Unity Software (BSP:U2ST34) Operating Margin %: -69.14% (As of Mar. 2026)


BSP:U2ST34 Unity Software Inc BSP:U2ST34
55 GF Score
Price R$7.16
GF Value R$6.51
Valuation Fairly Valued
! 3 Warning Signs
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What is Unity Software Operating Margin %?

Unity Software BSP:U2ST34 +3.32% 55 Operating Margin % is -69.14% as of Mar. 2026. GuruFocus rates BSP:U2ST34 with a GF Score™ of 55/100 and a GF Value™ of R$6.51 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,818 Software companies, Unity Software ranks worse than 83.11% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Unity Software's Operating Income for the three months ended in Mar. 2026 was R$-1,838 Mil. Unity Software's Revenue for the three months ended in Mar. 2026 was R$2,658 Mil. Therefore, Unity Software's Operating Margin % for the quarter that ended in Mar. 2026 was -69.14%.

Good Sign:

Unity Software Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Unity Software's Operating Margin % or its related term are showing as below:

BSP:U2ST34' s Operating Margin % Range Over the Past 10 Years
Min: -63.42   Med: -36.83   Max: -25.9
Current: -36.54


BSP:U2ST34's Operating Margin % is ranked worse than
83.11% of 2818 companies
in the Software industry
Industry Median: 3.875 vs BSP:U2ST34: -36.54

Unity Software's 5-Year Average Operating Margin % Growth Rate was 6.90% per year.

Unity Software's Operating Income for the three months ended in Mar. 2026 was R$-1,838 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was R$-3,752 Mil.


Unity Software  (BSP:U2ST34) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Unity Software Operating Margin % Related Terms


Unity Software Operating Margin % Historical Data

* Premium members only.

The historical data trend for Unity Software's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Unity Software Operating Margin % Chart

Unity Software Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial -47.88 -63.42 -38.07 -41.65 -25.90

Unity Software Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -29.41 -26.93 -26.74 -21.17 -69.14

BSP:U2ST34 vs FIG, GWRE, TYL: Operating Margin % Comparison

For the Software - Application subindustry, Unity Software's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Unity Software Operating Margin % vs Software Industry

For the Software industry and Technology sector, Unity Software's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Unity Software's Operating Margin % falls into.


BSP:U2ST34
55GF Score
Unity Software Inc BSP:U2ST34
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Unity Software Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Unity Software's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-2613.569 / 10091.125
=-25.90 %

Unity Software's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-1837.749 / 2657.881
=-69.14 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -69.14% mean?
Unity Software (BSP:U2ST34) has a Operating Margin % of -69.14% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Unity Software and its competitors. According to the industry distribution chart, Unity Software ranks #2342 out of 2818 companies in the Software industry, placing it in the top 83.1%.
Is Unity Software's Operating Margin % too high?
Unity Software's current Operating Margin % is -69.14%. Based on the distribution chart, Unity Software ranks #2342 out of 2818 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Unity Software has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Unity Software's Operating Margin % compare to FIG and GWRE?
According to the Software industry distribution chart, Unity Software ranks #2342 out of 2818 companies for Operating Margin %. This places Unity Software in the lower half of its industry. The industry median Operating Margin % is 3.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Unity Software and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Unity Software's current Operating Margin % is -69.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Unity Software stock overvalued right now?
Based on GuruFocus' analysis, Unity Software (BSP:U2ST34) is currently considered Fairly Valued. The stock's GF Value™ is R$6.51, compared to a current price of R$7.16 — trading 10% above its estimated fair value. The current Operating Margin % is -69.14%. Unity Software's overall GF Score™ is 55/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Unity Software (BSP:U2ST34), the current Operating Margin % is -69.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Unity Software (BSP:U2ST34) Overvalued in 2026?

Based on GuruFocus' analysis, Unity Software stock appears to be overvalued. The current stock price of R$7.16 is trading 10% above its estimated GF Value™ of R$6.51. GuruFocus considers Unity Software to be Fairly Valued.

Key valuation signals for BSP:U2ST34:

  • Operating Margin %: -69.14%
  • GF Value™: R$6.51 vs. price of R$7.16 (10% above fair value)
  • GF Score™: 55/100 with 3 warning signs

No single metric tells the full story. See the BSP:U2ST34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Unity Software Business Description

Address 116 New Montgomery Street, San Francisco, CA, USA, 94105-3607
Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content. The platform can be used to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The business is spread across the United States, Greater China, EMEA, APAC, and other Americas, and key revenue is derived from the EMEA region. Its products are used in the gaming industry, retail, automotive, architecture, engineering, and construction.
55GF Score

Get the complete analysis for BSP:U2ST34

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$7.16
Price
R$6.51
GF Value