Unifi (UFI) investor relations material

Executive summary

• Achieved significant profitability improvement and positive cash flow, with gross profit rising to $9.1 million from a loss of $0.4 million year-over-year, driven by cost reductions and operational optimization, despite an 11.3% decline in net sales to $130.0 million.

• Net loss narrowed to $2.3 million from $16.8 million year-over-year, with adjusted EBITDA turning positive at $4.0 million from a loss of $4.9 million.

• Implemented profit improvement plans, including plant closure, workforce reductions, and cost-saving initiatives.

• Maintained investment in product innovation and sustainability, with traction in textile recycling, non-apparel, and performance products.

• Demonstrated resilience amid industry headwinds, including tariffs, oil price volatility, and geopolitical pressures.

Financial highlights

• Net sales for Q3 FY26 were $130.0 million, down 11.3% year-over-year but up 7.1% sequentially; gross profit reached $9.1 million (7.0% margin), reversing a prior year loss.

• SG&A expenses fell 9% year-over-year to $11.2 million; adjusted EBITDA was $4.0 million, up from a loss of $4.9 million.

• Free cash flow for Q3 was $7.2 million, with $24.4 million generated year-to-date; net debt reduced to $68.4 million.

• REPREVE Fiber products contributed $38.2 million (29% of net sales) in Q3.

• CapEx for the quarter was $800,000, down 50% year-to-date.

Outlook and guidance

• Focus on leveraging improved cost structure, investing in innovation, and maintaining balance sheet strength.

• Q4 results will reflect price increases in response to petrochemical inflation; working capital expected to increase by $4–$7 million due to higher sales and raw material costs.

• Expect improved sales and profitability in Brazil, continued innovation adoption in Asia, and ongoing margin growth in Americas.

• Liquidity remains sufficient for ongoing operations, with $55.9 million available as of March 29, 2026.

• Management expects continued demand volatility due to geopolitical tensions, inflation, and trade policy uncertainty.