Should I buy Unity Software stock in 2025?

What is Unity Software?

How much is the Unity Software stock?

The price of Unity Software stock is falling this week. As of now, Unity trades at $23.77 USD, marking a drop of $0.77 (-3.14%) over the past 24 hours. Despite this, the stock has climbed 14.22% over the last week, bringing its market capitalisation to $9.88 billion.

The average 3-month daily volume is around 10 million shares, but the company remains unprofitable, so no P/E ratio is currently available. Unity does not pay a dividend (0.00% yield), and with a high beta of 2.29, the stock demonstrates significant volatility—something NZ investors should consider in their risk assessment.

Our complete analysis of the Unity Software stock

After a comprehensive review of Unity Software’s most recent financial results and a detailed assessment of the company’s stock performance over the past three years, we have leveraged multiple data sources—including key financial indicators, technical signals, market trends, and competitive landscape—through our quantitative analytical framework. This multifaceted approach yields a forward-looking perspective on Unity’s fundamental and technical strengths. So, why might Unity Software once again represent a strategic entry point into the interactive content and gaming technology sector in 2025?

Recent Performance and Market Context

Unity Software (NYSE: U) has demonstrated remarkable resilience and a capacity for positive momentum against a challenging industry backdrop. Year-to-date, the share price has advanced by +26.77%, trading at USD $23.77 as of May 30, 2025—significantly above its 52-week low of $13.90, yet still below its high of $30.88. Notably, the past week alone saw a robust +14.22% gain, reflecting renewed investor enthusiasm sparked by positive operational and strategic developments.

This optimism coincides with several macro and sectoral tailwinds. The global video gaming industry has entered a fresh growth cycle, driven by consumer demand for immersive interactive content and new console launches, such as Nintendo Switch 2. The technology sector as a whole continues to attract capital, benefiting from an environment supportive of AI adoption and platform-driven business models. Within this context, Unity’s pivot toward live services, advanced advertising, and AI-powered tools positions it squarely at the front edge of innovation.

On the company level, Q1 2025 results delivered revenue of $435 million, beating guidance by $20 million, with adjusted EBITDA of $84 million (19% margin). Importantly, Unity’s EPS of $0.24 significantly surpassed expectations. These results were delivered during a period of internal transformation, and against a backdrop of overall revenue contraction in the previous year, highlighting the effectiveness and potential sustainability of the company’s strategic reset.

Technical Analysis

Current technical conditions for Unity Software appear increasingly constructive:

• Momentum Indicators: The Relative Strength Index (RSI, 14-day) sits at roughly 60.8—a neutral to slightly overbought reading, suggesting ongoing but not overextended buying interest. The MACD is positive at 0.35, indicating positive medium-term momentum.
• Moving Averages: The stock has broken decisively above its 200-day moving average—a classic technical signal for the emergence of a new bullish phase. The 50-day average remains below the current price, further supporting this upward bias.
• Support and Resistance: Technically, Unity finds robust support at $21.51 and $20.66, levels that define clear risk control for position sizing. Immediate resistance is observed at $26–27, making the current setup attractive for investors seeking entries ahead of potential breakout catalysts.

This alignment of technical indicators, notably the crossing of the 200-day moving average, statistically correlates with prolonged periods of outperformance for technology growth stocks, especially when supported by improving fundamentals.

Fundamental Analysis

Unity Software’s business model and growth trajectory are layered with unique strengths:

• Revenue and Profitability: Although 2024 saw a -17.1% YoY revenue decline—a result of a conscious portfolio reset—Q1 2025 displayed clear improvement. Revenue of $435 million topped internal targets, and adjusted EBITDA margins increased to 19%. EPS beat consensus handily, signaling improving operational leverage and cost discipline.
• Valuation: While the company is currently unprofitable (hence, no trailing P/E), the forward P/E is calculated at 32.67—a level justified in light of Unity's clear recovery trajectory, embedded growth prospects, and its leadership position in a high-multiple sector.
• Strategic Dominance: Unity remains the market leader in cross-platform development for game creators and interactive experience designers. The “Create” and “Grow” solutions underpin a recurring, subscription-based revenue stream, complemented by rapidly expanding ad-tech and AI-driven monetisation platforms. This positions Unity with an enviable network effect and formidable brand equity—significant barriers to entry against rivals such as Unreal Engine.
• Innovation Ecosystem: Heavy investment in AI-enabled workflows, exemplified by the highly anticipated Unity Vector platform, provides scalable competitive advantages. The successful launch of the upgraded Unity 6 engine, and early developer enthusiasm, point to robust future demand.

Thus, Unity’s valuation, when considering its turnaround dynamics, leadership, and innovative DNA, appears not only rational but increasingly attractive as the company returns to sustainable growth.

Volume and Liquidity

Unity’s liquidity profile is solid and indicative of strong institutional interest:

• Volume: A three-month average daily trading volume of 10 million shares establishes a liquid environment for both retail and professional investors, ensuring ease of entry and exit.
• Float: With 415.69 million shares outstanding and a market cap of $9.88 billion, the stock offers dynamic valuation potential, responding well to positive earnings surprises and innovation-driven flow.

Sustained volume at elevated levels often signals enduring market confidence, and, in turn, provides the substrate for sharp, valuation-justifying moves in response to favourable catalysts.

Catalysts and Positive Outlook

Several near-to-medium-term catalysts appear poised to underpin further upside:

• Unity Vector AI Advertising Platform: The early rollout exceeds performance expectations, opening incremental high-margin revenue streams within the burgeoning AI ad-tech vertical.
• Gaming Industry Recovery: As one of the premier platforms for interactive content, Unity is exceptionally leveraged to the rebound in game development, new hardware launches (Nintendo Switch 2), and increased publisher budgets.
• Platform Expansion: Official support for next-generation platforms and consoles (notably Switch 2) cements Unity’s status as an essential partner for developers seeking multi-platform reach.
• Leadership Renewal: The recent appointment of Matthew Bromberg as CEO brings incisive operational discipline and a fresh strategic approach, winning back developer trust and attracting analysts’ positive attention.
• AI Integration: Continued expansion of AI-powered features and workflows throughout Unity’s ecosystem enhances developer productivity, reduces churn risk, and unlocks cross-industry applications in simulation and visualization.

These factors, combined with a notable “Buy” consensus from a majority of covering analysts, reinforce the stock’s profile as an actionable growth story.

Investment Strategies

Given the above, several entry strategies appear compelling in the current environment:

• Short-Term: Investors can take advantage of recent technical momentum and range-bound trading by positioning near key support levels ($21.51–$20.66). Upside to near-term resistance ($26–27) offers a balanced risk-reward profile.
• Medium-Term: As Unity executes its AI and advertising initiatives, positive quarterly results and market share gains should drive continued re-rating. Entry before the next earnings report or before full Vector platform monetization announces could capture substantial intermediate upside.
• Long-Term: For patient investors, Unity’s transformation story—anchored in leadership renewal, innovation, and dominant Cross-platform developer adoption—presents a prime opportunity to accumulate ahead of what looks like a new structural growth phase. The company’s proven ability to rebound from industry and internal challenges enhances confidence in medium- to long-term capital appreciation.

Positioning at or slightly above major technical support, especially in periods of broad sector rotation or volatility, can optimize entry timing and risk control.

Is it the Right Time to Buy Unity Software?

In summary, Unity Software offers a compelling combination of improving fundamentals, accelerating technical momentum, and powerful growth catalysts in 2025. The Q1 2025 outperformance, strategic embrace of AI and advertising, strong market position, and a revitalized leadership team together suggest the company is at the threshold of a renewed expansion phase. Trading well off its highs but firmly above critical supports, the current price seems to represent an excellent opportunity for investors seeking exposure to the next wave of interactive technology growth.

For NZ-based investors looking to engage with global technology leaders able to leverage macro, sector, and innovation-driven tailwinds, Unity Software stands out as an actionable candidate. The stock’s dynamic technical posture, attractive valuation context, and accelerating fundamental turnaround all combine to justify renewed and serious consideration. With multiple imminent catalysts, Unity may be entering a new bullish era—one that forward-looking investors will want to watch closely.

Unity Software’s strategic realignment, robust innovation pipeline, and improving financial trajectory mark it as a unique opportunity in the technology sector, inviting fresh investor confidence as the industry pivots toward AI and immersive content in 2025.

How to buy Unity Software stock in New Zealand?

Buying Unity Software (NYSE: U) stock online is now both simple and secure for New Zealand investors, thanks to regulated brokers operating under robust local and international oversight. You can choose between two main investment methods: buying shares outright (“spot buying”) for direct ownership, or trading via Contracts for Difference (CFDs) for leveraged exposure without owning the shares. Each approach has its own benefits and cost structure. To help you find the best fit for your needs, a detailed comparison of the top brokers available in NZ is provided further down the page.

Spot buying

Spot buying means purchasing actual Unity Software shares on the US stock market via a regulated broker. With this method, you become a legal shareholder and can benefit fully from any rise in the Unity share price. Fees for NZ investors typically include a fixed commission per buy order—commonly ranging from NZD $3 to $10, depending on your broker.

Example

If the Unity Software share price is $23.77 USD (approx NZD $39), you can buy around 25 shares with an NZD $1,000 stake, factoring in a brokerage fee of about $5.

• Gain scenario: If the share price rises by 10%, your holding is now worth NZD $1,100.

Result: +NZD $100 gross gain, representing a +10% return on your NZD $1,000 investment.

Trading via CFD

CFD trading allows you to speculate on Unity Software’s price movements without owning the underlying shares. Instead, you enter a contract with a broker to exchange the difference in price. CFDs offer the appeal of leverage, letting you control a larger exposure with a smaller amount of capital. Fees typically include the spread (the gap between buying/selling prices) and, if you hold positions overnight, daily financing costs.

Example

You open a CFD position on Unity Software shares with NZD $1,000 and use 5x leverage. This means your effective market exposure is NZD $5,000.

• Gain scenario: If Unity’s share price moves up by 8%, your position gains 8% × 5 = 40%.

Result: +NZD $400 gain on your NZD $1,000 outlay (excluding spreads and overnight fees).

Final advice

Before investing, it’s wise to compare the fees, trading conditions, account types, and service quality of the various brokers available to New Zealanders. Your choice should reflect your personal investment goals and risk appetite—whether you prefer the stability of owning shares or the flexibility and leverage of CFDs. To make an informed decision, consult the comprehensive broker comparison further down this page.

Our 7 tips for buying Unity Software stock

The latest news about Unity Software

Unity shares surged 14% over the past week, outperforming global tech indices. This robust short-term rally reflects renewed investor optimism, catalysed by recent earnings outperformance and positive reaction to strategic announcements. New Zealand-based market participants with exposure to US growth equities or tech-themed funds have likely seen this performance flow through to portfolios, especially given the high weighting of US tech in many NZ-managed funds.

Unity’s Q1 2025 results beat top- and bottom-line expectations, with EPS doubling analyst forecasts. The company delivered $435 million in revenue—significantly above guidance—and posted an adjusted EBITDA margin of 19%. Notably, EPS of $0.24 almost doubled consensus estimates, indicating improved cost control and operating leverage. For New Zealand investors, this sharp improvement is material as Unity is a component in several global growth ETFs and thematic funds distributed in the NZ market, amplifying the positive signal for cross-border equity allocations.

The appointment of Matthew Bromberg as CEO signals renewed strategic leadership with a focus on AI and live services. Bromberg’s leadership in May 2024 has already shifted Unity’s trajectory, prioritizing AI integration and live service tools. These areas align with increasing global demand—including from New Zealand’s active gaming ecosystem, which features both local developers and trans-Tasman studios relying on Unity technology for interactive content creation and export-oriented game titles.

Unity’s new AI-driven Vector advertising platform is exceeding expectations and capturing early market interest. The successful initial rollout of the Vector platform is particularly relevant, as it enhances monetization capabilities for game publishers. In the context of New Zealand, where the digital advertising and gaming sectors are rapidly professionalizing, this innovation is likely to benefit local Unity users and distribution partners, supporting regional content creators targeting both domestic and global markets.

Technical indicators remain positive, with Unity stock recently breaking above its 200-day moving average. Momentum is now on the upside, indicated by a bullish MACD and an RSI above 60, suggesting continued investor appetite. This technical strength reinforces the fundamental turnaround and is echoed in NZ investor sentiment, as local brokers and digital wealth platforms often mirror international trends via their US trading services, making Unity’s uptrend a constructive signal for near-term allocation decisions.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.