Unity Software Inc.
U Technology Software Application
Unity Software Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.8 billion, up 2.01% from fiscal 2024. In the quarter to June 2026, revenue grew 23.9%, EPS grew 80.8%, free cash flow grew 59.5% and total debt was flat, each against the same quarter a year earlier. Operating cash flow growth for three consecutive years.
Follow U
Unity Software Inc. (U) Altman Z-score
Unity Software Inc.'s Altman Z-score for fiscal 2025 is 2.52, in the grey zone (1.81–2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.52 | 1.65 |
| FY2024 | 0.87 | (1.00) |
| FY2023 | 1.87 | 1.02 |
| FY2022 | 0.85 | (8.90) |
| FY2021 | 9.75 | (15.17) |
| FY2020 | 24.92 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.19 | — | 0.23 | |
| Retained earnings / total assets | (0.61) | — | −0.85 | |
| EBIT / total assets | (0.07) | — | −0.23 | |
| Market value of equity / total liabilities | 5.17 | — | 3.10 | |
| Sales / total assets | 0.27 | — | 0.27 | |
| Altman Z-score | Grey zone | 2.52 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −0.26 | ||
Z and Z″ put Unity Software Inc. in different zones: grey zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| MANH Manhattan Associates, Inc. compare | 15.1× |
| FICO Fair Isaac Corporation compare | 12.0× |
| TYL Tyler Technologies, Inc. compare | 7.2× |
| PTC PTC Inc. compare | 6.6× |
| GWRE Guidewire Software, Inc. compare | 6.0× |
| DT Dynatrace, Inc. compare | 4.6× |
| DOCU Docusign Inc. compare | 3.0× |
| U Unity Software Inc. | 2.5× |
| SSNC SS&C Technologies Holdings, Inc. compare | 1.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets