Recent News
On September 2, 2025 Unity announced a strategic partnership with Globant to expand real-time 3D and digital-twin solutions for enterprise sectors, including joint go-to-market efforts and training initiatives. On October 3, 2025 Unity disclosed a long‑running security vulnerability affecting Unity builds back to 2017 and released patches and tooling to address affected versions; Unity and multiple developers issued updates.
Technical Analysis
Directional indicators show a bullish bias: DI+ at 31.09 and rising while DI‑ at 21.39 and decreasing indicate active buying pressure against a still‑low ADX of 17.77, which signals no strong trend and suggests near‑term moves may remain choppy even as buyers prevail. This dynamic aligns with WMDST’s under‑valued designation by implying momentum can lift price within a trading range rather than begin a durable trending phase.
MACD reads 0.48 and trends upward with the MACD line above its signal at -0.08, confirming bullish momentum and supporting near‑term continuation of gains. That bullish momentum reinforces the valuation context by increasing the likelihood of price reversion toward the mean analyst target range noted in the data.
MRO sits at 16.55 and rising, indicating price currently sits above the model target and therefore carries a moderate potential for retracement. The MRO warning tempers the bullish DI+/MACD signals by implying short‑term profit‑taking remains likely even as momentum trends higher.
RSI at 52.5 with a peak‑and‑reversal reading signals momentum recently reached a local high and shows early signs of top formation; this reduces odds of an extended one‑direction move without a corrective pullback, especially given ADX below 20.
Price vs moving averages confirms a constructive technical posture: price at $40.05 sits above the 200‑day average of $29.38 and above the 12‑day EMA, both bullish for the medium term, while price remains just below the 50‑day average of $40.14, suggesting near‑term resistance around multi‑week average levels. Ichimoku components place price between Senkou A ($42.05) and Senkou B ($38.34) with Tenkan at $39.47 and Kijun at $38.98; price above Tenkan and Kijun supports short‑term bullish bias while the cloud boundaries define nearby resistance/support. Bollinger bandwidth places the close nearer the upper band (upper1σ $41.51), consistent with momentum but also vulnerability to a pullback toward the middle band. SuperTrend lower support lies at $36.63, providing a structural reference for downside containment.
Fundamental Analysis
Revenue dynamics show a mixed picture: total revenue of $470,615,000 with year‑over‑year revenue growth of -12.03% accompanied by a quarter‑over‑quarter uptick (QoQ +3.93%), indicating recent sequential improvement but material contraction versus the prior year. Gross margin at 74.43% remains strong and sits near the industry peer mean/median for application software, supporting high‑margin scalability despite top‑line pressure.
Profitability metrics remain negative: operating margin of -26.74% and EBIT margin of -23.67% reflect ongoing operating losses. The EBIT margin sits above the industry peer low of -41.29% but well below the industry peer mean of 26.11% and median of 27.56%, demonstrating progress versus the weakest peers while remaining distant from profitable incumbents. QoQ improvement in EBIT margin (+5.53 percentage points) signals margin recovery, though year‑over‑year change (-5.45 percentage points) shows profit levels fell versus the prior year.
Earnings per share arrived at $‑0.30 versus an estimate of $‑0.23, producing an EPS surprise of roughly -30.4%, which highlights near‑term earnings execution risk. Forward EPS estimates remain negative (forward EPS $‑0.26 and forward PE negative), underscoring earnings recovery dependency on continued margin improvement and revenue stabilization.
Liquidity and cash generation present material strengths: cash and short‑term investments total $1,898,558,000 with a current ratio of 2.78 and a cash ratio of 2.01, providing a comfortable short‑term buffer. Free cash flow of $151,291,000 and a free cash flow yield near 0.95% exceed the industry peer mean of roughly 0.41%, supporting operational flexibility despite accounting losses.
Leverage and capital structure show targeted exposure: total debt stands at $2,234,307,000 with debt to EBITDA around 91.25x driven by negative EBITDA and the legacy of prior leverage; debt to equity sits at 0.70. High debt/EBITDA reflects the denominator distortion from negative earnings rather than acute refinancing stress given large cash holdings and a net debt modest at $335,749,000.
Valuation context: WMDST values the stock as under‑valued. Key multiples present a mixed signal—price‑to‑book near 4.98x sits below the industry peer mean of 14.81x, while EV/Revenue and enterprise multiple metrics reflect growth expectations embedded in market capitalization. The combination of strong gross margin, positive free cash flow, and a large cash reserve underpins the under‑valued assessment, but persistent operating losses and the negative EPS surprise maintain execution risk that must resolve to realize valuation upside.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 1.7 B |
| Operating Cash Flow | $ 155.4 M | |
| Capital Expenditures | $ -4.11 M | |
| Change In Working Capital | $ 50.1 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 207.6 M | |
| End Period Cash Flow | $ 1.9 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 470.6 M | |
| Forward Revenue | $ 103.6 M | |
| COSTS | ||
| Cost Of Revenue | $ 120.3 M | |
| Depreciation | $ 135.9 M | |
| Depreciation and Amortization | $ 135.9 M | |
| Research and Development | $ 244.4 M | |
| Total Operating Expenses | $ 596.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 350.3 M | |
| EBITDA | $ 24.5 M | |
| EBIT | $ -111.41 M | |
| Operating Income | $ -125.86 M | |
| Interest Income | $ 14.4 M | |
| Interest Expense | $ 6.0 M | |
| Net Interest Income | $ 8.4 M | |
| Income Before Tax | $ -117.45 M | |
| Tax Provision | $ 9.4 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -126.36 M | |
| Net Income From Continuing Operations | $ -126.83 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.23 | |
| EPS Actual | $ -0.30 | |
| EPS Difference | $ -0.07 | |
| EPS Surprise | -30.435 % | |
| Forward EPS | $ -0.26 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.8 B | |
| Intangible Assets | $ 3.9 B | |
| Net Tangible Assets | $ -731.83 M | |
| Total Current Assets | $ 2.6 B | |
| Cash and Short-Term Investments | $ 1.9 B | |
| Cash | $ 1.9 B | |
| Net Receivables | $ 600.1 M | |
| Inventory | — | |
| Long-Term Investments | $ 148.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 20.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 942.2 M | |
| Net Debt | $ 335.7 M | |
| Total Debt | $ 2.2 B | |
| Total Liabilities | $ 3.3 B | |
| EQUITY | ||
| Total Equity | $ 3.2 B | |
| Retained Earnings | $ -4.05 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 7.49 | |
| Shares Outstanding | 427.778 M | |
| Revenue Per-Share | $ 1.10 | |
| VALUATION | Market Capitalization | $ 15.9 B |
| Enterprise Value | $ 16.3 B | |
| Enterprise Multiple | 664.7 | |
| Enterprise Multiple QoQ | -109.34 % | |
| Enterprise Multiple YoY | -168.688 % | |
| Enterprise Multiple IPRWA | U: 664.7 high: 484.024 median: 119.829 mean: 104.69 low: -500.562 |
|
| EV/R | 34.583 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.117 | |
| Asset To Liability | 2.038 | |
| Debt To Capital | 0.411 | |
| Debt To Assets | 0.329 | |
| Debt To Assets QoQ | -0.941 % | |
| Debt To Assets YoY | -1.016 % | |
| Debt To Assets IPRWA | high: 1.164 U: 0.329 mean: 0.259 median: 0.199 low: 0.004 |
|
| Debt To Equity | 0.697 | |
| Debt To Equity QoQ | -0.455 % | |
| Debt To Equity YoY | -0.785 % | |
| Debt To Equity IPRWA | high: 3.037 U: 0.697 mean: 0.468 median: 0.183 low: -1.761 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.976 | |
| Price To Book QoQ | 16.619 % | |
| Price To Book YoY | 96.385 % | |
| Price To Book IPRWA | high: 37.375 mean: 14.815 median: 13.004 U: 4.976 low: -22.076 |
|
| Price To Earnings (P/E) | -124.203 | |
| Price To Earnings QoQ | 15.752 % | |
| Price To Earnings YoY | 92.164 % | |
| Price To Earnings IPRWA | high: 480.131 mean: 159.605 median: 137.94 U: -124.203 low: -214.856 |
|
| PE/G Ratio | -8.073 | |
| Price To Sales (P/S) | 33.869 | |
| Price To Sales QoQ | 9.818 % | |
| Price To Sales YoY | 87.487 % | |
| Price To Sales IPRWA | high: 135.311 mean: 48.28 median: 42.816 U: 33.869 low: 1.307 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -144.862 | |
| Forward PE/G | -9.416 | |
| Forward P/S | 153.919 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.877 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.07 | |
| Asset Turnover Ratio QoQ | 5.636 % | |
| Asset Turnover Ratio YoY | 4.685 % | |
| Asset Turnover Ratio IPRWA | high: 0.358 median: 0.131 mean: 0.131 U: 0.07 low: 0.0 |
|
| Receivables Turnover | 0.787 | |
| Receivables Turnover Ratio QoQ | 2.524 % | |
| Receivables Turnover Ratio YoY | 1.256 % | |
| Receivables Turnover Ratio IPRWA | high: 4.689 mean: 1.71 median: 1.571 U: 0.787 low: 0.484 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 116.015 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 103.13 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 167.384 U: 103.13 median: 44.35 mean: 23.342 low: -144.827 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.28 | |
| CapEx To Revenue | -0.009 | |
| CapEx To Depreciation | -0.03 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 5.4 B | |
| Net Invested Capital | $ 5.4 B | |
| Invested Capital | $ 5.4 B | |
| Net Tangible Assets | $ -731.83 M | |
| Net Working Capital | $ 1.7 B | |
| LIQUIDITY | ||
| Cash Ratio | 2.015 | |
| Current Ratio | 2.783 | |
| Current Ratio QoQ | 2.103 % | |
| Current Ratio YoY | 15.325 % | |
| Current Ratio IPRWA | high: 7.648 U: 2.783 mean: 2.046 median: 1.124 low: 0.436 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 91.252 | |
| Cost Of Debt | 0.214 % | |
| Interest Coverage Ratio | -18.436 | |
| Interest Coverage Ratio QoQ | 12.388 % | |
| Interest Coverage Ratio YoY | -3.711 % | |
| Interest Coverage Ratio IPRWA | high: 168.333 mean: 10.473 median: 9.607 U: -18.436 low: -142.62 |
|
| Operating Cash Flow Ratio | 0.015 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 12.885 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.996 % | |
| Revenue Growth | 6.729 % | |
| Revenue Growth QoQ | 392.606 % | |
| Revenue Growth YoY | -1203.115 % | |
| Revenue Growth IPRWA | high: 20.212 % U: 6.729 % mean: 4.66 % median: 4.092 % low: -6.143 % |
|
| Earnings Growth | 15.385 % | |
| Earnings Growth QoQ | -58.241 % | |
| Earnings Growth YoY | -592.32 % | |
| Earnings Growth IPRWA | high: 200.0 % U: 15.385 % median: 12.791 % mean: 7.75 % low: -122.222 % |
|
| MARGINS | ||
| Gross Margin | 74.431 % | |
| Gross Margin QoQ | 0.448 % | |
| Gross Margin YoY | -0.633 % | |
| Gross Margin IPRWA | high: 90.981 % median: 77.558 % mean: 76.476 % U: 74.431 % low: 37.637 % |
|
| EBIT Margin | -23.673 % | |
| EBIT Margin QoQ | 5.528 % | |
| EBIT Margin YoY | -5.448 % | |
| EBIT Margin IPRWA | high: 76.323 % median: 27.559 % mean: 26.106 % U: -23.673 % low: -41.293 % |
|
| Return On Sales (ROS) | -26.743 % | |
| Return On Sales QoQ | -0.698 % | |
| Return On Sales YoY | 6.814 % | |
| Return On Sales IPRWA | high: 76.795 % median: 29.387 % mean: 24.892 % U: -26.743 % low: -44.13 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 151.3 M | |
| Free Cash Flow Yield | 0.949 % | |
| Free Cash Flow Yield QoQ | 1.933 % | |
| Free Cash Flow Yield YoY | -25.452 % | |
| Free Cash Flow Yield IPRWA | high: 3.762 % U: 0.949 % mean: 0.407 % median: 0.259 % low: -1.573 % |
|
| Free Cash Growth | 19.456 % | |
| Free Cash Growth QoQ | -98.809 % | |
| Free Cash Growth YoY | -34.268 % | |
| Free Cash Growth IPRWA | high: 268.25 % U: 19.456 % mean: -17.122 % median: -18.341 % low: -206.623 % |
|
| Free Cash To Net Income | -1.197 | |
| Cash Flow Margin | 2.918 % | |
| Cash Flow To Earnings | -0.109 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -1.872 % | |
| Return On Assets QoQ | 14.988 % | |
| Return On Assets YoY | 0.645 % | |
| Return On Assets IPRWA | high: 8.311 % mean: 2.44 % median: 1.859 % U: -1.872 % low: -9.564 % |
|
| Return On Capital Employed (ROCE) | -1.907 % | |
| Return On Equity (ROE) | -0.039 | |
| Return On Equity QoQ | 15.587 % | |
| Return On Equity YoY | 0.689 % | |
| Return On Equity IPRWA | high: 0.151 median: 0.053 mean: 0.053 U: -0.039 low: -0.228 |
|
| DuPont ROE | -3.954 % | |
| Return On Invested Capital (ROIC) | -1.619 % | |
| Return On Invested Capital QoQ | 12.275 % | |
| Return On Invested Capital YoY | -84.734 % | |
| Return On Invested Capital IPRWA | high: 14.226 % mean: 3.642 % median: 3.209 % U: -1.619 % low: -12.344 % |
|