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Dec 28, 2025
Unifi Q2 2026 Earnings Report
Unifi, Inc. announced its second quarter fiscal 2026 results, reporting a net loss of $9.7 million and diluted EPS of -$0.53, with strategic initiatives leading to improved profitability at lower revenue levels.
Key Takeaways
Unifi, Inc. reported a net loss of $9.7 million, or -$0.53 per diluted share, for the second fiscal quarter ended December 28, 2025. Net sales decreased by 12.6% to $121.4 million, primarily due to trade and tariff-related uncertainty and demand volatility. Despite the revenue decline, gross profit increased to $3.6 million from $0.5 million in the prior year, and operating loss improved to $7.3 million from $7.6 million, reflecting the positive impact of cost alignment efforts.
Net sales for Q2 Fiscal 2026 were $121.4 million, a decrease of 12.6% from the second quarter of fiscal 2025, driven by trade and tariff-related uncertainty and demand volatility.
The company reported a net loss of $9.7 million, or -$0.53 per diluted share, which includes $0.8 million in net restructuring costs.
Gross profit increased significantly to $3.6 million (3.0% gross margin) from $0.5 million (0.4% gross margin) in the prior year, primarily due to multi-year cost alignment efforts.
Adjusted EBITDA was $(0.7) million, an improvement compared to $(5.8) million in the second quarter of fiscal 2025, indicating progress in profitability despite lower sales.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
UNIFI anticipates a return to a more normalized operating environment with improving customer engagements. The company expects to increase working capital levels modestly in support of increased sales, leading to lower operating cash flows in the third quarter compared to the most recent quarter. The focus remains on converting improved operational progress into sustained financial momentum.
Positive Outlook
- Initial signs of a return to a more normalized operating environment with improving customer engagements.
- Investments in innovation and the beyond apparel portfolio are gaining traction across key focus areas.
- Customers are expected to rebuild depleted inventory levels in calendar 2026, supporting increased sales.
- Strategic initiatives to realign cost and operational profiles have significantly reduced the revenue breakeven point.
- Strengthening of the balance sheet and financial results is expected to continue.
Challenges Ahead
- Expectation of lower operating cash flows in the third fiscal quarter compared to the second fiscal quarter due to increased working capital.
- Recognition that there is still a lot of work to be done to achieve goals.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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