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Unity Software U Gross margin

Gross margin at other companies

Roblox logo
RobloxRBLX
78.5%+0.5pp
Applovin Corporation logo
Applovin CorporationAPP
88.4%+3.2pp
Intuitive Surgical logo
Intuitive SurgicalISRG
66.3%-0.8pp

Other financials

Income statement

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Revenue$508.2M+16.8%
Gross profit$156.6M-51.2%
Operating income-$351.4M-175%
Net income-$347.6M-348%
EPS (diluted)-$0.80-321%

Balance sheet

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Cash & equivalents$552.4M-40.8%
Total debt$640.0M+500%
Total equity$3.0B-6.6%
Total assets$6.5B-1.9%

Cash flow

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Operating cash flow$71.3M+447%
CapEx$4.8M-15.5%
Free cash flow$66.5M+809%

Valuation

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Market cap$12B+19.3%
Enterprise value$12.08B+34.2%
P/S6.2×+0.6×

Profitability

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Operating margin-36.5%+14.6pp
Net margin-35%+22.2pp
FCF margin24.1%+6.9pp

Returns & leverage

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Return on equity-21.8%+26.0pp
Debt / equity0.2×+0.2×
Current ratio1.9×-0.8×

Where this comes from

Calculated from Unity Software’s reported figures.

Based on trailing twelve months.

The official record: Unity Software’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Unity Software's gross margin?
Unity Software (U) reported gross margin of 62.8% in Q1 2026.
How has Unity Software's gross margin changed year-over-year?
Unity Software's gross margin decreased by 16.1% year-over-year, from 74.8% to 62.8%.
What is the long-term trend for Unity Software's gross margin?
Over 5 years (2020 to 2025), Unity Software's gross margin has grown at a -0.9% compound annual growth rate (CAGR), from 77.7% to 74.2%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.