10-Q · May 6, 2026
Unifi, Inc. reported Q3 fiscal 2026 revenue of $130.0 million, a decline from $146.6 million in the prior year, while adjusted EPS improved to $(0.20) from $(0.92), indicating significant operational improvement despite…
Earnings analysis · 10-K
UFI earnings analysis
Filed August 26, 2026 · Our reading of the company's report
The latest report
Fiscal 2026 showed a meaningful operational recovery: gross profit rose to $30.456 million, Adjusted EBITDA turned positive at $8.867 million, and operating cash flow improved to $26.534 million. The Americas Segment…
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Fiscal 2026 showed a meaningful operational recovery: gross profit rose to $30.456 million, Adjusted EBITDA turned positive at $8.867 million, and operating cash flow improved to $26.534 million. The Americas Segment delivered the largest improvement after restructuring and cost actions, while Brazil remained profitable but weakened and Asia continued to contract. However, consolidated revenue fell 7.0% to $531.303 million and GAAP net loss widened to $24.562 million, or $1.33 per diluted share, leaving the outlook dependent on demand recovery, tariff/geopolitical conditions and successful raw-material price pass-through.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.33
What stood out
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Sustainability Platform Supports Differentiation
UNIFI’s strategy centers on differentiated, sustainable textile solutions, including REPREVE recycled fibers and yarn technologies offering water repellency, flame retardation, soil release, enhanced color-fastness and ultraviolet protection. REPREVE Fiber generated $157.428 million, or 30% of fiscal 2026 sales.
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Material Profitability Recovery
Gross profit increased to $30.456 million from $8.418 million in fiscal 2025 and $16.616 million in fiscal 2024. Adjusted EBITDA improved to $8.867 million from negative $11.551 million in fiscal 2025 and negative $5.197 million in fiscal 2024, reflecting cost reductions and improved manufacturing utilization.
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Americas Cost Actions Are Working
The Americas turnaround was the key operating improvement: Segment Profit rose to $24.372 million from approximately breakeven in fiscal 2025 and $4.524 million in fiscal 2024, while gross margin improved to 1.5% from negative 5.8% and negative 5.1%, respectively.
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Cash Flow and Working Capital Improved
Operating cash flow rebounded to $26.534 million from cash use of $21.311 million in fiscal 2025 and cash generation of $2.092 million in fiscal 2024. Inventory declined to $101.067 million from $122.929 million, supporting liquidity and deleveraging.
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Deleveraging Strengthens Liquidity
Debt principal declined to $92.439 million from $108.008 million, and net debt declined to $67.367 million from $85.344 million. UNIFI repaid $16.300 million on its ABL Facility during fiscal 2026 and had $53.313 million of total available liquidity at year-end.
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Disciplined Capital Deployment
Capital spending was reduced to $5.002 million from $10.488 million in fiscal 2025 and $11.189 million in fiscal 2024, while management expects fiscal 2027 investment of $7.000 million to $9.000 million focused primarily on maintenance and production efficiency.
What to watch
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Asia Demand and Tariff Exposure
Demand remains weak and geographically concentrated pressure is worsening in Asia: fiscal 2026 Asia revenue fell 13.1% to $90.945 million, after falling 12.9% in fiscal 2025, while Asia Segment Profit declined to $11.560 million from $19.501 million in fiscal 2024. Management cites geopolitical events, tariff uncertainty and competitive pricing pressure.
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Unhedged Raw-Material Inflation
Petroleum-based raw materials and energy costs remain a material unhedged exposure. Supply-route disruptions associated with the Iran conflict sharply increased crude oil and feedstock prices in March 2026; UNIFI implemented price increases and surcharges beginning in April 2026, but states that pass-through is not always possible and can lag by one to two quarters.
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Real Estate Sale Execution
The planned sale of North Carolina real estate is important to deleveraging but remains subject to closing conditions. The August 17, 2026 agreement covers approximately $60.000 million of gross proceeds, with a $2.250 million escrow deposit of which $1.000 million may become non-refundable; proceeds are intended to repay ABL Term Loan debt, whose scheduled fiscal 2028 maturities total $76.710 million.
Management's outlook
The 10-K provides no quantitative revenue or EPS outlook. Management expects fiscal 2027 sales and profitability to improve from fiscal 2026 and expects fiscal 2027 capital projects of $7.000 million to $9.000 million.
Earlier filings 4
10-K · August 26, 2025
UNIFI positions itself as a global, sustainability-led textile yarn manufacturer focused on expanding its REPREVE recycled platform, growing regional market share (notably Brazil), and pursuing product innovation while…
10-Q · February 6, 2025
UNIFI reported quarterly net sales of $138,880,000 and a GAAP diluted loss per share of $(0.62) for the three months ended December 29, 2024, with a small gross profit of $534,000 and operating loss of $7,564,000.…
10-K · August 25, 2023
UNIFI's 10-K describes a business hit by weak global textile demand in fiscal 2023 that reduced consolidated sales and profitability, particularly in the Americas and Asia. Management is prioritizing liquidity and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.