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Unity Software U Operating margin

Operating margin at other companies

Roblox logo
RobloxRBLX
-24%-2.1pp
Applovin Corporation logo
Applovin CorporationAPP
77.1%+12.7pp
Intuitive Surgical logo
Intuitive SurgicalISRG
30.5%+2.3pp

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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Gross margin62.8%-12.0pp
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 operating margin?
Unity Software (U) reported operating margin of -36.5% in Q1 2026.
How has Unity Software's operating margin changed year-over-year?
Unity Software's operating margin decreased by 28.5% year-over-year, from -28.4% to -36.5%.
What is the long-term trend for Unity Software's operating margin?
Over 5 years (2020 to 2025), Unity Software's operating margin has grown at a -6.2% compound annual growth rate (CAGR), from -35.6% to -25.9%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.