showing progress.
November 2025
Unity Q3 2025 beats expectations
Revenue $471M, FCF $151M. Gaming recovery and cost discipline driving improvement.
May 2025
Unity announces strategic reset under new CEO
Matthew Bromberg outlines turnaround plan: focus on core gaming, cut costs, improve developer relations.
May 2024
Unity appoints Matthew Bromberg as CEO
Former Zynga president takes over after John Riccitiello resignation. Signals return to gaming focus.
September 2023
Unity runtime fee controversy erupts
Announced per-install fee sparks massive developer backlash. Later walked back after stock plunges 17%.