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Unifi (UFI) investor relations material
Unifi Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Strategic cost realignment and facility closures in North America, along with workforce reductions, have lowered the revenue breakeven point and improved operating efficiency, positioning the company for profitability at lower sales levels.
Net sales for Q2 FY26 declined 12.6% year-over-year to $121.4 million, but gross profit increased to $3.6 million from $0.5 million, driven by cost-saving initiatives and improved utilization.
Early Q3 results indicate improved customer engagement and better order trends, with optimism for continued improvement as inventory restocking occurs post-holiday.
Strategic focus on innovation, new product development, and expanding beyond apparel to drive future growth.
The company implemented a Fiscal 2026 Profit Improvement Plan, incurring $1.1 million in employee separation costs and recognizing a $0.3 million gain from asset disposals.
Financial highlights
Net sales for Q2 FY26 were $121.4 million, down 12.6% year-over-year, mainly due to lower demand in Asia and pricing pressure in Brazil.
Gross profit rose to $3.6 million (gross margin 3.0%), up from $0.5 million (0.4%) a year ago.
SG&A expenses dropped 25% year-over-year to $9.7 million.
Adjusted EBITDA improved to $(0.7) million from $(5.8) million year-over-year.
Free cash flow for the six months ended December 28, 2025, was $13.3 million, up from $(19.9) million year-over-year.
Outlook and guidance
Management expects the profit improvement plan and cost reductions to support positive operating cash flow in upcoming quarters.
Early Q3 shows signs of a more normalized operating environment and improving customer engagement.
Anticipates modest increases in working capital as customers rebuild inventory in calendar 2026, with lower operating cash flows expected in Q3 compared to Q2.
Focus remains on converting operational progress into sustained financial momentum in the second half of FY26.
Expects clearer global trade conditions to support revenue improvement in calendar 2026.
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