Unity Technology (Delayed Earnings Update): Why the Road to $45 Looks Clearer Now

I see upside to $45 per share by summer 2026 if growth returns as expected. I maintain a HOLD rating, patience and discipline are key to capturing this turnaround.

Investment Thesis

Unity Software (U) posted a decent Q2 2025 earnings report — but more importantly, it backed up my bull case where it matters most.

My view has been that Unity will return to growth in 2026, while delivering $350 million in free cash flow this year and growing that figure further next year.

Yes, at 36x forward free cash flow the stock still looks pricey. But if investors start to believe the narrative change that there’s more growth ahead, I think the stock can work its way up to around $45 per share by summer 2026.

For now, Unity remains rated HOLD. In the Portfolio Spreadsheet, that means it’s marked in yellow (rated HOLD) — stocks where it doesn’t make sense to start building a new position at this point, as I'm looking to exit at $45 per share.

Helpful Advice

Remember my advice. You never think about what's happening right now. You must always try to imagine what the investors next year will be thinking about when they look at a company.

In other words, the market is always looking 6 months ahead, so you have to look 12 months ahead to be able to outperform the market.

As I've stated on many occasions, if you look to the market for direction, you'll end up trailing the market. Instead, you have to look slightly ahead of the market, so you can lead and outperform the market.