Unifi Inc New (UFI)

UNIFI®, Makers of REPREVE®, Announces Third Quarter Fiscal 2026 ResultsMay 5, 2026 4:15 PM
Business Wire Significant profitability improvement and cash flow generation provide operating momentum and balance sheet strength Unifi, Inc. (NYSE: UFI), the makers of REPREVE® and one of the world’s leading innovators in recycled and synthetic yarns, today released operating results for the third fiscal quarter ended March 29, 2026. Third Quarter Fiscal 2026 Highlights Cash provided by operating activities was $8.0 million during the third quarter of fiscal 2026 and $24.4 million during the nine months ended March 29, 2026. Debt principal was $94.9 million and Net Debt* was $68.4 million at March 29, 2026. SG&A expenses were $11.2 million, a decrease of 9.0% from the third quarter of fiscal 2025, primarily driven by cost reduction efforts. Net sales were $130.0 million, a decrease of 11.3% from the third quarter of fiscal 2025, but an increase of 7.1% sequentially. Revenues from REPREVE Fiber products were $38.2 million and represented 29% of net sales, compared to $34.3 million or 28% of net sales for the second quarter of fiscal 2026. Gross profit was $9.1 million and gross margin was 7.0%, compared to gross loss of $0.4 million and gross margin of (0.3)% for the third quarter of fiscal 2025. Net loss was $2.3 million, or $0.12 per share, which includes $1.8 million in gain on foreign currency transaction, compared to a net loss of $16.8 million, or $0.92 per share, for the third quarter of fiscal 2025. Adjusted Net Loss* was $3.8 million, which excludes $1.5 million in net gain on foreign currency transaction, compared to Adjusted Net Loss of $13.9 million for the prior year period, which excluded $2.9 million of manufacturing footprint reduction costs. Adjusted EBITDA* was $4.0 million, compared to $(4.9) million for the third quarter of fiscal 2025. Published “Sustainability Snapshot” and related goals that highlights significant progress in textile-to-textile recycling. Announced the launch of Luxel™, a linen-inspired, easy-care performance yarn. Eddie Ingle, Chief Executive Officer of Unifi, Inc., stated, “We are pleased to report that the impact of our team’s hard work is beginning to translate into improved financial performance, highlighted by improved gross profit and debt reduction. These results were driven by the actions we have taken over the past several quarters to realign our cost structure and optimize our operations, and give us confidence that we can generate stronger profitability and cash flow from a lower revenue base moving forward. In addition, we remain focused on partnering with our global customers to deliver innovative solutions to address their evolving needs, which will serve us well in supporting sustainable, long-term market and business growth.” Third Quarter Fiscal 2026 Compared to Third Quarter Fiscal 2025 Net sales decreased to $130.0 million from $146.6 million, primarily due to lower customer ordering patterns stemming from geopolitical, trade, and tariff-related uncertainty. Gross profit increased to $9.1 million from $(0.4) million. Americas Segment gross profit increased by $10.6 million, primarily from the multi-year cost reduction efforts, partially offset by lower sales. Brazil Segment gross profit decreased by $0.2 million, primarily due to import pricing pressures. Asia Segment gross profit decreased by $0.8 million, primarily due to lower sales volumes. Operating loss improved to $0.1 million from $13.9 million. The change was primarily due to higher gross profit, lower SG&A, and gain on foreign currency transaction. Net loss was $2.3 million compared to a net loss of $16.8 million. Adjusted Net Loss* was $3.8 million, which excludes $1.5 million in net gain on foreign currency transaction, compared to Adjusted Net Loss of $13.9 million. Adjusted EBITDA* was $4.0 million, which excludes the net foreign currency transaction, compared to $(4.9) million. Outlook UNIFI will continue to focus on leveraging its improved cost footprint while investing in innovation and strategically managing the balance sheet to ensure that the Company is better positioned to capitalize and grow as business conditions improve. Results for the fourth quarter of fiscal 2026 will include responsive price increases associated with petrochemical-related inflation. Ingle concluded, “As we enter the fourth quarter and look towards the remainder of calendar year 2026, we are encouraged by the momentum we are seeing across our businesses. Our innovative beyond apparel business is continuing to gain traction, which should help support improved financial results. We also anticipate the need to support higher working capital levels to accommodate demand and petrochemical-related inflation. While the business is in a stronger position today than it has been in some time, we remain focused on driving sustained financial improvement and long-term shareholder value.” * Adjusted Net Loss, Adjusted EBITDA, and Net Debt are non-GAAP financial measures. The schedules included in this press release reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure. Third Quarter Fiscal 2026 Earnings Conference Call UNIFI will provide additional commentary regarding its third quarter fiscal 2026 results and other developments during its earnings conference call on May 6, 2026, at 9:00 a.m., Eastern Time. The call can be accessed via a live audio webcast on UNIFI’s website at http://investor.unifi.com. Additional supporting materials and information related to the call will also be available on UNIFI’s website. About UNIFI UNIFI, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. Through REPREVE, the world’s leading brand of traceable, recycled fiber and resin, UNIFI is changing the way industries think about the materials they use – and reuse. A vertically-integrated manufacturer, the company has direct operations in the United States, Colombia, El Salvador, and Brazil, and sales offices all over the world. UNIFI envisions a future where circular and sustainable solutions are the only choice. For more information about UNIFI, visit www.unifi.com. About REPREVE® Made by UNIFI, Inc. (NYSE: UFI), REPREVE® is the global leader in recycled performance fibers and resins. Using proprietary recycling technology, REPREVE leverages multiple waste sources, including single-use plastic bottles, ocean-bound plastic, textile waste, and recycled yarn. REPREVE has transformed more than 46 billion plastic bottles and 1 billion T-shirts’ worth of textile waste into recycled fiber, powering globally scalable products for world-leading brands. Made traceable with FiberPrint® technology and certified by U-TRUST®, REPREVE spans apparel, footwear, furnishings, industrial, medical, military, mobility, and packaging. For more information about REPREVE, visit www.repreve.com. Financial Statements, Business Segment Information and Reconciliations of Reported Results to Adjusted Results to Follow CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts)       For the Three Months Ended     For the Nine Months Ended       March 29, 2026     March 30, 2025     March 29, 2026     March 30, 2025   Net sales   $ 130,037     $ 146,557     $ 387,079     $ 432,809   Cost of sales     120,920       147,002       370,964       423,262   Gross profit (loss)     9,117       (445 )     16,115       9,547   Selling, general and administrative expenses     11,188       12,295       32,849       37,058   Benefit for bad debts     (294 )     (255 )     (244 )     (39 ) Restructuring costs, net     —       1,320       1,853       1,320   Gain on sale of assets     —       —       —       (4,296 ) Other operating (income) expense, net     (1,660 )     55       (1,317 )     144   Operating loss     (117 )     (13,860 )     (17,026 )     (24,640 ) Interest income     (446 )     (198 )     (1,294 )     (632 ) Interest expense     1,559       2,417       5,364       7,322   Equity in loss of unconsolidated affiliate     240       216       289       467   Loss before income taxes     (1,470 )     (16,295 )     (21,385 )     (31,797 ) Provision for income taxes     836       499       1,984       4,021   Net loss   $ (2,306 )   $ (16,794 )   $ (23,369 )   $ (35,818 )                           Net loss per common share:   Basic   $ (0.12 )   $ (0.92 )   $ (1.27 )   $ (1.96 ) Diluted   $ (0.12 )   $ (0.92 )   $ (1.27 )   $ (1.96 )                           Weighted average common shares outstanding:   Basic     18,584       18,352       18,455       18,299   Diluted     18,584       18,352       18,455       18,299   CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)       March 29, 2026     June 29, 2025   ASSETS             Cash and cash equivalents   $ 26,561     $ 22,664   Receivables, net     73,629       75,383   Inventories     103,931       122,929   Income taxes receivable     947       5,429   Other current assets     7,337       9,222   Total current assets     212,405       235,627   Property, plant and equipment, net     162,709       172,923   Operating lease assets     7,119       7,879   Deferred income taxes     5,476       5,535   Other non-current assets     4,665       4,904   Total assets   $ 392,374     $ 426,868                 LIABILITIES AND SHAREHOLDERS’ EQUITY             Accounts payable   $ 36,211     $ 37,468   Income taxes payable     661       49   Current operating lease liabilities     2,289       2,368   Current portion of long-term debt     12,614       12,159   Other current liabilities     16,308       18,899   Total current liabilities     68,083       70,943   Long-term debt     82,242       95,727   Non-current operating lease liabilities     4,878       5,614   Deferred income taxes     1,178       1,224   Other long-term liabilities     4,122       3,889   Total liabilities     160,503       177,397                 Commitments and contingencies                           Common stock     1,859       1,836   Capital in excess of par value     76,254       74,095   Retained earnings     215,680       239,049   Accumulated other comprehensive loss     (61,922 )     (65,509 ) Total shareholders’ equity     231,871       249,471   Total liabilities and shareholders’ equity   $ 392,374     $ 426,868   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)       For the Nine Months Ended       March 29, 2026     March 30, 2025   Cash and cash equivalents at beginning of period   $ 22,664     $ 26,805   Operating activities:             Net loss     (23,369 )     (35,818 ) Adjustments to reconcile net loss to net cash provided (used) by operating activities:             Equity in loss of unconsolidated affiliate     289       467   Depreciation and amortization expense     18,100       19,200   Non-cash compensation expense     2,431       2,442   Gain on foreign currency transaction, net     (1,775 )     —   Gain on sale of assets     (308 )     (4,296 ) Deferred income taxes     231       563   Other, net     198       1,525   Changes in assets and liabilities     28,596       (4,077 ) Net cash provided (used) by operating activities     24,393       (19,994 )               Investing activities:             Capital expenditures     (3,872 )     (7,915 ) Proceeds from the sale of assets     501       8,094   Net cash (used) provided by investing activities     (3,371 )     179                 Financing activities:             Proceeds from long-term debt     81,500       167,150   Payments on long-term debt     (98,612 )     (157,447 ) Other, net     (249 )     (428 ) Net cash (used) provided by financing activities     (17,361 )     9,275                 Effect of exchange rate changes on cash and cash equivalents     236       (10 ) Net increase (decrease) in cash and cash equivalents     3,897       (10,550 ) Cash and cash equivalents at end of period   $ 26,561     $ 16,255   BUSINESS SEGMENT INFORMATION (Unaudited) (In thousands)   Net sales and gross profit (loss) details for each reportable segment of UNIFI are as follows:       For the Three Months Ended     For the Nine Months Ended       March 29, 2026     March 30, 2025     March 29, 2026     March 30, 2025   Americas   $ 78,343     $ 93,544     $ 240,772     $ 262,922   Brazil     29,112       28,124       81,201       89,916   Asia     22,582       24,889       65,106       79,971   Consolidated net sales   $ 130,037     $ 146,557     $ 387,079     $ 432,809       For the Three Months Ended     For the Nine Months Ended       March 29, 2026     March 30, 2025     March 29, 2026     March 30, 2025   Americas   $ 3,623     $ (6,957 )   $ 1,512     $ (14,875 ) Brazil     2,751       2,988       6,468       14,711   Asia     2,743       3,524       8,135       9,711   Consolidated gross profit (loss)   $ 9,117     $ (445 )   $ 16,115     $ 9,547   RECONCILIATIONS OF REPORTED RESULTS TO ADJUSTED RESULTS (Unaudited) (In thousands)   EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures) The reconciliations of the amounts reported under U.S. generally accepted accounting principles (“GAAP”) for Net loss to EBITDA and Adjusted EBITDA are set forth below.       For the Three Months Ended     For the Nine Months Ended       March 29, 2026     March 30, 2025     March 29, 2026     March 30, 2025   Net loss   $ (2,306 )   $ (16,794 )   $ (23,369 )   $ (35,818 ) Interest expense, net     1,113       2,219       4,070       6,690   Provision for income taxes     836       499       1,984       4,021   Depreciation and amortization expense (1)     6,114       6,259       17,926       19,046   EBITDA     5,757       (7,817 )     611       (6,061 )                           Restructuring costs, net (2)     —       —       785       —   Transition costs (3)     —       2,900       1,068       2,900   Gain on foreign currency transaction, net (4)     (1,775 )     —       (1,775 )     —   Gain on sale of assets (5)     —       —       —       (4,296 ) Adjusted EBITDA   $ 3,982     $ (4,917 )   $ 689     $ (7,457 ) (1) Within this reconciliation, depreciation and amortization expense excludes the amortization of debt issuance costs, which are reflected in interest expense, net. However, within the accompanying Condensed Consolidated Statements of Cash Flows, amortization of debt issuance costs is reflected in depreciation and amortization expense. (2) In the second quarter of fiscal 2026, UNIFI recorded employee separation costs of $1,093 in connection with the Fiscal 2026 Profit Improvement Plan and a $308 gain from disposals of assets from the consolidation of Americas yarn manufacturing operations. (3)  In the first quarter of fiscal 2026, UNIFI incurred various transition costs totaling $1,068 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $1,021, and (ii) employee separation costs of $47. The facility closure, equipment relocation, and employee separation costs were all recorded within Restructuring costs in the Condensed Consolidated Statements of Operations. In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations. (4) In the third quarter of fiscal 2026, UNIFI recorded a foreign currency gain of $1,775. In December 2025, Brazil declared dividends against the majority of its retained earnings in connection with certain tax law changes related to future dividends. Foreign currency transaction gains (losses) are recorded to reflect changes in the exchange rate of the Brazilian Real to the U.S. Dollar while the dividend payable is outstanding. (5) In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina. Adjusted Net Loss and Adjusted EPS (Non-GAAP Financial Measures) The tables below set forth reconciliations of (i) Loss before income taxes (“Pre-tax Loss”), (ii) Provision for income taxes (“Tax Impact”), (iii) Net loss (“Net Loss”) to Adjusted Net Loss, and (iv) Diluted Earnings Per Share (“Diluted EPS”) to Adjusted EPS. Rounding may impact certain of the below calculations.       For the Three Months Ended March 29, 2026     For the Three Months Ended March 30, 2025       Pre-tax Loss     Tax Impact     Net Loss     Diluted EPS     Pre-tax Loss     Tax Impact     Net Loss     Diluted EPS   GAAP results   $ (1,470 )   $ (836 )   $ (2,306 )   $ (0.12 )   $ (16,295 )   $ (499 )   $ (16,794 )   $ (0.92 ) Transition costs (1)     —       —       —       —       2,900       —       2,900       0.16   Gain on foreign currency transaction, net (2)     (1,775 )     272       (1,503 )     (0.08 )     —       —       —       —   Adjusted results   $ (3,245 )   $ (564 )   $ (3,809 )   $ (0.20 )   $ (13,395 )   $ (499 )   $ (13,894 )   $ (0.76 )                                                   Weighted average common shares outstanding       18,584                         18,352       For the Nine Months Ended March 29, 2026     For the Nine Months Ended March 30, 2025       Pre-tax Loss     Tax Impact     Net Loss     Diluted EPS     Pre-tax Loss     Tax Impact     Net Loss     Diluted EPS   GAAP results   $ (21,385 )   $ (1,984 )   $ (23,369 )   $ (1.27 )   $ (31,797 )   $ (4,021 )   $ (35,818 )   $ (1.96 ) Transition costs (1)     1,068       —       1,068       0.06       2,900       —       2,900       0.16   Gain on foreign currency transaction, net (2)     (1,775 )     272       (1,503 )     (0.08 )     —       —       —       —   Restructuring costs, net (3)     785       (11 )     774       0.04       —       —       —       —   Gain on sale of assets (4)     —       —       —       —       (4,296 )     —       (4,296 )     (0.23 ) Adjusted results   $ (21,307 )   $ (1,723 )   $ (23,030 )   $ (1.25 )   $ (33,193 )   $ (4,021 )   $ (37,214 )   $ (2.03 )                                                   Weighted average common shares outstanding       18,455                         18,299   (1) In the first quarter of fiscal 2026, UNIFI incurred various transition costs totaling $1,068 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $1,021, and (ii) employee separation costs of $47. The facility closure, equipment relocation, and employee separation costs were all recorded within Restructuring costs in the Condensed Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S. In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S. (2) In the third quarter of fiscal 2026, UNIFI recorded a foreign currency gain of $1,775. In December 2025, Brazil declared dividends against the majority of its retained earnings in connection with certain tax law changes related to future dividends. Foreign currency transaction gains (losses) are recorded to reflect changes in the exchange rate of the Brazilian Real to the U.S. Dollar while the dividend payable is outstanding. The associated tax impact was estimated to be $272, based on the estimated annual tax rate for the period. (3) In the second quarter of fiscal 2026, UNIFI recorded employee separation costs of $1,093 in connection with the Fiscal 2026 Profit Improvement Plan and a $308 gain from disposals of assets from the consolidation of Americas yarn manufacturing operations. The associated tax impact was estimated to be $11 related to employee separation costs in the Asia Segment. (4) In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses and capital losses in the U.S. Net Debt (Non-GAAP Financial Measure) Reconciliations of Net Debt are as follows:       March 29, 2026     June 29, 2025   Long-term debt   $ 82,242     $ 95,727   Current portion of long-term debt     12,614       12,159   Unamortized debt issuance costs     83       122   Debt principal     94,939       108,008   Less: cash and cash equivalents     26,561       22,664   Net Debt   $ 68,378     $ 85,344   Cash and cash equivalents At March 29, 2026 and June 29, 2025, UNIFI’s foreign operations held nearly all consolidated cash and cash equivalents. REPREVE Fiber REPREVE Fiber represents UNIFI’s collection of fiber products on its recycled platform, with or without added technologies. Non-GAAP Financial Measures Certain non-GAAP financial measures included herein are designed to complement the financial information presented in accordance with GAAP. These non-GAAP financial measures include Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net (Loss) Income, Adjusted EPS, and Net Debt (together, the “non-GAAP financial measures”). EBITDA represents Net (loss) income before net interest expense, income tax expense, and depreciation and amortization expense. Adjusted EBITDA represents EBITDA adjusted to exclude, from time to time, certain adjustments necessary to understand and compare the underlying results of UNIFI. Adjusted Net (Loss) Income represents Net (loss) income calculated under GAAP adjusted to exclude certain amounts. Management believes the excluded amounts do not reflect the ongoing operations and performance of UNIFI and/or exclusion may be necessary to understand and compare the underlying results of UNIFI. Adjusted EPS represents Adjusted Net (Loss) Income divided by UNIFI’s weighted average common shares outstanding. Net Debt represents debt principal less cash and cash equivalents. The non-GAAP financial measures are not determined in accordance with GAAP and should not be considered a substitute for performance measures determined in accordance with GAAP. The calculations of the non-GAAP financial measures are subjective, based on management’s belief as to which items should be included or excluded in order to provide the most reasonable and comparable view of the underlying operating performance of the business. We may, from time to time, modify the amounts used to determine our non-GAAP financial measures. We believe that these non-GAAP financial measures better reflect UNIFI’s underlying operations and performance and that their use, as operating performance measures, provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles, and ages of related assets, among otherwise comparable companies. This press release also includes certain forward-looking information that is not presented in accordance with GAAP. Management believes that a quantitative reconciliation of such forward-looking information to the most directly comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts because a reconciliation of these non-GAAP financial measures would require UNIFI to predict the timing and likelihood of potential future events such as restructurings, M&A activity, contract modifications, and other infrequent or unusual gains and losses. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided. Management uses Adjusted EBITDA (i) as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of (a) items directly related to our asset base (primarily depreciation and amortization) and (b) items that we would not expect to occur as a part of our normal business on a regular basis; (ii) for planning purposes, including the preparation of our annual operating budget; (iii) as a valuation measure for evaluating our operating performance and our capacity to incur and service debt, fund capital expenditures, and expand our business; and (iv) as one measure in determining the value of other acquisitions and dispositions. Adjusted EBITDA is a key performance metric utilized in the determination of variable compensation. We also believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity, because it serves as a high-level proxy for cash generated from operations. Management uses Adjusted Net (Loss) Income and Adjusted EPS (i) as measurements of net operating performance because they assist us in comparing such performance on a consistent basis, as they remove the impact of (a) items that we would not expect to occur as a part of our normal business on a regular basis and (b) components of the provision for income taxes that we would not expect to occur as a part of our underlying taxable operations; (ii) for planning purposes, including the preparation of our annual operating budget; and (iii) as measures in determining the value of other acquisitions and dispositions. Management uses Net Debt as a liquidity and leverage metric to determine how much debt would remain if all cash and cash equivalents were used to pay down debt principal. In evaluating non-GAAP financial measures, investors should be aware that, in the future, we may incur expenses similar to the adjustments included herein. Our presentation of non-GAAP financial measures should not be construed as indicating that our future results will be unaffected by unusual or non-recurring items. Each of our non-GAAP financial measures has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of our results or liquidity measures as reported under GAAP. Some of these limitations are (i) it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; (ii) it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our ongoing operations; (iii) it does not reflect changes in, or cash requirements for, our working capital needs; (iv) it does not reflect the cash requirements necessary to make payments on our debt; (v) it does not reflect our future requirements for capital expenditures or contractual commitments; (vi) it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and (vii) other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, these non-GAAP financial measures should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations, including those under our outstanding debt obligations. Investors should compensate for these limitations by relying primarily on our GAAP results and using these measures only as supplemental information. Cautionary Statement on Forward-Looking Statements Certain statements included herein contain “forward-looking statements” within the meaning of federal securities laws about the financial condition and results of operations of UNIFI that are based on management’s beliefs, assumptions and expectations about our future economic performance, considering the information currently available to management. An example of such forward-looking statements include, among others, guidance pertaining to our financial outlook. The words “believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,” “plan,” “estimate,” “project,” “expect,” “intend,” “seek,” “strive” and words of similar import, or the negative of such words, identify or signal the presence of forward-looking statements. These statements are not statements of historical fact, and they involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that we express or imply in any forward-looking statement. Factors that could contribute to such differences include, but are not limited to: the competitive nature of the textile industry and the impact of global competition; changes in the trade regulatory environment and governmental policies and legislation; the availability, sourcing, and pricing of raw materials; general domestic and international economic and industry conditions in markets where UNIFI competes, including economic and political factors over which UNIFI has no control; changes in consumer spending, customer preferences, fashion trends, and end-uses for UNIFI's products; the financial condition of UNIFI’s customers; the loss of a significant customer or brand partner; natural disasters, industrial accidents, power or water shortages, extreme weather conditions, and other disruptions at one of our facilities; the disruption of operations, global demand, or financial performance as a result of catastrophic or extraordinary events, including, but not limited to, epidemics or pandemics; the success of UNIFI’s strategic business initiatives; the volatility of financial and credit markets, including the impacts of counterparty risk (e.g., deposit concentration and recent depositor sentiment and activity); the ability to service indebtedness and fund capital expenditures and strategic business initiatives; the availability of and access to credit on reasonable terms; changes in foreign currency exchange, interest, and inflation rates; fluctuations in production costs; the ability to protect intellectual property; the strength and reputation of our brands; employee relations; the ability to attract, retain, and motivate key employees; the impact of climate change or environmental, health, and safety regulations; and the impact of tax laws, the judicial or administrative interpretations of tax laws, and/or changes in such laws or interpretations. All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on UNIFI. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in UNIFI’s most recent Annual Report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by UNIFI with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. View source version on businesswire.com: https://www.businesswire.com/news/home/20260505204389/en/ Chris Hodges or Josh Carroll
Alpha IR Group
312-445-2870
UFI@alpha-ir.com Original: UNIFI®, Makers of REPREVE®, Announces Third Quarter Fiscal 2026 Results

UNIFI®, Makers of REPREVE®, Schedules Third Quarter Fiscal 2026 Earnings Conference CallApril 28, 2026 4:30 PM
Business Wire
Unifi, Inc. (NYSE: UFI), (together with its consolidated subsidiaries, “UNIFI”), the makers of REPREVE® and one of the world’s leading innovators in recycled and synthetic yarns, will host a conference call at 9:00 a.m., Eastern Time, on Wednesday, May 6, 2026, to discuss its third quarter fiscal 2026 financial results.


The third quarter fiscal 2026 financial results and supporting materials will be available after the close of market trading on Tuesday, May 5, 2026, on the Company’s website at http://investor.unifi.com. The conference call can be accessed approximately 10 minutes prior to the beginning of the call by dialing (888) 596-4144 (Domestic) or (646) 968-2525 (International) and, when prompted, providing conference ID number 6313345.


There will also be a live audio webcast of the call, which can be accessed on the Company’s website at http://investor.unifi.com.


A replay of the conference call will be available approximately two hours following the call through Wednesday, May 13, 2026, and can be accessed via the Company’s website at http://investor.unifi.com. In addition, presentation slides will be available on the Company’s website for 12 months following the call.


About UNIFI, Inc.


UNIFI, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. Through REPREVE, the world’s leading brand of traceable, recycled fiber and resin, UNIFI is changing the way industries think about the materials they use – and reuse. A vertically-integrated manufacturer, the company has direct operations in the United States, Colombia, El Salvador, and Brazil, and sales offices all over the world. UNIFI envisions a future where circular and sustainable solutions are the only choice. For more information about UNIFI, visit www.UNIFI.com.


About REPREVE®


Made by UNIFI, Inc. (NYSE: UFI), REPREVE® is the global leader in recycled performance fibers and resins. Using proprietary recycling technology, REPREVE leverages multiple waste sources, including single-use plastic bottles, ocean-bound plastic, textile waste, and recycled yarn. REPREVE has transformed more than 46 billion plastic bottles and 1 billion T-shirts’ worth of textile waste into recycled fiber, powering globally scalable products for world-leading brands. Made traceable with FiberPrint® technology and certified by U-TRUST®, REPREVE spans apparel, footwear, furnishings, industrial, medical, military, mobility, and packaging. For more information about REPREVE, visit www.repreve.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260428649873/en/
Chris Hodges or Josh Carroll

Alpha IR Group

312-445-2870

UFI@alpha-ir.com


Original: UNIFI®, Makers of REPREVE®, Schedules Third Quarter Fiscal 2026 Earnings Conference Call

UNIFI®, Makers of REPREVE®, Launches New Goals in Sustainability SnapshotFebruary 24, 2026 9:00 AM
Business Wire
UNIFI®’s 2030 targets reinforce environmental commitments and set new sustainability goals.


Unifi, Inc. (NYSE: UFI), the makers of REPREVE® and one of the world’s leading innovators in recycled and synthetic yarns, today released its FY2025 Sustainability Snapshot. The Snapshot highlights UNIFI®’s progress on the growth of the REPREVE platform and commitment to circular materials.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260224066529/en/UNIFI®, Makers of REPREVE®, Launches New Goals in Sustainability Snapshot
The company celebrated a huge milestone in the Snapshot, hitting 1 billion T-shirts’ worth of textile and yarn waste transformed through the REPREVE platform including: REPREVE Takeback™, ThermaLoop™ Insulation, REPREVE ReCirculate™, and REPREVE Nylon. This growth continued after UNIFI launched globally available circular polyester products made from textile waste in insulation and white filament earlier this fiscal year.


In the Snapshot, UNIFI introduced a new goal, aiming to recycle 65 billion plastic bottles by FY2030. This goal aligns with the previously established FY2030 goals, including transforming the equivalent of 1.5 billion T-shirts’ worth of textile and yarn waste.


The Snapshot demonstrates that UNIFI continues to reduce its impact on greenhouse gas emissions, energy, water, and raw material consumption each year through the continual growth of the REPREVE platform and responsible manufacturing.


"Our sixth annual sustainability publication demonstrates our commitment to ‘Waste Nothing’,” said Eddie Ingle, CEO of UNIFI. “UNIFI’s momentum is driven by its innovation, launching multiple new sustainable products and expanding its product portfolio. We continually push boundaries in recycling, waste reduction, and innovation to make recycled and circular manufacturing available globally and at scale.”


UNIFI’s 2025 Sustainability Snapshot highlights include:



1 billion T-shirts’ worth* of textile and yarn waste recycled, on track to reach 1.5 billion T-shirts’ worth by FY2030;



46 billion plastic bottles diverted from landfills, progressing towards UNIFI’s new goal of 65 billion bottles recycled by FY2030;



Zero noncompliant water discharges across local municipalities and per national regulation;



REPREVE accounted for 31% of FY2025 revenue and targeting over 50% by FY2030; and



UNIFI named one of Fast Company’s “World’s Most Innovative Companies of 2025” in Fashion and Apparel.



The Snapshot reaffirms UNIFI’s enduring commitments to environmental progress and supporting global brands in achieving circularity and sustainable materials goals.


For more details, access the full Snapshot HERE. Except where otherwise noted, the Snapshot has been guided by the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) frameworks.


*“T-shirt equivalents” refers to the weight of material equal to that of a single polyester T-shirt.


For more information on UNIFI and the REPREVE platform, please visit www.unifi.com and www.repreve.com.


About Unifi, Inc.


Unifi, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI® is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. Through REPREVE®, the world’s leading brand of traceable, recycled fiber and resin, UNIFI is changing the way industries think about the materials they use – and reuse. A vertically-integrated manufacturer, the company has direct operations in the United States, Colombia, El Salvador, and Brazil and sales offices all over the world. UNIFI envisions a future where circular and sustainable solutions are the only choice. For more information about UNIFI, visit www.unifi.com.


About REPREVE®


Made by Unifi, Inc. (NYSE: UFI), REPREVE® is the global leader in recycled performance fibers and resins. Using proprietary recycling technology, REPREVE leverages multiple waste sources, including single-use plastic bottles, ocean-bound plastic, textile waste, and recycled yarn. REPREVE has transformed more than 46 billion plastic bottles and 1 billion T-shirts’ worth of textile waste into recycled fiber, powering globally scalable products for world-leading brands. Made traceable with FiberPrint® technology and certified by U-TRUST®, REPREVE spans apparel, footwear, furnishings, industrial, medical, military, mobility, and packaging. For more information about REPREVE, visit www.repreve.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260224066529/en/
press@unifi.com


Original: UNIFI®, Makers of REPREVE®, Launches New Goals in Sustainability Snapshot

UNIFI®, Makers of REPREVE®, Announces Second Quarter Fiscal 2026 ResultsFebruary 3, 2026 4:15 PM
Business Wire
Strategic initiatives to realign cost and operational profiles have significantly reduced revenue breakeven point, while strengthening the balance sheet and financial results


Unifi, Inc. (NYSE: UFI), the makers of REPREVE® and one of the world’s leading innovators in recycled and synthetic yarns, today released operating results for the second fiscal quarter ended December 28, 2025.


Second Quarter Fiscal 2026 Overview



Cost and footprint reductions completed, and allow for an improved profitability profile at lower revenue levels going forward.



Cash provided by operating activities was $25.3 million during the second quarter of fiscal 2026 and $16.4 million during the six months ended December 28, 2025.



Debt principal was $105.4 million and Net Debt* was $75.2 million at December 28, 2025, compared to $108.0 million of debt principal and Net Debt* of $85.3 million at June 29, 2025.



SG&A expenses were $9.7 million, a decrease of 25% from the second quarter of fiscal 2025, primarily driven by cost alignment efforts.



Net sales were $121.4 million, a decrease of 12.6% from the second quarter of fiscal 2025, primarily driven by trade and tariff-related uncertainty and demand volatility across each business segment.



Revenues from REPREVE Fiber products were $34.3 million and represented 28% of net sales, compared to $43.3 million or 31% of net sales for the second quarter of fiscal 2025.



Gross profit was $3.6 million and gross margin was 3.0%, compared to gross profit of $0.5 million and gross margin of 0.4% for the second quarter of fiscal 2025.



Net loss was $9.7 million, or $0.53 per diluted share, which includes $0.8 million in net restructuring costs, compared to a net loss of $11.4 million, or $0.62 per share, for the second quarter of fiscal 2025. Adjusted Net Loss* was $8.9 million, which excludes $0.8 million in net restructuring costs, compared to Adjusted Net Loss of $15.7 million for the prior year period, which excluded a $4.3 million gain on a warehouse sale.



Adjusted EBITDA* was $(0.7) million, compared to $(5.8) million for the second quarter of fiscal 2025.



Eddie Ingle, Chief Executive Officer of Unifi, Inc., stated, “Our results for the second quarter were in line with our expectations. Over the last two years, we have executed numerous strategic initiatives to realign our cost structure and operations. The combination of these actions have positioned UNIFI to generate profits on a meaningfully lower revenue base. As our markets and the tariff situation continue to normalize, we will be able to leverage this more streamlined business model to drive stronger profitability and free cash flow.”


Second Quarter Fiscal 2026 Compared to Second Quarter Fiscal 2025


Net sales decreased to $121.4 million from $138.9 million, primarily due to lower customer ordering patterns stemming from trade and tariff-related uncertainty.


Gross profit increased to $3.6 million from $0.5 million. Americas Segment gross profit increased by $6.1 million, primarily from the multi-year cost alignment efforts, partially offset by lower demand and production. Brazil Segment gross profit decreased by $2.7 million, primarily due to import pricing pressures and lower sales volumes. Asia Segment gross profit decreased by $0.3 million, primarily due to lower sales volumes.


Operating loss improved to $7.3 million from $7.6 million. The change was primarily due to higher gross profit and lower SG&A, partially offset by net restructuring costs. Net loss was $9.7 million compared to a net loss of $11.4 million. Adjusted Net Loss* was $8.9 million, which excludes $0.8 million in net restructuring costs, compared to Adjusted Net Loss of $15.7 million for the second quarter of fiscal 2025. Adjusted EBITDA* was $(0.7) million, which excludes the net restructuring costs adjustments, compared to $(5.8) million.


Fiscal 2026 Profit Improvement Plan


During October 2025, UNIFI implemented additional cost savings initiatives that included reducing variable manufacturing costs across labor, spend, and support functions, while also eliminating many salaried positions in the U.S. Along with a renewed focus on optimizing commercial execution, increasing margin accretive activities, and scrutinizing working capital, management expects this improvement plan to aid in generating positive operating cash flow in the quarters ahead.


Ingle concluded, “While we are only a few weeks into our third fiscal quarter, we are starting to see some initial signs of a return to a more normalized operating environment, with improving customer engagements. Additionally, our investments in innovation and the beyond apparel portfolio are gaining traction across key focus areas. As our customers begin to rebuild their depleted inventory levels in calendar 2026, we expect to increase our working capital levels modestly in support of increased sales levels. As a result, we expect the third quarter to exhibit lower operating cash flows compared to the most recent quarter. While we recognize that there is still a lot of work to be done to achieve our goals, we are proud of the progress that we have made. As we look towards the second half of fiscal 2026, our focus will remain on converting our improved operational progress into sustained financial momentum, which in turn will create value for our shareholders.”


* Adjusted Net Loss, Adjusted EBITDA, and Net Debt are non-GAAP financial measures. The schedules included in this press release reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure.


Second Quarter Fiscal 2026 Earnings Conference Call


UNIFI will provide additional commentary regarding its second quarter fiscal 2026 results and other developments during its earnings conference call on February 4, 2026, at 8:30 a.m., Eastern Time. The call can be accessed via a live audio webcast on UNIFI’s website at http://investor.unifi.com. Additional supporting materials and information related to the call will also be available on UNIFI’s website.


About UNIFI


UNIFI, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. Through REPREVE, the world’s leading brand of traceable, recycled fiber and resin, UNIFI is changing the way industries think about the materials they use – and reuse. A vertically-integrated manufacturer, the company has direct operations in the United States, Colombia, El Salvador, and Brazil, and sales offices all over the world. UNIFI envisions a future where circular and sustainable solutions are the only choice. For more information about UNIFI, visit www.unifi.com.


About REPREVE®


Made by UNIFI, Inc. (NYSE: UFI), REPREVE® is the global leader in recycled performance fibers and resins. Using proprietary recycling technology, REPREVE leverages multiple waste sources, including single-use plastic bottles, ocean-bound plastic, textile waste, and recycled yarn. REPREVE has transformed more than 46 billion plastic bottles and 1 billion T-shirts’ worth of textile waste into recycled fiber, powering globally scalable products for world-leading brands. Made traceable with FiberPrint® technology and certified by U-TRUST®, REPREVE spans apparel, footwear, furnishings, industrial, medical, military, mobility, and packaging. For more information about REPREVE, visit www.repreve.com.


Financial Statements, Business Segment Information and Reconciliations of Reported Results to Adjusted Results to Follow




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS








(Unaudited)








(In thousands, except per share amounts)








 








 






 






For the Three Months Ended






 






 






For the Six Months Ended






 








 






 






December 28,

2025






 






 






December 29,

2024






 






 






December 28,

2025






 






 






December 29,

2024






 








Net sales






 






$






121,368






 






 






$






138,880






 






 






$






257,042






 






 






$






286,252






 








Cost of sales






 






 






117,757






 






 






 






138,346






 






 






 






250,044






 






 






 






276,260






 








Gross profit






 






 






3,611






 






 






 






534






 






 






 






6,998






 






 






 






9,992






 








Selling, general and administrative expenses






 






 






9,713






 






 






 






12,921






 






 






 






21,661






 






 






 






24,763






 








Provision (benefit) for bad debts






 






 






119






 






 






 






(96






)






 






 






50






 






 






 






216






 








Restructuring costs, net






 






 






785






 






 






 






—






 






 






 






1,853






 






 






 






—






 








Gain on sale of assets






 






 






—






 






 






 






(4,296






)






 






 






—






 






 






 






(4,296






)








Other operating expense (income), net






 






 






273






 






 






 






(431






)






 






 






343






 






 






 






89






 








Operating loss






 






 






(7,279






)






 






 






(7,564






)






 






 






(16,909






)






 






 






(10,780






)








Interest income






 






 






(473






)






 






 






(177






)






 






 






(848






)






 






 






(434






)








Interest expense






 






 






1,802






 






 






 






2,398






 






 






 






3,805






 






 






 






4,905






 








Equity in loss of unconsolidated affiliate






 






 






146






 






 






 






262






 






 






 






49






 






 






 






251






 








Loss before income taxes






 






 






(8,754






)






 






 






(10,047






)






 






 






(19,915






)






 






 






(15,502






)








Provision for income taxes






 






 






952






 






 






 






1,345






 






 






 






1,148






 






 






 






3,522






 








Net loss






 






$






(9,706






)






 






$






(11,392






)






 






$






(21,063






)






 






$






(19,024






)








 






 






 






 






 






 






 






 






 






 






 






 






 








Net loss per common share:






 








Basic






 






$






(0.53






)






 






$






(0.62






)






 






$






(1.15






)






 






$






(1.04






)








Diluted






 






$






(0.53






)






 






$






(0.62






)






 






$






(1.15






)






 






$






(1.04






)








 






 






 






 






 






 






 






 






 






 






 






 






 








Weighted average common shares outstanding:






 








Basic






 






 






18,421






 






 






 






18,288






 






 






 






18,391






 






 






 






18,272






 








Diluted






 






 






18,421






 






 






 






18,288






 






 






 






18,391






 






 






 






18,272






 









CONDENSED CONSOLIDATED BALANCE SHEETS








(Unaudited)








(In thousands)








 








 






 






December 28,

2025






 






 






June 29,

2025






 








ASSETS






 






 






 






 






 






 








Cash and cash equivalents






 






$






30,192






 






 






$






22,664






 








Receivables, net






 






 






57,970






 






 






 






75,383






 








Inventories






 






 






103,085






 






 






 






122,929






 








Income taxes receivable






 






 






1,232






 






 






 






5,429






 








Other current assets






 






 






6,609






 






 






 






9,222






 








Total current assets






 






 






199,088






 






 






 






235,627






 








Property, plant and equipment, net






 






 






166,207






 






 






 






172,923






 








Operating lease assets






 






 






7,575






 






 






 






7,879






 








Deferred income taxes






 






 






5,121






 






 






 






5,535






 








Other non-current assets






 






 






4,922






 






 






 






4,904






 








Total assets






 






$






382,913






 






 






$






426,868






 








 






 






 






 






 






 






 








LIABILITIES AND SHAREHOLDERS’ EQUITY






 






 






 






 






 






 








Accounts payable






 






$






21,888






 






 






$






37,468






 








Income taxes payable






 






 






300






 






 






 






49






 








Current operating lease liabilities






 






 






2,524






 






 






 






2,368






 








Current portion of long-term debt






 






 






12,708






 






 






 






12,159






 








Other current liabilities






 






 






12,439






 






 






 






18,899






 








Total current liabilities






 






 






49,859






 






 






 






70,943






 








Long-term debt






 






 






92,601






 






 






 






95,727






 








Non-current operating lease liabilities






 






 






5,143






 






 






 






5,614






 








Deferred income taxes






 






 






1,173






 






 






 






1,224






 








Other long-term liabilities






 






 






4,139






 






 






 






3,889






 








Total liabilities






 






 






152,915






 






 






 






177,397






 








 






 






 






 






 






 






 








Commitments and contingencies






 






 






 






 






 






 








 






 






 






 






 






 






 








Common stock






 






 






1,858






 






 






 






1,836






 








Capital in excess of par value






 






 






75,442






 






 






 






74,095






 








Retained earnings






 






 






217,986






 






 






 






239,049






 








Accumulated other comprehensive loss






 






 






(65,288






)






 






 






(65,509






)








Total shareholders’ equity






 






 






229,998






 






 






 






249,471






 








Total liabilities and shareholders’ equity






 






$






382,913






 






 






$






426,868






 









CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS








(Unaudited)








(In thousands)








 








 






 






For the Six Months Ended






 








 






 






December 28,

2025






 






 






December 29,

2024






 








Cash and cash equivalents at beginning of period






 






$






22,664






 






 






$






26,805






 








Operating activities:






 






 






 






 






 






 








Net loss






 






 






(21,063






)






 






 






(19,024






)








Adjustments to reconcile net loss to net cash provided (used) by operating activities:






 






 






 






 






 






 








Equity in loss of unconsolidated affiliate






 






 






49






 






 






 






251






 








Depreciation and amortization expense






 






 






11,925






 






 






 






12,881






 








Non-cash compensation expense






 






 






1,608






 






 






 






1,658






 








Gain on sale of assets






 






 






(308






)






 






 






(4,296






)








Deferred income taxes






 






 






333






 






 






 






628






 








Other, net






 






 






(132






)






 






 






216






 








Changes in assets and liabilities






 






 






23,950






 






 






 






(7,318






)








Net cash provided (used) by operating activities






 






 






16,362






 






 






 






(15,004






)








 






 






 






 






 






 






 








Investing activities:






 






 






 






 






 






 








Capital expenditures






 






 






(3,084






)






 






 






(4,944






)








Proceeds from the sale of assets






 






 






501






 






 






 






8,094






 








Net cash (used) provided by investing activities






 






 






(2,583






)






 






 






3,150






 








 






 






 






 






 






 






 








Financing activities:






 






 






 






 






 






 








Proceeds from long-term debt






 






 






65,400






 






 






 






101,451






 








Payments on long-term debt






 






 






(71,707






)






 






 






(96,547






)








Other, net






 






 






(240






)






 






 






(306






)








Net cash (used) provided by financing activities






 






 






(6,547






)






 






 






4,598






 








 






 






 






 






 






 






 








Effect of exchange rate changes on cash and cash equivalents






 






 






296






 






 






 






(880






)








Net increase (decrease) in cash and cash equivalents






 






 






7,528






 






 






 






(8,136






)








Cash and cash equivalents at end of period






 






$






30,192






 






 






$






18,669






 









BUSINESS SEGMENT INFORMATION








(Unaudited)








(In thousands)








 








Net sales and gross profit (loss) details for each reportable segment of UNIFI are as follows:








 








 






 






For the Three Months Ended






 






 






For the Six Months Ended






 








 






 






December 28,

2025






 






 






December 29,

2024






 






 






December 28,

2025






 






 






December 29,

2024






 








Americas






 






$






77,233






 






 






$






83,095






 






 






$






162,429






 






 






$






169,378






 








Brazil






 






 






23,328






 






 






 






27,482






 






 






 






52,089






 






 






 






61,792






 








Asia






 






 






20,807






 






 






 






28,303






 






 






 






42,524






 






 






 






55,082






 








Consolidated net sales






 






$






121,368






 






 






$






138,880






 






 






$






257,042






 






 






$






286,252






 













 



 






 






For the Three Months Ended






 






 






For the Six Months Ended






 








 






 






December 28,

2025






 






 






December 29,

2024






 






 






December 28,

2025






 






 






December 29,

2024






 








Americas






 






$






(399






)






 






$






(6,540






)






 






$






(2,111






)






 






$






(7,918






)








Brazil






 






 






1,056






 






 






 






3,786






 






 






 






3,717






 






 






 






11,723






 








Asia






 






 






2,954






 






 






 






3,288






 






 






 






5,392






 






 






 






6,187






 








Consolidated gross profit






 






$






3,611






 






 






$






534






 






 






$






6,998






 






 






$






9,992






 









RECONCILIATIONS OF REPORTED RESULTS TO ADJUSTED RESULTS








(Unaudited)








(In thousands)








 








EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures)








The reconciliations of the amounts reported under U.S. generally accepted accounting principles (“GAAP”) for Net loss to EBITDA and Adjusted EBITDA are set forth below.








 








 






 






For the Three Months Ended






 






 






For the Six Months Ended






 








 






 






December 28,

2025






 






 






December 29,

2024






 






 






December 28,

2025






 






 






December 29,

2024






 








Net loss






 






$






(9,706






)






 






$






(11,392






)






 






$






(21,063






)






 






$






(19,024






)








Interest expense, net






 






 






1,329






 






 






 






2,221






 






 






 






2,957






 






 






 






4,471






 








Provision for income taxes






 






 






952






 






 






 






1,345






 






 






 






1,148






 






 






 






3,522






 








Depreciation and amortization expense (1)






 






 






5,891






 






 






 






6,283






 






 






 






11,812






 






 






 






12,787






 








EBITDA






 






 






(1,534






)






 






 






(1,543






)






 






 






(5,146






)






 






 






1,756






 








 






 






 






 






 






 






 






 






 






 






 






 






 








Restructuring costs, net (2)






 






 






785






 






 






 






—






 






 






 






785






 






 






 






—






 








Transition costs (3)






 






 






—






 






 






 






—






 






 






 






1,068






 






 






 






—






 








Gain on sale of warehouse (4)






 






 






—






 






 






 






(4,296






)






 






 






—






 






 






 






(4,296






)








Adjusted EBITDA






 






$






(749






)






 






$






(5,839






)






 






$






(3,293






)






 






$






(2,540






)









(1)






Within this reconciliation, depreciation and amortization expense excludes the amortization of debt issuance costs, which are reflected in interest expense, net. However, within the accompanying Condensed Consolidated Statements of Cash Flows, amortization of debt issuance costs is reflected in depreciation and amortization expense.








(2)






In the second quarter of fiscal 2026, UNIFI recorded employee separation costs of $1,093 in connection with the Fiscal 2026 Profit Improvement Plan and a $308 gain from disposals of assets from the consolidation of Americas yarn manufacturing operations.








(3)






In the first quarter of fiscal 2026, UNIFI incurred various transition costs totaling $1,068 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $1,021, and (ii) employee separation of $47. The facility closure, equipment relocation, and employee separation costs were all recorded within Restructuring costs in the Condensed Consolidated Statements of Operations.







(4)

In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina.









Adjusted Net Loss and Adjusted EPS (Non-GAAP Financial Measures)








The tables below set forth reconciliations of (i) Loss before income taxes (“Pre-tax Loss”), (ii) Provision for income taxes (“Tax Impact”), (iii) Net loss (“Net Loss”) to Adjusted Net Loss, and (iv) Diluted Earnings Per Share (“Diluted EPS”) to Adjusted EPS. Rounding may impact certain of the below calculations.











 






 






For the Three Months Ended December 28, 2025






 






 






For the Three Months Ended December 29, 2024






 








 






 






Pre-tax Loss






 






 






Tax Impact






 






 






Net Loss






 






 






Diluted EPS






 






 






Pre-tax Loss






 






 






Tax Impact






 






 






Net Loss






 






 






Diluted EPS






 








GAAP results






 






$






(8,754






)






 






$






(952






)






 






$






(9,706






)






 






$






(0.53






)






 






$






(10,047






)






 






$






(1,345






)






 






$






(11,392






)






 






$






(0.62






)








Restructuring costs, net (1)






 






 






785






 






 






 






(11






)






 






 






774






 






 






 






0.05






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 








Gain on sale of warehouse (3)






 






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






(4,296






)






 






 






—






 






 






 






(4,296






)






 






 






(0.24






)








Adjusted results






 






$






(7,969






)






 






$






(963






)






 






$






(8,932






)






 






$






(0.48






)






 






$






(14,343






)






 






$






(1,345






)






 






$






(15,688






)






 






$






(0.86






)








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Weighted average common shares outstanding






 






 






 






18,421






 






 






 






 






 






 






 






 






 






 






 






 






18,288






 













 



 






 






For the Six Months Ended December 28, 2025






 






 






For the Six Months Ended December 29, 2024






 








 






 






Pre-tax Loss






 






 






Tax Impact






 






 






Net Loss






 






 






Diluted EPS






 






 






Pre-tax Loss






 






 






Tax Impact






 






 






Net Loss






 






 






Diluted EPS






 








GAAP results






 






$






(19,915






)






 






$






(1,148






)






 






$






(21,063






)






 






$






(1.15






)






 






$






(15,502






)






 






$






(3,522






)






 






$






(19,024






)






 






$






(1.04






)








Restructuring costs, net (1)






 






 






785






 






 






 






(11






)






 






 






774






 






 






 






0.04






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 








Transition costs (2)






 






 






1,068






 






 






 






—






 






 






 






1,068






 






 






 






0.06






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 








Gain on sale of warehouse (3)






 






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






(4,296






)






 






 






—






 






 






 






(4,296






)






 






 






(0.24






)








Adjusted results






 






$






(18,062






)






 






$






(1,159






)






 






$






(19,221






)






 






$






(1.05






)






 






$






(19,798






)






 






$






(3,522






)






 






$






(23,320






)






 






$






(1.28






)








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Weighted average common shares outstanding






 






 






 






18,391






 






 






 






 






 






 






 






 






 






 






 






 






18,272






 









(1)






In the second quarter of fiscal 2026, UNIFI recorded employee separation costs of $1,093 in connection with the Fiscal 2026 Profit Improvement Plan and a $308 gain from disposals of assets from the consolidation of Americas yarn manufacturing operations. The associated tax impact was estimated to be $11 related to employee separation costs in the Asia Segment.







(2)

In the first quarter of fiscal 2026, UNIFI incurred various transition costs totaling $1,068 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $1,021, and (ii) employee separation costs of $47. The facility closure, equipment relocation, and employee separation costs were all recorded within Restructuring costs in the Condensed Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S.







(3)

In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses and capital losses in the U.S.









Net Debt (Non-GAAP Financial Measure)








Reconciliations of Net Debt are as follows:








 








 






 






December 28,

2025






 






 






June 29,

2025






 








Long-term debt






 






$






92,601






 






 






$






95,727






 








Current portion of long-term debt






 






 






12,708






 






 






 






12,159






 








Unamortized debt issuance costs






 






 






96






 






 






 






122






 








Debt principal






 






 






105,405






 






 






 






108,008






 








Less: cash and cash equivalents






 






 






30,192






 






 






 






22,664






 








Net Debt






 






$






75,213






 






 






$






85,344






 







Cash and cash equivalents


At December 28, 2025 and June 29, 2025, UNIFI’s foreign operations held nearly all consolidated cash and cash equivalents.


REPREVE Fiber


REPREVE Fiber represents UNIFI’s collection of fiber products on its recycled platform, with or without added technologies.


Non-GAAP Financial Measures


Certain non-GAAP financial measures included herein are designed to complement the financial information presented in accordance with GAAP. These non-GAAP financial measures include Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net (Loss) Income, Adjusted EPS, and Net Debt (together, the “non-GAAP financial measures”).



EBITDA represents Net (loss) income before net interest expense, income tax expense, and depreciation and amortization expense.



Adjusted EBITDA represents EBITDA adjusted to exclude, from time to time, certain adjustments necessary to understand and compare the underlying results of UNIFI.



Adjusted Net (Loss) Income represents Net (loss) income calculated under GAAP adjusted to exclude certain amounts. Management believes the excluded amounts do not reflect the ongoing operations and performance of UNIFI and/or exclusion may be necessary to understand and compare the underlying results of UNIFI.



Adjusted EPS represents Adjusted Net (Loss) Income divided by UNIFI’s weighted average common shares outstanding.



Net Debt represents debt principal less cash and cash equivalents.



The non-GAAP financial measures are not determined in accordance with GAAP and should not be considered a substitute for performance measures determined in accordance with GAAP. The calculations of the non-GAAP financial measures are subjective, based on management’s belief as to which items should be included or excluded in order to provide the most reasonable and comparable view of the underlying operating performance of the business. We may, from time to time, modify the amounts used to determine our non-GAAP financial measures.


We believe that these non-GAAP financial measures better reflect UNIFI’s underlying operations and performance and that their use, as operating performance measures, provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles, and ages of related assets, among otherwise comparable companies.


This press release also includes certain forward-looking information that is not presented in accordance with GAAP. Management believes that a quantitative reconciliation of such forward-looking information to the most directly comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts because a reconciliation of these non-GAAP financial measures would require UNIFI to predict the timing and likelihood of potential future events such as restructurings, M&A activity, contract modifications, and other infrequent or unusual gains and losses. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided.


Management uses Adjusted EBITDA (i) as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of (a) items directly related to our asset base (primarily depreciation and amortization) and (b) items that we would not expect to occur as a part of our normal business on a regular basis; (ii) for planning purposes, including the preparation of our annual operating budget; (iii) as a valuation measure for evaluating our operating performance and our capacity to incur and service debt, fund capital expenditures, and expand our business; and (iv) as one measure in determining the value of other acquisitions and dispositions. Adjusted EBITDA is a key performance metric utilized in the determination of variable compensation. We also believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity, because it serves as a high-level proxy for cash generated from operations.


Management uses Adjusted Net (Loss) Income and Adjusted EPS (i) as measurements of net operating performance because they assist us in comparing such performance on a consistent basis, as they remove the impact of (a) items that we would not expect to occur as a part of our normal business on a regular basis and (b) components of the provision for income taxes that we would not expect to occur as a part of our underlying taxable operations; (ii) for planning purposes, including the preparation of our annual operating budget; and (iii) as measures in determining the value of other acquisitions and dispositions.


Management uses Net Debt as a liquidity and leverage metric to determine how much debt would remain if all cash and cash equivalents were used to pay down debt principal.


In evaluating non-GAAP financial measures, investors should be aware that, in the future, we may incur expenses similar to the adjustments included herein. Our presentation of non-GAAP financial measures should not be construed as indicating that our future results will be unaffected by unusual or non-recurring items. Each of our non-GAAP financial measures has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of our results or liquidity measures as reported under GAAP. Some of these limitations are (i) it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; (ii) it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our ongoing operations; (iii) it does not reflect changes in, or cash requirements for, our working capital needs; (iv) it does not reflect the cash requirements necessary to make payments on our debt; (v) it does not reflect our future requirements for capital expenditures or contractual commitments; (vi) it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and (vii) other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.


Because of these limitations, these non-GAAP financial measures should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations, including those under our outstanding debt obligations. Investors should compensate for these limitations by relying primarily on our GAAP results and using these measures only as supplemental information.


Cautionary Statement on Forward-Looking Statements


Certain statements included herein contain “forward-looking statements” within the meaning of federal securities laws about the financial condition and results of operations of UNIFI that are based on management’s beliefs, assumptions and expectations about our future economic performance, considering the information currently available to management. An example of such forward-looking statements include, among others, guidance pertaining to our financial outlook. The words “believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,” “plan,” “estimate,” “project,” “expect,” “intend,” “seek,” “strive” and words of similar import, or the negative of such words, identify or signal the presence of forward-looking statements. These statements are not statements of historical fact, and they involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that we express or imply in any forward-looking statement.


Factors that could contribute to such differences include, but are not limited to: the competitive nature of the textile industry and the impact of global competition; changes in the trade regulatory environment and governmental policies and legislation; the availability, sourcing, and pricing of raw materials; general domestic and international economic and industry conditions in markets where UNIFI competes, including economic and political factors over which UNIFI has no control; changes in consumer spending, customer preferences, fashion trends, and end-uses for UNIFI's products; the financial condition of UNIFI’s customers; the loss of a significant customer or brand partner; natural disasters, industrial accidents, power or water shortages, extreme weather conditions, and other disruptions at one of our facilities; the disruption of operations, global demand, or financial performance as a result of catastrophic or extraordinary events, including, but not limited to, epidemics or pandemics; the success of UNIFI’s strategic business initiatives; the volatility of financial and credit markets, including the impacts of counterparty risk (e.g., deposit concentration and recent depositor sentiment and activity); the ability to service indebtedness and fund capital expenditures and strategic business initiatives; the availability of and access to credit on reasonable terms; changes in foreign currency exchange, interest, and inflation rates; fluctuations in production costs; the ability to protect intellectual property; the strength and reputation of our brands; employee relations; the ability to attract, retain, and motivate key employees; the impact of climate change or environmental, health, and safety regulations; and the impact of tax laws, the judicial or administrative interpretations of tax laws, and/or changes in such laws or interpretations.


All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on UNIFI. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in UNIFI’s most recent Annual Report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by UNIFI with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260203590152/en/
Chris Hodges or Josh Carroll

Alpha IR Group

312-445-2870

UFI@alpha-ir.com


Original: UNIFI®, Makers of REPREVE®, Announces Second Quarter Fiscal 2026 Results