Unity Software Inc. — Blitz Index 57 (C)
Unity scores 57 — a mature platform re-accelerating on AI monetisation (Vector) while the engine itself grows just 2%.
Confidence: Medium · Category: platforms
Score breakdown
| Section | Score | Detail |
|---|---|---|
| A · Speed | 15 / 25 | Q2 2026 total +24% but strategic +38% vs Create +2% — re-acceleration is real yet only two quarters, after FY2024 −17.1% and FY2025 +2.0% |
| B · Moat | 40 / 60 | Two-sided platform (developers × advertisers) with Vector AI monetisation on the install base; 74.2% FY2025 gross margin — but the moat is re-won project by project, not locked in |
| C · Creative destruction | 10 / 15 | One cross-platform real-time 3D engine plus built-in monetisation replacing bespoke per-platform engines and separate ad stacks — mature on mobile, not full displacement in AAA |
| D · BlitzFailing | −8 | SBC $380.2M (20.6% of FY2025 revenue) plus a $279M Q1 2026 ironSource impairment; staggered board and sub-1% insider ownership |
Radar axes (0–100): Moat 66.7 · Speed 60 · Creative 66.7.
Watch item
Gates: G1 ✓ (conditional — second curve on Vector/Grow, not Create) · G2 ✓ (estimate, definition-dependent — engine-only market falls short of bar ≈ $20.28B). 8 points below the threshold — first score.
Strengths
- Strategic revenue +38% in Q2 2026 with Grow +63% — the second curve is outgrowing the engine
- Q2 2026 FCF $202M, adjusted EBITDA margin 29%, net cash ~+$115M — the turnaround is cash-backed
- Gross margin 66.5% → 73.5% → 74.2% (FY2025) on the portfolio reset
- Vector run rate $1B+ with Day-28 ROAS adoption above 25% (call-reported)
- >$100k customers 1,340 and DBNER recovered 96% → 103% — expansion is back
Concerns
- Total growth +24% masks Create at +2% — the engine, not the ads, is the question
- Two flat years precede the re-acceleration (FY2024 −17.1%, FY2025 +2.0%)
- SBC $380.2M is 20.6% of FY2025 revenue — dilution is a real cost, not an accounting quirk
- Q1 2026 $279M non-cash impairment on ironSource assets — the 2022 merger value largely written off
- The moat is re-won every project: Runtime Fee showed developers can leave for Godot or Unreal
More Platforms companies
Other Platforms names on the Blitz Index, highest score first: Alphabet (82/A), Meta (78/B), Snowflake (76/B).
Next earnings
Nov 5, 2026 · Before open · Confirmed
Coverage
Unity Software Inc. · Q3 2026 due Nov 5, 2026 (BMO, confirmed) · Score 57 · Grade C
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