Unifi Reports $9.7 Million Net Loss with Revenue Decline in Latest Quarter

Unifi, Inc. reported a net loss of $9.7 million for the three months ended December 28, 2025, a 14.8% improvement compared to a net loss of $11.4 million in the same period last year. Revenue for the quarter decreased by 12.6% to $121.4 million, down from $138.9 million in the prior year, primarily due to reduced sales volumes and a lower-priced sales mix. The company’s gross profit increased to $3.6 million from $534,000, attributed to cost-saving initiatives and improved manufacturing utilization, despite ongoing demand volatility and pricing pressures.

For the six-month period ending December 28, 2025, Unifi's net loss rose to $21.1 million from $19 million in the previous year, with total revenue declining by 10.2% to $257 million. The decrease in revenue was driven by lower sales volumes across all segments, particularly in Asia and Brazil, as well as a competitive pricing environment. Gross profit for the six months also fell to $7 million from $10 million, reflecting challenges in maintaining margins amid fluctuating demand and production costs.

Strategically, Unifi has been consolidating its manufacturing operations, including the closure of its Madison, North Carolina facility, which is part of a broader effort to enhance operational efficiency. The company incurred restructuring costs of $1.9 million during the six-month period, which included employee separation costs and transition expenses related to the consolidation. Additionally, Unifi has focused on expanding its REPREVE® product line, which accounted for 28% of net sales in the latest quarter, down from 31% a year earlier.

Operationally, Unifi's total assets decreased to $382.9 million from $426.9 million, with cash and cash equivalents increasing to $30.2 million. The company reported a significant reduction in accounts payable and other current liabilities, reflecting lower production activity and cost-saving measures. As of December 28, 2025, Unifi's employee headcount remained stable, with ongoing efforts to streamline operations and reduce costs.

Looking ahead, Unifi remains cautious about the economic environment, particularly regarding inflation, interest rates, and global trade uncertainties. The company is committed to leveraging its competitive advantages to grow market share and improve profitability while continuing to monitor market conditions closely. Unifi's management believes that its strategic initiatives, including the Fiscal 2026 Profit Improvement Plan, will position the company for better performance in the future.