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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.
- TimeTickerHeadlineOpen
- 5 FebEQH
Record AUM/A, strong cash generation, and $1.8B capital return set up double-digit EPS growth. - 5 FebRAL
Q4 revenue rose 1% to $555M, with strong cash flow and a $1.4B goodwill impairment. - 5 FebSNA
Q4 sales up 2.8%, EPS at $4.94, strong cash flow, and a 14% dividend increase. - 5 FebTW
Record revenue, robust earnings growth, and digital asset expansion drive strong results. - 5 FebLSPD
Revenue and gross profit rose, margins improved, and guidance was raised for fiscal 2026. - 5 FebSCSC
Q2 FY26 sales grew 2.5%, but margin pressure led to reduced full-year guidance. - 5 FebAMSC
Q3 FY25 revenue up 21% to $74.5M, record net income, and Q4 guidance above $80M. - 5 FebBSIG
Record AUM, strong net inflows, and margin expansion drove all-time high ENI EPS. - 5 FebDIGIA
Record Q4, €217.0M net sales, and strong international and AI-driven growth outlook. - 5 FebTSN
Strong financials, higher dividends, and all management proposals approved; all shareholder proposals defeated.
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